impact of finance bill 2015 on service tax law &...

UPDATED BY THE FINANCE BILL 2015 Chapter V of the Finance Act 1994 Rules under Service Tax Law CENVAT Credit Rules 2004 Exemptions, Reverse Charge, Abatements Notifications Budget Documents Commentary on changes in Services & Procedures

Impact of Finance Bill 2015 on

Service Tax Law & Practice

Compilation and commentary by Rohini Aggarawal

Pankaj Goel Vipin Jain

PREFACE

Dear Readers,

The Finance Bill, 2015, which was placed in the parliament on 28th of

February has proposed a host of changes impacting the statute, the rules,

the major notifications leading to the changes in the tax rate, coverage of

negative list, exemptions, scope of reverse charge on services, value of

taxable services and abatements thereon and also penalty and recovery

provisions. These changes not only impact almost every aspect of the

service tax law and practice but also are applicable from different dates,

some even before the date of enactment of the Finance Act, 2015.

To fill the gap for the period of two months in between the Finance Bill

2015 and the Finance Act 2015, we have come out with this E-Book as a

small working book containing the amended version of the statute, the

rules and the exemptions, abatement and reverse charge notifications to

facilitate the trade and practice for ease in referring to the applicable

provisions.

Also, in this E-book, we have included commentary on every change ( i.e.

amendment) proposed or made by the Finance Bill, 2015 on procedures or

taxable services which are impacted by such changes. This will facilitate in

having a comprehensive view of the topic wise change(s).

Trust you would find the Book Useful.

Happy reading to you all!

Rohini Aggarawal

Pankaj Goel

Vipin Jain

BRIEF CONTENTS OF THE BOOK

This Book is broadly divided into four parts.

Part A contains –

Amended version of Chapter V of the Finance Act, 1994; Service Tax Rules, 1994; Determination of (Value of Services) Rules 2006; Point of Taxation Rules, 2011; Place of Provision of Services Rules, 2012 and CENVAT Credit Rules, 2004

Part B contains –

Commentary on Procedures and Services impacted by the Finance Bill 2015

Part C contains –

Extracts of the Finance Bill, 2015; Memorandum to the Bill; Extracts from the Budget Speech; Notifications and Circulars issued along with the Budget

Part D contains –

Notifications and Circulars issued after the Finance Act 2014 till the Finance Bill 2015

HOW TO USE THE BOOK

This Book is specially designed to facilitate you in referencing to the footnotes and to the related provisions at a click of the mouse.

Some of the tips to use the book are given below for your reference –

Hyperlinks in the index of the book will provide ease to access the desired chapter

A click on any footnote number will take you to the detailed footnote.

A click on a given provision in the bookmark bar will take you to the respective text in the book –

Trust you would find the above facilities useful.

[ III ]

DETAILED CONTENTS

PART A: SERVICE TAX LAW

STATUTORY PROVISIONS Amended Chapters Page No. 1. Chapter V and VA of the Finance Act, 1994 as amended by the Finance Bill, 2015 . . . . 1-42 1A. Chapter VI of the Finance Bill, 2015 – SWACH BHARAT CESS .. .. 43

RULES

Text of Rules Amended (upto 31st March, 2015) 2. Service Tax Rules, 1994 . . . . . . 45-70 3. CENVAT Credit Rules, 2004 . . . . . . 71-126 4. Service Tax (Determination of Value) Rules, 2006. . . . 127-134 5. Place of Provision of Services Rules, 2012 . . . . 135-139 6. Point of Taxation Rules, 2011 . . . . . . 141-146

NOTIFICATIONS 7. Notifications Amended upto 31st March 2015. . . . . 147-174 - Notification No. 25/2012-ST, dated 20-06-2012 .. . . 148-160 - Notification No. 26/2012-ST, dated 20-06-2012 .. . . 161-166 - Notification No. 30/2012-ST, dated 20-06-2012 .. . . 166-171 - Notification No. 31/2012-ST, dated 20-06-2012 .. . . 171-172 - Notification No. 42/2012-ST, dated 29-06-2012 .. . . 172-174

PART B: COMMENTARY

Impact of the changes made by the Finance Bill, 2015 8. Registration . . . . . . 175-178 9. Service Tax Rate . . . . . . 179-184 10. Valuation of Service . . . . . . 185-188 11. Abatement . . . . . . 189-192

IV Impact of the Finance Bill, 2015

12. Availment of Cenvat Credit . . . . 193-211 13. Digital Invoice . . . . . . 213-216 14. Recovery by Issuing Show Cause Notice . . . . . . 217-219 15. Penalty . . . . . . 221-229 16. Advance Ruling . . . . . . 231-232 17. Appeals & Revision by Central Government . . . . 233-238 18. Definition of Service . . . . . . 239-243 19. Classification of Service . . . . . . 245-246 20. Exemptions . . . . 247-250 21. Ambulance Service . . . . 251-252 22. Manufacture of Alcoholic Liquor . . . . . . 253-256 23. Entertainment Event & Amusement Facility . . . . 257-261 24. Services provided by Government . . . . . . 263-266 25. Selling Agents & Distributors of Lottery . . . . 267-274 26. Agents & Distributors of Mutual Fund . . . . 275-277 27. Construction, Port & Airport Services . . . . . . 279-281 28. Services involving Aggregator . . . . . . 283-286 29. Air Travel Agent Services . . . . . . 287-288 30. Transport of Goods . . . . 289-291 31. Supply of Manpower & Security Services . . . . 293-294 32. Refund/ Exemption for Export of Goods . . . . . . 295-297

PART C: FINANCE BILL, 2015 & NOTIFICATIONS

33. Excerpts of the Finance Bill, 2015 . . . . 299-304 34. Notes on Clause . . . . 305-306 35. Memorandum explaining the provisions in Finance

Bill, 2015 . . . . 307-315 36. Budget Speech – Indirect Tax Proposal .. .. 317-326 37. Notifications issued with Finance Bill, 2015 .. 327-340 38. TRU Letter & Circulars .. .. 341-364

PART D: NOTIFICATIONS & CIRCULARS issued from August 2014 to February 2015

39. Notifications . . . . 365-386 40. Circulars .. 387-395

———

PART A

[1 ]

Chapter 1

Chapter V and VA of the Finance Act, 1994 As applicable from the date of enactment of the Finance Bill, 2015

The law relating to service tax is contained in Chapter V of the Finance Act, 1994 which came into force w.e.f. 1st July 1994, Chapter VA introduced therein by the Finance Act, 2003 w.e.f. 14-05-2003, and Chapter VI of the Finance Bill, 2015 relating to Swachh Bharat Cess. Following is the version, of ‘Chapter V of the Finance Act, 1994’ last amended by the Finance Bill, 2015; and extracts of Chapter VI as inserted by the Finance Bill, 2015.

CHAPTER V S. 64

64. Extent, commencement and application.—(1) This Chapter extends to the whole of India except the State of Jammu and Kashmir. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. (3) It shall apply to taxable services provided on or after the commencement of this Chapter.

S. 65B

1[65B. Interpretations. –– In this Chapter, unless the context otherwise requires,–– (1) “actionable claim” shall have the meaning assigned to it in section 3 of the Transfer of Property Act, 1882 (4 of 1882); (2) “advertisement” means any form of presentation for promotion of, or bringing awareness about, any event, idea, immovable property, person, service, goods or actionable claim through newspaper, television, radio or any other means but does not include any presentation made in person; (3) “agriculture” means the cultivation of plants and rearing of all life-forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products; (4) “agricultural extension” means application of scientific research and knowledge to agricultural practices through farmer education or training; (5) “agricultural produce” means any produce of agriculture on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market; (6) “Agricultural Produce Marketing Committee or Board” means any committee or board constituted under a State law for the time being in force for the purpose of regulating the marketing of agricultural produce; (7) “aircraft” has the meaning assigned to it in clause (1) of section 2 of the Aircraft Act, 1934 (22 of 1934); (8) “airport” has the meaning assigned to it in clause (b) of section 2 of the Airports Authority of India Act, 1994 (55 of 1994); 2[ (9) “amusement facility” means a facility where fun or recreation is provided by means of rides, gaming devices or bowling alleys in amusement parks, amusement arcades, water parks, theme parks or such other places but does not include a p lace within such facility where other services are provided;]

1. Section 65B inserted vide the Finance Act, 2012 read with NN-19/2012-ST, dated 05-06-2012.

(w.e.f 01-07-2012). 2. Clause 9 to be omitted (w.e.f. notified date after the enactment of the Finance Bill, 2015).

2 Impact of the Finance Bill, 2015 [S. 65B

(10) “Appellate Tribunal” means the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (52 of 1962); (11) “approved vocational education course” means,––

(i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training 3[or State Council for Vocational Training] offering courses in designated trades notified under the Apprentices Act, 1961(52 of 1961); or

(ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Employment and Training, Union Ministry of Labour and Employment; 4[**]

5[***] (12) “assessee” means a person liable to pay tax and includes his agent; (13) “associated enterprise” shall have the meaning assigned to it in section 92A of the Income-tax Act, 1961 (43 of 1961); (14) “authorised dealer of foreign exchange” shall have the meaning assigned to “authorized person” in clause (c) of section 2 of the Foreign Exchange Management Act, 1999(42 of 1999); (15) “betting or gambling” means putting on stake something of value, particularly money, with consciousness of risk and hope of gain on t he outcome of a game or a contest, whose result may be determined by chance or accident, or on the likelihood of anything occurring or not occurring; (16) “Board” means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963); (17) “business entity” means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession; (18) “Central Electricity Authority” means the authority constituted under section 3 of the Electricity (Supply) Act, 1948 (54 of 1948); (19) “Central Transmission Utility” shall have the meaning assigned to it in clause (10) of section 2 of the Electricity Act, 2003 (36 0f 2003); (20) “courier agency” means any person engaged in the door-to-door transportation of time-sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles; (21) “customs station” shall have the meaning assigned to it in clause (13) of section 2 of the Customs Act, 1962 (52 of 1962); (22) “declared service” means any activity carried out by a p erson for another person for consideration and declared as such under section 66E; (23) “electricity transmission or distribution utility” means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003(36 of 2003); or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government;

3. Words inserted vide the Finance Act, 2013 (w.e.f. 10-05-2013). 4. Word ‘or’ omitted vide the Finance Act, 2013 (w.e.f. 10-05-2013). 5. Sub-clause (iii) omitted (for NDSC is not an affiliated body), vide the Finance Act, 2013 (w.e.f.

10-05-2013). The clause read as follows: “(iii) a course run by an institute affiliated to the National Skill Development Corporation set up by the Government of India;”.

