CHAPTER 1

General Provisions relating to Service Tax

1.1

Service tax not applicable to the State of Jammu & Kashmir

Provisions of Finance Act, 1994, as amended from time to time relating to service tax do not extend to the State of Jammu & Kashmir.  Therefore, services provided within the territorial limits of the State of Jammu & Kashmir are excluded from the purview of the levy of Service Tax, irrespective of whether the person rendering the service or the person receiving the service is residing within or outside that State (Section 64 of the Finance Act, 1994 as amended)

1.2

Application of Central Excise provisions in service tax

As per Section 83 of the Finance Act, 1994, the following sections of the Central Excise Act, 1944, as in force from time to time shall apply in relation to Service Tax as they apply to Central Excise duty

Section 9C, 9D, 11, 11B, 11BB, 11C, 11D, 12A, 12B, 12C, 12D, 12E, 14, 15, 33A, 35F to 35O (both inclusive), 35Q, 36, 36A, 36B, 37A, 37B, 37C, 37D and 40.

1.3

Extension of provisions of service tax to continental shelf

Service Tax provisions have been extended to the designated areas in the continental shelf and exclusive economic zones of India with effect from 1 March 2002 (Notification No.1/2002 ST, dated 1 March 2002)

1.4

Same transaction cannot be taxed twice under different services

The Central Board of Excise and Customs vide its circular No.51/13/2002 ST, dated 7 January 2003, inter alia clarified that any service (transaction) can be taxed only once, even if it appears to fall under two or more categories.  Therefore, before levying service tax it is essential to determine under which a particular service falls.  The Board decided that a service should be categorised under that category which is more specific category and should be charged to service tax accordingly.

1.5

Service provided free of cost not taxable

Board vide circular No.62/11/2003 ST, dated 21 August 2003, clarified that as per charging Section 66 of the Finance Act, 1994, service tax is chargeable of the value of taxable service.  Thus, if the value is zero the tax will also be zero even though the service is taxable.

1.6

There is no concept of related person in service tax

The service tax is also attracted on any service provided to any relative.  If no value of service provided is recovered from so called related person, service tax will not be chargeable.

1.7

Rounding off of duty on Service Tax

As per Board’s clarification F.No.43/3/94 TRU, dated 6 May 1994, provisions of 37D of Central Excise Act, 1944 providing for rounding off excise duty would be applicable for service tax.

1.8

Due dates for payment of service tax

Due date for payment of service tax would be 5th of the month following the calendar month or quarter as the case may be but except for the month or quarter ending March, the payment of service tax thereof will be paid by 31 March of the calendar year.

1.9

Due date for filing of returns

Every assessee shall file half yearly return (Form ST-3 or ST3A) as the case may be alongwith TR.6 challans) by the 25th of the month following the last date of particular half year (30 September or 31 March).

1.10

Services provided from outside India

Section 65 of the Finance Act, 1994, has been amended to clarify that taxable service shall also include services provided from outside India to a recipient in India.

1.11

Export of services exempt subject to fulfillment of conditions

To avail relief from service tax on export of taxable services, the taxable services to be exported are to be delivered outside India and used outside India and payment for the services exported should have been received by the service provider in convertible foreign currency (Sub-rule (1)(2) of rule (3) of Export of Services Rules, 2005, as amended 7 June 2005).

1.12

Authority to grant centralized registration

The Commissioner of Central Excise would grant centralized registration only if all the premises or offices, including the premises or office from where centralized accounting or centralized billing is done and all its subordinate offices (for which such centralized accounting or centralized billing is done) are located within the jurisdiction of such Commissioner of Central Excise.  If these offices or premises are outside the jurisdiction of Commissioner of Central Excise but within the jurisdiction of Chief Commissioner of Central Excise, in those cases, the jurisdictional Chief Commissioner would grant centralized registration.  Further, if these offices or premises fall within the jurisdiction of more than one Chief Commissioner of Central Excise, the centralized registration would be granted by the Director General of Service Tax, Mumbai.

1.13

Payments received either before, during or after the provisions of taxable services taxable

Section 67 of the Finance Act, 1994, has been amended to clarify that payments received either before, during or after the provisions of taxable service, are treated as amount received for the taxable service and service tax is required to be paid on such amount received (Finance Act, 2005).

1.14

Registration and filing of returns by any person or class of persons

Section 69 and 70 have been amended to incorporate enabling provisions requiring registration and filing of returns by any person or class of persons other than the person liable to pay service tax by the service distributor and small service providers whose aggregate value of taxable service exceeds Rs.3 lakh per annum (Finance Act, 2005, 13 May 2005).

1.15

Power of adjudication

In exercise of powers conferred by Section 83A of the Finance Act, 1994, the Central Board of Excise and Customs have conferred vide notification No.30/2005-S.T., dated 10 August 2005 on the Central Excise Officers for the purpose of adjudicating a penalty under Chapter V of the Finance Act or the Rules made thereunder: -

 

 

Central Excise Officer

Amount of service tax or Cenvat credit specified in notice

 

(i)

Assistant Commissioner of Central Excise/Deputy Commissioner of Central Excise

Not exceeding Rs.5 lakh

 

(ii)

Joint Commissioner of Central Excise

Above Rs.5 lakh but not exceeding Rs.20 lakh

 

(iii)

Additional Commissioner of Central Excise

Above Rs.20 lakh but not exceeding Rs.50 lakh

 

(iv)

Commissioner of Central Excise

Without limit


cHAPTER 2

sERVICES AT A GLANCE

2.1            GENERAL INSURANCE SERVICE

2.1.1

Description of Service Subject to Service Tax

Service provided or to be provided  to a policy holder, by an insurer carrying on insurance business in relation to general insurance business (Section 65 (105) (d) of Finance Act, 1994, as amended)

2.1.2

Items (forms) of Taxable Services covered

General insurance covers: -

(i)         Marine insurance business;

(ii)        Fire insurance business; and

(iii)       Miscellaneous

2.1.3

Date from which Service Tax leviable

01.07.1994

2.1.4

Notification No. and date

1/94-S.T., dated 28.06.1994

2.1.5

Persons responsible for payment of Service Tax

(i)         Insurer carrying on general insurance business in India – including Chairman, GIC, Mumbai, NICL, Calcutta, NIACL, Mumbai, OICL, Delhi, UIIC, Chennai

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002).

(iii)       In relation to any service provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India and such service is received or to be received by a person who has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence, in India (16.06.2005).

2.1.6

Value of taxable service

Gross amount charged by the insurer, including amount of the premium charged by the insurer from policy holder

2.1.7

(i)         Rate of Service Tax

-         5 per cent (from 01.07.1994)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax paid/payable (from 10.09.2004)

2.1.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

Refer Appendix 2.1

(ii)        Specific to the service

            Notification Nos. :-

(a)        3/94-S.T., dated 30.06.1994 – Fourteen specified general insurance schemes exempted.

(b)        10/96-S.T., dated 26.11.1996 – Exemption on non-life insurance premium of specified diplomatic missions

(c)        12/97-S.T., dated 14.02.1997-Jan Arogya Bima Policy

(d)        1/2000-S.T., dated 09.02.2000 – Group personal accident scheme of Government of Rajasthan

(e)        3/2000-S.T., dated 31.07.2000 – General insurance provided under National Agriculture Insurance Scheme or Pilot Scheme on Seed Crop Insurance

(f)         4/2000-S.T., dated 31.07.2000 – Cattle insurance under Central Sector Scheme on cattle insurance

(g)        16/2003-S.T., dated 11.07.2003 – General insurance business to policy holder for insurance provided under the universal Health Insurance Scheme

2.1.9

Board’s important clarification(s) on Service Tax matters

(i)         Circular No.1/1/94, F.No.137/1/94-CX.4, dated 29.06.1994 – General instruction/clarification – regarding

(ii)        Circular No.3/3/94, F.No.150/1/94-CX.4, dated 28.07.1994 – Registration of state insurance department of an assessee clarification – regarding

(iii)       Circular No.6/1/95, F.No.150/1/94-CX.4, dated 20.05.1995 – Premium on Insurance – Advance payment instalment, expired insurance policy – regarding

2.1.10

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(ii)        Cenvat Credit Rules, 2004 made applicable {(notification No.23/2004-CX (NT)} dated 10.09.2004).

(iii)       Export of service without payment of service tax permissible if provided in relation to an immovable property which is situated outside India (Refer Export of Services Rules, 2005).

 


2.2            STOCK BROKER’S SERVICE

2.2.1

Description of service subject to Service Tax

Any service provided or to be provided by a stock broker in connection with the sale or purchase of securities listed on a stock exchange (Section 65 (105) (a) of Finance Act, 1994, as amended)

2.2.2

Items (forms) of Taxable Services covered

Sale and purchase of securities – including shares, scrips, stocks, bonds, debentures or other marketable securities, derivations units etc. issued by any collective investment scheme, at recognised stock exchange (Delivery charges for non-acquiring up in time are not covered)

2.2.3

Date from which Service Tax leviable

01.07.1994 (Broker)

10.09.2004 (Sub-broker)

2.2.4

Notification No. and date

1/94-S.T., dated 28.06.1994

2.2.5

Persons responsible for payment of Service Tax

(i)         Stock broker/sub-broker (10.09.2004)

            Finance (No.2) Act, 2004, has amended the definition of broker vide Section 101 of the Act with effect from 10.09.2004

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.2.6

Value of taxable service

Value of taxable service shall include aggregate of the Commission or brokerage charged by the stock broker or sub-broker on the sale or purchase of securities including the commission or brokerage paid by the broker to the sub-broker

2.2.7

(i)         Rate of Service Tax

-         5 per cent (from 01.07.1994)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.2.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

Notification No.25/2004-S.T., dated 10.09.2004

Portion of value of services received by a sub-broker prior to 10.09.2004 in connection with sale and purchase of listed security.

 

2.2.9

Board’s important clarification(s)

(i)         Circular No.137/1/94 – F.No.149/1/94–CX.4 dated 29.06.1994 – Board’s clarification in connection with services provided by stock broker

(ii)        Circular No.4/4/94 dated 04.04.1994 – regarding brokerage

(iii)       Circular No.10/4/96 dated 17.04.1996 – Buying and selling of securities through others

(iv)       Circular No.12/6/96, F.No.148/5/96-CX.4, dated 16.09.1996 – Registration of stock broker

(v)        Circular No.14/8/96, F.No.148/1/94-CX.4), dated 30.09.1996 – Charging of commission/brokerage

(vi)       Circular No.15/9/96, F.No.148/1/94-CX.4(Pt.), dated 30.09.1996 – Showing of service tax on brokerage separately on the bill

(vii)      Circular No.18/12/96, F.No.148/2/96-CX.4, dated 04.11.1996 – Registration of members/dealers of over the counter exchange of India

(viii)      Circular No.20/14/96, F.No.148/1/94-CX.4 (Pt.), dated 31.12.1996 – Transactions amounting to taxable service subject to service tax – Jobbing, own trading, architecture.

(ix)       F.No.148/3/97-CX.4, dated 09.09.1997 – Transactions amounting to taxable service – subject to service tax

(x)        Circular No.56/5/2003-S.T., dated 25.04.2003 – Export of services except – taxability of secondary services used for export services – exempt

2.2.10

Important case laws

Advise Advertising (P) Limited Vs. Union of India
{2001 (131) ELT.529 (Mad.)}

2.2.11

Misc.

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002 amended by Notification No.6/2004-ST, dated 09.07.2004

(ii)        Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iii)       Export of service without payment of service tax permissible if performed outside India (Refer Export of Services Rules, 2005).

 


2.3            TELEPHONE SERVICE

2.3.1

Description of service subject to Service Tax

Any service provided or to be provided to a subscriber, by the telegraph authority in relation to a telephone connection (Section 65 (105) (b) of Finance Act, 1994, as amended)

2.3.2

Items (forms) of Taxable Services covered

-         Local, STD and ISD calls

-         Sale/activation of sim cards

-         Cellular phone service

-         Hotline facility, call direct facility including voice mail facility

2.3.3

Date from which Service Tax leviable

01.07.1994

2.3.4

Notification No. and date

1/94-S.T., dated 28.06.1994

2.3.5

Persons responsible for payment of Service Tax

Telegraph authority: -

Director General of Post and Telegraph,

Chairman-cum-Managing Director of MTNL.

