Companies

Coverfox eyes premiums worth Rs 1,000 crore in three years

According to its CEO, the online insurance portal sells about 8,000 to 10,000 policies a month

Source: business-standard

Markets

Mutual Funds emerging as strong counterbalance to FPIs: Sebi

MFs infused Rs 75,000 cr in equity markets during first 11 months of fiscal, even as FPIs pulled out Rs 27,000 cr

Source: business-standard

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China's bad loan conundrum

Abheek Barua & Bidisha Ganguly

Non-performing loans in the Chinese banking system stood at RMB 1.27 trillion at the end of 2015. This 'official' figure, however, gives little indication of banks' exposure to the shadow financing sector

Source: business-standard

Status of the Service Tax Regn number

There is one web site thru' which we can check the status of the
Service Tax Regn number.

Note:

As u know the Service Tax Regn no. is
(PAN)ST001.

Click Here

Govt exempts taxable services provided to SEZ

Govt exempts taxable services provided to Special Economic Zone, and received by a developer or units of a Special Economic Zone

NOTIFICATION NO 9/2009-SERVICE TAX

Dated: March 3, 2009


In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), and in supersession of the notification of the Government of India, Ministry of Finance ( Department of Revenue), No. 4/2004-ServiceTax, dated the 31st March, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section ( i ) dated the 31st March, 2004, vide, G.S.R.248(E), dated the 31st March, 2004, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in clause (105) of section 65 of the said Finance Act, which are provided in relation to the authorised operations in a Special Economic Zone, and received by a developer or units of a Special Economic Zone, whether or not the said taxable services are provided inside the Special Economic Zone, from the whole of the service tax leviable thereon under section 66 of the said Finance Act:

Provided that

(a) the developer or units of Special Economic Zone shall get the list of services specified in clause (105) of section 65 of the said Finance Act as are required in relation to the authorised operations in the Special Economic Zone, approved from the Approval Committee (hereinafter referred to as the specified services);

(b) the developer or units of Special Economic Zone claiming the exemption actually uses the specified services in relation to the authorised operations in the Special Economic Zone;

(c) the exemption claimed by the developer or units of Special Economic Zone shall be provided by way of refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone;

(d) the developer or units of Special Economic Zone claiming the exemption has actually paid the service tax on the specified services;

(e) no CENVAT credit of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone has been taken under the CENVAT Credit Rules, 2004;

(f) exemption or refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone shall not be claimed except under this notification.

2. The exemption contained in this notification shall be subject to the following conditions, namely:-

(a) the person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the said Finance Act shall pay service tax as applicable on the specified services provided to the developer or units of Special Economic Zone and used in relation to the authorised operations in the Special Economic Zone, and such person shall not be eligible to claim exemption for the specified services:
Provided that where the developer or units of Special Economic Zone and the person liable to pay service tax under sub-section (2) of section 68 for the said services are the same person, then in such cases exemption for the specified services shall be claimed by that person;

(b) the developer or units of Special Economic Zone shall claim the exemption by filing a claim for refund of service tax paid on specified services;

(c) the developer or units of Special Economic Zone shall file the claim for refund to the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;

(d) the developer or units of Special Economic Zone who is not registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said Finance Act or the rules made thereunder, shall, prior to filing a claim for refund of service tax under this notification, file a declaration in the Form annexed hereto with the respective jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;

(e) the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code (STC) number to the developer or units of Special Economic Zone within seven days from the date of receipt of the said Form;

(f) the claim for refund shall be filed, within six months or such extended period as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall permit, from the date of actual payment of service tax by such developer or unit to service provider;

(g) the refund claim shall be accompanied by the following documents, namely:-
(i) a copy of the list of specified services required in relation to the authorised operations in the Special Economic Zone, as approved by the Approval Committee;
(ii) documents for having paid service tax;
(iii) a declaration by the Special Economic Zone developer or unit, claiming such exemption, to the effect that such service is received by him in relation to authorised operation in Special Economic Zone.

(h) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said services have been actually used in relation to the authorised operations in the Special Economic Zone, refund the service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone;

(i) where any refund of service tax paid on specified services is erroneously refunded for any reasons whatsoever, such service tax refunded shall be recoverable under the provisions of the said Finance Act and the rules made thereunder, as if it is a recovery of service tax erroneously refunded.

3. The exemption contained in this notification shall apply only in respect of service tax paid on the specified services on or after the date of publication of this notification in the Official Gazette.

4. Words and expressions used in this notification and defined in the Special Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, shall apply, so far as may be, in relation to refund of service tax under this notification as they apply in relation to a Special Economic Zone.
Form

1. Name of the developer or unit of Special Economic Zone:

2. Address of the registered office or head office:

3. Permanent Account Number (PAN):

4. Details of Bank Account:
(a) Name of the Bank:
(b) Name of the Branch:
(c) Account Number:

5. (a) Constitution of developer or unit of Special Economic Zone [Proprietorship /Partnership /Registered Private Limited Company /Registered Public Limited Company /Others (specify)]

(b) Name, address, telephone number and Email ID of proprietor /partner /director

6. Description of authorized operations as approved by the Approval Committee:

S. No.
Description of goods
Classification in case of excisable goods

(1)
(2)
(3)






7. Description of taxable services received by the exporter for use in relation to the authorised operations in the Special Economic Zone:

S. No.
Description of taxable service
Classification under the Finance Act, 1994
Name, STC and address of service provider
Invoice number and date

(1)
(2)
(3)
(4)
(5)








8. Name, designation and address of the authorized signatory / signatories:

9. I / We hereby declare that-

(i) the information given in this application form is true, correct and complete in every respect and that I am authorized to sign on behalf of the developer or units of Special Economic Zone;

(ii) no CENVAT credit of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone shall be taken under the CENVAT Credit Rules, 2004;

(iii) I / we shall maintain records pertaining to the specified services used in relation to the authorised operations in the Special Economic Zone and shall make available, at the declared premises, at all reasonable time, such records for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be.

