KMS

2nd Edition

18 SERVICE TAX
CA. Amish Khandhar
COVERING
a Amendments a Exemptions a Abatement a Rates a Cenvat Credit a Forms

Useful Charts for

a Interest & Penalties

 CA. Amish Khandhar, Ahmedabad Price Rs. 50/Published By : KMS ADVISORY SERVICES PVT. LTD. 3rd Floor, Devpath Complex, B/h. Lal Bunglow, Off C. G. Road, Navrangpura, Ahmedabad - 380 006. Tel.: 079 - 2646 1526, 6631 5430, 3000 3583. First Edition Second Edition Type Setting Printed by : : : May 2011 (3000 Copies) : May 2012 (3000 Copies) Vaishali Graphics (M) 9624069110 Plus Offset, Ahmedabad

All efforts have been made to avoid errors or omissions in this book. However, errors may happen. Neither the publishers, nor the author or sellers will be responsible for any damage or loss of action to any one, of any kind, in any manner. No part of this book may be reproduced or copied in any form or by any form or by any means without the written permission of the publishers. All disputes subject to Ahmedabad Jurisdiction. Note from Publisher The presentation of this Book is unique in its kind, keeping in mind the need of readers and Service Tax assessees. The Book contains various tabular forms covering the details about Service Tax. We are sure our readers will benefit from this useful compilation. We welcome your comments at info@kmsadvisory.com

Index

1. 2. 3. 4. 5. 6. 7. 8. 9.

Rate of Service Tax .......................................................4 Rate of Interest ...........................................................4 Basic Exemption limit....................................................5 Works Contract Rate ....................................................5 Due dates for Returns....................................................5 Due dates for Returns for ISD ...........................................5 Point of Taxation Rules, 2011 (PoTR)..................................6 Service Tax Payment Dates .............................................7 Filing Fees for Appeal in CESTAT........................................8

10. Service Tax Credit Availability..........................................8 11. Table of Abatements .....................................................9 12. Service Tax Forms.......................................................10 13. SEZ Developer or Unit Taxability / Refund Table ...................11 14. Penalties .................................................................12 15. Legal Services ...........................................................13 16. Works Contract Services ...............................................14 17. 115 Services with Effective Dates and Accounting Codes ........15 18. Effective date of amendments by Finance Act,2011..............20 Useful Web Sites ........................................................23

Rates of Service Tax

Period 01-07-1994 to 13-05-2003 14-05-2003 to 09-09-2004 10-09-2004 to 17-04-2006 18-04-2006 to 10-05-2007 11-05-2007 to 23-02-2009 24-02-2009 onwards
EC = Education Cess SHEC = Secondary and Higher Education Cess

Rate of Tax 5% 8% 10.20% 12.24%

(ST+EC ) (ST+EC )

12.36% (ST+EC+ SHE C) 10.30% (ST+EC+ SHE C)

Rates of Interest

Period 01-07-1994 to 15-07-2001 16-07-2001 to 15-08-2002 16-08-2002 to 09-09-2004 10-09-2004 to 31-03-2011 01-04-2011 onwards

Rate of Interest 1.5% p.m. and part thereof 24% p.a. 15% p.a. 13% p.a. 18% p.a. 15% p.a.
(for assessees having turnover upto Rs.60 lakhs)

Basic Exemption Limit

Period 01-07-1994 to 31-03-2005 01-04-2005 to 31-03-2007 01-04-2007 to 31-03-2008 01.04.2008 onwards Basic Exemption Limit No Limit Rs. 4 Lakhs Rs. 8 Lakhs Rs. 10 Lakhs

Works Contract Rate

Period 01-06-2007 to 28-02-2008 01-03-2008 onwards Rate of Tax 2.06% 4.12%

Due Date for Return filing

For the Half Year 1st April to 30th September 1st October to 31st March To be Filed by 25th October 25th April

Due Date for Return filing for Input Service Distributor (ISD)
For the Half Year 1st April to 30th September 1st October to 31st March To be Filed by 30th October 30th April

Point of Taxation Rules, 2011 (PoTR) (w.e.f. 01-07-2011)