2.3.6

Value of taxable service

Gross amount (including adjustment from any deposits) received by the telegraph authority.  Gross amount does not include initial deposit made by the depositor at the time of application for connection of telephone

2.3.7

(i)         Rate of Service Tax

-         5 per cent (from 01.07.1994)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.3.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

      Refer Appendix 2.1

(ii)        Specific to the service

      Notification No.3/94-S.T., dated 30.06.1994

(a)        Free telephone at airport and hospitals where no bills are issued

(b)        Calls made from departmentally run public telephones and guaranteed public telephones operating only by local calls

            Notification No.5/96-S.T., dated 03.04.1996, as amended.

 

(c)        Exemption to telephone service provided to diplomatic missions.

2.3.9

Board’s important clarification(s)

(i)         Circular No.1/1/94, F.No.137/1/94-CX.4 dated 29.06.1994

(ii)        Circular No.4/4/94, F.No.149/1/94-CX.4 dated 11.10.1994

(iii)       Circular No.16/10/96, F.No.149/5/96-CX.4, dated 15.10.1996

(iv)       Circular No.22/2/97, F.No.149/1/97-CX.4, dated 03.09.1997

(v)        Circular No.23/3/97, F.No.149/1/97-CX.4, dated 13.10.1997

(vi)       Circular No.28/2/99, F.No.149/6/97-CX.4), dated 04.06.1999

(vii)      Circular No.32/3/2000, F.No.341/1/2000-CX.4, dated 20.12.2000

(viii)      Circular No.33/1/2001, F.No.149/1/1999-CX.4, dated 29.01.2001

(ix)       Circular No.46/9/2002, F.No.149/2/2002-CX.4, dated 08.08.2002/16.08.2002

(x)        F.No.341/16/2000-TRU, dated 10.08.2000

2.3.10

Important case laws

(i)         Chief General Manager Calcutta Telephones Vs. CCE, Calcutta I
{2003 (154) ELT.486 (Tri. Cal.)}

(ii)        Hexacom (I) Limited Vs. CCE, Jaipur
{2003 (156) ELT.357 (Tri. Delhi)}

(iii)       General Manager (Telecom) Vs. CCE, Chandigarh
{2003 (156) ELT.397 (Trib. Delhi)}

(iv)       G.M. Telecom BSNL Vs. CCE, Chandigarh
{2003 (160) ELT.318(T)}

2.3.11

Misc.

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(ii)        Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004- CX (NT) dated 10.09.2004.


2.4            Advertising agency’s service

2.4.1

Description of service subject to Service Tax

Service provided or to be provided to a client, by an advertising agency in relation to advertisement, in any manner (Section 65 (105) (e) of Finance Act, 1994, as amended)

2.4.2

Items (forms) of Taxable Services covered

(i) Making; (ii) Preparation; (iii) Display; and (iv) Exhibition, of advertisement. This includes window display, hoarding in public places viz., railway stations, hotels, airports, highways etc. through neon sine or cable T.V. or internet etc.

2.4.3

Date from which Service Tax leviable

01.11.1996

2.4.4

Notification No. and date

6/96-S.T., dated 31.10.1996

2.4.5

Persons responsible for payment of Service Tax

(i)         Advertising agency (including advertising consultants commercial concern – engaged in providing specified service)

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.4.6

Value of taxable service

Gross amount charged from “client” for services in relation to advertisement (No deduction towards expenses incurred by the agency)

2.4.7

(i)         Rate of Service Tax

-         5 per cent (from 01.11.1996)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.4.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

            Notification No.44/98-S.T., dated 12.01.1998

            Services provided by an advertising agency to certain specified diplomatic missions are fully exempted.

2.4.9

Board’s important clarification(s)

(i)         F.No.345/4/97-TRU dated 16.08.1999

(ii)        F.No.341/43/2001-TRU dated 18.10.2001

(iii)       Circular No.64/13/2003-S.T., dated 28.10.2003

(iv)       Circular No.78/8/2004-S.T., dated 23.03.2004

2.4.10

Important case laws

(i)         Advertising Club Vs. CBEC
{2002 (121) – Taxman 287 (Mad.)}

(ii)        Advise Advertising (P) Limited Vs. Union of India
{2001 (131) ELT.529 (Mad.)}

2.4.11

Miscellaneous

(i)         Refer para 14 of Audit Report 2002-03 (No.11 of 2004) on service tax on advertising services and courier services

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(iii)       Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.


2.5            Courier service

2.5.1

Description of service subject to Service Tax

Service provided  or to be provided to a customer, by a courier agency in relation to door to door transportation of time sensitive documents, goods or articles (Section 65 (105) (f) of Finance Act, 1994, as amended)

2.5.2

Items (forms) of Taxable Services covered

-         Door to door transportation of time sensitive documents (local, intercity, domestic and international)

-         Transportation of goods (like samples), articles (like gift items)

-         Express cargo service on door to door basis

-         Integrated transportation, warehousing etc

2.5.3

Date from which Service Tax leviable

01.11.1996

2.5.4

Notification No. and date

6/96-S.T., dated 31.10.1996

2.5.5

Persons responsible for payment of Service Tax

(i)         Courier agency (commercial concern engaged in a specified service)

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.5.6

Value of taxable service

Gross amount charged in India by such agency from the customer for services of time sensitive documents, goods or articles

2.5.7

(i)         Rate of Service Tax

-         5 per cent (from 01.11.1996)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.5.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.5.9

Board’s important clarification(s)

(i)         Circular No.21/1/97, F.No.137/11/96-CX.4, dated 27.01.1997 – Revised procedure for registration/collection of service tax

(ii)        F.No.341/43/96-TRU, dated 31.10.1996 – Imposition of service tax

(iii)       F.No.168/1/96-CX.4, dated 10.10.1997 – Exemption on courier service

2.5.10

Important case laws

NA

2.5.11

Miscellaneous

(i)         Refer review para No.14 of Audit Report 2002-03 (No.11 of 2004) on service tax on advertising services and courier services

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(iii)       Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iv)       Export of service without payment of service tax permissible, if such services are performed outside India (Refer Export of Services Rules, 2005).


2.6            Pager services

2.6.1

Description of service subject to Service Tax

Service provided or to be provided to a subscriber, by the telegraph authority in relation to a pager (Section 65 (105) (c) of Finance Act, 1994, as amended)

2.6.2

Items (forms) of Taxable Services covered

(i)         Licence fee

(ii)        International roaming facility

2.6.3

Date from which Service Tax leviable

01.11.1996

2.6.4

Notification No. and date

6/96-S.T., dated 31.10.1996

2.6.5

Persons responsible for payment of Service Tax

Telegraph authority includes: -

Director General Post and Telegraph;

Managing Director, M.T.N.L.; and person granted licence for PMRT under the Telegraph Act, 1985.

2.6.6

Value of taxable service

Gross total amount (including adjustment from any deposits) received by the telegraph authority.  Gross amount does not include initial deposit made by the depositor at the time of application for pager connection

2.6.7

(i)         Rate of Service Tax

-         5 per cent (from 01.11.1996)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.6.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

-         Service provided free of charge to staff,  friendly users

-         Rental charges for junction links/port charges and infrastructure

2.6.9

Board’s important clarification(s)

(i)         Circular No.23/3/97-S.T., dated 13.10.1997 – Clarification on cellular phones, sim cards, pager service

(ii)        Circular No.28/2/99-(CBEC), dated 04.06.1999 – Surcharge on delayed payments

(iii)       Circular No.32/3/2000-CX.4, dated 20.12.2000 – Payment of service tax by BSNL

 

(iv)       Circular No.7/1/96, F.No.149/8/95-CX.4, dated 29.02.1996 – Application of service tax on pager

2.6.10

Important case laws

NA

2.6.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(ii)        Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.


2.7            CUSTOMS HOUSE AGENT’S SERVICE

2.7.1

Description of service subject to Service Tax

Service provided or to be provided to a client, by a custom house agent in relation to the entry or departure of conveyance or the import or export of goods (Section 65 (105) (h) of Finance Act, 1994, as amended)

2.7.2

Items (forms) of Taxable Services covered

Charges in connection with :-

(i)         Clearing of the import and export consignments

(ii)        Loading and un-loading, packing, weighment, measurement of goods, transportation

(iii)       Payment of expenses on account of octroi, destuffing, palletisation, terminal handling, fumigation, drawback

(iv)       DEEC processing, survey/amendment fee, dock fee, repairing and examination charges, testing fee

(v)        All other miscellaneous work relating to import and export of goods

2.7.3

Date from which Service Tax leviable

15.06.1997

2.7.4

Notification No. and date

17/97-S.T., dated 06.06.1997

2.7.5

Persons responsible for payment of Service Tax

(i)         Custom house agent (Licensed)

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.7.6

Value of taxable service

Gross amount charged by such agent from the client for such services

2.7.7

(i)         Rate of Service Tax

-         5 per cent (from 15.06.1997)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.7.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.7.9

Board’s important clarification(s)

F.No.137/8/97-CX.4, dated 05.08.1997 – Allocation of Major Head/Minor Head/Sub-Head for depositing service tax

2.7.10

Important case laws

NA

2.7.11

Miscellaneous

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(ii)        Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iii)       Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).


2.8            Steamer agent’s service

2.8.1

Description of service subject to Service Tax

Service provided or to be provided to a shipping line, by a steamer agent in relation to a ship’s husbandry or dispatch or any administrative work related thereto as well as the booking, advertising or convassing of cargo, including container feeder services (Section 65 (105) (i) of Finance Act, 1994, as amended)

2.8.2

Items (forms) of Taxable Services covered

(i)         Protecting service – Ship’s husbandry or dispatch including rendering of husbandry work

(ii)        Operating service – Loading, un-loading of cargo, stuffing of container, filing of IGM and other administrative work

2.8.3

Date from which Service Tax leviable

15.06.1997

2.8.4

Notification No. and date

17/97-S.T., dated 06.06.1997

2.8.5

Persons responsible for payment of Service Tax

(i)         Steamer agent (a person undertaking specified service directly or indirectly)

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.8.6

Value of taxable service

Gross amount charged by such agent from a shipping line including Commission paid to such agent

2.8.7

(i)         Rate of Service Tax

-         5 per cent (from 15.06.1997)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.8.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.8.9

Board’s important clarification(s)

B-43/1/97-TRU, dated 06.06.1997 – Statutory levies and other charges of statutory nature such as port dues paid through steamer agents shall not be chargeable to service tax

2.8.10

Important case laws

NA

 

 

2.8.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(ii)        Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iii)       Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).


2.9       Air travel agent’s service

2.9.1

Description of service subject to Service Tax

Service provided  or to be provided to customer by an air travel agent in relation to the booking of passage for travel by air (Section 65 (105) (l) of Finance Act, 1994, as amended)

2.9.2

Items (forms) of Taxable Services covered

Payments made to air travel agents by the Airlines for booking or cancellation of air ticket

2.9.3

Date from which Service Tax leviable

01.07.1997

2.9.4

Notification No. and date

19/97-S.T., dated 26.06.1997

2.9.5

Persons responsible for payment of Service Tax

(i)         Air travel agent – Under rule 6(7) as amended by Notification No.27/2004-S.T., dated 13.09.2004, an air travel agent can discharge his service tax liability by opting for payment which is calculated at 0.5 per cent of basic fare (for domestic booking) at 1 per cent of the basic fare (for international booking) instead of at normal rate of service tax.

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.9.6

Value of taxable service

Gross amount charged by such agent, excluding the amount of air fare collected form customer but including the commission received from the Airline in relation to such booking/cancellation

2.9.7

(i)         Rate of Service Tax

-         5 per cent (from 01.07.1997)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.9.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

(i)         Notification No.22/97-S.T., dated 26.06.1997 – Exempts value of taxable service which is in excess of commission received for booking of ticket

(ii)        Notification No.51/98-S.T., dated 15.06.1998 – Exemption to air travel agent in relation to booking of passage by air to diplomatic missions

2.9.9

Board’s important clarification(s)

(i)         B-43/3/97-TRU, dated 26.06.1997 – Amount received for booking of ticket or cancellation thereof chargeable to service tax

(ii)        B-43/3/97-TRU, dated 26.06.1997 – Service tax is leviable on any person providing service in relation to booking of passage for travel by air

2.9.10

Important case laws

NA

2.9.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(ii)        Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iii)       Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).