(Signature of the applicant / authorized person with stamp)

Date:

Place:

[F.No.354/163/2006-TRU]





(Unmesh Sharad Wagh)
Under Secretary to the Government of India



in the said notification, in the Table, for serial number 21 and the entries relating thereto, the following shall be substituted :-

"21
(1) Chief Commissioner of Central Excise, Shillong
Dibrugarh


(2) Chief Commissioner of Central Excise, Kolkata
Shillong
Guwahati"


F. No. 275/100/2006-CX.8A

(Manpreet Arya)
Under Secretary to the Government of India

Note:-The principal Notification Number 18/2007-Service Tax, dated the 12th May, 2007 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 353(E), dated the 12th May, 2007, and was amended vide notification number 46/2008- Service Tax, dated the 18th January, 2008 vide number G.S.R. 38(E) renumbered as 1/2008- Service Tax vide Corrigendum dated the 18th January, 2008 vide number G.S.R. 49(E) and vide notification number 25/2008- Service Tax, dated the 21st May, 2008 vide number G.S.R. 393 (E),

Taxable event is rendering of taxable service., not raising of invoice or payment: Gujarat HC

*Service Tax – Taxable event is rendering of taxable service., not raising
of invoice or payment: Gujarat HC*
*By TIOL News Service *
*AHMEDABAD, FEB 19, 2009: CAN* you imagine Revenue raising a demand of
service tax for the period when there was no tax was payable, simply for the
reason that payment was received when it was taxable? It not only happened,
but they went in appeal to the High Court after they lost it CESTAT.
Revenue is in appeal with the questions,

"Whether or not, in Service Tax, the taxable event is realization of payment
for taxable services rendered and not the time of rendering of the taxable
service"

"Whether or not, at the time of realization of payment for the taxable
service provided, the provisions of Rule 2(i)(d)(iv) had come into force,
making the service receiver liable for payment of service tax in respect of
taxable services provided by a non-resident or a person who is from outside
India and who does not have any office/establishmen t in India"
It was submitted that the impugned order dated 03.08.2007 made by
CESTAT [*2007-TIOL-1813-
CESTAT-AHM
*] overlooks the fact that by virtue of amendment of relevant Rule of the
Service Tax Rules, the liability to pay Service Tax has been shifted to the
recipient of the service w.e.f. 16.08.2002 by virtue of Rule 2(1)(d)(iv) of
the Rules. That in the circumstances, the respondent-assessee was required
to pay the Service Tax on the services received from a sister company
located in Germany.
CESTAT has found that admittedly, the services were received by respondent
between November 2001 and March 2002 while the invoice has been raised and
settled in September 2003. It is also an accepted position that at the point
of time when the services were rendered by the service provider and received
by the respondent the liability was not cast on the recipient of the
services. The liability to pay Service Tax has been cast on the recipient of
the service only w.e.f. 16.08.2002.
The High Court observed,
1.The taxable event is providing all taxable services which has been defined
by Section 65(105) of the Act.
2.The taxable event in relation to Service Tax is admittedly the rendering
of taxable service.
3.The said taxable services were rendered between November 2001 and March
2002.
4.In the circumstances, merely because the invoice is raised and payment
made subsequently viz. after 16.05.2002 the liability cannot be fastened on
the recipient of the services as the taxable event had already occurred past
and raising of invoices and/or making of payment cannot be considered to be
a taxable event.
5.Nor is it possible to hold that the provision of Rule 2(1)(d)(iv) of the
Rules is retrospectively applicable to services rendered prior to
16.08.2002.
6.Thus, neither the Section nor the Rule even suggests that the taxable
event is the raising of an invoice for making of payment.
7.It is well settled in law that a taxing statute has to be read and plain
meaning assigned to the provisions without importing any extraneous
consideration on a presumption.
8.The Tribunal has decided the matter in accordance with law and based on
the facts and material available on record.
9.In absence of any legal infirmity in the impugned order of the Tribunal,
no interference is called for.
10. Accordingly, in absence of any substantial question of law, the appeal
is dismissed.

supersession of the notification of the Government of India, Ministry of Finance ( Department of Revenue), No. 4/2004-ServiceTax, 31st Mar 2k4

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]



GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)

New Delhi, the 3rd March, 2009.

Notification No.9/2009-Service Tax



G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), and in supersession of the notification of the Government of India, Ministry of Finance ( Department of Revenue), No. 4/2004-ServiceTax, dated the 31st March, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section ( i ) dated the 31st March, 2004, vide, G.S.R.248(E), dated the 31st March, 2004, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in clause (105) of section 65 of the said Finance Act, which are provided in relation to the authorised operations in a Special Economic Zone, and received by a developer or units of a Special Economic Zone, whether or not the said taxable services are provided inside the Special Economic Zone, from the whole of the service tax leviable thereon under section 66 of the said Finance Act:



Provided that–



(a) the developer or units of Special Economic Zone shall get the list of services specified in clause (105) of section 65 of the said Finance Act as are required in relation to the authorised operations in the Special Economic Zone, approved from the Approval Committee (hereinafter referred to as the specified services);



(b) the developer or units of Special Economic Zone claiming the exemption actually uses the specified services in relation to the authorised operations in the Special Economic Zone;



(c) the exemption claimed by the developer or units of Special Economic Zone shall be provided by way of refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone;



(d) the developer or units of Special Economic Zone claiming the exemption has actually paid the service tax on the specified services;



(e) no CENVAT credit of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone has been taken under the CENVAT Credit Rules, 2004;



(f) exemption or refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone shall not be claimed except under this notification.



