Service Tax-Changes in the composition rates [Rule 6]
(i) In case of insurer carrying on Life Insurance Business [Sub-rule (7a)] | ||
Where the entire premium is not towards risk cover :- | ||
Rate of Service tax | ||
Prior to amendment | After Amendment | |
First | 1.50% of the gross amount of premium charged | 3% of the gross amount of premium charged |
Subsequent year | 1.50% of the gross amount of premium charged | 1.50% of the gross amount of premium charged. |
(ii) In case of sale/purchase of foreign currency including money changing [Sub-rule (7B)] | |||
S.No. | For an amount | Rate of Service tax | |
Prior to amendment | After Amendment | ||
1. | Upto Rs. 1,00,000 | 0.10% of the gross amount of currency exchanged or Rs. 25 whichever is higher | 0.12% of the gross amount of currency exchanged or Rs. 30 whichever is higher |
2. | Exceeding Rs. 1,00,000 and upto Rs. 10,00,000 | Rs. 100+0.05% of the gross amount of currency exchanged | Rs. 120+0.06% of the gross amount of currency exchanged |
3. | Exceeding Rs. 10,00,000 | Rs. 550+0.01% of the gross amount of currency exchanged or Rs. 5,000 whichever is lower | Rs. 660+0.12% of the gross amount of currency exchanged or Rs. 6,000 whichever is lower |
(iii) In case of Distributor or Selling Agents of Lotteries [Sub-rule (7C)] | ||
Where the entire premium is not towards risk cover :- | ||
Guaranteed lottery prize payout | Amount of Service Tax payable on ever Rs. 10 Lakh (or Part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw. | |
Prior to amendment | After Amendment | |
More than 80% | Rs. 6,000/- | Rs. 7,000/- |
Less than 80% | Rs. 9,000/- | Rs. 11,000/- |