[S. 65B Provisions as amended by Finance Bill, 2015 3

6[(23A) “foreman of chit fund” shall have the same meaning as is assigned to the term “foreman” in clause (j) of section 2 of the Chit Funds Act, 1982;] 7[(24) “entertainment event” means an event or a performance which is intended to provide 8[;] recreation, pastime, fun or enjoyment, by way of exhibition of cinematographic film, circus, concerts, sporting event, pageants, award functions, dance, musical or theatrical performances including drama, ballets or any such event or programme;] (25) “goods” means every kind of movable property other than actionable claim and money; and includes securities, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; (26) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called; 9[(26A) “Government” means the Departments of the Central Government, a S tate Government and its Departments and a Union territory and its Departments, but shall not include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made thereunder;] (27) “India” means,––

(a) the territory of the Union as referred to in clauses (2) and (3) of article 1 of the Constitution;

(b) its territorial waters, continental shelf, exclusive economic zone or any other maritime zone as defined in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976);

(c) the seabed and the subsoil underlying the territorial waters; (d) the air space above its territory and territorial waters; and (e) the installations, structures and vessels located in the continental shelf of

India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof;

(28) “information technology software” means any representation of instructions, data, sound or image, including source code and object code, recorded in a m achine readable form, and capable of being manipulated or providing interactivity to a user, by means of a co mputer or an automatic data processing machine or any other device or equipment; (29) “inland waterway” means national waterways as defined in clause (h) of section 2 of the Inland Waterways Authority of India Act, 1985(82 of 1985) or other waterway on any inland water, as defined in clause (b) of section 2 of the Inland Vessels Act, 1917(1 of 1917); (30) “interest” means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) but does not include any service fee or other charges in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has been utilised; (31) “local authority” means-

(a) a Panchayat as referred to in clause (d) of article 243 of the Constitution; 6. Definition of ‘foreman of chit fund’ inserted vide the Finance Bill, 2015 (w.e.f the date of

enactment of the Finance Bill, 2015). 7. Clause 24 to be omitted w.e.f. notified date after the enactment of the Finance Bill, 2015. 8. This “ ; ” seems to be an inadvertently placed mark in the definition. 9. Definition of ‘Government’ inserted vide the Finance Bill, 2015 (w.e.f the date of

enactment of the Finance Bill, 2015).


(b) a Municipality as referred to in clause (e) of article 243P of the Constitution;

(c) a Municipal Committee and a District Board, legally entitled to, or entrusted by the Government with, the control or management of a municipal or local fund;

(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006);

(e) a regional council or a district council constituted under the Sixth Schedule to the Constitution;

(f) a development board constituted under article 371 of the Constitution; or

(g) a regional council constituted under article 371A of the Constitution; 10[(31A) “lottery distributor or selling agent” means a person appointed or authorised by a State for the purposes of promoting, marketing, selling or facilitating in organising lottery of any kind, in any manner, organised by such State in accordance with the provisions of the Lotteries (Regulation) Act, 1998’;] (32) “metered cab” means any contract carriage on which an automatic device, of the type and make approved under the relevant rules by the State Transport Authority, is fitted which indicates reading of the fare chargeable at any moment and that is charged accordingly under the conditions of its permit issued under the Motor Vehicles Act, 1988 (59 of 1988) and the rules made thereunder 11[but does not include radio taxi]; (33) “money” means legal tender, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any similar such instrument but shall not include any currency that is held for its numismatic value; (34) “negative list” means the services which are listed in section 66D; (35) “non-taxable territory” means the territory which is outside the taxable territory; (36) “notification” means notification published in the Official Gazette and the expressions ‘‘notify’’ and “notified” shall be construed accordingly; (37) “person” includes,––

(i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a society, (v) a limited liability partnership, (vi) a firm, (vii) an association of persons or body of individuals, whether incorporated or not, (viii) Government, (ix) a local authority, or (x) every artificial juridical person, not falling within any of the preceding sub-clauses;

10. Definition of ‘ lottery distributor or s elling agent’ inserted vide the Finance Bill, 2015

(w.e.f. the date of enactment of the Finance Bill, 2015). 11. Words inserted vide the Finance Act, 2014 and made effective vide Notification No.18/2014,

dated 25-08-2014 (w.e.f. 01-10-2014).


(38) “port” has the meaning assigned to it in clause (q) of section 2 of the Major Port Trusts Act, 1963 (38 of 1963) or in clause (4) of section 3 of the Indian Ports Act, 1908 (15 of 1908); (39) “prescribed” means prescribed by rules made under this Chapter; 12[(39a) “print media” means,––

(i) “book” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867), but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes;

(ii) “newspaper” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867);]

(40) “process amounting to manufacture or production of goods” means a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944 (1 of 1944) 13[or the Medicinal and Toilet Preparations (Excise Duties) Act, 1955] or any process amounting to manufacture of 14[alcoholic liquors for human consumption,] opium, Indian hemp and other narcotic drugs and narcotics on which duties of excise are leviable under any State Act for the time being in force; (41) “renting” means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property; (42) “Reserve Bank of India” means the bank established under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); (43) “securities” has the meaning assigned to it in clause (h) of section 2 of the Securities Contract (Regulation) Act, 1956 (42 of 1956); (44) “service” means any activity carried out by a p erson for another for consideration, and includes a declared service, but shall not include—

(a) an activity which constitutes merely,–– (i) a transfer of title in goods or immovable property, by way of sale, gift or in any other manner; or (ii) such transfer, delivery or supply of any goods which is deemed to be a s ale within the meaning of clause (29A) of article 366 o f the Constitution; or (iii) a transaction in money or actionable claim;

(b) a provision of service by an employee to the employer in the course of or in relation to his employment; (c) fees taken in any Court or tribunal established under any law for the time being in force.

Explanation 1.— For the removal of doubts, it is hereby declared that nothing contained in this clause shall apply to,––

(A) the functions performed by the Members of Parliament, Members of State Legislative, Members of Panchayats, Members of Municipalities and Members of other local authorities who receive any consideration in performing the functions of that office as such member; or

12. Definition inserted vide the Finance Act, 2014 and made effective vide Notification

No.18/2014, dated 25-08-2014 (w.e.f. 01-10-2014). 13. Words inserted vide the Finance Act, 2013 (w.e.f. 10-05-2013). 14. The shaded words to be omitted vide the Finance Bill, 2015 (w.e.f notified date after

enactment of the Finance Bill, 2015).


(B) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (C) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or State Governments or local authority and who is not deemed as an employee before the commencement of this section.

15[Explanation 2.–– For the purposes of this clause, transaction in money shall not include, any activity relating to the use of money or its conversion by cash or any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged:

‘Explanation 2. – For the purposes of this clause, the expression “transaction in money or actionable claim” shall not include––

(i) any activity relating to use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;

(ii) any activity carried out, for a consideration, in relation to, or for facilitation of, a transaction in money or actionable claim, including the activity carried out––

(a) by a lottery distributor or selling agent in relation to promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind, in any other manner

(b) by a foreman of chit fund for conducting or organising a chit in any manner.]

Explanation 3.–– For the purposes of this Chapter,— (a) an unincorporated association or a body of persons, as the case may be, and a member thereof shall be treated as distinct persons; (b) an establishment of a person in the taxable territory and any of his other establishment in a non-taxable territory shall be treated as establishments of distinct persons.

Explanation 4.— A person carrying on a business through a branch or agency or representational office in any territory shall be treated as having an establishment in that territory; (45) “Special Economic Zone” has the meaning assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); (46) “stage carriage” shall have the meaning assigned to it in clause (40) of section 2 of Motor Vehicles Act, 1988(59 of 1988); (47) “State Electricity Board” means the Board constituted under section 5 of the Electricity (Supply) Act, 1948 (54 of 1948); (48) “State Transmission Utility” shall have the meaning assigned to it in clause (67) of section 2 of the Electricity Act, 2003 (36 of 2003); 16[(49) “support services” means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of immovable property, security, testing and analysis;]

15. The shaded ‘Explanation-2’ to be substituted by unshaded ‘Explanation -2’ vide the

Finance Bill, 2015 (w.e.f date of enactment of the Finance Bill, 2015). 16. The shaded clause (49) to be omitted vide the Finance Bill, 2015 (w.e.f notified date after

the enactment of the Finance Bill, 2015).


(50) “tax” means service tax leviable under the provisions of this Chapter; (51) “taxable service” means any service on which service tax is leviable under section 66B; (52) “taxable territory” means the territory to which the provisions of this Chapter apply; (53) “vessel” has the meaning assigned to it in clause (z) of section 2 of the Major Port Trusts Act, 1963 (38 of 1963); (54) “works contract” means a co ntract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property; (55) words and expressions used but not defined in this Chapter and defined in the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise.]

S. 66B

17[66B. Charge of service tax on and after Finance Act, 2012. –– There shall be levied a tax (hereinafter referred to as the service tax) at the rate of 18[twelve per cent. / fourteen per cent.] on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. 19[***]

S. 66BA

20[66BA. Reference to section 66 to be construed as reference to section 66B. –– (1) For the purpose of levy and collection of service tax, any reference to section 66 in the Finance Act, 1994 (32 of 1994) or any other Act for the time being in force, shall be construed as reference to section 66B thereof. (2) The provisions of this section shall be deemed to have come into force on the 1st

day of July, 2012.] S. 66C

66C. Determination of place of provision of service. –– (1) The Central Government may, having regard to the nature and description of various services, by rules made in this regard, determine the place where such services are provided or deemed to have been provided or agreed to be provided or deemed to have been agreed to be provided. (2) Any rule made under sub-section (1) shall not be invalid merely on t he ground that either the service provider or the service receiver or both are located at a place being outside the taxable territory. 66D. Negative list of Services.––The negative list shall comprise of the following services, namely:––

17. New Sections 66B, 66C, 66D, 66E and 66F inserted vide the Finance Act, 2012 read with NN.-

19/2012-ST, dated 05-06-2012 (w.e.f. 01-07-2012). 18. The shaded words ‘twelve per cent.’ to be substituted by non-shaded words ‘fourteen

per cent.’ vide the Finance Bill, 2015 (w.e.f. notified date after enactment of the Finance Bill, 2015).

19. Explanation inserted vide Service Tax (Removal of Difficulties) Second Order No. 2/2012 w.e.f. 01-07-2012 has been omitted vide the Finance Act, 2013 (w.e.f. 10-05-2013). The erstwhile Explanation read as follows: “Explanation.- For the removal of doubts, it is hereby clarified that the references to the provisions of section 66 in Chapter V of the Finance Act, 1994 ( 32 of 1994) or any other collection of service tax, shall be construed as references to the provisions of section 66B.”