2. The exemption contained in this notification shall be subject to the following conditions, namely:-



(a) the person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the said Finance Act shall pay service tax as applicable on the specified services provided to the developer or units of Special Economic Zone and used in relation to the authorised operations in the Special Economic Zone, and such person shall not be eligible to claim exemption for the specified services:

Provided that where the developer or units of Special Economic Zone and the person liable to pay service tax under sub-section (2) of section 68 for the said services are the same person, then in such cases exemption for the specified services shall be claimed by that person;



(b) the developer or units of Special Economic Zone shall claim the exemption by filing a claim for refund of service tax paid on specified services;



(c) the developer or units of Special Economic Zone shall file the claim for refund to the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;



(d) the developer or units of Special Economic Zone who is not registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said Finance Act or the rules made thereunder, shall, prior to filing a claim for refund of service tax under this notification, file a declaration in the Form annexed hereto with the respective jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;



(e) the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code (STC) number to the developer or units of Special Economic Zone within seven days from the date of receipt of the said Form;



(f) the claim for refund shall be filed, within six months or such extended period as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall permit, from the date of actual payment of service tax by such developer or unit to service provider;



(g) the refund claim shall be accompanied by the following documents, namely:-

(i) a copy of the list of specified services required in relation to the authorised operations in the Special Economic Zone, as approved by the Approval Committee;

(ii) documents for having paid service tax;

(iii) a declaration by the Special Economic Zone developer or unit, claiming such exemption, to the effect that such service is received by him in relation to authorised operation in Special Economic Zone.



(h) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said services have been actually used in relation to the authorised operations in the Special Economic Zone, refund the service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone;



(i) where any refund of service tax paid on specified services is erroneously refunded for any reasons whatsoever, such service tax refunded shall be recoverable under the provisions of the said Finance Act and the rules made thereunder, as if it is a recovery of service tax erroneously refunded.



3. The exemption contained in this notification shall apply only in respect of service tax paid on the specified services on or after the date of publication of this notification in the Official Gazette.



4. Words and expressions used in this notification and defined in the Special Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, shall apply, so far as may be, in relation to refund of service tax under this notification as they apply in relation to a Special Economic Zone.

Service Tax Exemption of services specified in sub-clauses (j), (k), (zr), (zza), (zzb), (zzzf), (zzzq) and (zzzzj) of clause (105) of section 65

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, IN PART II, SECTION 3, SUB-SECTION (i)]



GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(Department of Revenue)



New Delhi, the 5th January, 2009



Notification No.1/2009 – Service Tax





G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), and in supercession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.29/2008- Service Tax, dated the 29thJune, 2008, published in the Gazette of India Extraordinary, vide G.S.R.482 (E), dated the 29th June, 2008, except as things done or omitted to be done before such supercession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in sub-clauses (j), (k), (zr), (zza), (zzb), (zzzf), (zzzq) and (zzzzj) of clause (105) of section 65 of the Finance Act, provided by any person to a goods transport agency for use by the said goods transport agency to provide any service, referred to in sub-clause (zzp) of clause (105) of section 65 of the Finance Act, to a customer in relation to transport of goods by road, from the whole of the service tax leviable thereon under section 66 of the Finance Act subject to the condition that the invoice issued by such service provider, providing services should mention the name and address of the goods transport agency and also the name and date of the consignment note, by whatever name called, issued in his behalf.



(Unmesh Sharad Wagh )

Under Secretary to the Government of India

[F. No. 137/175/2008-CX-4]

Service Tax- Giving a mega relief to manufacturers who were denied Credit of Service Tax paid on Outward Transportation

Giving a mega relief to manufacturers who were denied Credit of Service Tax paid on Outward Transportation of goods from their factory; HC has ruled that the manufacturers are entitled for the Credit of the same during the relevant period.
HC vide AIT-2009-95-HC has ruled that the service of transportation up to the customer’s doorstep, in the case of “FOR destination” sales where the entire cost of freight is paid and borne by the manufacturer, would be “input service” within the meaning of Rule 2( l) of the CENVAT Credit Rules
The Ruling of CESTAT in case of Gujarat Ambuja Cement AIT-2007-151-CESTAT was overruled by HC. CESTAT in the said ruling held that the credit covers duty paid on input materials as well as tax paid on services, used in or in relation to the manufacture of the ‘final product’. Therefore, extending the credit beyond the point of duty paid removal of the final product would be contrary to the Scheme of Cenvat Credit Rules.
HC has ruled that the ‘input service’ has been defined to mean any service used by the manufacturer whether directly or indirectly and also includes, inter alia, services used in relation to inward transportation of inputs or export goods and outward transportation up to the place of removal. It has also remain un-controverted that for transportation purposes insurance cover has also been taken by the appellant which further shows that the ownership of the goods and the property in the goods has not been transferred to the seller till the delivery of the goods in acceptable condition to the purchaser at his door step. Accordingly, even the second condition that the seller has to bear the risk of loss or damage to the goods during transit to the destination stand fulfilled.
Though the issue is also pending with the Larger Bench of CESTAT in case of India Cement AIT-2007-308-CESTAT; the Ruling of Larger Bench is also expected to be in favour of manufacturers as the issue has already been settled by the High Court.
However, CBEC has also amended the definition of input service vide Central Excise Non-Tariff Notification No. 10/2008 dated 1st March 2008 as under:
“input service” means any service,-
(i) used by a provider of taxable service for providing an output service; or
(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, up to the place of removal,
and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal;

Service Tax Return Form ST-3 amended

[TO BE PUBLISHED IN THE GAZATTE OF INDIA, EXTRAORDINARY PART II, SECTION 3, SUB-SECTION (i)]

MINISTRY OF FINANCE
(Department of Revenue)
(Central Board of Excise and Customs)

New Delhi, the 17th March,2009

Notification No. 10 / 2009-ST

G.S.R…. (E). In exercise of the powers conferred by section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994 namely : -



1. (1) These rules may be called the Service Tax (Amendment) Rules, 2009.