2.10            Mandap kEeper’s service

2.10.1

Description of service subject to Service Tax

-   Service provided to a client by a mandap keeper in relation to the use of mandap in any manner including the facilities provided to the client in relation to such use and also the services, if any, rendered as a caterer; (Section 65 (105) (m) of Finance Act, 1994

-   Service provided or to be provided to a client by a mandap keeper in relation to such use and also the service, if any, provided or to be provided as caterer  (Section 65 (105) (m) of Finance Act, 1994, as amended (Finance Act, 2005)

2.10.2

Items (forms) of Taxable Services covered

Mandap includes any furniture, fixture, light fittings and floor covering therein let out for consideration for organising function. It also includes the following :-

(i)         Kalyana mandap or marriage halls

(ii)        Banquet halls, Barat Ghar

(iii)       Conference halls etc

(iv)       Hotels and restaurants providing any such service for organising any social, official or business function (mere reservation of seats not taxable)

2.10.3

Date from which Service Tax leviable

01.07.1997

2.10.4

Notification No. and date

19/97-S.T., dated 26.06.1997

2.10.5

Persons responsible for payment of Service Tax

Mandap keeper, a custodian, manager or superintendent who holds possession on or management of mandap.

2.10.6

Value of taxable service

Gross amount charged by such keeper from the client for use of mandap including the facilities provided to the client in relation to such use and also the charges for catering, if any.

2.10.7

(i)         Rate of Service Tax

-         5 per cent (from 01.07.1997)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.10.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

 

(ii)        Specific to the service

Notification No.14/2003-S.T., dated 20.06.2003 – Mandap Keeper services provided by a religious place in its premises exempted with effect from 01.07.2003

Notification No.21/97-S.T., dated 26.06.1997 – Exempts service tax leviable on Mandap Keeper as in excess of amount of service tax calculated at 60 per cent of the gross amount charged by the mandap keeper also.  Providing/supplying food (Lunch or dinner or both).

2.10.9

Board’s important clarification(s)

(i)         B-43/3/97-TRU, dated 26.06.1997 – Service tax not leviable on cancelled booking

(ii)        332/82/97-TRU, dated 24.09.1997

(iii)       42/5/2002, dated 29.04.2002 – Renting out of premises by art gallery for such exhibition will not be liable to service tax under mandap keeper service

2.10.10

Important case laws

(i)         {2001 (133) ELT.36 (Mad.)} &

            {2002 (143) ELT A.178(SC)}

            T.N. Kalyan Mandpam Owner’s Association Vs. Union of India

(ii)        T.N. Hotels Association Vs. Union of India
{2001 (133) ELT.265 (Mad.)}

(iii)       CCE, Mangalore Vs. Krishnapur Mut
{2003 (157) ELT.182 (Tri. Bn’g.)}

(iv)       India Trade Promotion Organisation Vs. CCE, Delhi
{2004 (164) ELT.163(T).}

2.10.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(ii)        Cenvat Credit Rules 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iii)       Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).


2.11            Consulting engineer’s service

2.11.1

Description of service subject to Service Tax

Service provided or to be provided to a client, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering but not in the discipline of computer hardware engineering or computer software engineering) (Section 65 (105) (g) of Finance Act, 1994, as amended) (Finance Act (No.2), 2004)

2.11.2

Items (forms) of Taxable Services covered

The service, interalia, covers :-

(i)         Feasibility study/pre-design service/project, including soil testing survey, planning etc.

(ii)        Basic design engineering

(iii)       Detailed design engineering

(iv)       Procurement

(v)        Construction supervision and project management

(vi)       Supervision of commissioning and internal operation

(vii)      Manpower planning and training

(viii)      Post operation and management

(ix)       Trouble shooting and technical service, including establishment of systems and procedure for existing plant

2.11.3

Date from which Service Tax leviable

07.07.1997

2.11.4

Notification No. and date

23/97-S.T., dated 02.07.1997

2.11.5

Persons responsible for payment of Service Tax

(i)         Consulting engineer or consulting engineer firms

(ii)        Valuers of immovable properties, machinery etc other than computer hardware and software engineering by an engineer

(iii)       In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.11.6

Value of taxable service

Gross amount charged by such engineer or engineering firm from the client for such services

2.11.7

(i)         Rate of Service Tax

-         5 per cent (from 07.07.1997)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.11.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

Notification No.18/2002-S.T., dated 16.12.2002 – Service tax to the extent of R & D paid on technology transfer exempted

2.11.9

Board’s important clarification(s)

(i)         Circular No.49/11/2002, F.No.137/13/2001-CX.4, dated 18.12.2002 – Erection and commissioning charges are liable to service tax.  Soil testing, survey, planning, drawing etc. internal construction work taxable.

(ii)        Circular No.34/2/2001-CX, dated 30.04.2001 – Consulting engineer will not include those qualified engineers who act as insurance surveyors and loss assessors within its scope hence not liable to service tax.

(iii)       Circular No.49/11/2002-S.T., dated 18.12.2002 – The types of services a consulting engineer normally renders are illustrated in Board’s letter F.No.43/5/97-TRU, dated 02.07.1997.  Services relating to construction activities are covered therein.

(iv)       Circular No.177/5/2001-CX.4 (Order No.37B, No.1/1/2002-S.T.), dated 26.02.2002 – The activity of certification will not fall under the category of advice hence not liable to service tax

(v)        Circular No.79/9/2004- ST dated 13.05.2004 – Commissioning or installation services are not covered under consulting engineering service, hence separately taxable under relevant entry. The clarification dated 18.12.2002 are modified to that extent.

2.11.10

Important case laws

(i)         Tata Consultancy services Vs. Union of India – The word “Firm” is not only restricted to proprietary or partnership firm
{2001 (130) ELT.726 (Karnataka)}

(ii)        V. Shanmughaval Dr. Vs. CCE
{2001 (131) ELT.14 (Mad.)}

2.11.11

Miscellaneous

(i)         Refer review para on service tax leviable on services provided by consulting engineers featured in Audit Report 2003-04 (No.11 of 2005).

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004

(iii)       Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.


2.12            Manpower recruitment agency’s service (Placement service)

2.12.1

Description of service subject to Service Tax

Service provided or to be provided to a client by a manpower recruitment or supply agency in relation to the recruitment or supply of manpower, temporarily or otherwise, in any manner (Section 65 (105) (k) of Finance Act, 1994, as amended)

2.12.2

Items (forms) of Taxable Services covered

The entire amount of services provided by manpower recruitment agency starts from:-

(i)         Primary stage of building a database of manpower for different category of personnel employment

(ii)        Determination of manpower requirement for the client, preliminary identification, short listing and screening of prospective candidates

(iii)       Providing specialist for interviewing prospective candidates

(iv)       Arrangement for interview

(v)                Advertisement for interview at each stage

(vi)       Any other related job.

2.12.3

Date from which Service Tax leviable

07.07.1997

2.12.4

Notification No. and date

23/97-S.T., dated 02.07.1997

2.12.5

Persons responsible for payment of Service Tax

(i)         Manpower recruitment agency

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.12.6

Value of taxable service

Gross amount charged by such agency from the client for such services

2.12.7

(i)         Rate of Service Tax

-         5 per cent (from 07.07.1997)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.12.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.12.9

Board’s important clarification(s)

Circular No.B-43/5/97-TRU dated 02.07.1997 – clarification regarding service tax on manpower recruitment agency

2.12.10

Important case laws

NA

2.12.11

Miscellaneous

(i)         Review para on service tax on services provided by manpower recruitment agency being considered for Audit Report 2004-05 may be referred to.

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(iii)       Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iv)       Manpower recruitment services to include supply of manpower, temporarily or otherwise (Finance Act, 2005)


2.13            Clearing and forwarding agent’s service

2.13.1

Description of service subject to Service Tax

Service provided to a client, by a clearing and forwarding agent in relation to clearing and forwarding operations, in any manner (Section 65 (105) (j) of Finance Act, 1994, as amended)

2.13.2

Items (forms) of Taxable Services covered

(i)         Receiving the goods from the factories or premises of the principal or his agents

(ii)        Warehousing these goods

(iii)       Receiving dispatch orders from the principal

(iv)       Arrangements for despatch

(v)        Maintenance of records for receipt and dispatch

(vi)       Preparing invoices on behalf of principal

2.13.3

Date from which Service Tax leviable

16.07.1997

2.13.4

Notification No. and date

26/97-S.T., dated 11.07.1997

2.13.5

Persons responsible for payment of Service Tax

(i)         Clearing and forwarding agent

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.13.6

Value of taxable service

Gross amount charged by such agent for such services

2.13.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.1997)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.13.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.13.9

Board’s important clarification(s)

(i)         Circular No.39/2/2002, F.No.137/2/2002-CX.4, dated 21.02.2002 – Inland container depots (ICD) and container freight stations (CFS)are not covered under C & F agents services

(ii)        Circular No.48/10/2002-TRU, F.No.159/5/2002-CX.4, dated 13.09.2002

 

(iii)       Circular No.73/3/2004, F.No.159/3/2003-CX.4, dated 05.01.2004 – Levy of service tax on food grain commission agents (Adhtiyas).

2.13.10

Important case laws

(i)         Coal Handlers (P) Limited Vs. CCE
{2004 (171) ELT.191 (Kol.-CESTAT)}

(ii)        E.V. Mathai and Company Vs. CCE, Cochin
{2003 (157) ELT.101 (Tri. Bng.)}

(iii)       Gujarat State Fertilizers and Chemicals Limited Vs. CCE and C, Rajkot
{2002 (148) ELT.1122 (Tri. Bom.)}

(iv)       Prabhat Zarda Factory  (I) Limited Vs. CCE, Patna
{2002 (145) ELT.222 (Tri. Cal.)}

2.13.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iii)       Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).


2.14            Rent-a-cab scheme operator’s service

2.14.1

Description of service subject to Service Tax

Service provided or to be provided to any person, by a rent-a-cab scheme operator in relation to renting a cab (Section 65 (105) (o) of Finance Act, 1994, as amended)

2.14.2

Items (forms) of Taxable Services covered

(i)         Renting for hire or reward of registered vehicles, carrying upto twelve persons excluding driver

(ii)        Does not cover metered taxi or radio taxi which are not rented as such for a period of time but are for transportation of persons from one place to another

2.14.3

Date from which Service Tax leviable

-         16.07.1997 (exempted from service tax from 01.03.1999 vide Notification No.3/99-S.T., dated 28.02.1999 upto 31.03.2000)

-         01.04.2000 (exemption withdrawn)

2.14.4

Notification No. and date

26/97-S.T., dated 11.07.1997

2.14.5

Persons responsible for payment of Service Tax

(i)         Rent-a-cab scheme operator

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.14.6

Value of taxable service

Gross amount charged by such operator from such person for renting of a cab and includes such rental

2.14.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.1997)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.14.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

(i)         Notification No.12/2003 (ST) dated 20.06.2003

(ii)        Notification No.9/2004 (ST) dated 09.07.2004 exempts 60 per cent of gross amount charged by such service provider.

2.14.9

Board’s important clarification(s)

F.No.B-43/7/97-TRU dated 11.07.1997 – Clarification on levy of service tax on rent-a-cab service

2.14.10

Important case laws

Secretary Federation of Bus Operators Association of Tamil Nadu Vs. Union of India – Constitutional validity of service tax leviablity upheld
{2001 (134) ELT.618 (Mad.)}

2.14.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        If input and output service fall in the same category, credit of input should be available.

(iii)       Cenvat Credit Rules, 2004 made applicable vide notification No.23/2004-CX (NT) dated 10.09.2004.

(iv)       Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).


2.15            Goods transport operator’s service (16.11.1997) Goods transport agency’s service (10.09.2004)

2.15.1

Description of service subject to Service Tax

Service provided or to be provided to a customer by a goods transport agency, in relation to transport of goods by road in a goods carriage. Section 65 (105) (zzp) of the Finance Act, 1994, as amended

2.15.2

Items (forms) of Taxable Services covered

Service provided to a customer by a goods transport agency, in relation to transport of goods by road in goods carriage (with effect from 10.09.2004). The service charges includes:-

(i)         Freight charges;

(ii)        Transportation charges;

(iii)       Handling charges;

(iv)       Service charges;

(v)        Loading and un-loading charges;

(vi)       Cartage;

(vii)      Warehousing/storage charges;

(viii)      Demurrage charges;

(ix)       Godown charges;

(x)        Staff cost;

(xi)       Any other charges.

Does not include

(i)         Insurance premium for transit or storage insurance

(ii)        Transportation by cart, bullock cart, hand driven rickshaw

(iii)       Reimbursement of octroi, local taxes, municipal taxes, road taxes etc.