Determination of Point of Taxation Sr. Service Invoice No. Completed on Issued on 1 2 3 4 5 7th July, 2011 7th July, 2011 7th July, 2011 7th July, 2011 7th July, 2011 10th July, 2011 10th Aug, 2011 5th April, 2011 5th May, 2011 5th April, 2011

Payment Received on 10th Aug., 2011 10th Sep., 2011 10th Aug., 2011 5th April, 2011 10th April, 2011

Point of Taxation 7th July, 2011 7th July, 2011 5th April, 2011 5th April, 2011 5th April, 2011

Continuous supply of service In case of Continuous supply of services, the above provision of point of taxation shall be applicable; however, (i) where the provision of service is determined periodically on the completion of an event in terms of contract, (ii) which requires the service receiver to make any payment to service provider, (iii) the date of completion of each such event as specified in the contract shall be deemed to be the date of completion of provision of service. Following services are notified as Continuous Supply of Service (a) Telecommunication Service (b) Internet Telephony Service (c) Commercial or Industrial Construction Service (d) Construction of Residential Complex (e) Works Contract Service Point of Taxation Rules, 2011 shall not apply to Services provided by individuals, proprietary concerns or partnership firms are allowed to discharge service tax liability on receipt basis : Sr. 1. 2. 3. 4. 5. 6. 7. Name of Services Architect Services Interior Decorator Services Chartered Accountant Services Cost Accountant Services Company Secretary Services Scientific and Technical Consultancy Services Legal Consultancy Services Sub-Clause p q s t u za zzzzm

Service Tax Payment Dates for Individuals, Proprietary Concerns, Partnership Firms
Payable on Amounts received during the quarter st 1 April to 1 1 st st July to th 30 June th 30 Sept. st 31 Dec. st 31 March Due Date Manual th 5 July th 5 October th 5 January st 31 March E-payment 6 th July

th 6 October th 6 January st 31 March

Oct. to

st 1 Jan. to

Service Tax Payment Dates for assessees other than Individuals & Partnership Firms
Payable on amount received during the Month April May June July August September October November December January February March Due Date Manual 5th May 5th June 5th July 5th August 5th September 5th October 5th November 5th December 5th January 5th February 5th March 31st March E-payment 6th May 6th June 6th July 6th August 6th September 6th October 6th November 6th December 6th January 6th February 6th March 31st March

E-Payment will be considered valid up to 8.00 pm of the respective day.

Filing Fees for Appeal to Appellate Tribunal (CESTAT)

Service Tax, Interest and Penalty involved Rs. 5,00,000 or less Rs. 5,00,000 to Rs. 50,00,000 In excess of Rs. 50,00,000

Filing Fees Rs. 1,000 Rs. 5,000 Rs.10,000

Service Tax Credit Availability

Duration 1. 2. Before 16-08-2002 16-08-2002 to 13-05-2003

Appplicability No Service Tax credit was allowed. Service Tax credit was allowed only if the Input and output service falls under the Same category .

3.

14-05-2003 to 09-09-2004

Service Tax credit is allowed to all the services. An assessee will be allowed to take credit of excise duty and Service Tax across goods and services.

4.

10-09-2004 onwards

Table of Abatements

Sr. No. of Noti. 01/2006

Name of the Service

Mandap Keeper Service Hotels providing Services of Mandap Keeper Tour Operator (i) (ii) If Packaged tour If only arrangement, booking, accommodation service (iii) Services other than Services specified in (i) & (ii) above

Abatement Taxable

1. 1A. 2.

40% 40% 75% 90% 60% 60% 40% 70%

60% 60% 25% 10% 40% 40% 60% 30%

3. 4. 4A.

Rent-a-cab Services Convention Services Business Auxiliary Services in relation to production or processing of spare parts and accessories of cycle, cycle rickshaw & hand operated sewing machines

5. 6. 7. 7A. 8. 9. 10. 10A. 11. 12.

Erection, Commissioning and Installation Services Goods Transport Agency Commercial & Industrial Construction Services Commercial & Industrial Construction Services (incl. land cost) Outdoor Catering Services Pandal & Shamiana Service Construction of Residential Complex Service Construction of Residential Complex Service (incl. land cost) Transport of Goods by Rail Service in relation to transport of Coastal Goods,

67% 75% 67% 75% 50% 30% 67% 75% 70% 25%

33% 25% 33% 25% 50% 70% 33% 25% 30% 75%

13. 14.