(2) They shall come into force on the date of their publication in the Official Gazette.



2. In the Service Tax Rules, 1994, in Form ST-3, after S. No. 7 and the entries relating thereto, the following shall be inserted, namely,-



“8. If the return has been prepared by a Service Tax Return Preparer (STRP), furnish further details as below:


(a)
Identification No. of STRP


(b)
Name of STRP

(Signatures of Service Tax Return Preparer)”.





[F. No. 137/318/2007-CX.4 (Pt. 2)]







(Ashima Bansal)

Under Secretary to Government of India



Note.- The principal rules were notified vide notification No. 2/94-Service Tax, dated the 28th June 1994 and published in the Gazette of India, Extraordinary vide number G.S.R.546 (E), dated the 28th June 1994 and were last amended vide notification No. 31/2008-Service Tax, dated the 2nd September, 2008 which was published vide number G.S.R.633 (E), 2nd September, 2008.

Govt exempts taxable services provided to Special Economic Zone, and received by a developer or units of a Special Economic Zone

NOTIFICATION NO 9/2009-SERVICE TAX


Dated: March 3, 2009


In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), and in supersession of the notification of the Government of India, Ministry of Finance ( Department of Revenue), No. 4/2004-ServiceTax, dated the 31st March, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section ( i ) dated the 31st March, 2004, vide, G.S.R.248(E), dated the 31st March, 2004, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in clause (105) of section 65 of the said Finance Act, which are provided in relation to the authorised operations in a Special Economic Zone, and received by a developer or units of a Special Economic Zone, whether or not the said taxable services are provided inside the Special Economic Zone, from the whole of the service tax leviable thereon under section 66 of the said Finance Act:


Provided that–


(a) the developer or units of Special Economic Zone shall get the list of services specified in clause (105) of section 65 of the said Finance Act as are required in relation to the authorised operations in the Special Economic Zone, approved from the Approval Committee (hereinafter referred to as the specified services);


(b) the developer or units of Special Economic Zone claiming the exemption actually uses the specified services in relation to the authorised operations in the Special Economic Zone;


(c) the exemption claimed by the developer or units of Special Economic Zone shall be provided by way of refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone;


(d) the developer or units of Special Economic Zone claiming the exemption has actually paid the service tax on the specified services;


(e) no CENVAT credit of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone has been taken under the CENVAT Credit Rules, 2004;


(f) exemption or refund of service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone shall not be claimed except under this notification.


2. The exemption contained in this notification shall be subject to the following conditions, namely:-


(a) the person liable to pay service tax under sub-section (1) or sub-section (2) of section 68 of the said Finance Act shall pay service tax as applicable on the specified services provided to the developer or units of Special Economic Zone and used in relation to the authorised operations in the Special Economic Zone, and such person shall not be eligible to claim exemption for the specified services:

Provided that where the developer or units of Special Economic Zone and the person liable to pay service tax under sub-section (2) of section 68 for the said services are the same person, then in such cases exemption for the specified services shall be claimed by that person;


(b) the developer or units of Special Economic Zone shall claim the exemption by filing a claim for refund of service tax paid on specified services;


(c) the developer or units of Special Economic Zone shall file the claim for refund to the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;


(d) the developer or units of Special Economic Zone who is not registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said Finance Act or the rules made thereunder, shall, prior to filing a claim for refund of service tax under this notification, file a declaration in the Form annexed hereto with the respective jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be;


(e) the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code (STC) number to the developer or units of Special Economic Zone within seven days from the date of receipt of the said Form;


(f) the claim for refund shall be filed, within six months or such extended period as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall permit, from the date of actual payment of service tax by such developer or unit to service provider;


(g) the refund claim shall be accompanied by the following documents, namely:-

(i) a copy of the list of specified services required in relation to the authorised operations in the Special Economic Zone, as approved by the Approval Committee;

(ii) documents for having paid service tax;

(iii) a declaration by the Special Economic Zone developer or unit, claiming such exemption, to the effect that such service is received by him in relation to authorised operation in Special Economic Zone.


(h) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself that the said services have been actually used in relation to the authorised operations in the Special Economic Zone, refund the service tax paid on the specified services used in relation to the authorised operations in the Special Economic Zone;



(i) where any refund of service tax paid on specified services is erroneously refunded for any reasons whatsoever, such service tax refunded shall be recoverable under the provisions of the said Finance Act and the rules made thereunder, as if it is a recovery of service tax erroneously refunded.


3. The exemption contained in this notification shall apply only in respect of service tax paid on the specified services on or after the date of publication of this notification in the Official Gazette.


4. Words and expressions used in this notification and defined in the Special Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, shall apply, so far as may be, in relation to refund of service tax under this notification as they apply in relation to a Special Economic Zone.

Full Text

Service tax and excise duty relief will not benefit much to hospitality industry

The recent notification of the Central Government to reduce service tax and excise duty by two per cent is not expected to come to the rescue of the hospitality industry in the current time of despair. The Government directive will only be applicable to the hotel rooms and the banquet and convention facilities.

Speaking about the same, Rajindera Kumar, Vice President, Federation of Hotels and Restaurants Association of India (FHRAI) stated, “The relief given by the Government will provide negligible or no benefit to the industry and has left the industry sad and disillusioned. If the Government wanted to come to the aid of the industry while it is facing a slowdown, it should have looked into the quantum and the actuals of luxury tax as also the quantum of value added taxes could be reduced to 10. The service tax benefit is only reduced to the banqueting area, which is not a major part of the hotel operations. There are several hotels which do not even provide the facilities.”