20. Section 66BA inserted vide the Finance Act, 2013 (w.e.f. 10-05-2013).

8 Impact of the Finance Bill, 2015 [S. 66D

(a) services by Government or a local authority excluding the following services to the extent they are not covered elsewhere—

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers; or (iv) 21[support services/ any service], other than services covered under clauses (i) to (iii) above, provided to business entities;

(b) services by the Reserve Bank of India; (c) services by a foreign diplomatic mission located in India; (d) services relating to agriculture or agricultural produce by way of—

(i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or 22[**] testing; (ii) supply of farm labour; (iii) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market; (iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (v) loading, unloading, packing, storage or warehousing of agricultural produce; (vi) agricultural extension services; (vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;

(e) trading of goods; 23[(f) any process amounting to manufacture or production of goods;/

(f) services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption;]

S. 66D

24[(g) selling of space for advertisements in print media]; (h) service by way of access to a road or a bridge on payment of toll charges; (i) betting, gambling or lottery;

21. The shaded words ‘support services’ to be substituted by non-shaded words ‘any

service’ vide the Finance Bill, 2015 (w.e.f. notified date after enactment of the Finance Bill, 2015).

22. Word ‘seed’ omitted vide the Finance Act, 2013 (w.e.f. 10-05-2013). 23. The shaded ‘Entry (f)’ to be substituted by non-shaded ‘Entry (f)’ vide the Finance Bill,

2015 (w.e.f. notified date after enactment of the Finance Bill, 2015). 24. Clause (g) substituted vide Finance Act, 2014 and made effective vide Notification

No.18/2014-ST, dated 25-08-2014 (w.e.f. 01-10-2014). The clause prior to the change read as “selling of space or time slots for advertisements other than advertisements broadcast by radio or television.”

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� ��bca�� 3��)��)4�)��)��)��+��)��)��*�� (��+��)��&��)��+��)��&�+��&��&��+�� +�� (� ��)� �� +� �� )� �� )��*� �� 5��

��bd��3�� &��4��)��+��+�� &�� .��(�7�*��# ��!$��!$��5��

� �c�� 3"��)4�)��"��)��&�5�� /� 0��+�(��%��7��*/�� /� �� !"�#�!$��#�$#%$�#�!�&'��#�$#%$�#�!(�� $/� Subs/��:�� :�/��;�<<�� 0��<!�<8��<<��//�/��9�<8��<<��/�� /�� Ins.��:�� :�/$9;�<�� 0��<�<9��<��//�/�<��<8��<��/�� /� �� !"�#�!$��#�$#%$�#�!�&'��#�$#%$�#�!(��

46 Impact of the Finance Bill, 2015 [R. 2

6[(c1a) “goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);]

7[8[(ca) “half year” means the period between 1st April to 30th September or 1st October to 31st March of a financial year;]

9[(cb) “input service distributor” has the meaning assigned to it in clause (m) of rule 2 of the CENVAT Credit Rules, 2004;]

10[(cba) “insurance agent” has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);]

11[(cc) “large taxpayer” shall have the meaning assigned to it in the Central Excise Rules, 2002;]]

12[(cca) “legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;

(ccb) “life insurance business” has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(ccc) “non banking financial company” has the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);]

13[(cd) “partnership firm” includes a limited liability partnership;] 14[(d) “person liable for paying service tax”,—

6. Ins. by Notification No.36/2012-ST, dated 20-06-2012 (w.e.f. 01-07-2012). 7. Clauses from (cc) to (cccc) renumbered as clauses (ca),(cb), and (cc) by Notification No.

3/2012-ST, dated 17-03-2012 (w.e.f. 01-04-2012). 8. Ins. by Notification No. 54/98-ST, dated 07-10-1998 (w.e.f. 16-10-1998). 9. Ins. by Notification No. 11/2004-ST, dated 10-09-2004 (w.e.f. 10-09-2004). 10. Ins. by Notification No.36/2012-ST, dated 20-06-2012 (w.e.f. 01-07-2012). 11. Ins. by Notification No. 28/2006-ST, dated 30-09-2006 (w.e.f. 30-09-2006). 12. Clauses (cca) to (ccc) Ins. by Notification No.36/2012-ST, dated 20-06-2012 (w.e.f. 01-07-

2012). 13. Ins. by Notification No. 3/2012-ST, dated 17-03-2012(w.e.f. 01-04-2012). 14. Subs. by Notification No. 36/2012-ST, dated 20-06-2012 (w.e.f. 01-07-2012). The text of

earlier rule 2(1)(d) is as under – “person liable for paying service tax” means,— (i) in relation to telecommunication service— (a) the Director General of Posts and Telegraphs, referred to in clause (6) of Section 3 of the

Indian Telegraph Act, 1885 (13 of 1885); or (b) the Chairman-cum-Managing Director, Mahanagar Telephone Nigam Limited, Delhi, a

company registered under the Companies Act, 1956 (1 of 1956); or (c) any other person who has been granted a licence by the Central Government under the

first proviso to sub-section (1) of Section 4 of the Indian Telegraph Act, 1885 (13 of 1885); (ii) in relation to general insurance business, the insurer or re-insurer, as the case may be,

providing such service; (iii) in relation to insurance auxiliary service by an insurance agent, any person carrying on the

general insurance business or the life insurance business, as the case may be, in India.

[R. 2 Service Tax Rules, 1994 47

(i) in respect of the taxable services notified under sub-section (2) of section 68 of the Act, means,—

(A) in relation to service provided or agreed to be provided by an insurance agent to any person carrying on t he insurance business, the recipient of the service.

15[(AA) in relation to service provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company, the recipient of the service;]

16[(AAA) in relation to service provided or agreed to be provided by a person involving an aggregator in any manner, the aggregator of the service:

Provided that if the aggregator does not have a physical presence in the taxable territory, any person representing the aggregator for any purpose in the taxable territory shall be liable for paying service tax;

Provided further that if the aggregator does not have a physical presence or does not have a r epresentative for any purpose in the taxable territory, the aggregator shall appoint a person in the taxable territory for the purpose of paying service tax and such person shall be liable for paying service tax.;]

(iv) in relation to any taxable service provided or to be provided by any person from a country

other than India and received by any person in India under Section 66A of the Act, the recipient of such service;

(v) in relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is,—

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948); (b) any company formed or registered under the Companies Act, 1956 (1 of 1956); (c) any corporation established by or under any law; (d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under

any law corresponding to that Act in force in any part of India; (e) any co-operative society established by or under any law; (f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of

1944) or the rules made thereunder; or (g) any body corporate established, or a partnership firm registered, by or under any law, any person who pays or is liable to pay freight either himself or through his agent for the

transportation of such goods by road in a goods carriage; (vi) in relation to business auxiliary service of distribution of mutual fund by a mutual fund

distributor or an agent, as the case may be, the mutual fund or asset management company, as the case may be, receiving such service;

(vii) in relation to sponsorship service provided to any body corporate or firm located in India, the body corporate or, as the case may be the firm who receives such sponsorship service;”

15. The item (AA) inserted vide Notification No. 09/2014-ST, dated 11-07-2014 (w.e.f. 11-07-2014)

16. The item (AAA) inserted vide Notification No. 05/2015-ST, dated 01-03-2015 (w.e.f. 01-03-2015).


(B) in relation to service provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,— (I) any factory registered under or governed by the Factories

Act, 1948 (63 of 1948); (II) any society registered under the Societies Registration

Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(III) any co-operative society established by or under any law; (IV) any dealer of excisable goods, who is registered under the

Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(V) any body corporate established, by or under any law; or (VI) any partnership firm whether registered or not under any

law including association of persons; any person who pays or is liable to pay freight either himself or

through his agent for the transportation of such goods by road in a goods carriage:

Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service tax.

(C) in relation to service provided or agreed to be provided by way of sponsorship to any body corporate or partnership firm located in the taxable territory, the recipient of such service;

(D) in relation to service provided or agreed to be provided by,- (I) an arbitral tribunal, or (II) an individual advocate or a firm of advocates by way of

legal services, to any business entity located in the taxable territory, the

recipient of such service; (E) in relation to 17[support] services provided or agreed to be

provided by Government or local authority except,- (a) renting of immovable property, and (b) services specified sub-clauses (i), (ii) and (iii) of clause (a)

of section 66D of the Finance Act,1994, to any business entity located in the taxable territory, the recipient of such service;

18[(EE) in relation to service provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate, the recipient of such service;]

17. The shaded word “support” to be omitted vide Notification No. 05/2015-ST, dated 01-03-

2015 (w.e.f the notified date after enactment of the Finance Bill, 2015).

[R. 2 Service Tax Rules, 1994 49

19[(EEA) in relation to service provided or agreed to be provided by a mutual fund agent or distributor to a mutual fund or asset management company, the recipient of the service;]

20[(EEB) in relation to service provided or agreed to be provided by a selling or marketing agent of lottery tickets to a lottery distributor or selling agent, the recipient of the service;]

(F) in relation to services provided or agreed to be provided by way of :-

(a) renting of a motor vehicle designed to carry passengers, to any person who is not engaged in a similar business; or

(b) supply of manpower for any purpose 21[or security services]; or

(c) service portion in execution of a works contract - by any individual, Hindu Undivided Family or partnership firm,

whether registered or not, including association of persons, located in the taxable territory to a business entity registered as a body corporate, located in the taxable territory, both the service provider and the service recipient to the extent notified under sub-section (2) of section 68 of the Act, for each respectively.

(G) in relation to any taxable service provided or agreed to be provided by any person which is located in a non-taxable territory and received by any person located in the taxable territory, the recipient of such service;

(ii) in a case other than sub-clause (i), means the provider of service.] 22[(dd) “place of provision” shall be the place as determined by Place of

Provision of Services Rules 2012;] (e) “quarter” means the period between 1st January to 31st March or

1st April to 30th June or 1st July to 30th September or 1st October to 31st December of a financial year;

23[(f) “renting of immovable property” means any service provided or agreed to be provided by renting of immovable property or any other service in relation to such renting.

18. Item (EE) substituted by Notification No. 09/2014-ST, dated 11-07-2014 (w.e.f. 11-07-2014).

Earlier the following item was inserted by Notification No. 46/2012-ST, dated 07-08-2012 (w.e.f. 07-08-2012).

“in relation to service provided or agreed to be provided by a director of a company to the said company, the recipient of such service.”

19. The item (EEA) to be inserted vide Notification No. 05/2015-ST, dated 01-03-2015 (w.e.f. 01-04-2015).

20. The item (EEB) to be inserted vide Notification No. 05/2015-ST, dated 01-03-2015 (w.e.f. 01-04-2015).

21. The words “or security services” ins. by Notification No. 46/2012-ST, dated 07-08-2012. 22. Clause (dd) ins. by Notification No. 36/2012-ST, dated 20-06-2012 (w.e.f. 01-07-2012).

23. Clauses (f) and (g) ins. by N.No. 36/2012-ST, dated 20-06-2012 (w.e.f. 01-07-2012).


24[(fa) “Security Services” means services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity;]

(g) “supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.]

(2) All words and expressions used but not defined in these rules but defined in the 25[Central Excise Act, 1944] (1 of 1944), 26[and the rules made thereunder shall have the meanings assigned to them in that Act and rules.]

R. 3

3. Appointment of officers.—The Central Board of Excise and Customs may appoint such Central Excise Officers as it th inks fit for exercising the powers under Chapter V of the Act within such local limits as it may assign to them as also specify the taxable service in relation to which any such Central Excise Officer shall exercise his powers.