Goods through National Waterway or Goods through inland water

70% 50%

30% 50%

Service Tax Forms

Sr. No.
1.

Liability
Service Tax Registration

When and by whom

At the time of starting of business

Time Period
Within 30 days from the date of starting of business or reaching Rs.9 Lacs taxable T/O or commandments of new levy

Form
ST-1

2.

Service Tax Registration Certificate Service Tax Return

To be Given by Service Tax Department Half yearly

within 7 days from the date of application within 25 days after completion of half year. 25 th October 25 th April within 3 months from the date of receipt of order within 3 months from the date of receipt of order within 45 days from the date of order within 3 months from the date of receipt of order within 3 months from the date of receipt of order

ST-2

3.

ST-3

4.

Appeal to Commissioner of Central Excise (Appeals) Appeal to CESTAT

Assessee

ST-4

5.

Assessee

ST-5

6.

Cross Objections

Assessee/ Department Board

ST-6

7.

Appeal to CESTAT

ST-7

8.

Appeal to CESTAT

Service Tax Commissioner

ST-7

10

Sr. No.
9.

Liability
Payment of Service Tax

When and by whom

Corporate assessee

Time Period
Within 5 days from the end of month. Within 6 days from end of month incase of e-payment

Form
GAR-7 challan

10.

Payment of Service Tax

Non Corporate assessee

Within 5 days from the end of Quarter. Within 6 days from end of quarter incase of e-payment

GAR-7 challan

SEZ Developer or Unit Taxability / Refund Table

Period 31-03-2004 to 01-03-2009 02-03-2009 to 19-05-2009 20-05-2009 to 28-02-2011 01-03-2011 onwards

Wholly Within SEZ Complete Exemption Refund Mechanism Complete Exemption Complete Exemption

Wholly/ Partly outside SEZ Chargeable to tax Refund Mechanism Refund Mechanism Refund Mechanism in the ratio of Export Turnover to Total T/o

11

Penalties
Section 70 Nature of default Fees for late filing of Return. Delay upto 15 days Delay of more than 15 and upto 30 days Delay of more than 30 days Amount of penalty

76 77

77 77

77 77

77 78

Rs. 500 Rs. 1000 Rs. 1000 + Rs. 100 for each day but not exceeding Rs. 20,000 Failure to pay service tax 1% of the tax p.m. or Rs 100 per day limited to 50% of tax* Penalty for default in obtaining Service Tax Upto Rs 10,000 or Rs 200 per registration certificate and payment of service tax day till failure, whichever is higher. Failure to keep, maintain or retain books of Upto Rs 10,000 account and other documents required Assessee fails to : Upto Rs 10,000 or Rs 200 per (i) furnish information called by an officer; or day till failure, whichever is (ii) produce documents called for by a Central higher. Excise Officer; or (iii) appear before the Central Excise Officer, when issued with a summon for appearance to give evidence or to produce a document in an inquiry. Assessee fails to pay service tax electronically Upto Rs 10,000 Assessee issues invoice in accordance with Upto Rs 10,000 provisions of the Act or rules made thereunder, with incorrect or incomplete details or fails to account for an invoice in his books of account Penalty for contravention of any provision for Not exceeding Rs 10,000 which no penalty is provided Penalty for suppressing value of taxable 50% of tax amount service (If records captured are true**) 100% of tax amount (If not recorded in books^)

* Totally mitigated if tax and interest paid before issue of notice : Sec 73(3) ** Mitigation (a) 1% per month; maximum upto 25% if all dues paid before notice : Sec 73 (4A) (b) 25% of tax if all dues paid within 30 days of issuance of notice (90 days for small assessees) : Proviso to Sec 78 ^ No mitigation Over and above the penalties, department has now the power of prosecution also.

