SERVICES NOTIFICATION 2006

Notification No. 31/2006-Service Tax

G.S.R.  (E).- In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do,  hereby exempts the taxable service provided by an insurer, carrying on general insurance business, to a policy holder for the insurance of sheep, from the whole of service tax leviable thereon under section 66 of the said Act.

2.         The exemption contained in this notification shall be valid upto 31st December, 2009.                  

[F. No. 356/54/2006-TRU]

11th  November, 2006

 

Notification No. 30 /2006-Service Tax

 

G.S.R. (E).- In exercise of the powers conferred by section 83A of the Finance Act, 1994 (32 of 1994), read with rule 3 of the Service Tax Rules, 1994, the Central Board of Excise and Customs appoints the Commissioner of Service Tax, Mumbai, and invest with him all the power of Central Excise Officer through out the territory of India, for the purposes of adjudication of show cause notices issued to M/s Tata Consultancy Services Ltd., by the Mumbai Zonal Unit of the Directorate General of Central Excise  Intelligence, under F. No. DGCEI/MZU/I & IS “C”/12 (4)118/2006. 

 

 2nd  November, 2006

 

Notification No. 29/2006 - Service Tax

 

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

 

1.         (1) These rules may be called the Service Tax (Sixth Amendment) Rules, 2006.

 

(2) They shall come into force on the 2nd day of November, 2006.

 

2.         In the Service Tax Rules, 1994, (hereinafter referred to as the said rules), in   rule 4, for sub-rules (2) and (3), the following sub-rules shall be substituted, namely: -

        

“(2) Where a person, liable for paying service tax on a taxable service,

(i)                                                                                                                     provides such service from more than one premises or offices; or

(ii)                                                                                                                    receives such service in more than one premises or offices; or,

(iii)       Is having more than one premises or offices, which are engaged in relation to such service in any other manner, making such person liable for paying service tax, and has centralised billing system or centralised accounting system in respect of such service, and such centralised billing or centralised accounting systems are located in one or more premises, he may, at his option, register such premises or offices from where centralised billing or centralised accounting systems are located.

 

 

(3)     The registration under sub-rule (2), shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralised billing or accounting is done, are located:

              

         Provided that nothing contained in this sub-rule shall have any effect on the registration granted to the premises or offices having such centralised billing or centralised accounting systems, prior to the 2nd day of November, 2006.”;

 

3.         In rule 5 of the said rules, in sub-rule (4), for the words “ as the case may be”, the words “as the case may be, or, by the audit party deputed by the Comptroller and Auditor General of India.” shall be substituted.

 

F. No. 137/50/2005-CX.4 

 

Note.-  The principal rules were notified vide notification No. 2/94-Service Tax, dated the 28th June 1994 and published in the Gazette of India, Extraordinary vide number G.S.R.546 (E), dated the 28th June 1994 and were last amended vide notification No. 28/2006-Service Tax, dated the 30th September, 2006 which was published vide number G.S.R. 612 (E), dated the 30th September, 2006.

 

30th September 2006

 

Notification No. 28/2006 - Service Tax

 

G.S.R. (E).- In exercise of the powers conferred by sub-sections (1) and (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:-      

                                                                                                                  

 1.        (1)        These rules may be called the Service Tax (Fifth Amendment) Rules, 2006.  

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

 

2.         In the Service Tax Rules 1994 (hereinafter referred to as the said rules), in rule 2 after sub-rule (ccc), the following sub-rule (cccc) shall be inserted, namely:-

‘(cccc) "large taxpayer" shall have the meaning assigned to it in the Central Excise Rules, 2002.’

 

3.         In the said rules, after rule 9, the following rule shall be inserted, namely:-

 

"10. Procedure and facilities for large taxpayer.- Notwithstanding anything contained in these rules, the following shall apply to a large taxpayer,-

(1)        A large taxpayer shall submit the returns, as prescribed under these rules, for each of the registered premises.