With the slowdown that the industry is facing, the low occupancies and lesser movement in the Food and Beverage segment, the industry was expecting to receive tax relief from the Government in the Interim Budget. However, the current stimulus package of the Government is not expected to stimulate the industry. “At the face of it, it is a welcome step. However, we were expecting some concessions on import duties. Service tax benefit will not help the restaurant industry at all,” stated Sandeep Goyle, Honorary Secretary, National Restaurant Association of India (NRAI). Even the excise duty relief by two per cent is negligible opined S P Jain, President, Hotel and Restaurant Association of India (Western India). However, the benefits, as received by the industry from the directive will be passed on to the customers, Jain added.

Road Construction is exempt from Service Tax: CBEC

With the service tax rate being reversed from 12 to 10 per cent, a question which the service providers face is to determine the day on which the new service tax rate is effective. Even after 15 years of introduction of service tax in India, this very crucial legal issue is still unresolved. Controversies are going on, some tribunal judgments have come out but there is no trade notice, no circular and no clear law.

In contrast, he customs law has Section 15 and Excise law has Rule 5 which give clearly the date which will be relevant for charging the rate of duty. Under the Section 15 of Customs Act it is the date of filing the bill of entry or the date of clearance from the warehouse or the date of payment of duty depending on different situations. In Rule 5 of Excise Law it is the date of clearance of goods from the factory. In service tax law there is no specific provision . So the prevailing practices in different places are different.

The alternatives in the case of service tax are two. First it can be the date of rendering the service. This looks like a natural choice as the taxable event in the case of service tax is the date of rendering service. But legally there is no relation between taxable event and the date of determination of duty. In the Customs Act and the Excise Act the dates for determining the rate of duty have nothing to do with the taxable event. So in Service tax also it can be any date convenient. There is on the other hand a natural difficulty in choosing this date of rendering service as the dates can be multiple and ever changing and sometime continuous. For example in the case of telephone and internet, it is continuous and in the case of services rendered through software, it is indeterminate and difficult to find out. Moreover at the time of rendering the service there is no knowing what the value will be. Payment is usually much after the date of rendering the service.

Second alternative is the date of payment of service tax by the service provider to the government. This date is determinate and has the advantage of being easily verifiable from the invoice and other documents. It also has the advantage of being based on the invoice which indicates the value. It is no wonder that one judgment[1] in the Tribunal has accepted the date of payment as the date for determination, though the logic is wrong in the case of this judgment. Another judgment[2] has referred to it also but has not given a final view.

To remove doubt and avoidable litigation it is essential that the Board issues a circular or trade notice immediately indicating what should be the date for determination of duty for the purpose of service tax. But really speaking on a fundamentally legal issue like this, a circular cannot be the valid solution. The Act or the Rule must incorporate the provision. Law cannot be laid down by a circular. It can only clarify a legal position. Temporarily the circular will serve the purpose of removing the doubt and bringing in parity in practice. But in the next Budget the legal provision must be brought about in the same line as the Customs Act and Central Excise Act and Rules. And it should be the date of payment of duty to the government.

Service Tax On Road Construction/Repair.

Service Tax department has now come with a innovative clarification on the subject of service Tax on the construction & repairs of Road .Details about services related to Road has been mentioned in following two services.



Commercial Or industrial Construction Service [section 65(105)(zzq)]10.09.2004
Works Contract [section 65(105)(zzzza)]01.06.2007
Services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams has been specifically excluded from the definition/scope of above service ,though above services had been added in service tax on 10.09.2004 and 01.06.2007.Means govt intend isto exempt these(road dams etc) services from the service tax.

Definitions as per both the above section has been given below

section 65(105)(zzq)
“commercial or industrial construction service” means —


(a) construction of a new building or a civil structure or a part thereof; or

(b) construction of pipeline or conduit; or

(c) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or

(d) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is —

(i) used, or to be used, primarily for; or

(ii) occupied, or to be occupied, primarily with; or

(iii) engaged, or to be engaged, primarily in,



commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams;


--------------------------------------------------------------------------------------------------------------------------------------

section 65(105)(zzzza)



to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams.



Explanation.—For the purposes of this sub-clause, “works contract” means a contract wherein,—

(i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and

(ii) such contract is for the purposes of carrying out,—

(a) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or

(b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or

(c) construction of a new residential complex or a part thereof; or

(d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or

(e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;

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In above sections services provided in respect of Roads has been specifically exempted without mentioning repair of Road or construction of road but department in his circular (given below )110 dt 23.02.2009 has clarified that though the road repair has not been covered under zzq or zzzza but there is no such exemption under clause zzg (to any person, by any person in relation to management, maintenance or repair;) so repair of road is taxable service .Further classification of various activities related to road, which are covered and which are not has been given.However this view is not binding on assessee or adjudicating authorities.Iintention of, the Legislature is to exclude this service from tax net. In Dr. Lal Path Lab (P.) Ltd.v. CCE (2006) 5 STT 171 (CESTAT), it was held that if a service has been specifically excluded from definition of one service, it cannot be covered under another taxable service.



Please Comment.



Full Text of the circular is given here under.



Circular No. 110/4/2009-ST.



F. No. 345/ 17 /2008-TRU

Government of India

Ministry of Finance

Department of Revenue

Tax Research Unit

*****

New Delhi, the 23rd February, 2009.



Subject: Reference from Commissioner Nashik seeking clarification in respect of levy of service tax on Repair/ renovation/ widening of roads – Regarding.



Representations have been received by the Board pointing out divergent practices being followed by field formations with regard to levy of service tax on maintenance and repair of roads.