12

Legal Services (w.e.f. 01-05-2011)

Service Provider Service Recipient

Nature of Service

Taxability

Any Assessee Individual

Business Entity Business Entity

Business Entity Individual Individual Business Entity

Business Entity Individual

Business Entity Any Assessee

Individual

Individual

Representational Service Representational Service Representational Service Service of Advice, Consultancy or assistance Service of Advice, Consultancy or assistance Service of Advice, Consultancy or assistance Representational Service / Service of Advice, Consultancy or assistance Arbitration Service Arbitration Service

Taxable Taxable Not Taxable Not Taxable

Taxable

Taxable

Not Taxable

Arbitral Tribunal Arbitral Tribunal

Business Entity Individual

Taxable Not Taxable

13

Works Contract Services

Amendment in Finance Act, 2011 (w.e.f. 01-05-2011)
Situation Abatement availed by Input Service Provider (ISP) as per notification no 01/2006-ST Abatement not availed by Input Service Provider (ISP) as per notification no 01/2006-ST. i.e. tax has been paid on full value of service after availment of Cenvat Credit on Inputs Credit Available Full amount of tax paid Restricted to 40% of tax paid

Illustration on Changes in Works Contract Rules, 2007 Mr. C is end user of Construction services Mr. B is Main Contractor providing Construction services to Mr. C Mr. A is a Sub Contractor providing Construction Services to Mr. B
Sr. No. 1 Situation
Upto 30-04-2011 From 01-05-2011

Mr. A provides construction Mr. A will pay to Govt. service worth Rs.1 Cr. and Rs. 10 Lacs of charges to Mr B, Rs.1.10 Cr. Service Tax collected (incl ST @ 10% on full value, without taking benefit of abatement / composition scheme) Mr. B charges Rs. 5 Cr. Mr. B will pay + Rs. 0.20 Cr. S Tax to Rs.20 Lacs S.T ax Mr. C (opting composition (-)Rs.10 Lacs Credit scheme) Rs.10 Lacs to be paid in cash

Mr. A will pay to Govt. Rs. 10 Lacs of Service Tax collected

Mr. B will pay Rs.20 Lacs S.T ax (-)Rs. 4 Lacs Credit Rs.16 Lacs to be paid in cash and Rs.6 Lacs of credit will lapse

14

115 Services with Effective Dates & Accounting Codes

Sr. No. 1 2 3 4 5 6 7 8

Category of Service
Advertising Agency Air Travel Agent Airport Services Architect Services Asset Management Services ATM Operations, Maintenance or Management Services Auctioneers Services Authorised Service Station Motor Car/ Two Wheeler Light Motor Vehicle Banking & Financial Services Forex Broking Beauty Parlour Services Broadcasting Services Business Auxiliary Services Business Exhibition Services Business Support Services Cable Operator Services Cargo Handling Services Cleaning Activity Services Clearing & Forwarding Services Club or Association Services Commercial or Industrial Construction Services Commercial Training & Coaching Centre Construction of Residential Complex Services Consulting Engineer Services Convention Services

SubClause Effective Date No. e l zzm p 01-11-1996 01-07-1997 10-09-2004 16-10-1998

Accounting Code
Tax
Int., Penalty , etc.

00440013 00440016 00440032 00440033 00440258 00440259 00440072 00440073

zzzzc 01-06-2007 00440418 00440419 zzzk 01-05-2006 00440346 00440347 zzzr 01-05-2006 00440370 00440371 zo 00440181 00440182 16-07-2001 01-07-2003 16-07-2001 16-08-2002 16-07-2001 01-07-2003 10-09-2004 00440173 00440174 00440209 00440210 00440165 00440166 00440225 00440226 00440254 00440255

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

zm zzk zq zk zzb zzo

zzzq 01-05-2006 00440366 00440367 zs zr 16-08-2002 16-08-2002 00440217 00440218 00440189 00440190

z z z d 16-06-2005 00440318 00440319 j 16-07-1997 00440045 00440046

z z z e 16-06-2005 00440322 00440323 zzq zzc 10-09-2004 01-07-2003 00440290 00440291 00440229 00440230

z z z h 16-06-2005 00440334 00440335 g zc 07-07-1997 16-07-2001 00440057 00440058 00440133 00440134

15

Sr. No.
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Category of Service
Cosmetic and Plastic Surgery Serivces Courier Services Credit Rating Agency Credit Card & Debit Card related Services Custom House Agency Design Service Development & Supply of Content Services Dredging Services Dry Cleaning Services Erection, Commissioning & Installation Services Event Management Services Fashion Designing Services Forward Contract Services Franchise Services

SubClause Effective Date No. zzzzk 01-09-2009 f x 01-11-1996 16-10-1998

Accounting Code
Tax 0044 0460
Int., Penalty , etc.