 

Explanation: A large taxpayer who has obtained a centralized registration under sub rule (2) of rule 4, shall submit a consolidated return for all such premises.

 

(2)        A large taxpayer, on demand, may be required to make available the financial, stores and CENVAT credit records in electronic media, such as, compact disc or tape for the purposes of carrying out any scrutiny and verification, as may be necessary.

 

(3)        A large taxpayer may, with intimation of at least thirty days in advance, opt out to be a large taxpayer from the first day of the following financial year.

 

(4)        Any notice issued but not adjudged by any of the Central Excise officer administering the Act or rules made thereunder immediately before the date of grant of acceptance by the Chief Commissioner of Central Excise, Large Taxpayer Unit, shall be deemed to have been issued by Central Excise officers of the said unit.

 

(5)        Provisions of these rules, in so far as they are not inconsistent with the provisions of this rule shall mutatis mutandis apply in case of a large taxpayer."

 

F.No.201/24/2006-CX.6

 

Note.-  The principal rules were published vide notification No. 2/94-Service Tax, dated the 28th June, 2006[G.S.R.546(E), dated the 28th June, 2006] and last amended vide notification No.27/2006- Service Tax, dated the 21st September, 2006,[G.S.R. 582(E), dated the 21st September, 2006].

 

 

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Notification No. 27/2006-Service Tax 

G.S.R.    (E).- In exercise of the powers conferred by sub-sections (1) and (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely :-    

1.         (1)       These rules may be called the Service Tax (Fourth Amendment) Rules, 2006.  

                                                                                                                                    (2)       They shall come into force on the 1st day of October, 2006.

2.         In the Service Tax Rules, 1994, in rule 6, in sub-rule (2), the following proviso shall be inserted, namely:─

“Provided that the assessee, who has paid service tax of rupees fifty lakh or above in the preceding financial year or has already paid service tax of rupees fifty lakh in the current financial year, shall deposit the service tax liable to be paid by him electronically, through internet banking.”  

F. No. 354/85/2006-TRU 

 Note.-  The principal rules were published vide notification No. 2/94-Service Tax, dated the 28th June, 1994, G.S.R. 546(E), dated the 28th June, 1994 and was last amended by notification No. 17/2006-Service Tax, dated the 25th April, 2006, G.S.R. 247(E), dated the 25th April, 2006

 

Notification No. 26/2006-Service Tax

  

G.S.R. 447(E).-  In exercise of the powers conferred by Section 83A of the Finance Act, 1994 (32 of 1994), read with rule 3 of the Service Tax Rules, 1994, the Central Board of Excise and Customs, appoints the Commissioner of Service Tax, Mumbai and invest with him all the powers of Central Excise Officer throughout the territory of India for the purposes of investigation and adjudication of cases being investigated by the Directorate General of Central Excise Intelligence against M/s First Flight Courier Ltd., Mumbai, the F. No. DGCEI/MZU/I&IS ‘C’/12(4)50/2004.

 

 

F.No. 137/79/2006-CX-4

 

Notification No. 25 / 2006-Service Tax

           

 

G.S.R.   (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services falling under sub-clauses (s), (t) and (u) of clause (105) of section 65 of the Finance Act, provided or to be provided by a practicing chartered accountant, a practicing cost accountant and a practicing company secretary respectively, in his professional capacity, to a client, relating to representing the client before any statutory authority in the course of proceedings initiated under any law for the time being in force, by way of issue of notice, from the whole of service tax leviable thereon under section 66 of the said Finance Act. 

          F. No. 356/37/2006-TRU

June 27, 2006

Notification No. 24/2006-Service Tax       

G.S.R. (E).- In exercise of the powers conferred by clause (aa) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules to amend the Service Tax (Determination of Value) Rules, 2006, namely :-

1.         (1)       These rules may be called the Service Tax Determination of Value (Amendment)             Rules,2006.  