2. Commercial or industrial construction service [section 65(105) (zzq)] specifically excludes construction or repairs of roads. However, management, maintenance or repair provided under a contract or an agreement in relation to properties, whether immovable or not, is leviable to service tax under section 65(105) (zzg) of the Finance Act, 1994. There is no specific exemption under this service for maintenance or repair of roads etc. Reading the definitions of these two taxable services in tandem leads to the conclusion that while construction of road is not a taxable service, management, maintenance or repair of roads are in the nature of taxable services, attracting service tax.



3. The next issue requiring resolution is the types of activities that can be called as ‘construction of road’ as against the activities which should fall under the category of maintenance or repair of roads. In this regard the technical literature on the subject indicate that the activities can be categorized as follows,-

(A) Maintenance or repair activities:

I. Resurfacing

II. Renovation

III. Strengthening

IV. Relaying

V. Filling of potholes

(B) Construction Activities:

I. Laying of a new road

II. Widening of narrow road to broader road (such as conversion of a two lane road to a four lane road)

III. Changing road surface ( graveled road to metalled road/ metalled road to blacktopped/ blacktopped to concrete etc)



4. The cases may be decided/ revenue should be protected based on the above classification. Suitable Trade and Public notices may be issued for information of the trade and field formations.



5. Receipt of this Circular may please be acknowledged.



6. Hindi Version will follow.



Yours faithfully,



(Unmesh Sharad Wagh)

Under Secretary (TRU)

Levy of service tax on educational institutions

Circular No. 107/01/2009 – ST *

F.No137/23/2007- CX.4
Government of India
Ministry of Finance
Department of Revenue

Central Board of Excise and Customs

***

New Delhi, dated 28th January 2009


************ ****


Various educational institutions impart training and conduct courses in
different fields. Many of these institutions issue certificates/
degrees/diplomas to the candidates upon their successfully completing such
courses. Apart from government run or aided institutes imparting education,
training or coaching, there are several private run institutes or centers,
which impart education/ training/ coaching, teach skills, help in preparing
for competitive examinations or run classes on various subjects. Service tax
is leviable on services provided by 'commercial training and coaching
centers', since the year 2003. Over a period of time, certain doubts
/disputes have arisen in the field in respect of the chargeability of
service tax on the fees/ charges collected by such institutes and education
centers. Some of such issues have been discussed below.


2. COMMERCIAL NATURE OF INSTITUTE


The first issue arises from the very name i.e.* Commercial** training or
coaching center'*. Many service providers argue that the word
'*commercial'*appearing in the aforementioned phrase, suggests that to
fall under this
definition, the establishment or the institute must be *commercial (i.e.
having profit motive) *in nature. It is argued that institutes which are run
by charitable trusts or on no-profit basis would not fall within the phrase
*commercial training or coaching center *and none of their activities would
fall under the taxable service. This argument is clearly erroneous. As the
phrase *'commercial training or coaching center* 'has been defined in a
statute, there is no scope to add or delete words while interpreting the
same. The definition *commercial training or coaching center *has no mention
that such institute must have 'commercial' (i.e. profit making) intent or
motive. Therefore, there is no reason to give a restricted meaning to the
phrase. Secondly, service tax, unlike direct taxes, is chargeable on the
gross amount received towards the service charges, irrespective of whether
the venture is 'profit making, loss making or charity oriented' in its
motive or its outcome. The word "Commercial" used in the phrase is with
reference to the activity of training or coaching and not to the nature or
activity of the institute providing the training or coaching. *Thus,
services provided by all institutes or establishments, which fulfills the
requirements of definition, are leviable to service tax. *


3. POST SCHOOL EDUCATION


3.1 Determination of taxability of education, other than school
education is more complex and poses more questions. This is because, it
covers an entire gamut of educational courses, such as formal higher
education (i.e. bachelors, masters, doctoral, post doctoral course),
specialized education, vocational education, language (including foreign
language) courses etc. These vary in terms of their content; purpose; scope;
and the type of institutes or establishments, which impart them.


3.2 The system of statutory recognition of educational establishments or
institutions in India is still in the state of evolution. As regards
university education, University Grants Commission (UGC) is the apex
regulating body. As per the objects of the University Grants Commission Act,
1956 (which established UGC) the said Act is 'to make provision for the
co-ordination and determination of standards in Universities and for that
purpose, to establish a University Grants Commission'.


·


As per the definition, in terms of Section 2(f) of the Act, a
University means a University established or incorporated by or under a
Central Act, a Provincial Act or a State Act, and includes any such
institution as may, in consultation with the University concerned, be
recognized by the Commission in accordance with the regulations made in this
behalf under this Act. . Therefore, all universities which are a creature of
a State or Union Act fall within this definition of 'University'.


· Further, Section 3 of the Act, explains the scope of a
'deemed university' and defines that the Central Government may, on the
advice of the Commission, declare by notification in the Official Gazette,
that any institution for higher education, other than a University, shall be
deemed to be a University for the purposes of this Act, and on such a
declaration being made, all the provisions of this Act shall apply to such
institution as if it were a University within the meaning of clause (f) of
section 2.


· Also, UGC, with the approval of Central Government and
under the Recognition of College in Terms of Regulations, 1974 framed under
the UGC Act, can grant recognition to a college or institution run by a
trust, a registered society or a body corporate or body incorporated under
Central or state Act as an institution *affiliated to or form as constituent
member with a university*, providing education up to a bachelors degree,
masters degree or diploma of a duration of minimum one academic year


· As per National Policy on Education, 1986, a scheme of
autonomous colleges was promoted. In the autonomous colleges, whereas the
degree continues to be awarded by the university, the name of college is
also included. These colleges develop and submit new courses of study for
approval by the university. These autonomous colleges are fully responsible
for the conduct of examination.