0044 0463

00440014 00440018 00440088 00440089

z z z w 01-05-2006 00440394 00440395 h 15-06-1997 00440026 00440027

zzzzd 01-06-2007 00440422 00440423 zzzzb 01-06-2007 00440414 00440415 z z z b 16-06-2005 00440310 00440311 zt zzd zu zv zzy zze 16-08-2002 01-07-2003 16-08-2002 16-08-2002 10-09-2004 01-07-2003 00440221 00440222 00440233 00440234 00440197 00440198 00440213 00440214 00440282 00440283 00440237 00440238

Games of Chance (including lottery) zzzzn 01-07-2010 00440595 00440596 Services General Insurance Services Goods Transport by Road Health Club & Fitness Centre Health Services by Hospitals or Medical Establishments Information Technolory Sof tware Services Insurance Auxiliary Services General Insurance Life Insurance Intellectual Property Services Interior Decorator Services Air Travel Service d zzp zw 01-07-1994 01-01-2005 16-08-2002 00440005 00440006 00440262 00440263 00440205 00440206

zzzzo 01-07-2010 00440598 00440599 zzzze 16-05-2008 00440452 00440450 00440169 00440170 zl zy zzr q 16-07-2001 16-08-2002 10-09-2004 16-10-1998 00440278 00440279 00440076 00440077

46 47 48

zzzo 01-05-2006 00440362 00440363

16

Sr. No.
49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69

Category of Service
Internet Cafe Internet Telephony Services Investment Management Services Provided Under ULIP Legal Consultancy Services Life Insurance Services Mailing List Compilation and Mailing Services Maintenance of Medical Records Services Management Consultant Services Management, Maintenance and Repair Services Mandap Keeper Manpower Recruitment Agency Market Research Agency Mechani sed Slaught er House Serv ices Mining Services Online Information & database Retrieval Services Opinion Poll Services Outdoor Catering Services Packaging Activities Pandal or Shamiana Services Photogaphy Services Port Services Major Ports Other Ports Practising Chartered Accountant Practising Company Secretary Practising Cost Accountant Promoting a brand of goods, services, events, etc.

SubClause Effective Date No. zzf 01-07-2003

Accounting Code
Tax
Int., Penalty , etc.

00440241 00440242

zzzu 01-05-2006 00440382 00440383 zzzzf 16-05-2008 00440430 00440431 zzzzm 01-09-2009 00440480 00440483 zx 10-09-2004 00440185 00440186

z z z g 16-06-2005 00440330 00440331 zzzzp 01-07-2010 00440601 00440602 r zzg m k y 16-10-1998 01-07-2003 01-07-1997 07-07-1997 16-10-1998 16-10-1998 00440116 00440117

00440245 00440246 00440035 00440036 00440060 00440061 00440112 00440113

00440080 00440081

z z z y 01-06-2007 00440402 00440403 zh zzs zzt 16-07-2001 10-09-2004 10-09-2004 00440153 00440154 00440274 00440275 00440051 00440052

z z z f 16-06-2005 00440326 00440327 z z w 10-09-2004 zb zn zzl s u t 16-07-2001 16-07-2001 01-07-2003 16-10-1998 16-10-1998 16-10-1998 00440092 00440093 00440100 00440101 00440096 00440097 00440054 00440055 00440129 00440130 00440177 00440178

70 71 72 73

zzzzq 01-07-2010 00440604 00440605

17

Sr. No.
74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95

Category of Service
Public Relation Sevices Rail Travel Agent Real Estate Agent Recovery Agent Service Registrar to an Issue Rent - A - Cab Scheme Operator Renting of Immovable Property Scientific and Technical Consultancy Services Security Agency Services of Permitting Commercial use or Exploitation of any Event Services Provided by Electricity Exchanges

SubClause Effective Date No.