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

2.     In the Service Tax (Determination of Value) Rules, 2006, in rule 6, in sub-rule (2), in clause (iii), for the words “air travel agent”, the words “rail travel agent” shall be substituted.

[F. No. B1/4/2006-TRU(Part-II)] 

Note.-  The principal rules were published vide notification No. 12/2006-Service Tax, dated the 19th April, 2006, G.S.R. 228(E), dated the 19th  April, 2006.

2nd June, 2006

Notification No. 23/2006-Service Tax       

G.S.R.       (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of  the Government of India in the Ministry of Finance (Department of Revenue) No. 1/2006-Service Tax, dated the 1st March, 2006, G.S.R. 115(E), dated the 1st March, 2006, namely:- 

In the said notification, in the Table, after S.No. 4 and the entries relating thereto, the following S.No. and entries shall be inserted, namely:- 

(1)

(2)

(3)

(4)

(5)

“ 4A.

(zzb)

Business auxiliary service in relation to production or processing of parts and accessories used in the manufacture of cycles, cycle rickshaws and hand-operated sewing machines, for, or on behalf of, the client.

The gross amount charged from the client is inclusive of the cost of inputs and input services, whether or not supplied by the client.

70 ”

[F. No. 356/12/2005-TRU]

Note:- The principal notification No. 1/2006-Service Tax, dated the 1st March, 2006, was published vide number G.S.R. 115(E), dated the 1st March, 2006 and was last amended vide notification No. 20/2006-Service Tax, dated the 25th April, 2006, G.S.R. 250 (E) dated the 25th April, 2006.

31st May, 2006

 

Notification No. 22/2006-Service Tax

 

G.S.R.   (E).─ In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) and in supersession of the notification of the Government of India in the Ministry of Finance, (Department of Revenue) No. 7/2006-Service Tax dated the 1st March, 2006, G.S.R. 121(E), dated the 1st March, 2006, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66 of the said Finance Act, namely:-

                                 i.            taxable services provided or to be provided to any person, by the Reserve Bank of India;

                               ii.            taxable services provided or to be provided by any person, to the Reserve Bank of India when the service tax for such services is liable to be paid by the Reserve Bank of India under sub-section (2) of section 68 of the said Finance Act read with rule 2 of the Service Tax Rules, 1994;

                              iii.            taxable services received in India from outside India by the Reserve Bank of India under section 66A of the Finance Act, 1994.

[F. No. 354/170/2005-TRU]

 

 23rd May, 2006

 

Notification No. 21/2006-Service Tax

 

G.S.R.    (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 1/2006-Service Tax, dated the 1st March, 2006, G.S.R. 115 (E), dated the 1st March, 2006, namely:-

 

In the said notification, in the Table, against S.No.5,―

 

            (a)        In column (3), for the words “plant, machinery or equipment” wherever they occur, the words “plant, machinery, equipment or structures” shall be substituted;

           

(b)        In column (4), for the words “plant, machinery, equipment”, the words “plant, machinery, equipment, structures” shall be substituted.

 [F. No. 332/24/2006-TRU]

  

Note.- The principal notification No. 1/2006-Service Tax, dated the 1st March, 2006, was published vide number G.S.R. 115(E), dated the 1st March, 2006 and was last amended by notification No. 20/2006-Service Tax, dated the 25th April, 2006, G.S.R. 250(E), dated the 25th April, 2006.

 

 

25th April, 2006

Notification No. 20/2006-Service Tax

 

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 1/2006-Service Tax, dated the 1st March, 2006, G.S.R. 115 (E), dated the 1st March, 2006, with effect from the 1st day of May, 2006, namely:-

 

In the said notification, in the Table, after S.No.10 and the entries relating thereto, the following S.No. and entries shall be inserted, namely:-

 

(1)

(2)

(3)

(4)

(5)

“11.

(zzzp)

Transport of goods in containers by rail

-

30”.

 

  

F. No. B1/6/2006-TRU

 

 Note.-  The principal notification No. 1/2006-Service Tax, dated the 1st March, 2006, was published vide number G.S.R. 115(E), dated the 1st March, 2006.