R. 4

27[4. Registration.—(1) Every person liable for paying the service tax shall make an application to the 28[concerned Superintendent of Central Excise] in 29[Form ST-1] for registration within a period of thirty days from the date on which the service tax under 30[Section 66B] of the Finance Act, 1994 ( 32 of 1994) is levied:

Provided that where a person commences the business of providing a taxable service after such service has been levied, he shall make an application for registration within a period of thirty days from the date of such commencement:

31[Provided further that a person liable for paying the service tax in the case of taxable services referred to in sub-section (4) or sub-section (5) of Section 66 of the Finance Act, 1994 (32 of 1994) may make an application for registration on or before the 31st day of December, 1998:]

32[Provided also that a person liable for paying the service tax in the case of taxable services referred to in sub-clause (zzp) of clause (105) of Section 65 of the Act may make an application for registration on or before the 33[31st day of March, 2005.]]

24. Clause (fa) ins. by Notification No. 46/2012-ST, dated 07-08-2012 (w.e.f. 07-08-2012). 25. Renamed for Central Excises and Salt Act, 1944 by the Finance Act, 1996. 26. Subs. by Notification No. 5/2001-ST, dated 09-07-2001 (w.e.f. 16-07-2001). 27. Subs. by Notification No. 54/98-ST, dated 07-10-1998 (w.e.f. 16-10-1998). 28. Subs. by Notification No. 5/2001-ST, dated 09-07-2001 (w.e.f. 16-07-2001). 29. A format of Form ST-1 is appended in Part E of this Book. An amendment has been made in

this form by appending a list of accounting codes by NN.48/2012-ST, dated 30-09-2012. 30. Subs. for the words ‘section 66’ by Notification No. 36/2012-ST, dated 20-06-2012 (w.e.f.

01-07-2012). 31. Ins. by Notification No. 60/98-ST, dated 01-12-1998 (w.e.f. 02-12-1998). 32. Ins. by Notification No. 2/2005-ST, dated 14-02-2005 (w.e.f. 14-02-2005). 33. Subs. for words “28th day of February, 2005” by Notification No. 3/2005-ST, dated 26-02-2005.

[71 ]

Chapter 3

CENVAT Credit Rules, 2004 (Latest amended by Notification Nos. 03/2013-CE(NT), dated 01-03-2013; 12/2013-CE(NT); 18/2013-CE(NT);01/2014-CE(NT), dated 08-01-2014; 02/2014-CE(NT), dated 20-01-2014; 05/2014-CE(NT), dated 24-02-2014; 09/2014-CE(NT), dated 28-02-2014; 15/2014-CE(NT), dated 21-03-2014;21/2104-CE(NT), dated 11-07-2014, 25/2014-CE(NT), dated 25-08-2014, 26/2014-CE(NT), dated 27-08-2014 and 06/2015-CE(NT), dated 01-03-2015.)

CENVAT Credit Rules, 2004

In exercise of the powers conferred by Section 37 of the Central Excise Act, 1944 (1 of 1944) and Section 94 of the Finance Act, 1994 (32 of 1994) and in supersession of the CENVAT Credit Rules, 2002 and the Service Tax Credit Rules, 2002, except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following rules, namely:—

R. 1

1. Short title, extent, and commencement.—(1) These rules may be called the CENVAT Credit Rules, 2004.

(2) They extend to the whole of India: Provided that nothing contained in these rules relating to availment and

utilisation of credit of service tax shall apply to the State of Jammu and Kashmir.

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

R. 2

2. Definitions.—In these rules, unless the context otherwise requires,— (a) “capital goods” means:— (A) the following goods, namely:— (i) all goods falling under Chapter 82, Chapter 84, Chapter 85,

Chapter 90, 1[heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804] of the First Schedule to the Excise Tariff Act;

(ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at

(i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof;2[ ***] (vii) 3[storage tank; and]

1. Subs. for words and figures “heading No. 68.02 and sub-heading No. 6801.10” by

Notification No. 07/2007-CE(NT), dated 21-02-2007 (w.e.f. 21-02-2007). 2. The word “and” omitted by Notification No. 18/2012-CE(NT), dated 17-03-2012(w.e.f. 01-

04-2012). 3. Subs. for words “storage tank” by Notification No. 18/2012-CE(NT), dated 17-03-2012 (w.e.f.

01-04-2012).


4[(viii) motor vehicles other than those falling under tariff headings 8702,8703,8704,8711 and their chassis 5[but including dumpers and tippers],]

used— (1) in the factory of the manufacturer of the final products, but

does not include any equipment or appliance used in an office; or

6[(1A) outside the factory of the manufacturer of the final products for generation of electricity for captive use within the factory; or]

(2) for providing output service; 7[(B) motor vehicle designed for transportation of goods including

their chassis registered in the name of the service provider, when used for- (i) providing an output service of renting of such motor vehicle;

or (ii) transportation of inputs and capital goods used for providing

an output service; or (iii) providing an output service of courier agency]

8[(C) motor vehicle designed to carry passengers including their chassis, registered in the name of the provider of service, when used for providing output service of-

(i) transportation of passengers; or (ii) renting of such motor vehicle; or (iii)imparting motor driving skills] 9[(D) components, spares and accessories of motor vehicles which are

capital goods for the assessee;] (b) “Customs Tariff Act” means the Customs Tariff Act, 1975 (51 of

1975); (c) “Excise Act” means the Central Excise Act, 1944 (1 of 1944);

4. Ins. by Notification No. 18/2012-CE(NT), dated 17-03-2012 (w.e.f 01-04-2012). 5. Ins. by Notification No. 28/2012-CE(NT), dated 20-06-2012 (w.e.f 01-07-2012). 6. Ins. by Notification No. 3/2011-CE(NT), dated 01-03-2011 ( w.e.f. 01-04-2011). 7. Subs. by Notification No. 28/2012-CE(NT), dated 20-06-2012 (w.e.f 01-07-2012) for the

following para: “motor vehicle falling under tariff headings 8702, 8703,8704,8711 and their chassis registered in the name of provider of output service for providing taxable service as specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause (105) of Section 65 of the Finance Act;” (This para was inserted vide NN. 18/2012-CE(NT) effective from 01-04-12)

8. Subs. by Notification No. 28/2012-CE(NT), dated 20-06-2012 (w.e.f 01-07-2012) for the following para: “dumpers or tippers, falling under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986), registered in the name of provider of output service for providing taxable services as specified in sub-clauses (zzza) and (zzzy) of clause (105) of section 65 of the said Finance Act;”

9. Subs. by Notification No. 18 / 2012-CE (NT), dated 17-03-2012 (w.e.f. 01-04-2012).

[R. 2 CENVAT Credit Rules, 2004 73

(d) “exempted goods” means excisable goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to “Nil” rate of duty 10[goods in respect of which the benefit of an exemption under Notification No. 1/2011-CE, dated the 1st March, 2011 or under entries at serial numbers 67 and 128 of Notification No. 12/2012-CE, dated the 17th March, 2012 is availed];

11[(e) "exempted service" means a- (1) taxable service which is exempt from the whole of the service tax

leviable thereon; or (2) service, on which no service tax is leviable under section 66B of

the Finance Act; or (3) taxable service whose part of value is exempted on the condition

that no credit of inputs and input services, used for providing such taxable service, shall be taken; but shall not include a service which is exported in terms of rule 6A of the Service Tax Rules, 1994.]

(f) “Excise Tariff Act” means the Central Excise Tariff Act, 1985 (5 of 1986);

(g) “Finance Act” means the Finance Act, 1994 (32 of 1994); (h) “final products” means excisable goods manufactured or produced

from input, or using input service; (ij) “first stage dealer” means12[…..],— (i) 13[a dealer, who purchases the goods directly from the

manufacturer under the cover of an invoice] issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on be half of the said manufacturer, under cover of an invoice; or

10. Subs. for the words “and goods in respect of which the benefit of an exemption under

notification no. 1/2011-CE, dated the 1st March, 2011 is availed” by Notification No. 21/2012-CE(NT), dated 24-03-2012 (w.e.f. 24-03-2012).

11. Subs. by Notification No. 28/2012-CE(NT), dated 20-06-2012 (w.e.f 01-07-2012) for the following para: “exempted services” means taxable services which are exempt from the whole of the service tax leviable thereon, and includes services on which no service tax is leviable under Section 66 of the Finance Act and taxable services whose part of value is exempted on the condition that no cr edit of inputs and input services, used for providing such taxable service, shall be taken. (This clause was ins. vide NN. 18/2012-CE(NT) effective from 01-04-12).

Explanation.—For the removal of doubts, it is hereby clarified that “exempted services” includes trading”

12. Omitted the words “a dealer, who purchases the goods directly from” vide Notification No. 18/2013-CE(NT) dated 31-12-2013 (w.e.f. 01-03-2014).

13. Subs. for the words “the manufacturer under the cover of an invoice” vide Notification No. 18/2013-CE(NT), dated the 31-12-2013 (w.e.f. 01-03-2014).


14[(ii) an importer who sells goods imported by him under the cover of an invoice on w hich CENVAT credit may be taken and such invoice shall include an invoice issued from his depot or the premises of his consignment agent];

15[(k) “input” means— (i) all goods used in the factory by the manufacturer of the final

product; or (ii) any goods including accessories, cleared along with the final

product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or

(iii) all goods used for generation of electricity or steam for captive use; or

(iv) all goods used for providing any output service; but excludes—

(A) light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol;

16[(B) any goods used for—

14. Subs. by Notification No. 18/2013-CE(NT), dated 31-12-2013 (w.e.f. 01-03-2014). Prior to

Substitution, sub-clause (ii) read as under: “(ii) an importer or from the depot of an importer or from the premises of the consignment

agent of the importer, under cover of an invoice”. 15. Subs. by Notification No. 3/2011-CE(NT), dated 01-03-2011 (w.e.f. 01-04-2011). Prior to

Substitution, Clause (k) read as under: (k) “input” means— (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known

as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production;

(ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service;

Explanation 1.—The light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever.

Explanation 2.—Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer 15[but shall not include cement, angles, channels, Centrally Twisted Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods.

16. Subs. by Notification No. 28/2012-CE(NT), dated 20-06-2012 (w.e.f 01-07-2012) for the following para: “(B) any goods used for— (a) construction of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of any taxable service specified in sub-clauses (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of section 65 of the Finance Act;”.

[R. 2 CENVAT Credit Rules, 2004 75

(a) construction or execution of works contract of a building or a civil structure or a part thereof; or

(b) laying of foundation or making of structures for support of capital goods,

except for the provision of service portion in the execution of a works contract or construction service as listed under clause (b) of section 66E of the Act;]

(C) capital goods except when used as parts or components in the manufacture of a final product;

(D) motor vehicles; (E) any goods, such as food items, goods used in a guesthouse,

residential colony, club or a recreation facility and clinical establishment, when such goods are used primarily for personal use or consumption of any employee; and

(F) any goods which have no relationship whatsoever with the manufacture of a final product.

