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Service Tax (Persons Exempted from Payment of Tax) (Amendment) Order 2024


The Service Tax (Persons Exempted from Payment of Tax) (Amendment) Order 2024 introduces a new exemption for taxable services provided within Group J entities.


This amendment, which comes into effect on 1 March 2024.


Specifically, a taxable person in Group J who provides taxable services to another taxable person within Group J will be exempted from paying service tax on those services, provided certain conditions are met.


This exemption must be read together with the amendments in sub-rules 2(g) of the Service Tax (Amendment) Regulations 2024, which specify the scope of Group J taxable services covered.


The purpose of this new exemption is to avoid double taxation of services exchanged within a company group that are relevant for making overall taxable supplies. It provides relief for business restructuring and centralised services within a group.


These changes are crucial for stakeholders to understand as they navigate the compliance requirements within the updated tax landscape. The details of these exemptions and the conditions under which they apply are critical for ensuring that eligible parties can benefit from the exemptions provided.


References:

Service Tax (Persons Exempted from Payment of Tax) (Amendment) Order 2024

325.1 [P. U (A) 66_2024] Service Tax (Persons Exempted from Payment of Tax)
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Service Tax (Persons Exempted from Payment of Tax) Order 2018

325.2 [P.U. (A) 380_2018] Service Tax (Persons Exempted from Payment of Tax) Order 2018
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Download PD • 566KB

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