As all these institutions or establishment are either created or recognized
in terms of the power conferred by statutes, they would fall in the category
of institutes/ establishments which issues diploma or certificate *recognized
by the law for the time being in force.* As regards issuance of degree,
section 22(1) of the said Act, provides for right of conferring or granting
degrees only by a 'university' (as defined above) or a 'deemed university'
(as defined above).


3.3 In addition, for recognition of professional courses, promotion of
professional institutions and providing grants to various programmes, a
number of 'professional councils (Such as All India Council for Technical
Education-AICTE, Medical Council of India-MCI, Indian Council for
Agricultural Research-ICAR, Bar Council of India-BCI) have been created
through independent Union Acts. Since, *inter alia* these councils are
entrusted with ensuring norms and standards of the courses, physical and
instructional facilities, undertaking assessment etc., they have also been
provided with powers to make subordinate legislations (i.e. through
notifications, circulars, rules) that the institutions or the establishments
within their ambit must abide. In case of default, the councils have the
power to derecognize an institution or establishment or a particular course
being conducted by them, even if they are recognized as a university, a
deemed university or an affiliated college. If an institution or
establishment is derecognized, then such institution or establishment cannot
be called to be an institute or establishment which issues any certificate
or diploma or degree or any educational qualification recognized by the law
for the time being in force. With the result, the courses conducted would
fall under the ambit of 'commercial training or coaching centers' and would
be charged to tax. It may however, be noted that for exercising such power,
there should be a valid rule / notification / circular, prescribing the
minimum requirements or standards as also the consequences of default.


3.4 All India Council for Technical Education-AICTE, was started in 1945
with the objectives stated above. Based on the recommendations of a
'National Working Group' (constituted by the Government of India) that AICTE
be vested with the necessary statutory authority, it was given legislative
support through an Act, called the AICTE Act, 1987. AICTE, using the powers
conferred on it through 1987 Act, issued the 'AICTE (Grant of Approval for
Starting New Technical Institutions, Introduction of Courses or Programme
and Approval), Regulation 1994. Theses were amended in the years 1997 and
2000. Under Regulation 4 (Requirement of Grant of approval) of these
Regulations, AICTE prescribed that,-


"After the commencement of these regulations, -


a. No new Technical Institution or University Technical
Department shall be started; or


b. No course or programme shall be introduced by any
Technical Institution, University including a Deemed University or
University Department or Collage; or


c. No Technical Institution, University or Deemed
University or University Department or College shall continue to admit
students for Degree or Diploma course; or


d. No approved intake capacity of seats shall be increased
or varied;


Except with the approval of the council.


The powers to issue regulations for approval are conferred on AICTE under
Section 23 read with Section 10 of the AICTE Act.


3.5 In 2003, when service tax was first imposed on commercial training
and coaching centers, the AICTE regulations required that for (a) starting
or establishing new technical institutions; (b) introduction of additional
programmes; or (c) increase in 'intake' in the existing programmes of AICTE
approved institutions, a 'no objection certificate' from the concerned State
government /UT would be required (notification F.37-3/Legal (iii)/2002 dated
10.09.2003). This notification does not prescribe any certification for
existing institutes or establishments, which did not introduce any
additional programme or did not increase in 'intake' in an existing
programme. Thus, at that stage, not having a AICTE approval for such
existing institution or establishment did not make them ineligible for being
an institute or establishment which issues any certificate or diploma or
degree or any educational qualification recognized by the law for the time
being in force.* *Thus, if otherwise recognized or accepted, this sole
reason of absence of AICTE approval did not cause such institutions or
establishments to be within the service tax net. On 6.01.2005, vide
notification No. F.37-3/Legal/ 2004, the previous AICTE Regulations was
replaced by new Regulations. These Regulations expanded the scope and stated
(Regulation No. 5) that no new technical institution of the Government,
Government Aided or Private institution shall be introduced; no new courses
or programs in technical education shall be introduced or no variation of
intake shall be effected or* no existing technical institution of the
Government, Government Aided or Private institution shall conduct any
technical course *without prior approval of the council. The Regulation No.
7 of these Regulations also stated that the council shall, in every year
publish the names of approved technical institutions, conducting course in
technical education, the course and programs approved by the council and the
number of seats permitted for each course etc. These Regulations were again
superseded by another set of Regulations issued vide Not. No. F-37-3/Legal/
2004 dated 28.11.2005, where the requirement of grant of approval by AICTE
was further elaborated to specifically include universities, deemed
universities and any admission authority etc. Vide notification No.
F-2-1/2006 U.3 (A) dated 5.04.2006 the Central Government issued
clarification regarding the role and the powers of AICTE and UGC with
respect to 'Deemed to be University'. From the above it emerges that from
the year 2005 onwards, a technical institution or establishment (which is
otherwise recognized being a university, or affiliate college) not having
AICTE approval cannot be called to be the one issuing any certificate or
diploma or degree or any educational qualification recognized by the law for
the time being in force and thus be within the ambit of service tax. However
'Deemed to be University' have been exempt from this requirement. As per the
said notification for the institutes 'Deemed to be University', it is not a
pre-requisite to obtain the approval of AICTE to start any programme in
technical or management education leading to an award, including degrees in
disciplines covered under the AICTE Act, 1987. However, such institutes are
required to ensure the maintenance of the minimum standards prescribed by
the AICTE for various courses under the jurisdiction of the said council.


3.6 Similar would be the situation in case of other Statutory Councils.


3.7 A related issue is, that since the concept of recognition of an
educational qualification in India has been dynamic in nature (i.e. the
degree/ diploma/ certificate an institute or establishment may be recognized
by the law at one time and not recognized at other, due to change in legal
provisions) the taxability of the courses conducted would depend on the
legal status of such institute or establishment at the point of time when
such service is provided (i.e. course is conducted). It cannot be said that
once recognized an institute or establishment would remain so even in future
or was so in the past.