Explanation.—For the purpose of this clause, “free warranty” means a warranty provided by the manufacturer, the value of which is included in the price of the final product and is not charged separately from the customer;]

17[(l) “input service” means any service, — (i) used by a provider of 18[output service] for providing an output

service; or (ii) used by a manufacturer, whether directly or indirectly, in or in

relation to the manufacture of final products and clearance of final products upto the place of removal,

and includes services used in relation to modernisation, 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, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking,

17. Subs. by Notification No. 3/2011-CE(NT), dated 01-03-2011 (w.e.f. 01-04-2011). Prior to

Substitution, clause (l) read as under: (l) “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, upto the place of removal, and includes services used in relation to setting up, modernisation, 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 up to 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;

18. Subs. for the words ‘taxable service’ by Notification No. 28/2012-CE(NT), dated 20-06-2012 (w.e.f 01-07-2012).

[127 ]

Chapter 4

1[Service Tax (Determination of Value) Rules, 2006 (Notification No. 12/2006-ST, dated 19-04-2006 as amended vide Notification No. 24/2006-ST

dated 27-06-2006;Notification No. 29/2007-ST, dated 22-05-2007; Notification No. 15/2010-ST, dated 27-02-2010; Notification No. 2/2011-ST, dated 01-03-2011; Notification No. 24/2011-ST, dated 31-03-2011; Notification No. 24/2012-ST, dated 06-06-2012 and Notification No.11/2014-

ST, dated 11-07-2014.) In exercise of the powers conferred by clause (aa) of sub-section (2) of Section 94 of the

Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules, namely:—

1. Short title and commencement.—(1) These rules may be called the Service Tax (Determination of Value) Rules, 2006.

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

2. Definitions.—In these rules, unless the context otherwise requires,—

(a) “Act” means the Finance Act, 1994 (32 of 1994); (b) “section” means the section of the Act; (c) “value” shall have the meaning assigned to it in Section 67; (d) words and expressions used in these rules and not defined but defined

in the Act shall have the meaning respectively assigned to them in the Act.

2[2A. Determination of value of service portion involved in the execution of a w orks contract.— Subject to the provisions of section 67, t he value of

1. Issued vide Notification No. 12/2006-ST, dated 19-04-2006. 2. Rule 2A substituted vide Notification No. 24/2012-ST, dated 06-06-2012, effective from

01-07-2012. The erstwhile Rule 2A as follows: “2A. Determination of value of services involved in the execution of a works contract.—(1) Subject to the provisions of Section 67, the value of taxable service in relation to services involved in the execution of a works contract (hereinafter referred to as works contract service), referred to in sub-clause (zzzza) of clause (105) of Section 65 of the Act, shall be determined by the service provider in the following manner:— (i) Value of works contract service determined shall be equivalent to the gross amount charged for the works

contract less the value of transfer of property in goods involved in the execution of the said works contract. Explanation.—For the purposes of this rule,— (a) gross amount charged for the works contract shall not include Value Added Tax (VAT) or sales tax, as the

case may be, paid, if any, on transfer of property in goods involved in the execution of the said works contract;

(b) value of works contract service shall include,— (i) labour charges for execution of the works; (ii) amount paid to a sub-contractor for labour and services; (iii) charges for planning, designing and architect’s fees; (iv) charges for obtaining on hire or otherwise, machinery and tools used for the execution of the works

contract; (v) cost of consumables such as water, electricity, fuel, used in the execution of the works contract; (vi) cost of establishment of the contractor relatable to supply of labour and services; (vii) other similar expenses relatable to supply of labour and services; and (viii) profit earned by the service provider relatable to supply of labour and services;

128 Impact of the Finance Bill, 2015 [R. 2A

service portion in the execution of a works contract, referred to in clause (h) of section 66E of the Act, shall be determined in the following manner, namely:-

R. 2A

(i) Value of service portion in the execution of works contract shall be equivalent to the gross amount charged for the works contract less the value of property in goods transferred involved in the execution of the said works contract.

Explanation.- For the purposes of this clause,- (a) gross amount charged for the works contract shall not include value

added tax or sales tax, as the case may be, paid or payable, if any, on transfer of property in goods involved in the execution of the said works contract;

(b) value of works contract service shall include, - (i) labour charges for execution of the works; (ii) amount paid to a sub-contractor for labour and services; (iii) charges for planning, designing and architect’s fees; (iv) charges for obtaining on hire or otherwise, machinery and tools

used for the execution of the works contract; (v) cost of consumables such as water, electricity, fuel used in the

execution of the works contract; (vi) cost of establishment of the contractor relatable to supply of

labour and services; (vii) other similar expenses relatable to supply of labour and services;

and (viii) profit earned by the service provider relatable to supply of

labour and services; (c) Where value added tax or sales tax has been paid or payable on the

actual value of property in goods transferred in the execution of the works contract, then, such value adopted for the purposes of payment of value added tax or sales tax, shall be taken as the value of property in goods transferred in the execution of the said works contract for determination of the value of service portion in the execution of works contract under this clause.

(ii) Where the value has not been determined under clause (i), the person liable to pay tax on the service portion involved in the execution of the works contract shall determine the service tax payable in the following manner, namely:-

(A) in case of works contracts entered into for execution of original works, service tax shall be payable on forty per cent. of the total amount charged for the works contract;

3[(B) in case of works contract, not covered under sub-clause (A), including works contract entered into for,-

(ii) Where Value Added Tax or sales tax, as the case may be, has been paid on the actual value of transfer of

property in goods involved in the execution of the works contract, then such value adopted for the purposes of payment of Value Added Tax or sales tax, as the case may be, shall be taken as the value of transfer of property in goods involved in the execution of the said works contract for determining the value of works contract service under clause (i).”

3. The sub-clauses (B) and (C) substituted new sub-clause (B) vide Notification No. 11/2014-ST, dated 11-07-2014 (w.e.f. 01-10-2014). Earlier these clauses read as under:

[R. 2B Service Tax (Determination of Value) Rules, 2006 129

(i) maintenance or repair or reconditioning or restoration or servicing of any goods; or

(ii) maintenance or repair or completion and finishing services such as glazing or plastering or floor and wall tiling or installation or electrical fittings of immovable property,

service tax shall be payable on seventy per cent. of the total amount charged for the works contract.]

Explanation 1.- For the purposes of this rule,- (a) “original works” means-

(i) all new constructions; (ii) all types of additions and alterations to abandoned or damaged

structures on land that are required to make them workable; (iii) erection, commissioning or installations of plant, machinery or

equipment or structures, whether pre-fabricated or otherwise; (d) “total amount” means the sum total of the gross amount charged for

the works contract and the fair market value of all goods and services supplied in or in relation to the execution of works contract, whether or not supplied under the same contract or any other contract, after deducting- (i) the amount charged for such goods and services, if any; and (ii) the value added tax or sales tax, if any levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

Explanation 2. - For the removal of doubts, it is clarified that the provider of taxable service shall not take CENVAT credit of duties or cess paid on any inputs, used in or in relation to the said works contract, under the provisions of CENVAT credit rules, 2004.]

R. 2B

4[2B. Determination of value of service in relation to money changing.— Subject to the provisions of section 67, the value of taxable service provided for the services 5[…….] so far as it pertains to purchase or sale of foreign currency, including money changing, shall be determined by the service provider in the following manner:-

For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the difference in the buying rate or the selling rate, as the case may be, and the Reserve Bank of India (RBI) 6[reference rate for that currency at that time], multiplied by the total units of currency.

“(B) in case of other works contracts entered into for maintenance or repair or reconditioning or restoration or servicing of any goods,service tax shall be payable on seventy per cent. of the total amount charged for the works contract; (C) in case of other works contract, not covered under sub-clauses (A) and (B), including maintenance, repair, completion and finishing services such as glazing, plastering, floor and wall tiling, installation of electrical fittings of an immovable property, service tax shall be payable on sixty per cent. of the total amount charged for the works contract;”

4. Ins. by the Notification No. 2/2011-ST, dated 01-03-2011 (w.e.f. 01-04-2011). 5. Omited. the words “referred to in sub-clauses (zm) and (zzk) of clause (105) of section 65 of

the Act,” by Notification No. 24/2012-ST, dated 06-06-2012 (w.e.f. 01-07-2012). 6. Subs. for the words “reference rate for that currency for that day” by Notification No. 24/2011-ST, dated 31-03-2011 (w.e.f. 01-04-2011).

[135 ]

Chapter 5

Place of Provision of Services Rules, 2012 (Notification No.28/2012-ST, dated 20-06-2012 as amended by Notification No. 14/2014-ST, dated

11-07-2014) In exercise of the powers conferred by sub-section (1) of section 66C and clause (hhh) of sub-

section (2) of section 94 of the Finance Act, 1994 and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 9/2005-ST, dated the 3rd March, 2005 published in the Gazette of India Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 151 (E) dated the 3rd March, 2005 and the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 11/2006-ST dated the 19th May, 2006 published in the Gazette of India Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 227 (E) dated the 19th May, 2006, except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following rules for the purpose of determination of the place of provision of services, namely:—

R. 1

1. Short title and commencement.—(1) These rules may be called the Place of Provision of Services Rules, 2012.

(2) They shall come into force on the 1st day of July, 2012. 2. Definitions.—In these rules, unless the context otherwise requires,— (a) “Act” means the Finance Act, 1994 (32 of 1994); (b) “account” means an account bearing interest to the depositor, and

includes a non-resident external account and a n on-resident ordinary account;

(c) “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

(d) “continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by one service provider or through one agent acting on behalf of more than one service provider, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued;

(e) “financial institution” has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act,1934 (2 of 1934);

1[(f) “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a p rovision of a service (hereinafter called the ‘main’ service) or a supply of goods, between two or more persons, but does not include a person who provides the main service or supplies the goods on his account;]

(g) “leg of journey” means a part of the journey that begins where passengers embark or disembark the conveyance, or where it is stopped to allow for its servicing or refuelling, and ends where it is next stopped

1. The definition in clause (f) substituted by Notification No. 14/2014-ST, dated 11-07-2014

(w.e.f. 01-10-2014). The erstwhile definition is as under “ “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or

facilitates a provision of a service (hereinafter called the ‘main’ services) between two or more persons, but does not include a person who provides the main service on his account;”


for any of those purposes; (h) “location of the service provider” means-

(a). where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;

(b). where the service provider is not covered under sub-clause (a): (i) the location of his business establishment; or (ii) where the services are provided from a place other than the

business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or

(iii) where services are provided from more than one establishment, whether business or fixed, the establishment most directly concerned with the provision of the service; and

(iv) in the absence of such places, the usual place of residence of the service provider.