2.15.3

Date from which Service Tax leviable

-         16.11.1997

-         10.09.2004 (effective from 01.01.2005)

2.15.4

Notification No. and date

(i)         Notification No.41/97-S.T., dated 05.11.1997

(ii)        Notification No.35/2004-S.T., dated 03.12.2004 (from 01.01.2005)

2.15.5

Persons responsible for payment of Service Tax

(i)         From 16.11.1997 to 15.10.1998 the receiver of service shall be deemed to be the person liable to pay service tax

(ii)        Goods transport agency providing such service

(iii)       Every person who pays or is liable to pay the freight either himself or through his agent for transport of goods by road in a goods carriage as notified vide notification No.36/2004-S.T., dated 31.12.2004.

 

(iv)       In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.15.6

Value of taxable service

Gross amount charged by the goods transport agency for services in relation to carriage of goods by road in a goods carriage and includes the freight charges but does not includes insurance charges

2.15.7

(i)         Rate of Service Tax

-         5 per cent (from 16.11.1997 to 15.10.1998)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (from 10.09.2004)

2.15.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

(i)         Notification No.43/97-S.T., dated 05.11.1997 –exempted certain category of service providers under this category.

(ii)        Notification No.43/97-S.T., dated 15.11.1997 – Exempted service provided by a goods transport operator from levy of service tax on taxable service where such carriage is paid or liable to be paid other than a factory; company; corporation; society; co-operative society; dealer body corporate; and registered dealer with turnover in excess of Rs.50 lakh subject to certain conditions.

(iii)       Notification No.48/98 ST dated 02.06.1998 exempted taxable service provided to a customer by a goods transport operator in relation to carriage of goods by road from whole of service tax.

(iv)       Notification No.32/2004-ST, dated 03.12.2004 (from 01.01.2005) exempts taxable service by a goods transport agency, as in excess of service tax on value exceeding 25 per cent of gross amount charged.

(v)        Notification No.33/2004-ST dated 03.12.2004 (from 01.01.2005) exempts service in relation to transport of fruits, vegetables, eggs or milk by road in a goods carriage.

(vi)       Notification No.34/2004-ST dated 03.12.2004 (from 01.01.2005) exempts service tax on goods transported by road.

-         Where gross amount charged on consignments does not exceed Rs.15,000/-, or

-         The gross amount charged on an individual consignment transported does not exceed Rs.750/-

2.15.9

Board’s important clarification(s)

F.No.B.43/11/97-TRU, dated 06.11.1997 – Imposition of service tax on goods transport operators services payable by specified service taker

2.15.10

Important case laws

Laghu Udyog Bharti Vs. Union of India
{1999 (112) ELT.365 (SC)}

2.15.11

Miscellaneous

-         Cenvat Credit Rules, 2004 issued vide notification No.23/2004- CX (NT) dated 10.09.2004 applicable.

-         Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).


2.16            Outdoor Caterer’s service

2.16.1

Description of service subject to Service Tax

Service provided or to be provided by an outdoor caterer in connection with catering at a place other than his own (Section 65 (105)(zzt) of  Finance Act 1994, as amended)

2.16.2

Items (forms) of Taxable Services covered

(i)                  Food, edible preparations, alcoholic or non alcoholic beverages or crockery and similar articles or accouterment remains for any purpose or occasion,

(ii)                Flight catering

2.16.3

Date from which Service Tax leviable

-      01.08.1997 (withdrawn from 02.06.1998)

-      10.09.2004 (re-introduced)

2.16.4

Notification No. and date

Finance Act (No. 2) 2004

2.16.5

Persons responsible for payment of Service Tax

(i)         “A Caterer engaged in providing services in connection with catering at a place other than his own” (but including a place provided by way of tenancy or otherwise by the person receiving such services – as amended on 16.06.2005.

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.16.6

Value of taxable service

Gross amount charged by such caterer from the client for services in relation to such catering including the food charges.

2.16.7

(i)         Rate of Service Tax

-         5 per cent (from 01.08.1997 to 01.06.1998)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (10.09.2004)

2.16.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemption

Refer Appendix 2.1.

(ii)        Specific to the service

(a)    Notification Nos. 30/97 S.T. dated 10.09.2004 31/97 ST, 32/97 S.T. & 33/97 S.T. dated 25.07.1997 exempted services provided by outdoor caterer subject to certain conditions.

(b)   18/2004 S.T. dated 10.09.2004 exempts value of taxable services received by the service provider from his client prior to 10.09.2004.

(c)    19/2004 S.T. dated 10.09.2004 exempts catering services provided on railway trains.

 

(d)   20/2004 S.T. dated 10.09.2004 exempts(Abatement) 50 per cent of the gross amount subject to conditions.

(e)    21/2004 S.T. dated 10.09.2004 exempts catering provided within the premises of any academic institution or medical establishment.

2.16.9

Board’s important clarification(s)

(i)         Circular No. 79/9/2004 S.T. dated 17.09.2004 – Clarifications on Notification No. 19/2004 S.T. dated 10.09.2004 issued

(ii)        Circular No.80//10/2004-S.T., dated 17.09.2004 – Clarification on abatement under Notification No.20/2004 and No.21/2004-S.T., both dated 10.09.2004.

2.16.10

Important case laws

Tamil Nadu Kalyana Mandapm Association Vs. Union of India
{2004 (167) ELT.3 (SC)}

“Service rendered by outdoor caterers is clearly distinguishable from the service rendered by a restaurant or hotel, in as much as in the case of outdoor catering service, the food eatables/drinks are the choices of the person who partakes the services.”

Tamil Nadu Hotel Association Vs. Union of India
{2001 (133) ELT.265 (Mad.)}

An outdoor caterer is a caterer who offered the service of catering at a place other than his own.

2.16.11

Miscellaneous

(i)         Cenvat credit Rules, 2004 made applicable (Notification No. 23/2004 CE (NT) dated 10.09.2004)

(ii)        Outdoor catering service to include catering from a place or premises provided by way of tenancy or otherwise by the person receiving such services (Finance Act, 2005)

(iii)       Mobile caterers, flight caterers, are covered under outdoor catering service.

(iv)       Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).

 


2.17            Pandal or Shamiana or incidental service like catering

2.17.1

Description of service subject to Service Tax

Service provided or to be provided  to a client by a pandal or shamiana contractor in relation to a pandal or shamiana in any manner and also includes the services, if any, rendered as a caterer (Section 65 (105)(zzw) of  Finance Act 1994, as amended)

2.17.2

Items (forms) of Taxable Services covered

(i)                  Preparation, arrangement, erection and decoration of a Pandal or Shamina including furniture, fixture, lights and light fittings, floor coverings and other articles if provided,

(ii)                Pandal or Shamiana temporarily arranged and decorated for a particular function (other than official function).

2.17.3

Date from which Service Tax leviable

-         01.08.1997 (withdrawn on 02.06.1998 vide Notification No. 49/98 dated 02.06.1998)

-         10.09.2004 (Reintroduced)

2.17.4

Notification No. and date

Finance Act, (No. 2) 2004

2.17.5

Persons responsible for payment of Service Tax

(i)         Every Pandal or Shamiana contractor who raises a bill for service rendered to a client by such contractor.

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.17.6

Value of taxable service

Gross amount charged by contractor for pandal and shamiana.

2.17.7

(i)         Rate of Service Tax

-         5 per cent (from 01.08.1997 to 01.06.1998)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of service tax (10.09.2004)

2.17.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemption

            Refer Appendix 2.1.

(ii)        Specific to the service

-         Notification Nos. 34/97-S.T. dated 25.07.1997 exempted taxable services as was in excess of 75 per cent of gross amount charged including the services rendered as a caterer.

-         Notification No. 35/97-S.T. dated 25.07.1997 exempted taxable services if business was located in a rural area & contractor was operating from that area.

 

-         Notification No. 18/2004-S.T. dated 10.09.2004 exempts portion of value of taxable service which is received by service provider prior to 10.09.2004.

-         Notification No. 22/2004 S.T. dated 10.09.2004  Abatement of 30 per cent  in the value of taxable service in such cases where pandal or shamiana contractor provides food along with pandal or shamiana provided the amount for food is indicated separately in the bill and the service provider does not avail cenvat credit of inputs or capital goods & also does not avail benefit of notification No. 12/2003 S.T. dated 20.06.2003 (Food include substantial and satisfying meals).

2.17.9

Board’s important clarification(s)

Circular No.80/10/2004-S.T., dated 17.09.2004 30 per cent abatement, when bill includes changes for food also.

2.17.10

Important case laws

No case

2.17.11

Miscellaneous

(i)         Cenvat Credit Rules, 2004 made applicable (Notification No. 23/2004 CE (NT) dated 10.09.2004)

(ii)        Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).


2.18     Tour Operator’s Service

2.18.1

Description of service subject to Service Tax

Service provided or to be provided to any person, by a tour operator in relation to a tour (Section 65 (105) (n) of Finance Act, 1994 as amended)

2.18.2

Items (forms) of Taxable Services covered

Contract carriage, including a maxi cab and motor cab not withstanding that separate fares are charged for its passengers (Fixed set of passengers)

2.18.3

Date from which Service Tax leviable

-         01.09.1997 (discontinued during 18.07.1998 to 31.03.2000)

-         01.04.2000

-         10.09.2004

2.18.4

Notification No. and date

37/97-S.T., dated 22.08.1997

2.18.5

Persons responsible for payment of Service Tax

(i)         From 01.09.1997 to 17.07.1998

A tour operator who holds a tourist permit granted under the rules under the Motor Vehicles Act 1988

(ii)        From 01.04.2000 to 09.09.2004

Any person engaged in the business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicle Act, 1988 or the rules made thereunder

(iii)       From 10.09.2004

Any person engaged in the business of planning, scheduling, organizing or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicles Act, 1988 or the rules made thereunder.

(iv)       In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.18.6

Value of taxable service

Gross amount charged by such operator from the person availing such services

2.18.7

(i) Rate of Service Tax

-         5 per cent from 01.09.1997

-         8 per cent from 14.05.2003

-         10 per cent from 10.09.2004

 

(ii) Rate of education cess

 

-         2 per cent of Service Tax (from 10.09.2004)

2.18.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

Refer Appendix 2.1

(ii)        Specific to the service

-         39/97 ST dated 22.08.1997 Partial exemption (on 60 per cent of gross value) for package tour.

-         2/2004 ST dated 05.02.2004 as amended by notification No. 8/2004 ST dated 09.07.2004 Partial exemption on value of taxable service (other than packaged tour) in excess of 10 per cent (upto 08.07.2004) and 40 per cent (from 09.07.2004) on the gross amounts charged in relation to tour subject to conditions.

-         25/04 ST dated 10.09.2004 exempts value of taxable services received prior to 10.09.2004.

2.18.9

Board’s important clarification(s)

NA

2.18.10

Important case laws

(i)         2001 (164) ELT 618 (Mad) Secretary, Federation of Bus Operators Association of Tamil Nadu Vs Union of India.

(ii)        2004 (163) ELT –409 (Mad)

            Sri Pandyan Travels Vs CCE

2.18.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat credit Rules, 2004, made applicable with effect from 10.09.2004 (Notification No.23/2004 CE (NT), dated 10.09.2004)

(iii)       Export of service without payment of service tax permissible, if such service is provided outside India (Refer Export of Services Rules, 2005).

 


2.19            Architect’s Service

2.19.1

Description of service subject to Service Tax

Service provided or to be provided to a client by an Architect in his professional capacity, in any manner (Section 65 (105) (p) of finance Act, 1994 as amended.  This includes Architects providing services of registered private surveyors

2.19.2

Items (forms) of Taxable Services covered

-         Technical feasibility of the site chosen.

-         Making out plans and designs for development of real estates, infrastructure planning.

-         Getting approval of local authorities for such designs and plans.

-         Obtaining completion certificate for building designs by them

-         Supervising constructions in a general manner at each stage.

-         Preparing layouts for approaches, sanitary arrangement and gardens etc.

2.19.3

Date from which Service Tax leviable

16.10.1998

2.19.4

Notification No. and date

53/98-S.T., dated 07.10.1998

2.19.5

Persons responsible for payment of Service Tax

(i)         Architect (includes commercial concern)

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.19.6

Value of taxable service

Gross amount charged by such acrchitect from the client for such services

2.19.7

(i) Rate of Service Tax

-         5 percent (from 16.10.1998)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii) Rate of education cess

-         2 per cent of service tax (from 10.09.2004).

2.19.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.19.9

Board’s important clarification(s)

F.No. 354/128/97-TRU dated 18.12.1997

Difference between Architect’s service and engineers’ service clarified

2.19.10

Important case laws

2002 (139) ELT-245 (Mad)

Indian Institute of Architects Vs. Union of India.