Accounting Code
Tax
Int., Penalty , etc.

zzzs 01-05-2006 00440374 00440375 zz v zzzl zzzi o 16-08-2002 16-10-1998 00440201 00440202 00440104 00440105

01-05-2006 00440350 00440351 01-05-2006 00440338 00440339 16-07-1997 00440048 00440049

z z z z 01-06-2007 00440406 00440407 za w 16-07-2001 16-10-1998 00440125 00440126 00440108 00440109

zzzzr 01-07-2010 00440607 00440608 zzzzs 01-07-2010 00440610 00440611

Services related to Cinematographic zzzzt 01-07-2010 00440613 00440614 films and Sound recording. Services related to Preferential zzzzu 01-07-2010 00440616 00440617 location or Development of Complexes Share Transfer Agent Service Ship Management Services Site Formation Services Sound Recording Services Space or Time Selling Services for Advertisements Sponsorship Services Steamer Agent Stock Broker Stock Exchange, Commodity Exchange and Processing & Clearing House Services Storage & Warehousing Services Supply of Tangible Goods for Use Services zzzj 01-05-2006 00440342 00440343

zzzt 01-05-2006 00440378 00440379 z z z a 16-06-2005 00440306 00440307 zj 16-07-2001 00440161 00440162

zzzm 01-05-2006 00440354 00440355 zzzn 01-05-2006 00440358 00440359 i a 15-06-1997 01-07-1994 00440029 00440030 00440008 00440009

zzzzg 16-05-2008 00440434 00440435 zzzzh 00440438 00440439 zzzzi 00440442 00440443 zza 16-08-2002 00440193 00440194

96 97

zzzzj 16-05-2008 00440445 00440447

18

Sr. No.
98 99 100

Category of Service
Survey & Exploration of Minerals Services Survey and Mapmaking Services Technical Inspection and Certification Services Technical Testing & Analysis Services

SubClause Effective Date No. zzv 10-09-2004

Accounting Code
Tax
Int., Penalty , etc.

00440270 00440271

z z z c 16-06-2005 00440314 00440315 zzi zzh z z z x 01-06-2007 00440398 00440399 zzu n 10-09-2004 01-09-1997 00440286 00440287 00440063 00440064 0044 0470 0044 0473 01-07-2003 00440249 00440250

101 102 103 104

Telecommunication Services Television & Radio Programme Services Tour operator Transport of Coastal Goods; and transported through Inland Water & National Waterways Transport of Goods by Air Services Transport of Goods in Containers by Rail Services Transport of Goods in Containers by Rail Services including Government Railways Transport of goods through Pipeline and Conduit Transport of Persons by Cruise Ship Services Travel Agents (Other than Air & Rail) Under Writer Services Video Tape Production Services Works Contract Services NEWLY INTRODUCED SERVICES Services provided by Air-conditioned restaurants Short-term accommodation provided by a hotel, guesthouse etc. NOTE :

zzzzl 01-09-2009

105 106 107

zzn

10-09-2004

00440266 00440267

zzzp 01-05-2006 00440390 00440391 zzzp 01-04-2010 00440390 00440391

108 109 110 111 112 113 114 115

zzz

16-06-2005 00440302 00440303

zzzv 01-05-2006 00440386 00440387 zzx z zi 10-09-2004 16-10-1998 16-07-2001 00440294 00440295 00440084 00440085 00440157 00440158

zzzza 01-06-2007 00440410 00440411 zzzzv 01-05-2011 00441067 00441068 zzzzw 01-05-2011 00441070 00441071

Accounting Code for Education Cess (EC) Accounting Code for Secondary and Higher Education Cess (SHEC)

00440298 00440299 00440426 00440427

19

Effective Dates of Amendments by Finance Act, 2011

Sr.

Particulars

Effective Date

1.

Introduction of 2 New Services 1.1 Air-conditioned Restaurants Services 1.2 Hotel / Short-term Accommodation Services Amendments in scope of Old Services 2.1 Life Insurance Service (zx) 2.2 Club or Association Service (zzze) 2.3 Authorised Service Station (zo) 2.4 Business Support Service (zzzq) 2.5 Legal Consultancy Service (zzzzm) 2.6 Commercial Training or Coaching Service (zzc) Other Amendments 3.1 Exemption is provided to services rendered by an organizer of business exhibitions to an exhibitor participating in an exhibition held outside India. 3.2 Exemption is provided to 'Work contract' service rendered for construction or finishing of new residential complex under 'Jawaharlal Nehru Urban Renewal Mission' and 'Rajiv Awaas Yojana'. 3.3 Exemption is provided to services rendered within a port or other port or an airport under the 'Work contract' service for specified purpose. 3.4 Exemption is provided to 'Rashtriya Swasthya Bima Yojana' under the 'General Insurance' service.