(v) R. 2

(i) “location of the service receiver” means:- (a). where the recipient of service has obtained a single registration,

whether centralized or otherwise, the premises for which such registration has been obtained;

(b). where the recipient of service is not covered under sub-clause (a): (i) the location of his business establishment; or (ii) where services are used at a place other than the business

establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or

(iii) where services are used at more than one establishment, whether business or fixed, the establishment most directly concerned with the use of the service; and

(iv) in the absence of such places, the usual place of residence of the recipient of service.

Explanation:-. For the purposes of clauses (h) and (i), “usual place of residence” in case of a b ody corporate means the place where it is incorporated or otherwise legally constituted. Explanation2:- For the purpose of clause (i), in the case of telecommunication service, the usual place of residence shall be the billing address.

(j) “means of transport” means any conveyance designed to transport goods or persons from one place to another;

(k) “non-banking financial company” means- (i) a financial institution which is a company; or (ii) a non-banking institution which is a company and which has as its

principal business the receiving of deposits, under any scheme or

[141]

Chapter 6

Point of Taxation Rules, 2011 (Notification No. 18/2011-ST, dated 01-03-2011 as amended by Notification Nos. 25/2011-ST, dated 31-03-2011; 41/2011-ST, dated 27-06-2011; 4/2012-ST, dated 17-03-2012; 37/2012-ST,

dated 20-06-2012 and 13/2014-ST, dated 11-07-2014) G.S.R. (E).—In exercise of the powers conferred under clause (a) and clause (hhh) of sub-

section (2) of section 94 of the Finance Act, 1994, the Central Government hereby makes the following rules for the purpose of collection of service tax and determination of rate of service tax, namely:—

1. Short title and c ommencement.—(1) These rules shall be called the Point of Taxation Rules, 2011.

(2) They shall come into force on the 1st day of April, 2011. R. 2

2. Definitions.—In these rules, unless the context otherwise requires,— (a) “Act” means the Finance Act, 1994 (32 of 1994); (b) 1[*** ]; 2[(ba) “change in effective rate of tax” shall include a change in the portion

of value on which tax is payable in terms of a notification issued in the Official Gazette under the provisions of the Act, or rules made thereunder;]

(c) “continuous supply of service” means any service which is 3[provided 4[or agreed to be provided] continuously or on recurrent basis, under a contract, for a period exceeding three months with the obligation for payment periodically or from time to time], or where the Central Government, by a notification in the Official Gazette, prescribes provision of a particular service to be a continuous supply of service, whether or not subject to any condition;

(d) “invoice” means the invoice referred to in rule 4A of the Service Tax Rules, 1994 and shall include any document as referred to in the said rule;

(e) “point of taxation” means the point in time when a service shall be deemed to have been provided;

(f) 5[*** ]; 1. Omitted sub-rule ‘b’ Vide NN.37/2012-ST, dated 20-06-2012 (w.e.f. 01-07-2012). The

erstwhile sub-rule read as follows: “associated enterprises shall have the meaning assigned to it in section 92A of the Income Tax Act, 1961 (43 of 1961)”

2. Ins. vide NN. 4/2012-ST, dated 17-03-2012 (w.e.f. 01-04-2012). 3. Subs. for the words “provided or to be provided” by NN. 37/2012-ST, dated 20-06-2012

(w.e.f. 01-07-2012). 4. Subs. by Notification No. 4/2012-ST, dated 17-03-2012(w.e.f. 01-04-2012) for the words

“or to be provided continuously, under a contract, for a period exceeding three months”. 5. Omitted sub-rule ‘f’ Vide NN.37/2012-ST, dated 20-06-2012 (w.e.f. 01-07-2012). The

erstwhile sub-rule read as follows: “taxable service means a service which is subjected to service tax, whether or not the same is fully exempt by the Central Government under Section 93 of the Act”.

142 Impact of the Finance Bill, 2015 [R. 2A R. 2A

6[2A. Date of Payment—For the purposes of these rules, “date of payment” shall be the earlier of the dates on which the payment is entered in the books of accounts or is credited to the bank account of the person liable to pay tax:

Provided that— (A) the date of payment shall be the date of credit in the bank account

when— (i) there is a ch ange in effective rate of tax or when a service is

taxed for the first time during the period between such entry in books of the accounts and its credit in the bank account; and

(ii) the credit in the bank account is after four working days from the date when there is change in effective rate of tax or a service is taxed for the first time; and

(iii) the payment is made by way of an instrument which is credited to a bank account,

(B) If any rule requires determination of the time or date of payment received, the expression “date of payment” shall be construed to mean such date on which the payment is received;]

7[3. Determination of point of taxation.—For the purposes of these rules, unless otherwise provided, ‘point of taxation’ shall be,— (a) the time when the invoice for the service 8[provided or agreed to be

provided] is issued: 9[Provided that where the invoice is not issued within the time period

specified in rule 4A of the Service Tax Rules, 1994, the point of taxation shall be the date of completion of provision of the service;]

(b) in a case, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment, to the extent of such payment.

10[Provided that for the purposes of clauses (a) and (b), — (i) in case of continuous supply of service where the provision of the

whole or part of the service is determined periodically on the completion of an event in terms of a contract, which requires the receiver of service to make any payment to service provider, 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;

(ii) wherever the provider of taxable service receives a payment up to rupees one thousand in excess of the amount indicated in the invoice, the point of taxation to the extent of such excess amount, at the option

6. Ins. vide NN. 4/2012-ST, dated 17-03-2012 (w.e.f. 01-04-2012). 7. Subs. Rule 3 vide Notification No. 25/2011-ST, dated 31-03-2011( w.e.f. 01-04-2011). 8. Subs. by NN. 37/2012-ST, dated 20-06-2012 (w.e.f. 01-07-2012) for the words “provided

or to be provided”. 9. Subs vide NN. 04/2012- ST, dated 17-03-2012 (w.e.f. 01-04-2012). 10. Ins. vide NN. 4/2012-ST, dated 17-03-2012 (w.e.f. 01-04-2012).

[147 ]

Chapter 7

Major Notifications Amended upto 31st March 2015

INDEX Notification No., Date of Issue & Effective Date

Services/Matters to which the

Notification Relates

Subject-matter of the Notification

Page No.

25/2012-ST, dated 20-06-2012 (Effective from 01-07-2012)

Exemption Notification

Exemption to certain taxable services from the whole of service tax leviable under Section 66B Latest amended by Notification No. 06/2015-ST, dated 01-03-2015

148


Specified Abatements

Exemption on specified taxable services by way of abatement on taxable value subject to prescribed conditions Latest amended by Notification No. 08/2015-ST, dated 01-03-2015.

161


Person specified to pay service tax under Section 68(2) of the Finance Act, 1994

Notifying certain taxable services and the extent of service tax payable by service recipient/provider Latest amended by Notification No. 07/2015-ST, dated 01-03-2015

167


Exemption to exporters of goods

Exemption available on taxable service received by an exporter of goods and used for export of goods Latest amended by Notification No. 04/2015-ST, dated 01-03-2015

170


Exemption to overseas commission agent’s services for export of goods

Exemption available on taxable service received by an exporter of goods and used for export of goods Rescinded by Notification No. 03/2015-ST,dated 01-03-2015

172

148 Impact of the Finance Bill, 2015

Text of Notifications

Notification No.25/2012-ST, dated 20-06-2012 (Superseded by NN. 12/2012-ST; Amended by NN. 44/2012-ST;49/2012-

ST;03/2013-ST; 13/2013-ST; 14/2013-ST;01/2014-ST;02/2014-ST;04/2014-ST;06/2014-ST; 17/2014-ST and 06/2015-ST )

Exemptions available under the Negative List regime of Service Tax 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 said Act) and in supersession of notification number 12/2012- Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 210 (E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:-

1. Services provided to the United Nations or a specified international organization; 1[2. Health care services by a clinical establishment, an authorised medical

practitioner or para-medics; 2. (i) Health care services by a cl inical establishment, an authorised medical

practitioner or para-medics; (ii) Services provided by way of transportation of a patient in an ambulance,

other than those specified in (i) above;] 2[2A. Services provided by cord blood banks by way of preservation of stem cells or

any other service in relation to such preservation;] 3[2B. Services provided by operators of the Common Bio-medical Waste Treatment

Facility to a clinical establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto;]

3. Services by a veterinary clinic in relation to health care of animals or birds; 4. S ervices by an entity registered under section 12AA of the Income tax Act, 1961

(43 of 1961) by way of charitable activities; 5. Services by a person by way of-

(a) renting of precincts of a religious place meant for general public; or (b) conduct of any religious ceremony;

4[5A. Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement;]

6. Services provided by- (a) an arbitral tribunal to -

(i) any person other than a business entity; or

1. The shaded Entry 2 to be substituted by non-shaded entry, vide Notification No.

06/2015-ST, dated 01-03-2015 (w.e.f. 01-04-2015). 2. Entry 2A inserted by Notification No. 4/2014-ST, dated 17-02-2014 (w.e.f. 17-02-2014). 3. Entry 2B inserted by Notification No. 6/2014-ST, dated 11-07-2014 (w.e.f. 11-07-2014). 4. Entry 5A inserted by Notification No. 17/2014-ST, dated 20-08-2014 (w.e.f. 20-08-2014).

Amended Notifications 149

(ii) a business entity with a turnover up to rupees ten lakh in the preceding financial year;

(b) an individual as an advocate or a partnership firm of advocates by way of legal services to,-

(i) an advocate or partnership firm of advocates providing legal services ; (ii) any person other than a business entity; or

(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year; or

(c) a person represented on an arbitral tribunal to an arbitral tribunal; 7. 5[***] 8. Services by way of training or coaching in recreational activities relating to arts,

culture or sports; 6[9. Services provided. –

(a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,-

(i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the

Government; (iii) security or cleaning or house-keeping services performed in such

educational institution; (iv) services relating to admission to, or conduct of examination by, such

institution;] 7[9A. Any services provided by, _

(i) the National Skill Development Corporation set up by the Government of India;

(ii) a Sector Skill Council approved by the National Skill Development Corporation;

(iii) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;

(iv) a training partner approved by the National Skill Development Corporation or the Sector Skill Council

in relation to (a) the National Skill Development Programme implemented by the National Skill Development Corporation; or (b) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or

5. Entry 7 omitted vide NN. 06/2014-ST, dated 11-07-2014 (w.e.f. 11-07-2014), the erstwhile

entry read as under:- “Services by way of technical testing or analysis of newly developed drugs, including

vaccines and herbal remedies, on human participants by a clinical research organisation approved to conduct clinical trials by the Drug Controller General of India;”

6. The New entry 9 substituted the erstwhile entry 9 by Notification No. 06/2014-ST, dated 11-07-2014 (w.e.f. 11-07-2014). The erstwhile entry read as under:- 9. “Services provided to an educational institution in respect of education exempted from service tax, by way of,-

(a) auxiliary educational services; or (b) renting of immovable property;”

7. Clause ‘9A’ inserted by NNo. 13/2013-ST, dated 10-09-2013 (w.e.f. 10-09-2013).

150 Impact of the Finance Bill, 2015

(c) any other Scheme implemented by the National Skill Development Corporation.]