2.19.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat credit Rules, 2004, applicable vide Notification No.23/2004 CE (NT), dated 10.09.2004

(iii)       Export of service without payment of service tax permissible, if such services are provided in relation to property, which is situated outside India (Refer Export of Services Rules, 2005).

 


2.20            Chartered Accountant’s Service

2.20.1

Description of service subject to Service Tax

Service provided or to be provided to a client by a practising Chartered Accountant in his professional capacity in any manner (Section 65 (105) (s) of Finance Act, 1994, as amended

2.20.2

Items (forms) of Taxable Services covered by Professional practising Chartered Accountant

(i)                  Accounting & Auditing; or

(ii)                Verification of declarations for obtaining a certificate of commencing of business under the Companies Act.

(iii)               Signing of annual returns of Listed Companies

(iv)              Various certifications of documents.

2.20.3

Date from which Service Tax leviable

16.10.1998

2.20.4

Notification No. and date

53/98-S.T., dated 07.10.1998

2.20.5

Persons responsible for payment of Service Tax

(i)         Practising Chartered Accountant

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.20.6

Value of taxable service

Gross amount charged by such Chartered Accountant from the client for such services other than substantiated reimbursement of out of pocket expenses

2.20.7

(i) Rate of Service Tax

-         5 per cent (from 16.10.1998)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii) Rate of education cess

2 per cent of service tax (from 10.09.2004).

2.20.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

Notification No.15/2002-ST, dated 01.08.2002 exemption will apply to services rendered by a practising Chartered Accountant if such services are taxable under any other taxable service.

2.20.9

Board’s important clarification(s)

F.No.13-11/3/98. TRU dated 20.10.1998.

Instructions on scope and levy on service provided by Chartered Accountant.

 

2.20.10

Important case laws

Indian Institute of Architects Vs. Union of India – Upheld the validity of levy of service tax
{2002 (139) ELT.245 (Mad.)}

2.20.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004, issued vide Notification No.23/2004 CE (NT), dated 10.09.2004 applicable.

(iii)       Export of service without payment of service tax permissible, if such services are performed outside India (Refer Export of Service Rules, 2005).

 


2.21            Company Secretary’s service

2.21.1

Description of service subject to Service Tax

Service provided or to be provided to a client by a practising Company Secretary in his professional capacity, in any manner (Section 65 (105) (u) of Financial Act, 1994 as amended).

2.21.2

Items (forms) of Taxable Services covered

(i)                  All services as specified in Notification No. 59/98 ST dated 16.10.1998, as amended by notification No. 15/2002 ST dated 01.08.2002.

(ii)                Permitted occupations under Regulation 168 of the Company Secretary Regulation 1982.

2.21.3

Date from which Service Tax leviable

16.10.1998

2.21.4

Notification No. and date

53/98-S.T., dated 7.10.1998

2.21.5

Persons responsible for payment of Service Tax

(i)         Practising Company Secretary.

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.21.6

Value of taxable service

Gross amount charged by practising Company Secretary from  the client for such service

2.21.7

(i)         Rate of Service Tax

-         5 per cent (From 16.10.1998)

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (From 10.09.2004)

2.21.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

Refer Appendix 2.1

(ii)        Specific to the service

Notification No.59/98 ST dated 16.10.1998 exempts certain services from levy of Service Tax.

2.21.9

Board’s important clarification(s)

F.No. B-11/3/98 TRU dated 20.10.1998

Scope and levy of Service Tax on services provided by practising Company Secretary, clarified.

2.21.10

Important case laws

No case

2.21.11

Miscellaneous

(i)         Regulation 168 (1) & (2) of Company Secretary’s Regulation, 1982 deal with prohibition on Company Secretaries in practice from engaging in any other business or occupation unless it is permitted by a general or specific resolution of the Council.

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(iii)       Cenvat Credit Rules, 2004 vide notification No. 23/2004 CX(NT) dated 10.09.2004, applicable.

(iv)       Export of service without payment of service tax, if such services are performed outside India (Refer Export of Service Rules, 2005).

 


2.22     Cost & Works Accountant’s Service

2.22.1

Description of service subject to Service Tax

Services provided or to be provided to a client, by a practising Cost Accountant in his professional capacity, in any manner (Section 65 (105) (t) of the Finance Act 1994, as amended

2.22.2

Items (forms) of Taxable Services covered

(i)                  Special Audit under Section 14 A of the Central Excise Act, 1944

(ii)                All permitted occupations under Regulation under 111 & 111 A of the Cost & Works Accountants Regulations, 1959

2.22.3

Date from which Service Tax leviable

16.10.1998

2.22.4

Notification No. and date

53/98-S.T., dated 7.10.1998

2.22.5

Persons responsible for payment of Service Tax

(i)         Practising Cost & Works Accountant – A person who is a member of the Institute of Cost & Works Accountants of India and is holding a certificate of practise granted under the provisions of Cost & Works Accountants Act, 1959 and includes any concern engaged in rendering such service.

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.22.6

Value of taxable service

Gross amount charged by such Cost & Works Accountant from the client for such services

2.22.7

(i)         Rate of Service Tax

-         5 per cent ( From 16.10.1998)

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (From 10.09.2004)

2.22.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1.

(ii)        Specific to the service

Notification No. 59/98-ST dated 16.10.1998 exempts all services other than the specified services mentioned at S.N. (i) to (xi) of the notification.

2.22.9

Board’s important clarification(s)

F.No. B-11/3/98 TRU dated 20.10.1998

- Scope and levy of Service Tax on services provided by Cost & Works Accountants, explained.

2.22.10

Important case laws

No Case

2.22.11

Miscellaneous

(i)         A Cost Accountant in practise shall not engage in any business or occupation other than the profession of accountancy unless it is permitted by the general or specific Regulations No.111 & 111 A of the Cost and Works Accountants Regulation, 1959.

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(iii)       Cenvat Credit Rules, 2004 issued vide notification No. 23/2004 CX (NT) dated 10.09.2004, applicable.

(iv)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).

 


2.23            Credit Rating Agency’s Service

2.23.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by a credit rating agency in relation to credit rating of any financial obligation, instrument or security (Section 65 (105) (x) of the Finance Act, 1994, as amended)

2.23.2

Items (forms) of Taxable Services covered

Credit Rating relate to following areas:-

ˇ        Any debt obligation

ˇ        Any project or programme requiring finance in any form.

ˇ        Any financial obligation, instrument or security

ˇ        Providing a potential investor or any other person any information pertaining to the relating safety of timely payment of interest or principle.

2.23.3

Date from which Service Tax leviable

16.10.1998

2.23.4

Notification No. and date

53/98-S.T., dated 7.10.1998

2.23.5

Persons responsible for payment of Service Tax

(i)         Credit Rating Agency (Commercial concern) engaged in specified business to a client

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.23.6

Value of taxable service

Gross amount charged by the service provider for such services rendered by him

2.23.7

(i)         Rate of Service Tax

-         5 per cent (From 16.10.1998)

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent on Service Tax ( From 10.09.2004)

2.23.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix A-1

(ii)        Specific to the service

            Information and Advisory Services not covered under the category of  specific services are exempted

2.23.9

Board’s important clarification(s)

F.No. B-11/1/98 TRU dated 7.10.1998

-         Clarifications on taxability of services by Credit Rating Agency.

 

2.23.10

Important case laws

No case

2.23.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No. 23/2004 CX(NT) dated 10.09.2004, applicable.

(iii)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).

 


2.24            INTERIOR DECORATOR’S SERVICE

2.24.1

Description of service subject to Service Tax

Any service provided or to be provided a client, by an Interior decorator in relation to planning, design or beautification of space, whether man-made or otherwise, in any manner (Section 65 (105)(q) of Finance Act, 1994 as amended)

2.24.2

Items (forms) of Taxable Services covered

Advice, consultancy, technical assistance, planning, designing or beautification of spaces whether man-made or otherwise including landscape designing and vastushastra consultancy.

2.24.3

Date from which Service Tax leviable

16.10.1998

2.24.4

Notification No. and date

53/98-S.T., dated 7.10.1998

2.24.5

Persons responsible for payment of Service Tax

(i)         Any person engaged in a specified business providing by way of advise, consultancy, technical assistance in any other manner, these specified services

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.24.6

Value of taxable service

The gross amount charged by the service provider for such services rendered by him

2.24.7

(i)         Rate of Service Tax

-         5 per cent (From 16.10.1998

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (10.09.2004)

2.24.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1.

(ii)        Specific to the service

-         Reimbursement of out of pocket expenses, not taxable

-         Specific service provided by a sub-contractor to the specified service contractor paying Service Tax is not taxable.

2.24.9

Board’s important clarification(s)

File No. B.11/1/98 TRU dated 7.10.1998

-         Coverage and taxability of service provided by Interior decorator, clarified.

 

2.24.10

Important case laws

No case.

2.24.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No. 23/2004 CX(NT) dated 10.09.2004, applicable.

(iii)       Export of services without payment of service tax permissible, if such taxable service as are provided in relation to an immovable property which is situated outside India (Refer Export of Service Rules, 2005).

 


2.25            Management Counsultant’s Service

2.25.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by a Management Counsultant in connection with the Management of any Organisation,  in any manner (Section 65 (105)(r) of Finance Act, 1994, as amended)

2.25.2

Items (forms) of Taxable Services covered

General management and finance, sales, personnel, production, purchase, research and development management including energy audit (It includes any advice, consultancy, development, modification assistance relating to modification, rectification or upgradation of any working system of any organisation

2.25.3

Date from which Service Tax leviable

16.10.1998

2.25.4

Notification No. and date

53/98-S.T., dated 7.10.1998

2.25.5

Persons responsible for payment of Service Tax

(i)         A person engaged in a specified service providing any service in connection with the Management of any Organisation in any manner directly or indirectly.  This includes person rendering any advise, consultancy or technical assistance relating to certain specified areas.

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.25.6

Value of taxable service

The gross amount charged by the service provider for such service rendered by him

2.25.7

(i)         Rate of Service Tax

-         5 per cent (From 16.10.1998

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (10.09.2004)

2.25.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

Refer Appendix 2.1.

(ii)        Specific to the service

Notification No. 16/2004 ST dated 10.09.2004 exempts service provided to a client in respect of enterprise resource planning of software systems.

2.25.9

Board’s important clarification(s)

F. No. B.11/1/98 TRU dated 7.10.1998

Clarification on coverage and taxability of service provided by Management Consultant.

 

F. No. 341/2/99 TRU dated 20.08.1999

ESI, Provident Fund and other Industrial Law Practitioners are not covered by the scope of the term Management Consultant.

F. No. 177/2/2001 CX-4 dated 27.06.2001

Order No. 1/1/2001 ST issued under Section 37 B- Service Tax on services in respect of merger and acquisition leviable.

2.25.10

Important case laws

2002 (146) ELT-717 (CEGAT)
M/s Parasmal Bam V/s CCE Indore.

Possessing of technical degree from providing Management Consultancy is not a pre-requisite, since experience in the field would suffice.

2003 (III) ECR-14C
Regional Committee (ST Section) Madurai Commissionerate meeting held on 29.08.2002.

It was clarified vide point No.3 that if a manufacturer give consent to another manufacturer for use of his trademark and realizes the amount (royalty) for the use of trademark, it will be covered under Management Consultant’s Service.

2.25.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No. 23/2004 CE(NT) dated 10.09.2004, applicable.

 


2.26            Market Research Agency’s Service

2.26.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by a market research agency in relation to market research of any product, service or utility in any manner (Section 65 (105) (y)) of Finance Act, 1994 as amended)

2.26.2

Items (forms) of Taxable Services covered

Market research in relation to any product, service or utility

2.26.3

Date from which Service Tax leviable

16.10.1998

2.26.4

Notification No. and date

53/98-S.T., dated 7.10.1998

2.26.5

Persons responsible for payment of Service Tax

(i)         Any commercial concern engaged in conducting market research in any manner, in relation to any product, service or utility including all types of customised & syndicated research service

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.26.6

Value of taxable service

The gross amount charged by the service provider for such service rendered by him

2.26.7

(i)         Rate of Service Tax

-         5 per cent (From 16.10.1998)

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (10.09.2004)

2.26.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.26.9

Board’s important clarification(s)

F. No. B.11/1/98 TRU dated 7.10.1998

Following clarifications were issued:-

-         Market research agency engaged by an advertising agency who is providing service to a client liable to pay Service Tax.

-         Market Research service provided to a foreign client in India taxable

-         Out of pocket/reimbursable expenses to the agency are exempt.