 

                                                                                                                                                            25th April, 2006

Notification No. 19/2006-Service Tax

 In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby directs that each of the notifications of the Government of India in the Ministry of Finance (Department of Revenue) specified in column (2) of the Table below shall be amended in the manner specified in the corresponding entry in column (3) of the said Table, with effect from the 1st day of May, 2006, namely:-

Table

S.No.

Notification number and date 

Amendment

(1)

(2)

(3)

1.

13/2004-Service Tax, dated the 10th September, 2004 [G.S.R. 587  (E), dated the 10th September, 2004]

In the said notification, for the words “commercial concern”, the words “any other person” shall be substituted. ;

2.

14/2004-Service Tax, dated the 10th September, 2004 [G.S.R.588 (E), dated the 10th September, 2004]

In the said notification, for the words “a commercial concern”, the words “any person” shall be substituted. ;

3.

29/2004-Service Tax, dated the 22nd September, 2004 [G.S.R. 632 (E), dated the 22nd September, 2004]

In the said notification, for the words “commercial concern”, the words “any other person” shall be substituted. ;

4.

16/2005-Service Tax, dated the 7th June, 2005 [G.S.R. 358  (E), dated the 7th June, 2005]

In the said notification, for the words “a commercial concern”, the words “any other person” shall be substituted. ;

5.

21/2005-Service Tax, dated the 7th June, 2005 [G.S.R. 363  (E), dated the 7th June, 2005]

In the said notification, for the words “a commercial concern”, the words “any person” shall be substituted.

F.No. B1/4/ 2006-TRU(Part-I)

 

Note:

(1) The principal notification No. 13/2004-Service Tax, dated the 10th September, 2004 was published vide number G.S.R. 587(E), dated the 10th September, 2004; 

(2) The principal notification No. 14/2004-Service Tax, dated the 10th September, 2004 was published vide number G.S.R. 588  (E), dated the 10th September, 2004 and was amended by notification No.19/2005-Service Tax, dated the 7th June, 2005, G.S.R. 361(E), dated the 7th June, 2005; 

(3) The principal notification No. 29/2004-Service Tax, dated the 10th September, 2004 was published vide number G.S.R. 632 (E), dated the 22nd September, 2004; 

(4) The principal notification No. 16/2005-Service Tax, dated the 7th June, 2005 was published vide number G.S.R. 358(E), dated the 7th June, 2005; 

(5) The principal notification No. 21/2005-Service Tax, dated the 7th June, 2005 was published vide number G.S.R.363(E), dated the 7th June, 2005.

 

 25th April, 2006

Notification No. 18/2006-Service Tax

 

 

In exercise of the powers conferred by sub-sections (1) and (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax (Registration of Special Category of Persons) Rules, 2005, namely :-                                                                              

 

1.         (1)        These rules may be called the Service Tax Registration of Special Category of Persons (Amendment)             Rules, 2006.

 

(2)        They shall come into force on the 1st day of May, 2006.

 

2.         In the Service Tax (Registration of Special Category of Persons) Rules, 2005, in rule 3, in sub-rule (3), for the words, brackets and figures “sub-rules (2) to (7)”, the words, brackets and figures “sub-rules (2) to (8)” shall be substituted.

 

 

     

F. No. B1/4/2006-TRU(Part-I)

 

Note.-  The principal rules were published vide notification No. 27/2005-Service Tax, dated the 7th June, 2005, G.S.R. 369(E), dated the 7th June, 2005.

 

 

25th April, 2006

Notification No. 17/2006-Service Tax

 

In exercise of the powers conferred by sub-sections (1) and (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely :-  

 

1.         (1)        These rules may be called the Service Tax (Third Amendment) Rules, 2006.

 

(2)        They shall come into force on the 1st day of May, 2006.