10. Services provided to a recognised sports body by- (a) an individual as a p layer, referee, umpire, coach or team manager for

participation in a sporting event organized by a recognized sports body; (b) another recognised sports body;

11. Services by way of sponsorship of sporting events organised,- (a) by a national sports federation, or its affiliated federations, where the

participating teams or individuals represent any 8[district, State, zone or Country];

(b) by Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat;

(c) by Central Civil Services Cultural and Sports Board; (d) as part of national games, by Indian Olympic Association; or (e) under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;

12. Services provided to the Government, a l ocal authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of -

9[(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;]

(b) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);

10[(c) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment;”]

(d) canal, dam or other irrigation works; (e) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii)

sewerage treatment or disposal; or 11[(f) a residential complex predominantly meant for self-use or the use of their

employees or other persons specified in the Explanation 1 t o clause 44 of section 65 B of the said Act;]

13. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a road, bridge, tunnel, or terminal for road transportation for use by general

public; (b) a civil structure or any other original works pertaining to a scheme under

Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;

8. Substituted for the words ‘district, state or zone’ by Notification No. 1/2014-ST, dated 10-01-

2014 ( w.e.f. 10-01-2014). 9. The shaded item (a) in entry 12 to be omitted by Notification No. 06/2015-ST, dated 01-

03-2015 (w.e.f. 01-04-2015). 10. The shaded item (c) in entry 12 to be omitted by Notification No. 06/2015-ST, dated 01-

03-2015 (w.e.f. 01-04-2015). 11. The shaded item (f) in entry 12 to be omitted by Notification No. 06/2015-ST, dated 01-

03-2015 (w.e.f. 01-04-2015).

[175 ]

Chapter 8

REGISTRATION

Registration process for Service Tax has been simplified and amended. Now the registration for single premises shall be granted online within two days of application

Effective date is 01-03-2015

For simplifying the service tax registration process, the Finance Bill 2015 has made amendments in the Service Tax Rules, 1994 a nd CBEC has issued an Order detailing out the new requirements. AMENDMENTS AND OTHER DEVELOPMENTS

Rule 4(1A) of the Service Tax Rules omitted Rule 4(9) of the Service Tax Rules introduced CBEC Issued an Order No. 1/2015-ST

Rule 4(1A) omitted to do away the requirement of submission of documents prior to registration The erstwhile sub-rule (1A) to rule 4 provided as under: "For the purposes of sub-rule (1), the Central Board of Excise and Customs may, by an order specify the documents which are to be submitted by the assessee alongwith the registration application within such period, as may be specified in the said order." New Rule 4(9) introduced to ensure that Government is in a position to put checks on the registration granted online The new sub-rule (9) reads as under: “The registration granted under this rule shall be subject to such conditions, safeguards and procedure as may be specified by an order issued by the Board.”

[179 ]

Chapter 9

SERVICE TAX RATE

The standard service tax rate is proposed to be revised to 14% with no Education Cess and Higher Education cess; and alternate service tax rate for specified services also to be revised almost in the same ratio. An enabling provision introduced to levy another cess, namely, Swachh Bharat Cess at 2% of value of service on all or any of the services. AMENDMENTS

Section 66B of the Act Clauses 179 and 187 of the Finance Bill, 2015 Sub-rules (7), (7A), (7B) and (7C) of Rule 6 of the ST Rules Clause 117 of Chapter VI of the Finance Bill, 2015

Section 66B of the Act The Finance Bill, 2015, proposed to revise the service tax rate from 12% to 14%, by proposing amendment in Section 66B of the Finance Act, 1994. Amended Section 66B reads as under (w.e.f. from the notified date after the date of enactment)

66B. Charge of service tax on and after Finance Act, 2012. –– There shall be levied a tax (hereinafter referred to as the service tax) at the rate of 1[twelve per cent. /fourteen per cent.] on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed.

1. The shaded words ‘twelve per cent.’ to be substituted by non-shaded words ‘fourteen per

cent.’ vide the Finance Bill, 2015 (w.e.f. notified date after enactment of the Finance Bill, 2015).

[185 ]

Chapter 10

VALUATION OF SERVICES

Section 67 of the Act governing the valuation of taxable services amended to redefine the expression ‘consideration’.

Effective date would be the date of enactment of the Finance Bill, 2015

AMENDMENTS Explanation to Section 67 of the Act Clause (aa) of Section 94(2) of the Act

Explanation to Section 67 of the Act Amended The expression ‘consideration’ in Explanation of Section 67 has been amended to specifically include some amounts. The existing and proposed meaning of ‘consideration’ is as under:

Existing Definition of ‘consideration’

“consideration” includes any amount that is payable for the taxable services provided or to be provided;

Amended Definition (w.e.f. the date of enactment of the Finance Bill, 2015)

(a) “consideration” includes– (i) any amount that is payable for the taxable services

provided or to be provided; (ii) any reimbursable expenditure or cost incurred by the

service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed;

(iii)any amount retained by the lottery distributor or selling agent from gross sale amount of lottery ticket in addition to the fee or commission, if any, or, as the case may be, the

[189 ]

Chapter 11

ABATEMENTS

The percentage, scope or conditions of abatements amended in case of rail transport, road transport and air transport services

Effective date is 01-04-2015

AMENDMENTS Notification No.8/2015-ST marked amendments in

Notification No.26/2012-ST Abatements proposed in Notification No. 26/2012-ST to be effective from 01-04-2015 are summarised in the table below:

Sl. No.

Description of taxable service

% Conditions of Abatement

(1) (2) (3) (4) 2 Transport of goods by

rail 30 Upto 31-03-2015 – ‘Nil’

From 01-04-2015 – ‘CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.’

3 Transport of passengers, with or without accompanied belongings by rail

30 Upto 31-03-2015 – ‘Nil’ From 01-04-2015 – Same as above ( i.e. no CENVAT Credit)

1[5 Entry upto 31-03-2015 Transport of passengers by air, with

40 CENVAT credit on i nputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit

1. The shaded entry at Sl. No. 5 to be substituted by Notification No. 08/2015-ST, dated 01-03-

2015 (w.e.f. 01-04-2015).

[193 ]

Chapter 12

CENVAT CREDIT

The Government has amended the CENVAT Credit Rules, 2004 vide Notification no. 6/2015 – Central Excise (N.T.) dated 01.03.2015. The Notification has amended various clauses of these rules which are applicable from different dates. AMENDMENTS Following is a brief view of the amendments made in the CENVAT Credit Rules,2004, vide Notification No.6/2015-CE(NT):

Rule 4 Rule 4(1) amended to allow credit for the input goods directly sent to job

worker Third proviso to Rule 4(1) amended to change the words ‘six months’ to

‘one year’ of the date of related document, within which the credit can be taken

Clause (a) of rule 4(2) amended to credit for the capital goods directly sent to job worker

Clause (a) of rule 4(5) redrafted to allow credit even if goods are sent from one job worker to another if the overall limit of return of goods to factory is maintained

First, Second and Third proviso of rule 4(7) replaced by two provisos to the effect that now person paying service tax under reverse charge can take credit for the service tax paid by him regardless of the time of payment of value of service

Sixth proviso to Rule 4(7) amended to change the words ‘six months’ to ‘one year’ to allow credit within one year from date of issue of related document.

In Explanation I and II after rule 4(7), the words ‘sub-rule’ have been replaced by the word ‘rule’ more for the purpose of clarification.

Rule 5 Clause (1A) inserted in Explanation 1 to rule 5 to define the expression

‘export goods’. Rule 6 Explanations 1 and 2 inserted in rule 6(1) to provide that non excisable

goods will be considered as exempt goods for this rule.

[213 ]

Chapter 13

DIGITAL INVOICE AND ELECTRONIC RECORDS

Digitally signed invoices or challans or consignment notes and electronic records authenticated with digital signature will be acceptable for the purposes of service tax

Effective date is 01.03.2015

AMENDMENTS Notification No.5/2015-ST, dated 01-03-2015 made the following amendments in the Service Tax Rules, 1994, w.e.f. 01-03-2015: Rule 4C introduced in the Service Tax Rules Sub-rules (4) and (5) and an ‘Explanation’ introduced in Rule

5 of the Service Tax Rules New Rule 4C introduced allowing authentication of invoice by digital signature. The Rule reads as under:

4C. Authentication by digital signature.― (1) Any invoice, bill or challan issued under rule 4A or consignment note issued under rule 4B may be authenticated by means of a digital signature. (2) The Board may, by notification, specify the conditions, safeguards and procedure to be followed by any person issuing digitally signed invoices.

Sub-rules (4) and (5) and an ‘Explanation’ introduced in Rule 5 to allow records in electronic form. The Sub-rules read as under:

(4) Records under this rule may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature.

[221 ]

Chapter 15

PENALTY

The Finance Bill, 2015 amended the provisions relating to imposition of penalties. It is proposed to lower the penalties so that the disputes could be settled at the adjudication level and precious time and resources are saved from the litigations.

Effective date would be from the date of enactment of the Finance Bill, 2015

AMENDMENTS Section 76 of the Act redrafted Section 78 of the Act redrafted Section 78B introduced to provide for penalty transition Section 80 of the Act omitted

Major changes have been made by the Finance Bill, 2015, i n the penalty provisions by redefining penalties under section(s) 76 and 78 and omitting Section 80 Section 76 redrafted

Existing Section 76

76.Penalty for failure to pay service tax.— Any person, liable to pay service tax in accordance with the provisions of Section 68 or the rules made under this Chapter, who fails to pay such tax, shall pay, in addition to such tax and the interest on that tax amount in accordance with the provisions of Section 75, a penalty which shall not be less than one hundred rupees for every day during which such failure continues or at the rate of one per cent. of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax: Provided that the total amount of the penalty payable in terms of this section shall not exceed fifty per cent of the service tax payable.

[233 ]

Chapter 17

APPEAL & REVISION

Appeal in the matters of rebate of input taxes in case of export of services shall now lie before the Revisionary Authority in the Central Government and not before the Tribunal


AMENDMENT

Section 86(1) of the Act amended Section 86 of Finance Act, 1994 i s being amended to prescribe that remedy against the order passed by the Commissioner or Commissioner (Appeal), in a matter involving rebate of inputs taxes on export of services, shall lie in terms of section 35EE of the Central Excise Act (revision before Central Government and no a ppeal to Appellate Tribunal). In this context, existing Section 86(1) of the Act and the proposed Section 86(1) by the Finance Bill, 2015 ha ve been reproduced hereunder: Existing Section 86(1)

Section 86: Appeals to Appellate Tribunal

(1) Any assessee aggrieved by an order passed by a Commissioner of Central Excise under Section 73 or Section 83A, or an order passed by a Commissioner of Central Excise (Appeals) under Section 85, m ay appeal to the Appellate Tribunal against such order within three months of the date of receipt of the order.