2.26.10

Important case laws

No case

2.26.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No. 23/2004 CX(NT) dated 10.09.2004, applicable.

(iii)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).

 


2.27            Mechanised Slaughter’s House service

2.27.1

Description of service subject to Service Tax

Service provided to a person, by a mechanised slaughter house for slaughtering of bovine animals. Section 65(48)(za) of Finance Act, 1994 as amended, 01.03.1999

2.27.2

Items (forms) of Taxable Services covered

Mechanised slaughtering of bovine animals

2.27.3

Date from which Service Tax leviable

16.10.1998

2.27.4

Notification No. and date

53/98-S.T., dated 07.10.1998

(Discontinued vide notification No.2/2000 ST dated 01.03.2000)

2.27.5

Persons responsible for payment of Service Tax

A commercial concern engaged in the business of slaughtering bovine animals with the aid of machines. Bovine animals in the Indian context are mainly bullocks & buffalos.

2.27.6

Value of taxable service

NA

2.27.7

(i)         Rate of Service Tax

Rs. 100/- (Rs. One Hundred) per animal.

 

(ii)        Rate of education cess

NA

2.27.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

Exempted from 01.03.2000

2.27.9

Board’s important clarification(s)

NA

2.27.10

Important case laws

No case

2.27.11

Miscellaneous

NA

 


2.28     Real Estate Agent’s & Real Estate Consultant’s Service

2.28.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by a Real Estate Agent in relation to real estate (Section 65(105)(v) of Finance Act, 1994 as amended)

2.28.2

Items (forms) of Taxable Services covered

Service in relation to sale, purchase, leasing or renting of each estate or advice, consultancy or technical assistance in relation to evaluation conception, design, development, construction, implementation supervision, maintenance, marketing acquisition or management of real estate

2.28.3

Date from which Service Tax leviable

16.10.1998

2.28.4

Notification No. and date

53/98-S.T., dated 07.10.1998

2.28.5

Persons responsible for payment of Service Tax

(i)         Real estate agent or real estate counsultant (includes HUF, body of individuals, corporate bodies, charitable institutions, undertakings, enterprises, co-operative societies etc.

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.28.6

Value of taxable service

The gross amount charged by the real estate agent or consultant for providing any service in relation to real estate

2.28.7

(i)         Rate of Service Tax

-         5 per cent (From 16.10.1998

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (10.09.2004)

2.28.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.28.9

Board’s important clarification(s)

F. No. B.11/3/98 TRU dated 7.10.1998

- Activity of actual construction of any building carried out by builders/developers do not attract service tax under this category of service.

2.28.10

Important case laws

No case.

2.28.11

Miscellaneous

(i)         The following items are also covered under this category of service: -

-         Engineer giving exclusive advice for maintenance of building to improve the life of building

-         Brokers engaged in purchase, sale & leasing agriculture land & orchids

-         Consultancy for pest control

-         Arrangement for film studios on rent

-         Selling or purchasing of transferable Development Rights (TDR) or Floor Space Index (FSI)

-         Selling of membership for plantation companies

-         Advising on the mode of Finance for the acquisition of real estate

-         RCC consultancy in relation to construction of building

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(iii)       Cenvat Credit Rules, 2004 issued vide notification No. 23/2004 CX(NT) dated 10.09.2004, applicable.

(iv)       Export of services without payment of service tax permissible, if such service as are provided in relation to immovable property situated outside India (Refer Export of Service Rules, 2005).

 


2.29            Security Agency’s Service

2.29.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by a Security Agency in relation to the security of any property or person, by providing the personnel or otherwise and includes the provision of services of investigation, detection or verification of any act or activity (Section 65(105)(w) of Finance Act, 1994 as amended)

2.29.2

Items (forms) of Taxable Services covered

(i)                  Security of any movable or immovable property

(ii)                Security of any person

(iii)               Investigation, detection or verification of any fact or activity whether of a personal nature or otherwise

(iv)              Providing security personnel for above purpose.

2.29.3

Date from which Service Tax leviable

16.10.1998

2.29.4

Notification No. and date

53/98-S.T., dated 07.10.1998

2.29.5

Persons responsible for payment of Service Tax

(i)         A commercial concern-engaged in the business of rendering the 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, including the services of providing security personnel

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.29.6

Value of taxable service

The gross amount charged by the service provider for such service rendered by him

2.29.7

(i)         Rate of Service Tax

-         5 per cent (From 16.10.1998

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (10.09.2004)

2.29.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

Refer Appendix 2.1.

(ii)        Specific to the service

Notification No. 11/2001 ST dated 03.07.2001 as amended by notification No. 7/2002 ST dated 08.05.2002 exempts security services provided to notified Diplomatic Missions.

 

2.29.9

Board’s important clarification(s)

F. No. B.11/3/98 TRU dated 7.10.1998

- No abatement for salary and other benefits to the employees of security service is available.

- Service provided for safe deposits, lockers etc. are covered.

2.29.10

Important case laws

2002 (140) ELT 332 (MDS)

GDA Security (P) Ltd. Vs. Union of India

2003 (158) ELT 242 (Trib.)

Haryana Industrial Security Service Vs. CCE, Delhi

2003 (157) ELT 433 (Trib.)

Super Security Service Vs. CCE

2.29.11

Miscellaneous

(i)         Security personnel employed by the Housing Societies or others directly are not covered.

(ii)        Security agency deputed for collection of arrears/dues from their clients are not covered

(iii)       Other activities not connected with security are not covered.

(iv)       Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(v)        Cenvat Credit Rules, 2004 issued vide notification No. 23/2004 CX(NT) dated 10.09.2004, applicable.

(vi)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).


2.30            Underwriter’s Service

2.30.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by an Underwriter Services in relation to underwriting, in any manner (Section 65 (105) (z) of the Finance Act 1994, as amended)

2.30.2

Items (forms) of Taxable Services covered

Underwriting of Securities, including Govt. Securities which are not subscribed by the General Public.  This covers equity shares, preferential shares, non-convertible debentures issued by a body corporate

2.30.3

Date from which Service Tax leviable

16.10.1998

2.30.4

Notification No. and date

53/98-S.T., dated 07.10.1998

2.30.5

Persons responsible for payment of Service Tax

(i)         A person engaged in the business of underwriting a issue of securities of a body corporate

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.30.6

Value of taxable service

Gross amount charged by the service provider for such service rendered by him.

2.30.7

(i)         Rate of Service Tax

-         5 per cent (From 16.10.1998)

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (10.09.2004)

2.30.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.30.9

Board’s important clarification(s)

F. No. B.11/3/98 TRU dated 7.10.1998

(i)                  The underwriter must be registered under the Securities and Exchange Board of India (Underwriters) Rules, 1993

(ii)                Underwriting service can also be provided by the Financial Institutions, Banks, Registered Share Brokers and Investment Companies/Trusts but registered under Rule 3 ibid.

(iii)               Underwriter is required to enter into an agreement with the body corporate.

2.30.10

Important case laws

            No Case

2.30.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No. 23/2004 CX(NT) dated 10.09.2004, applicable.

(iii)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).

 


2.31            Banking and other Financial Service

2.31.1

Description of service subject to Service Tax

Any service provided or to be provided to a customer, by a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern or a foreign exchange broker in relation to banking and other financial services (Section-65 (105) (zm)(zzk) of the Finance Act, 1994, as amended with effect from 10.09.2004).

2.31.2

Items (forms) of Taxable Services covered

(a)    The following services provided by banking companies, financial institutions including NBFCs, and other body corporates: -

i)                    Financial leasing services including equipment leasing and hire purchase by a body corporate;

ii)                   Credit card services;

iii)                 Merchant banking services;

iv)                 Securities and foreign exchange (forex) broking;

v)                  Asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services, but does not include cash management;

vi)                 Advisory and other auxiliary financial service including investment and portfolio research and  advice, advice on mergers and acquisitions and advice on corporate re-structuring and strategy;

vii)               Provision and transfer of information and data processing

viii)              Other financial services namely lending, issue of pay orders, demand drafts, cheques, letter of credit, bank guarantee, overdrafts, bill discounting, safe deposits, lockers, safe vaults, operation of Bank Account etc.

(b)   Foreign exchange broking by a foreign exchange broker not covered under (a) above.

2.31.3

Date from which Service Tax leviable

-         16.07.2001 – Banking Companies and financial institutions including non banking financial companies,

-         16.08.2002 – Other body corporates

-         01.07.2003 – Foreign exchange brokers other than i) and ii)

-         10.09.2004 – Any banking financial services provided by a Commercial concerns

2.31.4

Notification No. and date

 

4/2001-S.T., dated 09.07.2001

2.31.5

Persons responsible for payment of Service Tax

(i)         Banking and other Financial institutions

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.31.6

Value of taxable service

The gross amount charged by the service provider for such service s provided by him.

2.31.7

(i)         Rate of Service Tax

-         5 per cent (From 16.07.2001)

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (10.09.2004)

2.31.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1.

(ii)        Specific to the service

-         Notification No.13/2004 ST dated 10.09.2004 – Collection of taxes on behalf of Govt. of India or Govt. of any state are exempted from service tax

-         Notification No.29/2004, dated 10.09.2004 exempts services in relation to overdraft facilities, cash credit facilities or discounting of bills, bills of exchange or cheques from service tax as is equivalent to the amount of interest on such overdraft, cash credit or discount subject to conditions.

-         Banking and other financial services will not include the services rendered by chit funds.

-         Circular No.50/11/2002-S.T., dated 18.12.2002

The service of electronic access to securities information (EASI) provided by Central Depository Services (India) Limited, is a part and parcel of depository service and covered under the category of banking and other financial services

-         Circular No.62/11/2003-S.T., dated 21 August 2003

Through Finance Act, 2003, foreign exchange broking when provided by foreign exchange brokers, other than banking company/financial institution/body corporate also brought under the tax net with effect from 01.07.2003.  It includes their authorised agents.

2.31.9

Board’s important clarification(s)

-         Circular No.41/4/2002, dated 15.02.2002

F. No. B.11/1/2000 TRU dated 09.07.2001

-         Services provided prior to notified dates not liable to service tax

-         Reimbursement of value of goods purchased on credit cards not covered under the service tax net

2.31.10

Important case laws

No Case.

2.31.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

(iii)       Refer proviso to sub-rule (1) and sub-rule (2) in Rule 4A of the Service Tax Rules, 1994, as inserted vide notification No.30/2004-S.T., dated 22.09.2004, relating to above service.

 


2.32            Broadcasting Service

2.32.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by a broadcasting agency or organization in relation to broadcasting in any manner and in the case of broadcasting agency or organization having its head office situated in any place out side India includes service provided by its branch office or subsidiary or representative in India or any agent appointed in India or by any person who acts on its behalf in any  manner, engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorship for programme or collecting broadcasting charges or permitting the right to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electromagnetic waves through space or through cables direct to home signals or by any other means to cable operator, including multisystem operator or any other person on behalf of the said agency (Section 65 (105) (zk) of Finance Act, 1994, as amended)

2.32.2

Items (forms) of Taxable Services covered

-         Dissemination of signs or signals, writings, pictures, images and sounds; communication --- etc.

-         Programme selection scheduling or presentation of sound or visual matter on Radio or TV

-         Setting of time slot, obtaining sponsorship and collecting the broadcasting charges on behalf of broadcasting agency having HQs outside India

2.32.3

Date from which Service Tax leviable

16.07.2001 (Scope widened as per Finance Act 2002 with retrospective effect)

2.32.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.32.5

Persons responsible for payment of Service Tax

(i)         Broadcasting agency or organisation (TV Channels (Indian and foreign); Satellite channels; direction to have operator; relay station for T.V. signals, sounds; radio stations and Prasar Bharti

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.32.6

Value of taxable service

-         The gross amount charged by the service provider for such service provided by him

-         Total Advertisement charges and other charges recovered from the client liable to service tax with no deduction of expenditure incurred by the agency except if out of pocket expenses

2.32.7

(i)         Rate of Service Tax

-         5 per cent (From 16.07.2001)

-         8 per cent (From 14.05.2003)

-         10 per cent (From 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax (10.09.2004)

2.32.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1.

(ii)        Specific to the service

-         Notification no. 8/2001 ST dated 09.07.2001 exempts the taxable service provided by cable television operation in relation to broadcasting service from whole of tax from 16.07.2001 (notification rescinded vide No. 7/2004 ST dated 09.07.2004).