3.8 Many a time private institutes conduct courses and issue diplomas or
certificates in collaboration with certain foreign institutes universities.
In many cases private enterprises conduct campus interviews of the students
of such institutes and offer them jobs. Such certificates / diplomas may be
accepted for higher education abroad. However, such a certificate / diploma
cannot be called as the one 'recognized by the law for the time being in
force' unless such a diploma/ certificate has been specifically recognized
by the statutory authorities such as UGC, AICTE. Consequently, such
institutes would not fall under the exempted category and would be subjected
to tax.


4. VOCATIONAL TRAINING INSTITUTE


The vocational training institutes are exempted from service tax
vide notification no. 24/2004-ST, dated 10.09.2004 (as amended). By
definition, such institutes should provide training or coaching that imparts
skill to enable the trainee to seek employment or undertake self-employment,
directly after such training or coaching. Disputes have arisen in respect of
institutes that offer general course on improving communication skills,
personality development, how to be effective in group discussions or
personal interviews, general grooming and finishing etc. It is claimed that
such training or coaching improves the job prospects of a candidate and
therefore they are eligible for exemption as 'vocational training
institutes. However, a careful reading of the definition shows that the
exemption is available only to such institutes that impart training to
enable the trainee to seek employment or self-employment. The courses
referred to above do not satisfy this condition because on their own such
courses do not prepare a candidate to take up employment or self-employment
directly after such training or coaching. They only improve the chances of
success for a candidate who already has the required skill. Therefore, such
institutes are not covered under the exemption.


5. CONCLUSION


All pending cases may be disposed of accordingly. In case any
difficulty is faced in implementing these instructions, the same may be
brought to the notice of the undersigned.


(Gautam Bhattacharya)
Commissioner (Service Tax)
CBEC, New Delhi

Budget 2007 Update

BASIC EXEMPTION

The small service provider exemption is increased to Rs.8 lakhs from Rs.4 lakhs. About two lakh service providers may benefit.

RATE OF TAX

There is no change in the service tax rate of 12%.

EDUCATION CESS

In addition to the present levy of 2% Education Cess, Secondary and Higher Education Cess on taxable services at the rate of one per cent., calculated on the tax which is levied and collected under section 66 of the Finance Act, 1994.

NEW SERVICES

Telecommunication services. Definition of Leased Circuit, subscriber in relation to telephone connection and pager, communication through telegraph, communication through telex and facsimile (FAX) communication and definition of taxable service in relation to these services omitted consequent to inclusion under Telecommunication services

Service in relation to mining of mineral, oil or gas

Service in relation to renting of immovable property for use in the course or furtherance of business or commerce

Service in relation to the execution of a works contract. Assesses can opt to pay at 2% on total contract value

Development and supply of content or retrieval services

Asset management service

Design services

SCOPE OF TAXABLE SERVICES WIDENED

Banking and Other Financial Services – The expression ", but does not include cash management" omitted from sub clause (v) relating to Asset Management

Maintenance or Repair - Explanation inserted to clarify that that for the purposes of this clause, "goods" includes computer software;

Management or Business Consultant – Service renamed to include business consulting

Mandap Keeper - Explanation inserted to include marriages under social functions

Pandal or Shamiana - Explanation inserted to include marriages under social functions

EXEMPTIONS

Club or Association Services - Exemption to taxable services, provided by a resident welfare association where the total consideration received from an individual member does not exceed three thousand rupees per month.

Exemption to service in relation to delivery of the content of a cinematograph film, content of which is in digitised form and is transmitted directly to a cinema theatre for exhibition through the use of satellite, microwave or terrestrial communication line and not by any physical means including CD and DVD

Exemption to service provided by a Clinical Research Organization approved to conduct clinical trials by the Drugs Controller General of India, in relation to testing and analysis of newly developed drugs, including vaccines and herbal remedies, on human participants so as to ascertain the safety and efficacy of such drugs on human participants.

Exemption to taxable services provided by an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology Government of India subject to the conditions specified.

Exemption to all taxable services, provided by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India, subject to conditions specified.

EXPORT OF SERVICES

Export of Services Rules, 2005 Rule 3(2) – conditions for treating a service provided as export of service - Sub rule substituted. ( substantial amendment is in sub clause (a) which reads as "such service is provided from India and used outside India" for "such service is delivered outside India and used outside India")

PAYMENT OF TAX

Adjustment in subsequent period of Excess of Payment of Service Tax subject to conditions

FILING OF REVISED RETURNS

An assessee may file revised return within 60 days of filing of original return

DELAYED RETURNS ATTRACT LATE FILING FEE

Returns filed beyond the due date to attract late not exceeding Rs.2000/-

OTHER AMENDMENTS

Section 83 - Application of Certain Provisions Central Excise Act – Provisions of Section 14AA - Special audit in cases where credit of duty availed or utilised is not within the normal limits, etc. and "38A - Effect of amendments, etc., of rules, notifications or orders." , made applicable to service tax.

Section 96-A - Advance Rulings – Definitions – Explanation inserted defining "Joint Venture"

Ammendments For AY 2008-09

Service Tax extended to the following services :-
Mining of mineral oil or Gas
Renting of Immovable property for use in commerce or business.
Development and supply of content for use in telecom and advertising purposes.
Asset management services provided by individuals.
Design Services.
Services involved in execution of a works contract.
Optional composition scheme under which service tax will be levied at only 2% of the total value of the Works contract.

Exemption from Service Tax :
Services provided by resident welfare association to their members who contribute Rs.3,000/- or less per month.
Services provided by technology business incubators.
Incubators whose annual business turnover does not exceeds Rs.50 Lakh will be exempt from service tax for the first 3 years.
Charges for clinical trial on new drugs.