[239 ]

Chapter 18

DEFINITION OF SERVICE

Definition of ‘Service’ in clause (44) of Section 65B of the Act is proposed to be amended to restate the meaning of ‘transaction in money’ by specifically covering the activities of foreman of chit fund and marketing and selling agents of lottery tickets; and entry (i) of the negative list under Section 66(D) has been amended to the same effect

Effective date for definition would be from the date of enactment of the Finance

Bill, 2015 and for negative list entry, the date notified after the enactment of Finance Bill, 2015

AMENDMENTS Explanation 2 to Section 65B(44) of the Act redrafted Explanation’ added to entry (i) of negative list in Section 66D

of the Act

Explanation 2 to Section 65B(44) of the Act redrafted (w.e.f. from the enactment of Finance Bill, 2015)

The term ‘Service’ as defined under Section 66B (44) of the Act, specifically excludes any activity which constitutes merely a ‘transaction in money or actionable claim’.

Existing ‘Explanation 2’ to the related clause of the said Section reads as under: “Explanation 2.–– For the purposes of this clause, transaction in money shall not include, any activity relating to the use of money or its conversion by cash or any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged:”

[245 ]

Chapter 19

CLASSIFICATION OF SERVICES

The Finance Bill, 2015 has added an illustration to Section 66F(1) to explain the first rule of classification of Services, i.e., reference to main service shall not include reference to input service thereof


AMENDMENT An ‘illustration’ added to Section 66F(1) of the Act

With the proposed amendment in the Finance Bill, effective from the date of enactment of the Bill, sub-section (1) of section 66F of the Finance Act, 1994, will now read as follows: “66F. Principles of interpretation of specified descriptions of services or bundled services.

(1) Unless otherwise specified, reference to a service (herein referred to as main service) shall not include reference to a service which is used for providing main service. Illustration The services by the Reserve Bank of India, being the main service within the meaning of clause (b) of section 66D, does not include any agency service provided or agreed to be provided by any bank to the Reserve Bank of India. Such agency service, being input service, used by the Reserve Bank of India for providing the main service, for which the consideration by way of fee or commission or any other amount is received by the agent bank, does not get excluded from the levy of service tax by virtue of inclusion of the main service in clause (b) of the negative list in section 66D and hence, such service is leviable to service tax.”

[247 ]

Chapter 20

EXEMPTIONS – NN.25/2012-ST

Mega exemption Notification No. 25/2012-ST dated 20.06.2012 has been amended trimming down or expanding the existing exemption base


The Finance Bill, 2015 has introduced some exemptions, withdrawn some exemptions and modified some exemptions. The table below depicts the overall changes.

Amendments made in the Mega Exemption Notification No. 25/2012-ST vide N/N 06/2015 dated 01-03-2015

Entry Nos.

Particulars of change Remarks

2 Exemption entry for health care services redrafted to include transportation services of ambulance (Effective Date - 01-04-2015)

Discussed in Chapter 19

12 Three items omitted containing services provided to government etc. for – (a) civil structure/original work for use other than commercial (c) structure for use in education, health or cultural purpose (f) residential complex for self use (Effective Date - 01-04-2015)


14 One item (a) amended to exclude the original works services relating to the port or airport (Effective Date - 01-04-2015)


248 Impact of Finance Bill, 2015

16 Exemption entry for performing artists services redrafted to limit the exemption upto consideration of Rs. 1Lac (Effective Date - 01-04-2015)


20 Item (a) amended to shorten the list of food items transported by rail or vessel (Effective -Date 01-04-2015)


21 Item (a) amended to shorten the list of food items transported by GTA (Effective Date - 01-04-2015)


26A Item (d) introduced to provide exemption for Varishta Pension Bima Yojna (Effective Date - 01-04-2015)

Discussed below

29 Three items omitted containing services provided by the following persons in respective capacities (c) mutual fund agent to a mutual fund or AMC (d) distributor to a mutual fund or AMC (e) selling or marketing agent of lottery tickets to distributor or a selling agent (Effective Date 01-04-2015)

Discussed in Chapter 23 & Chapter 24

30 Item (c) amended to exclude job work for alcoholic liquor from exemption entry (Effective Date - Notified Date)


32 Exemption entry for specified free telephone calls omitted (Effective Date - 01-04-2015)

Discussed below

43 New entry for operator of common effluent treatment plant (Effective Date - 01-04-2015)

Discussed below

Exemptions 249

44 New entry for specified processes on fruits and vegetables (Effective Date - 01-04-2015)

Discussed below

45 New entry for admission to specified places like museum (Effective Date - 01-04-2015


46 New entry for services of movie exhibitor to distributor (Effective Date - 01-04-2015)


47 New entry for right to admission to specified events (Effective Date - 01-04-2015)


While majority of the amendments in exemptions have already been discussed in the chapter of respective service heads, this chapter discusses the exemptions not covered elsewhere

Exemptions added

A. Amendment in Entry 26A providing exemption to Insurance services of Varisht Pension Bima Yojna

Insertion of item (d) in entry 26A (w.e.f. 01-04-2015)

26A. Services of life insurance business provided under following schemes –

(d) Varishtha Pension Bima Yojana;

B. Insertion of E ntry 43 t o provide exemption to services of Effluent Treatment Plant

Insertion of entry 43 (w.e.f. 01-04-2015)

43. Services by operator of Common Effluent Treatment Plant by way of treatment of effluent;

C. Insertion of E ntry 44 to provide exemption to specified services in relation to fruits and vegetables

Insertion of entry 44 (w.e.f. 01-04-2015)

[279 ]

Chapter 27

CONSTRUCTION, PORT & AIRPORT SERVICES

Exemption to construction related services withdrawn by amending Notification No. 25/2012-ST vide Notification No. 6/2015- ST


AMENDEMENT

The Notification No. 06/2015-ST, dated 01-03-2015 has amended entry nos. 12 and 14 of Notification No.25/2012-ST to withdraw some of the exemptions relating to construction and allied services. Entry 12 amended to exclude from exemption, certain services

provided to Government, local authority or governmental authority

Entry 14 a mended to exclude from exemption, services of original work in relation to port or airport

Entry 12 of NN.25/2012-ST The Notification No.6/2015-ST purport to omit clauses (a), (c) and (f) of Entry 12 of Notification No.25/2012-ST. The amended entry read as follows (shaded part to be omitted w.e.f. 01-04-2015):

12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of - (a) a civil structure or any other original works meant

predominantly for use other than for commerce, industry, or any other business or profession; (to be omitted w.e.f. 01-04-2015)

(b) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity

[299]

Chapter 33

Extracts of the Finance Bill, 2015 pertaining to the amendments made in the Service Tax Provisions

CHAPTER V SERVICE TAX

105. Amendment of Section 65B. — In the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the1994 Act), save as otherwise provided, in section 65B,—

(a) clause (9) shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint;

(b) after clause (23), the following clause shall be inserted, namely:— ‘(23A) “foreman of chit fund” shall have the same meaning as is

assigned to the term “foreman” in clause (j) of section 2 of the Chit Funds Act, 1982 (40 of 1982);’; (c) clause (24) shall be omitted with effect from such date as the Central

Government may, by notification in the Official Gazette, appoint; (d) after clause (26), the following clause shall be inserted, namely:— ‘(26A) “Government” means the Departments of the Central Government, a State Government and its Departments and a Union territory and its Departments, but shall not include any entity, whether created by a statute or otherwise, the accounts of which are not required to be kept in accordance with article 150 of the Constitution or the rules made thereunder;’; (e) after clause (31), the following clause shall be inserted, namely:—

‘(31A) “lottery distributor or selling agent” means a person appointed or authorised by a State for the purposes of promoting, marketing, selling or facilitating in organising lottery of any kind, in any manner, organised by such State in accordance with the provisions of the Lotteries (Regulation) Act, 1998 (17 of 1998)’; (f) in clause (40), the words “alcoholic liquors for human consumption,”

shall be omitted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint;

(g) in clause (44), for Explanation 2, the following Explanation shall be substituted, namely:—

‘Explanation 2. – For the purposes of this clause, the expression “transaction in money or actionable claim” shall not include––

(i) any activity relating to use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;

[327]

Chapter 37

Notifications issued along with the

Finance Bill, 2015 INDEX

Notification No., Date of Issue & Effective Date




Page No.


Exemption to overseas commission agent’s services for export of goods

Rescinded N/N 42/2012-ST dated 29th June 2012

328


Exemption for GTA services used for Export of goods

Amended N/N 31/2012-ST dated 20-06-2012

329


Service Tax Rules, 1994

Amended to Provisions relating to registration, reverse charge & digital invoice

330


Amendments made in mega exemptions

Amended N/N 25/2012-ST 333


Reverse Charge Mechanism



Amendments made in Abatements



Advance Ruling Notified ‘resident firms’ as class who can seek advance ruling

340

06/2015-CE(NT), dated 01-03-2015 (Effective from 01-03-2015)

CENVAT Credit Rules, 2004

Amendment in Procedure, Time Limit and Documents for taking CENVAT Credit

340A

[341]

Chapter 38

TRU Letter, Circular and Order issued

along with the Finance Bill, 2015

INDEX Circular/ Instruction Letter No./Order No. & Date

Subject Page No.

F. No. 334/5/2015-TRU, dated 28-02-2015

Union Budget 2015 - Changes in Service Tax

342

CBEC Circular No. 995/02/2015-CX, dated 27-02-2015

Regarding Central Excise and Service Tax Audit norms to be followed by the Audit Commissionerates

355

Order No. 1/2015-ST, dated 28-02-2015

Regarding registration in Service Tax 362

[365]

Chapter 39

Notifications issued between

August 2014 to February 2015

INDEX

Notification No., Date of Issue & Effective Date




Page No.


Administrative Authorities

Reorganization of Jurisdiction of Commissionerates

366




378




379


Amendment in Service Tax Rules, 1994

Substitution of Rule 5A pertaining to Service Tax Audit

381



Amended N/N 20/2014-ST for regularising of Jurisdiction of Commissionerates

382



Amended N/N 22/2014-ST for regularising of Jurisdiction of Commissionerates

386

[387]

Chapter 40

Circular issued between

August 2014 to February, 2015

INDEX

CBEC Circular No. & Date

Subject Page No.

CBEC Circular No. 179/5/2014-ST, dated 24-09-2014

Leviability of Service Tax on transaction

under Joint Venture

388

CBEC Circular No. 180/06/2014 – ST, dated 14-10-2014

Levy of service tax on activities involved in relation to inward remittances from abroad to beneficiaries in India through MTSOs- reg.

390

CBEC Circular No. 181/07/2014-ST, dated 10-12-2014

Regarding audit of the Service Tax assessees by the officers of Service Tax and Central Excise Commissionerates

394