2.32.9

Board’s important clarification(s)

(i)       File No. BII/1/2000-TRU, dated 09.07.2001

-         All India Radio and Doordarshan are covered

-         Uplinking of broadcast signals and MSO or cable operators not covered

-         Uplinking of TV channels from abroad are covered

(ii)        Circular No. 343/43/2001 TRU dated 18.10.2001

       Service tax is leviable only on the amount received by the  broadcaster for the service rendered

(iii)       Circular No. 61/10.2003 ST dated 14.07.2003

From 01.04.2003 the protection under Section 22 of Prasar Bharti (Broadcasting Corporation of India) Act, 1990, no longer available to Prasar Bharati. Hence service provided by Prasar Bharti is taxable.

2.32.10

Important case laws

            No Case.

2.32.11

Miscellaneous

(i)         As per Section 148(2) of the Finance Act, 2002 broadcasting agencies which did not pay Service Tax earlier and are made liable to tax in view of the retrospective amendment to the definition of broad casting shall pay all dues with interest till date of payment.

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(iii)       Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

(iv)       Broadcasting service to include charges recovered by broadcasting agencies from multisystem operator (MSO) and provision of direct to home (DTH) signals to the customers (Finance Act, 2005).


2.33            Convention Service

2.33.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by any commercial concern, in relation to holding of a convention in any manner and in (section 65 (105)(zc)of Finance Act, 1994,as amended).

2.33.2

Items (forms) of Taxable Services covered

Holding a conference, seminar, meeting etc by a commercial concern in the nature of providing room/hall for such convention including facility for video conferencing, equipment etc.

2.33.3

Date from which Service Tax leviable

16.07.2001

2.33.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.33.5

Persons responsible for payment of Service Tax

(i)         Commercial concern including Management Institute which regularly conduct seminars

(ii)        Management Institute which interalia also conduct training course for  employees of companies etc.

(iii)       In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.33.6

Value of taxable service

Gross amount charged by services provider for such service (No deduction would be admissible for charges recovered on account of rent of Hall & other charges for supply of material)

2.33.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.33.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

Notification No. 10/2004 ST dated 09.07.2004 as amended vide notification No. 12/2004 ST dated 10.09.2004 exempts convention service when charges include catering service (supply of substantial and satisfying meal) from service tax to the extent of 40 per cent of the gross amount charged. Hence 60 per cent of such gross amount would be taxable provided no credit of duty paid on goods is taken & the commercial concern had not availed the benefit under notification No. 12/2003 ST dated 20.06.2003 as amended.

2.33.9

Board’s important clarification(s)

-         F. No. B.11/1/2000 ST dated 09.07.2001

-         Chambers of commerce are not covered if memorandum and Articles of Association would indicate they are not commercial concerns.

2.33.10

Important case laws

No case

2.33.11

Miscellaneous

(i)         Persons not covered under the category of the above service providers are as under:-

-         Concerns organizing trade fairs or exhibitions

-         Painter organizing his own exhibitions

-         Companies holding Annual general meetings of share holders

-         Persons organizing magic shows, music shows, nites, religious open conferences etc.

-         Service provider already registered as mandap –keeper and paying service tax under that category.

(ii)        Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(iii)       Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable

(iv)       Export of services without payment of service tax permissible, if such services are performed outside India (Refer Export of Service Rules, 2005).

 


2.34            Facsimile (FAX) Service

2.34.1

Description of service subject to Service Tax

Any service provided or to be provided to a subscriber, by the telegraph authority in relation to facsimile communication (Section 65 (105)(zg)of Finance Act, 1994, as amended).

2.34.2

Items (forms) of Taxable Services covered

FAX transmission over the telecommunication system (does not cover private fax operators based on number of telephone calls).

2.34.3

Date from which Service Tax leviable

16.07.2001

2.34.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.34.5

Persons responsible for payment of Service Tax

Telegraph authority

-         Director General P & T

-         MTNL

-         Any other person granted a licence under the Indian Telegraph Act, 1885

2.34.6

Value of taxable service

Gross amount charged by the service provider

2.34.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.34.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.34.9

Board’s important clarification(s)

F. No. B.11/1/2000 ST dated 09.07.2001

Covers telegraph, telex and leased services provided by telegraph authority.

2.34.10

Important case laws

No case

2.34.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable


2.35            Insurance Auxiliary Service

2.35.1

Description of service subject to Service Tax

Any service provided or to be provided to a policy holder or an insurer by an actuary or intermediary or insurance intermediary or insurance agent in relation to insurance auxiliary service concerning general/life insurance (Section 65 (105)(zy) of Finance Act, 1994, as amended).

2.35.2

Items (forms) of Taxable Services covered

General Insurance business, Life insurance business and includes risk assessment, claim sellement survey and loss assessment, provided by an actuary or an intermediary or insurance intermediary or an insurance agent.

2.35.3

Date from which Service Tax leviable

-         16.07.2001 (General Insurance)

-         16.08.2002 (Life Insurance)

2.35.4

Notification No. and date

-         4/2001-S.T., dated 09.07.2001 (General Insurance)

-         8/2002-S.T., dated 01.08.2002 (Life Insurance)

2.35.5

Persons responsible for payment of Service Tax

(i)         An actuary; an intermediary; or insurance intermediary or insurance agent in relation to general insurance or life insurance business in India

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.35.6

Value of taxable service

Gross amount charged by the service provider for such services rendered by him. This includes commission, fee  or sum received by him

2.35.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.35.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

Refer Appendix 2.1

(ii)        Specific to the service

            Reimbursement of actual out of pocket expenses.

2.35.9

Board’s important clarification(s)

F. No. B.11/1/2000 ST dated 09.07.2001; and

F. No. B.11/2/2000 ST dated 01.08.2002

- Out of pocket expenses, reimbursement of actual, not taxable

-         Actual (net) billed amount is taxable.

 

2.35.10

Important case laws

No case

2.35.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

 


2.36            Leased Circuit Service

2.36.1

Description of service subject to Service Tax

Any service provided or to be provided to a subscriber, by the telegraph authority in relation to a leased circuit (Section 65 (105)(zd)of Finance Act, 1994, as amended)

2.36.2

Items (forms) of Taxable Services covered

Dedicated link provided between two fixed locations for exclusive use of subscriber and includes speech circuit, a data circuit or a telegraph circuit

2.36.3

Date from which Service Tax leviable

16.07.2001

2.36.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.36.5

Persons responsible for payment of Service Tax

(i)         D. G. P & T

(ii)        MTNL

(iii)       Any person who has been granted a licence under the Indian Telegraph Act, 1885 for the service

2.36.6

Value of taxable service

Gross amount charged shall be the value of taxable service

2.36.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.36.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.36.9

Board’s important clarification(s)

F. No. 46/9/2002-TRU dated 08.08.2002

Inter connection charges for interconnectivity provided between the basic/cellular telephone providers and the BSNL/MTNL exchanges are taxable. Board’s clarification dated 14.03.2001 stands modified to this extend.

2.36.10

Important case laws

No case

2.36.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.


2.37            Authorised Automobile Service Station’s Service

2.37.1

Description of service subject to Service Tax

Any service provided or to be provided to a customer by an authorised service station, in relation to any service, repair, reconditioning or restoration of motor cars light motor vehicle or two wheeler motor in any manner (Section 65 (105)(zo) of Finance Act, 1994, as amended).

2.37.2

Items (forms) of Taxable Services covered

Service & Repair of Motor Car, Two Wheelers & L.M.V.

2.37.3

Date from which Service Tax leviable

-         16.07.2001 (For service of Motor car  or two wheeler)

-         01.07.2003 (For service or repair of Light Motor Vehicles)

-         16.06.2005 (For reconditioning or restoration of motor car, light motor vehicle or two wheeled motor vehicle).

2.37.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.37.5

Persons responsible for payment of Service Tax

Authorised Service Station or Service Centres

2.37.6

Value of taxable service

-         Gross amount charged by the service provider from the customer for such service rendered by him (cost of parts or accessories are excluded). 

-         Gross amount include the reimbursement received by the authorised service station from the manufacturer for carrying out any service of Motor Car LMV or two wheeled Motor Vehicles manufactured by such manufacturer.

2.37.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.37.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.37.9

Board’s important clarification(s)

(i)         F. No.B-3/7/2003-TRU dated 24.06.2003

Service tax is not leviable on services or repair of buses or trucks

(ii)        F. No. B-11/1/2001-TRU dated 09.07.2001

Free service during warranty period cost of which is born by the motor car manufacturing company  is taxable

(iii)       Circular No. 699/15/2003 TRU dated 05.03.2003

Value of paint used for painting of vehicle body etc during the course of providing service is includible.

Activity of providing   TAFLON Coating at presale stage is not a service or repair

2.37.10

Important case laws

No case

2.37.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

(iii)       Taxable service provided by authorised service station to include re-conditioning or restoration of motor cars, two wheeler and light motor vehicles (Finance Act, 2005).

(iv)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).

 


2.38            Online Information and data base access or retrieval service through computer network (or Computer network service)

2.38.1

Description of service subject to Service Tax

Any service provided to a customer by a commercial concern, in relation to on line information and data base access or retrieval or both in electronic form through computer network (Section 65 (105)(zh) of Finance Act, 1994, as amended)

2.38.2

Items (forms) of Taxable Services covered

Providing data or information, retrieval or otherwise of the information in electronic form through a computer network

2.38.3

Date from which Service Tax leviable

16.07.2001

2.38.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.38.5

Persons responsible for payment of Service Tax

(i)        ISP’s

-         Websites

-         Other online information providers

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.38.6

Value of taxable service

Gross amount charged by the service provider for such services rendered by him

2.38.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.38.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.38.9

Board’s important clarification(s)

F. No. B-11/1/2000 TRU dated 09.07.2001

E-Commerce transactions interconnectivity by one ISP to another, cyber café, and DEMAT service are not covered under the on line information or computer network service.

2.38.10

Important case laws

No case

2.38.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

 


2.39            Photography Service

2.39.1

Description of service subject to Service Tax

Any service provided or to be provided to a customer by a photographer studio or agency in relation to photography, in any manner (Section 65 (105)(zb) of Finance Act, 1994, as amended)

2.39.2

Items (forms) of Taxable Services covered

Photography includes  still photography, motion picture photography, laser photography, aerial photography or fluorescent photography (X-RAY-Photography not covered)

2.39.3

Date from which Service Tax leviable

16.07.2001

2.39.4

Notification No. and date

-         4/2001-S.T., dated 09.07.2001

2.39.5

Persons responsible for payment of Service Tax

(i)         Professional photographer or a commercial concern engaged in the photography business and rendering services relating to photography

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.39.6

Value of taxable service

Gross amount charged by the service provider from the clients towards the services rendered.

2.39.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.39.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

Notification No. 6/2001-ST dated 09.07.2001 as amended vide notification No. 13/2001 ST dated 27.12.2001. Exemption from whole of service tax to still photography service not registered under the law relating to shop & Establishment Act or any other law of a State for the time being in force. Now exemption is given if the service provider is not a commercial concern.

2.39.9

Board’s important clarification(s)

(i)         F. No.B-11/1/2001-TRU dated 09.07.2001

Cost (such as photographic paper chemicals etc) is not excludible from taxable service

 

X-Ray/CT-Scan done using fluorescent photography technique are not photographic studios or agencies in common parlance,  hence not covered.

(ii)        Circular No.37/5/2001-S.T., dated 27.12.2001

Service provided by collection centres is not taxable in the category of photography service

2.39.10

Important case laws

2003 (156) ELT-17 (Kerala Colour Lab Association Vs Union of India) Constitutional validity of the levy unheld

2.39.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

(iii)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).

 


2.40            Scientific or Technical consultancy service

2.40.1

Description of service subject to Service Tax

Any service provided or to be provided to a client by a scientist or a technocrat, or any Science or Technology Institute or organisation in relation to scientific technical consultation (Section 65 (105)(za) of Finance Act, 1994, as amended)

2.40.2

Items (forms) of Taxable Services covered

Service in the form of  advice, consultancy,  assistance provided in one or more disciplines of science or technology covering specified areas by a scientist or a technocrat or any science or technology institution or organisation

2.40.3

Date from which Service Tax leviable

16.07.2001

2.40.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.40.5

Persons responsible for payment of Service Tax

(i)         Scientist, technocrat, science or technology institution/organisation  i.e. all firms, organisations, companies Govt. departments, Research and development Lab, trusts, education institutional like CSIR, ICAR, DRDO, IIT’s, IISC (Scientists employed and receiving salary are not covered)

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.40.6

Value of taxable service

Gross amount charged by the persons providing the services

2.40.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.40.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.40.9

Board’s important clarification(s)

(i)        F. No. B-11/1/2000-TRU  dated 09.07.2001

-         Service provided by Doctors, Medical colleges, Nursing homes, Hospitals, diagnostic & pathological Labs, etc are not covered.