 

2.                                                                                                                                 In the Service Tax Rules, 1994, (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), in clause (d),─

 

(a)                                                                                                                      for sub-clause (ii), the following sub-clause shall be substituted, namely:-

        

“(ii)        in relation to general insurance business, the insurer or re-insurer, as the case may be, providing such service;”;

 

(b)                                                                                                                      after sub-clause (vi), the following sub-clause shall be inserted, namely:-

 

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

 

3.         In the said rules, in rule 4A, for the words “commercial concern” wherever they occur, the words “any other person” shall be substituted.

 

4.                                                                                                                                 In the said rules, in rule 6, in sub-rule (7),─

 

(a)                                                                                                                      for the numbers and figures “0.5%”, the numbers and figures “0.6%” shall be substituted;

 (b)                                                                                                                     for the numbers and figures “1.0%”, the numbers and figures “1.2%” shall be substituted.

 

      

F. No. B1/4/2006-TRU(Part-I)

 

 

Note.-  The principal rules were published vide notification No. 2/94-Service Tax, dated the 28th June, 1994, G.S.R. 546(E), dated the 28th June, 1994 and was last amended by notification No. 10/2006-Service Tax, dated the 19th April, 2006, G.S.R. 226(E), dated the 19th April, 2006.

 

 

25th April, 2006

Notification No. 16/2006-Service Tax

 

In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 36/2004-Service Tax, dated the 31st December, 2004, G.S.R. 849 (E), dated the 31st December, 2004, with effect from the 1st day of May, 2006, namely:-

 

 In the said notification, in paragraph (A), after sub-paragraph (v), the following sub-paragraph shall be inserted, namely:-

 

“(vi) in relation to sponsorship service provided to any body corporate or firm;”.

 

 

 

F. No. B1/4/2006-TRU(Part-I)

 

 

Note.-    The principal notification No. 36/2004-Service Tax, dated the 31st December, 2004 was published vide number G.S.R. 849(E), dated the 31st December, 2004 and was last amended by notification No. 9/2006-Service Tax, dated the 19th April, 2006, G.S.R. 225(E), dated the 19th April, 2006.

 

 

 25th April, 2006

 

Notification No. 15/2006-Service Tax

 

G.S.R. (E).- In exercise of the powers conferred by clause (A) and sub-clause (2) of clause (B) of section 68 of the Finance Act, 2006 (21 of 2006), the Central Government hereby appoints the 1st day of May, 2006, as the date on which the provisions of the said clause and the said sub-clause of the said clause of the said Act shall come into force.

 

 

F.No. B1/6/2006-TRU

 

19th April, 2006

 

Notification No. 14/2006-Service Tax

 

G.S.R.    (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby rescinds the notifications of the Government of India in the Ministry of Finance (Department of Revenue) specified in column (2) of the Table below, except as respects things done or omitted to be done before such rescission, namely:-

 

Table

 

S. No.

Notification number and date

(1)

(2)

1.

No. 22/2005-Service Tax, dated the 7th June, 2005, G.S.R. 364(E), dated the 7th June, 2005;

2.

No. 25/2005-Service Tax, dated the 7th June, 2005, G.S.R. 367(E), dated the 7th June, 2005.

 

 

 

 

F.No. B1/4/2006-TRU

 

the 19th April, 2006.

Notification No. 13/2006-Service Tax

In exercise of the powers conferred by sections 93 and 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Export of Services Rules, 2005,  namely:-

1.         (1)        These rules may be called the Export of Services (Amendment) Rules, 2006.

