Folk artists to be brought under service tax ambit

Performing artists in various folk or classical art forms will be subjected to service tax from April this year, if they charge more than Rs one lakh for a performance.
This will apply to artists performing classical or folk art forms in music, dance as well as theatre. So far, all such artists have been exempted from the service tax payment.
As per a new proposal made in the Finance Bill 2015, to come into effect from April 1, exemption would be limited to Rs one lakh for one performance.
"Exemption to services provided by a performing artist in folk or classical art form of (i) music, or (ii) dance, or (iii) theater, will be limited only to such cases where amount charged is up to Rs 1,00,000 for a performance," the Bill says.

However, the service tax exemption has been extended for a host of other activities, including for exhibition of cinematographic film, circus, dance, or theatrical performances including drama or ballet, recognized sporting events, concerts, pageants, award functions, musical performances or any other sporting event where the consideration for such admission is up to Rs 500 per person.
These services are covered under exemption notification after being deleted from the negative list.
The exemption has also been extended for admission to a museum, zoo, national park, wild life sanctuary and tiger reserves.
The government has also proposed a hike in the rate of service tax from 12.36 per cent to 14 per cent. The government also plans to impose a Swachh Bharat (Clean India) cess at a rate of 2 per cent on the value of taxable services at a later date.