102049538 service tax presentation

7/29/2019 102049538 Service Tax Presentation

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Service Tax


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Service TaxChanges By Finance Act 2012

Before 01.07.2012

119 Services were Taxable

Service Provider was Liable To Pay Tax in Full

Under Special Condition Service Receiver was Liable To Pay

1. Import of Services

2. Transport of Goods By Road Services

3. Sponsorship Service etc.


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Declared Services

Renting of Immovable Property

Work Contract

Construction of Complex, Building, Civil Structure

Temporary Transfer of Intellectual property right Transfer of goods by way of hiring, licensing, hire

purchase

Service portion in execution of work contract


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Services

Banking, NBFC,

Electricity Distribution Services

Support Services

Consignment Handling Services Courier Agency

Restaurant, Food Stand, First food Center

Caterer, Convention Centre etc.


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Before 01.07.2012 From 01.07.2012

Erection, Commissioningor Installation Services

Construction Services inrespect of IndustrialBuilding or Civil Structure.

Construction of ResidentialComplex Services

Repair and MaintenanceServices Interior Designer Services Renovation, Alternation,

etc.

Now All this services

are covered under1. Work Contract Service

2. Construction ofComplex.

Service Classification


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Negative list of Services

Services by Government or a Local Authority

Services by the Reserve Bank of India

Services by a foreign diplomatic mission located in India

Services relating to agriculture Trading of goods,

Activity amounted to Manufacturing

Transmission or Distribution of electricity by an

electricity transmission or distribution utility

Funeral, burial, crematorium or mortuary servicesincluding transportation of the deceased


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Specific Exempted Services:

1. Services to United Nation or SpecifiedInternational Organization.

2. Service by way of vehicle parking to general public

excluding leasing of space.3. Service by the following persons in respective

capacity:a) Selling or distribution of SIM cards or recharge coupon

voucher;b) Sub-contractor providing services by way of works contract

to another contractor providing work contract services whichre exempt;


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Valuation Method for Service Value of WorkContract

Cost Plus Method / Service Value / Direct Method

Composition Method or Preventive Method


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Cost Plus Method / Service Value Method

Gross Amount Charged for Work Contract Less: Value of Supply including Tax thereon

Note: 1. CENVAT credit available for Input, InputServices used in or in relation to execution of Workcontract.

2. Service Value determined above must have value for

items listed in list

1.


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Composition Method or Preventive Method

Gross Value Charged for Execution of Work Contract

Add: FMV of Supplies (supplied in same or other contract forexecution of work contract)

(i.e. Supplied free of cost or at discounted value)

Less Value Charged for that Supplies

Note: 1. Preventive rate 40/60/70 % apply ofcalculating Service Value

2. CENVAT credit for Input is not available.3. CENVAT credit for Input Services and capital Goods

will be available.


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Support service by Government or LocalAuthority

Service Provided by Government or local authority

Taxable Value for Service Receiver Tax @12.36% on 100% Service ChargesPaid

Services Mainly Covered 1. Testing ,2. Security3. Construction / Erection4. R & D or any other Support Services

Following Govt. Support Services areexempted

1. Renting of Immovable property,2. Postal Services,

3. Services in relation to Aircraft orVessel and

4. Transportation of Goods orPassenger.


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Most Important Action to be taken

All work order to be revised considering Tax implicationunder reverse charge method,

All Service Provider to be registered with Service Taxdepartment,

All Input Service Bill must complied with provision ofCENVTABLE invoice. First Service Invoice to be supported by Service Tax

Registration and subsequent Invoices to be supported byTax paid challan for Tax paid against earlier bill.(Bill

format and check list enclosed) All Service And Excise Bill to be address to Site addressotherwise CENVAT Credit will not available and also

billed Site become liable for tax under reverse charge.

102049538 service tax presentation

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