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

2.         In the Export of Services Rules, 2005 (hereinafter referred to as the said rules), in the preamble, for the words, brackets and figures “ sub-section (1) and sub-section (2) of section 94”, the words and figures “sections 93 and 94” shall be substituted:

3.         In the said rules, for rule 3, the following rule shall be substituted, namely:–

“3. Export of taxable service.–

(1)     Export of taxable services shall, in relation to  taxable services‚–

(i)         specified in sub-clauses (d), (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc), (zzzh) and (zzzr) of clause (105) of section 65 of the Act, be provision of such services as are provided in  relation to an immovable property situated outside India;

 

(ii)         specified in sub-clauses (a), (f), (h), (i), (j), (l), (m), (n), (o), (s), (t), (u), (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv),(zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zzl), (zzm), (zzn), (zzo), (zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf) and (zzzp) of clause (105) of section 65 of the Act, be provision of such services as are performed outside  India:

 

Provided that where such taxable service is partly performed outside India, it shall be treated as performed outside India;

 

(iii)        specified in clause (105) of section 65 of the Act, but excluding‚–

(a)    sub-clauses (zzzo) and (zzzv);

(b)    those specified in clause (i) of this rule except when the provision of taxable services             specified in sub-clauses (d), (zzzc) and (zzzr) does not relate to immovable property; and

(c)    those specified in clause (ii) of this rule,

when provided in relation to business or commerce, be provision of such services to a recipient located outside India  and when provided otherwise, be provision of such services to a recipient located outside India at the time of provision of such service:

 

Provided that where such recipient has commercial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of service only when order for provision of such service is made from any of his commercial establishment or office located outside India.

(2)     The provision of any taxable service shall be treated as export of service when the following conditions are satisfied, namely:–

(a)    such service is delivered outside India and used outside India; and

(b)    payment for such service provided outside India is received by the service provider in convertible foreign exchange.

 

Explanation.– For the purposes of this rule “India” includes the designated areas in the Continental Shelf and Exclusive Economic Zone of India as declared by the notifications of the Government of India in the Ministry of External Affairs numbers S.O. 429(E), dated the 18th July, 1986 and S.O. 643(E), dated the 19th September 1996.”.

 

 

F.No. B1/ 4/2006-TRU

 

Note.–     The principal rules were notified vide notification No. 9/2005 - Service Tax, dated the 3rd March, 2005, G.S.R. 151(E), dated the 3rd March, 2005 and was subsequently amended vide notification No. 28/2005 - service Tax, dated the 7th June, 2005, G.S.R. 370(E), dated the 7th June, 2005.

19th April, 2006.

Notification No.12/2006-Service Tax

G.S.R.       (E).– In exercise of the powers conferred by clause (aa) of sub-section (2)  of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules, namely:-

 

1.   Short title and commencement.–

(1)        These rules may be called the Service Tax (Determination of Value) Rules, 2006.

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

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

(a)     “Act” means the Finance Act, 1994 (32 of 1994);

(b)     “section” means the section of the Act;

(c)      “value” shall have the meaning assigned  to it in section 67;

(d)     words and expressions used in these rules and not defined but defined in the Act shall have the meaning respectively assigned to them in the Act.

 

3.   Manner of determination of value.– Subject to the provisions of section 67, the value of taxable service, where the consideration received is not wholly or partly consisting of money, shall  be determined by the service provider in the following manner:–

(a)        the value of such taxable service shall be equivalent to the gross amount charged by the service provider to provide similar service to any other person in the ordinary course of trade and the gross amount charged is the sole consideration;

(b)        where the value cannot be determined in accordance with clause (a), the service provider shall determine the equivalent money value of such consideration which shall, in no case be less than the cost of provision of such taxable service.

 

4.   Rejection of value.–

(1)        Nothing contained in rule 3 shall be construed as restricting or calling into question the power of the Central Excise Officer to satisfy himself as to the accuracy of any information furnished or document presented for valuation.

(2)        Where the Central Excise Officer is satisfied that the value so determined by the service provider is not in accordance with the provisions of the Act or these rules, he shall issue a notice to such service provider to show cause why the value of such taxable service for the purpose of charging service tax should not be fixed at the amount specified in the notice.

(3)        The Central Excise Officer shall, after providing reasonable opportunity of being heard, determine the value of such taxable service for the purpose of charging service tax in accordance with the provisions of the Act and these rules.