 

-         CSIR, ICAR, DRDO, IIT’s & IISCS-Regional Engineering Colleges etc. are covered

-         Mere testing don’t attract service tax but where testing is integral part of consultancy,  S. tax is chargeable

-         Public funded research institutions doing research work but rendering service to any one on payment basis, are covered

-         Service provided to Govt. departments on payment basis are covered

2.40.10

Important case laws

No case

2.40.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

 


2.41            Sound recording service

2.41.1

Description of service subject to Service Tax

Any service provided or to be provided  to a client by a sound recording studio or agency in relation to any kind of sound recording (Section 65 (105)(zj) of Finance Act, 1994, as amended)

2.41.2

Items (forms) of Taxable Services covered

Recording of sound on a magnetic storage device including editing thereof, in any manner

2.41.3

Date from which Service Tax leviable

16.07.2001

2.41.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.41.5

Persons responsible for payment of Service Tax

(i)         Sound recording studio or agency (a commercial concern) providing service relating to sound recording

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.41.6

Value of taxable service

The gross amount charged by the service provider for such service provided or to be provided by him. (Cost of empty cassettes to be included in total value)

2.41.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.41.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.41.9

Board’s important clarification(s)

F. No. B-11/1/2000-TRU, dated 09.07.2001

-         Reproduction of original master copy to make further copies of the audio tape/CD don’t come under the purview of this service.

-         Lending/hiring of video/sound recording equipment is in the nature of sub-contracts and because the sub-constructors are not providing the service to the customer directly, service tax is not leviable.

 

2.41.10

Important case laws

2001 (131) ELT-006 (MDS). - Salem Distt. Sound system Association Vs Union of India.

2.41.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable

(iii)       Sound recording to include recording of sound on any media and includes post production services

(iv)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).

 


2.42            Telegraph service

2.42.1

Description of service subject to Service Tax

Any service provided or to be provided to a subscriber by the Telegraph authority, in relation to communication through telegraph (Section 65 (105)(ze) of Finance Act, 1994, as amended)

2.42.2

Items (forms) of Taxable Services covered

Any appliance, instrument, material or apparatus used or capable to use of transmission or reception of signs, signals, writings, images and sounds or intelligence of any nature by wire, visual or other electromagnetic emissions, radio waves or hertizian waves, galvanic, electric or magnetic means

2.42.3

Date from which Service Tax leviable

16.07.2001

2.42.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.42.5

Persons responsible for payment of Service Tax

(i)         D. G. P&T

(ii)        MTNL; and

(iii)       Any other person who has been granted a licence by the Govt. under Section 4 of the Telegraph Act, 1885

2.42.6

Value of taxable service

Gross amount charged by the service provider for such service (includes adjustments of initial deposit).  Gross amount does not include initial deposits made by the depositor at the time of application for telegraph connection

2.42.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.42.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.42.9

Board’s important clarification(s)

Circular No. 23/3/97. F. No. 149/1/94-CX4 dated 11.10.1997.

There is no provision in the Finance Act, 1994 to adjust service tax against service tax already paid (in excess) assessee has to file refund claim separately for such refunds.

2.42.10

Important case laws

-         2003 (154) ELT- 486 (Tri) – Chief GM Calcutta Telephone Vs CCE Cal I

-         2003(156) ELT-352 (Tri) – Hexacom (1)Ltd Vs. CCE Jaipur

-         2003(156) ELT- 397 (Tri) - G.M. (Telecom) BSNL Vs. CCE  Chandigarh

-         2003(160) ELT- 318 (Tri) G. M. (Telecom) BSNL Vs CCE Chandigah.

2.42.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004 applicable

 


2.43            Telex Service

2.43.1

Description of service subject to Service Tax

Any service provided or to be provided to a subscriber by the Telegraph authority, in relation to communication through telex (Section 65 (105)(zf) of Finance Act, 1994, as amended).

2.43.2

Items (forms) of Taxable Services covered

Typed communication by using teleprinters through telex exchanges.

2.43.3

Date from which Service Tax leviable

16.07.2001

2.43.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.43.5

Persons responsible for payment of Service Tax

(i)                  D. G. P&T

(ii)                MTNL; and

(iii)               Any other person who has been granted a licence by the Govt. under Section 4 of the Telegraph Act, 1885

2.43.6

Value of taxable service

Gross amount charged by the service provider for such service (includes adjustments of initial deposit).  Gross amount does not include initial deposits made by the depositor.

2.43.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.43.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.43.9

Board’s important clarification(s)

Circular No. 23/3/97. F. No. 149/1/94-CX4 dated 11.10.1997.

There is no provision in the Finance Act, 1994 to adjust service tax against service tax already paid (in excess) assessee has to file refund claim separately for such refunds.

2.43.10

Important case laws

-         2003 (154) ELT- 486 (Tri) - Chief GM Calcutta Telephone Vs CCE Cal I

-         2003(156) ELT-352 (Tri) - Hexacom (1)Ltd Vs. CCE Jaipur

-         2003(156) ELT- 397 (Tri) - G.M. (Telecom) BSNL Vs. CCE  Chandigarh

-         2003(160) ELT- 318 (Tri) G. M. (Telecom) BSNL Vs CCE Chandigah.

2.43.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004 applicable.

 


2.44            Video production agency’s service

2.44.1

Description of service subject to Service Tax

Any service provided or to be provided to a client, by a video production agency in relation to video tape production (Section 65 (105)(zi) of Finance Act, 1994, as amended)

2.44.2

Items (forms) of Taxable Services covered

Process of recording of any programme, event or function on a magnetic tape and including editing thereof, in any manner

2.44.3

Date from which Service Tax leviable

16.07.2001

2.44.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

2.44.5

Persons responsible for payment of Service Tax

(i)         A professional videographer or any commercial concern engaged in the business of rendering services relating to video tape production

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.44.6

Value of taxable service

-         The gross amount charged by the service provider for the service rendered

-         Value of any unrecorded magnetic tapes sold during the courses of providing the service not to be included in the value of taxable service

2.44.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.44.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

Notification No. 7/2001 ST dated 09.07.2001

Service provided to a client by an individual professional videographer in relation to video tape production have been exempted from service tax

2.44.9

Board’s important clarification(s)

B 11/1/2000 TRU dated 09.07.2001

-         Video tape production  covers recording of any programme event or function on a magnetic tape & includes recording of serials, telefilms, or any other programme meant for broadcasting;

-         Covers video tape production;

-         Providing studio other facility as light, gadgets, instruments, devices & providing personnel for operating the recording devices or for any other activity in relation to video tape production, are taxable;

-         Editing, colouring, dubbing, printing titles and special effects, film  processing etc by a video production agency are covered.

-         However, reproduction of original master copy to make further prints of a video tape don’t come with in the purview of Service Tax

(ii)        Circular No. 78/8/2004 dated 23.03.2004

-         Sale of T.V. signal to channel is not taxable under this category of service.

2.44.10

Important case laws

No case

2.44.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004 applicable

(iii)       Video tape production to include recording of any programme, event or function on any media and includes postproduction services (Finance Act, 2005)

(iv)       Export of service without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).


2.45     Port service/other Port service

2.45.1

Description of service subject to Service Tax

Any service provided or to be provided to any person by Port/other Port or any person authorised by that port/other port in relation port/other port service, in any manner  (Section 65 (105)(zn)(zzl) of the Finance Act, 1994, as amended)

2.45.2

Items (forms) of Taxable Services covered

Any service rendered in relation to vessel and goods by port or other port or any person authorised by such port or other port in any manner (Port includes any part of a river or channel in which Indian Port Act, 1908 is for the time being in force).

2.45.3

Date from which Service Tax leviable

-         16.07.2001 (Port)

-         01.07.2003 (other port)

2.45.4

Notification No. and date

4/2001-S.T., dated 09.07.2001

7/2003-S.T., dated 20.06.2003

2.45.5

Persons responsible for payment of Service Tax

All major ports (where Major Port Trust Act applies) with areas as notified by the Govt. of India

2.45.6

Value of taxable service

Gross amount charged by the service provider for such service rendered

2.45.7

(i)         Rate of Service Tax

-         5 per cent (from 16.07.2001)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.45.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

                        NA

2.45.9

Board’s important clarification(s)

(i)         F. No. B/11/1/2000 TRU dated 09.07.2001

-         Specific charges for the service rendered in respect of the said service including demurrage charges.

(ii)        Circular No. 44/7/2002- ST issued under F. No. 160/2/2002-CX-4 dated 26.06.2002

-         Management committee (CFH Scheme) Paradeep Port, liable to service tax

(iii)       Circular No. 67/16/2003. ST

-         Service tax on ship repair during dry docking leviable.

(iv)       F. No. 163/3/2002-CX 4 dated 10.11.2003

Service rendered in relation to vessels under authorisation from port authorities taxable. This includes supply of provisions called ship’s stores such as feed, vegetables, dried/fresh fruits provisions, meats, engineering material & deck stores etc. and also the repair work to clear technical snag of the vessel through the local sources.

2.45.10

Important case laws

Nil

2.45.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

(iii)       Export of services without payment of service tax permissible, if services performed outside India (Refer Export of Services Rules, 2005).

 


2.46            Beauty treatment service

2.46.1

Description of service subject to Service Tax

Any service provided or to  be provided to a customer by a beauty parlour in relation to beauty treatment  (Section 65 (105)(Zq) of Finance Act, 1994, as amended)

2.46.2

Items (forms) of Taxable Services covered

Face and beauty treatment, cosmetic treatment, manicure, pedicure or counselling service on beauty, face care or makeup.

2.46.3

Date from which Service Tax leviable

16.08.2002

2.46.4

Notification No. and date

8/2002-S.T., dated 01.08.2002

2.46.5

Persons responsible for payment of Service Tax

(i)         Beauty parlours (Any establishment ) providing beauty treatment services

-         Covers beautician working on healthy body (Does not cover service provided by Doctors providing service to treat skin burns or ailments.)

(ii)        In relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India (16.08.2002/16.06.2005).

2.46.6

Value of taxable service

The gross amount charged by the service provider for such service  rendered by him

2.46.7

(i)         Rate of Service Tax

-         5 per cent (from 16.08.2002)

-         8 per cent (from 14.05.2003)

-         10 per cent (from 10.09.2004)

 

(ii)        Rate of education cess

-         2 per cent of Service Tax  (from 10.09.2004)

2.46.8

Exemption (if any) from levy of Service Tax (Notification No. and date)

(i)         General exemptions

            Refer Appendix 2.1

(ii)        Specific to the service

Notification No. 11/2002 ST dated 01.08.2002

Exempts Service provided for hair cutting and shaving

2.46.9

Board’s important clarification(s)

F. No. B/11/1/2001 TRU dated 01.08.2002

-         “Beauty treatment” service do not cover hair cutting, shaving, plastic surgery/cosmetic surgery, hair dying.

-         Value of material to be excluded from the total value charged separately (sold separately)

 

2.46.10

Important case laws

No cases

2.46.11

Miscellaneous

(i)         Service Tax Credit Rules, 2002, applicable from 16.08.2002 vide Notification No.14/2002-S.T., dated 01.08.2002, as amended by Notification No.6/2004-ST, dated 09.07.2004.

(ii)        Cenvat Credit Rules, 2004 issued vide notification No.23/2004-CX (NT) dated 10.09.2004, applicable.

(iii)       Beauty parlour service to include all services provided by beauty parlour  (Finance Act, 2005)

(iv)       Export of services without payment of service tax permissible, if such service are performed outside India (Refer Export of Service Rules, 2005).

 


2.47            Cable Operator’s service

2.47.1

Description of service subject to Service Tax

Any service provided or to be provided to any person by a cable operator (C.O.) including multi system operator (MSO) in relation to cable service (Section 65 (105)(zs) of Finance Act, 1994, as amended)

2.47.2

Items (forms) of Taxable Services covered

Transmission by cable of a programme including retransmission by cable of any broadcast television signals

2.47.3

Date from which Service Tax leviable

-         16.08.2002 (C.O.)

-         10.09.2004 (MSO)

2.47.4

Notification No. and date

8/2002-S.T., dated 01.08.2002

2.47.5

Persons responsible for payment of Service Tax

(i)         Cable operators (16.08.2002)