01-05-2011

2.

01-05-2011

3.

01-03-2011

01-03-2011

01-03-2011

01-03-2011

20

Sr.
3.5

Particulars

Effective Date

Value of air freight included in the assessable value of the goods for charging customs duties is excluded from taxable value for the purpose of levy of service tax under Transport of goods by air service. 3.6 Services provided to person in India for goods transported by air, rail or road from a place outside India to a final destination which is also outside India. 3.7 A modified scheme is introduced to refund service tax to SEZ units and developers and notification no. 9/2009-ST is being superceded. In the modified scheme, wholly consumed services are being defined in the notification in order to extend outright exemption and permit refund of all other services on a proportionate basis. 3.8 An abatement of 25% from the taxable value is provided for the purpose of levy of service tax under 'Transport of goods through coastal and inland shipping'. 3.9 An abatement of 70% from the taxable value is provided for the purpose of levy of service tax under 'Service provided by Air-Conditioned Restaurant'. 3.10 An abatement of 50% from the taxable value is provided for the purpose of levy of service tax under 'Hotel or Short-term Accommodation'. 3.11 Exemption granted to representational services provided by Practicing Chartered Accountants, Company Secretaries and Cost Accountants by notification no 25/2006-ST is withdrawn.

01-04-2011

01-04-2011

01-03-2011

01-03-2011

01-05-2011

01-05-2011

01-05-2011

21

Sr.

Particulars
3.12 The maximum penalty for delay in filing Service Tax return U/s. 70 is enhanced from Rs. 2,000/to Rs. 20,000/-; existing rate of penalty under rule 7C of the Service Tax Rules, 1994 to be retained. 3.13 Penalty for failure to pay tax U/s. 76 is halved. Maximum Penalty U/s. 77 increased from Rs.5,000 to Rs. 10,000. 3.14 Penalty U/s 78 is reduced from twice the amount of tax to an amount equal to the tax. 3.15 Blanket Exemption Granted to Entire Health Services from whole of Service Tax

Effective Date

08-04-2011

08-04-2011

08-04-2011 01-05-2011

4.

Amendment in CENVAT Credit Rules, 2004 4.1 Rule 6(5) of the CENVAT Credit Rules, 2004 which allowed 100% availment of CENVAT Credit of 16 Specified services is now deleted 4.2 Rule 6 (3B) is being introduced to provide that only 50% of the CENVAT Credit availed on input services will be available for utilisation towards payment of Service Tax under 'Banking and other financial Service' by a banking company and financial Institution including nonbanking financial company. 4.3 Rule 3 is being amended RETROSPECTIVELY with effect from 18-04-2006 to provide that the credit of Service Tax paid under Section 66A of the Finance Act, 1994 shall also be permissible. 4.4 Rule 4(7) is being amended to provide for reversal of CENVAT credit in case any payment made towards an invoice of input service is received back.

01-03-2011

01-03-2011

01-03-2011

01-03-2011

22 2

Useful Web Sites

Area Income Tax

Description Official Web Site e-Filing Services To Tax Payer Tax Information NetWork ITAT Official Web Site E-Filing MCA LLP Official Web Site Official Web Site Ombudsman Banking Official Web Site Official Web Site Official Web Site Official Web Site

website http://www.incometaxindia.gov.in/ https://incometaxindiaefiling.gov.in/ http://www.incometaxindiapr.gov.in http://www.tin-nsdl.com/ http://itat.nic.in/ http://www.servicetax.gov.in/ http://www.aces.gov.in/ http://www.mca.gov.in/ http://www.llp.gov.in/ http://www.supremecourtofindia.nic.in/ http://www.rbi.org.in/home.aspx http://secweb.rbi.org.in/bo/compltindex.htm http://www.finmin.nic.in/ http://www.epfindia.nic.in/ http://www.esic.nic.in/ http://www.cbec.gov.in/ http://www.dgft.gov.in/ http://www.rti.gov.in http://www.cvc.nic.in http://www.xbrl.org http://www.xbrl.org/in

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