 

5.   Inclusion in or exclusion from value of certain expenditure or costs.–

(1)        Where any expenditure or costs are incurred by the service provider in the course of providing taxable service, all such expenditure or costs shall be treated as consideration for the taxable service provided or to be provided and shall be included in the value for the purpose of charging service tax on the said service.

(2)        Subject to the provisions of sub-rule (1), the expenditure or costs incurred by the service provider as a pure agent of the recipient of service, shall be excluded from the  value of the taxable service if all the following conditions are satisfied, namely:-

(i)         the service provider acts as a pure agent of the recipient of service when he makes payment to third party for the goods or services procured;

(ii)         the recipient of service receives and uses the goods or services so procured by the service provider in his capacity as  pure agent of the recipient of service;

(iii)        the recipient of service is liable to make payment to the third party;

(iv)        the recipient of service authorises the service provider to make payment on his behalf;

(v)         the recipient of service knows that the goods and services for which payment has been made by the  service provider shall be provided by the  third party;

(vi)        the payment made by the service provider on behalf of the recipient of service has been separately indicated in the invoice issued by the service provider to the recipient of service;

(vii)       the service provider recovers from the recipient of service only such amount as has been paid by him to the third party; and

(viii)       the goods or services procured by the service provider from the third party as a pure agent of the recipient of service are in addition to the services he provides on his own account.

 

Explanation1.–For the purposes of sub- rule (2), “pure agent” means a person who–

(a)        enters into a contractual agreement with the recipient of service to act as his pure agent to incur expenditure or costs in the course of providing  taxable service;

(b)        either intends to hold  nor holds any title to the goods or services so procured or provided as pure agent of the recipient of service;

(c)        does not  use  such goods or services so procured; and

(d)        receives only the actual amount incurred to procure such goods or services.

 

Explanation2.– For the removal of doubts it is clarified that the value of the taxable service is the total amount of consideration consisting of all components of the taxable service and it is immaterial that the  details of individual components of the total consideration is indicated separately in the invoice.

 

Illustration 1.– X contracts with Y, a real estate agent to sell his house and thereupon Y gives an advertisement in television. Y billed X including charges for Television advertisement and paid service tax on the total consideration billed. In such a case, consideration for the service provided is what X pays to Y. Y does not act as an agent behalf of X when obtaining the television advertisement even if the cost of television advertisement is mentioned separately in the invoice issued by X. Advertising service is an input service for the estate agent in order to enable or facilitate him to perform his services as an estate agent

 

Illustration 2.– In the course of providing a taxable service, a service provider incurs costs such as traveling expenses, postage, telephone, etc., and may indicate these items separately on the invoice issued to the recipient of service. In such a case, the service provider is not acting as an agent of the recipient of service but procures such inputs or input service on his own account for providing the taxable service. Such expenses do not become reimbursable expenditure merely because they are indicated separately in the invoice issued by the service provider to the recipient of service.

 

Illustration 3.– A contracts with B, an architect for building a house. During the course of providing the taxable service, B incurs expenses such as telephone charges, air travel tickets, hotel accommodation, etc., to enable him to effectively perform the provision of services to A. In such a case, in whatever form B recovers such expenditure from A, whether as a separately itemised expense or as part of an inclusive overall fee, service tax is payable on the total amount charged by B. Value of the taxable service for charging service tax is what A pays to B.

 

Illustration 4.– Company X provides a taxable service of rent-a-cab by providing chauffeur-driven cars for overseas visitors. The chauffeur is given a lump sum amount to cover his food and overnight accommodation and any other incidental expenses such as parking fees by the Company X during the tour. At the end of the tour, the chauffeur returns the balance of the amount with a statement of his expenses and the relevant bills. Company X charges these amounts from the recipients of service. The cost incurred by the chauffeur and billed to the recipient of service constitutes part of gross amount charged for the provision of services by the company X.

 

6.   Cases in which the commission, costs, etc., will be included or excluded.–

(1)        Subject to the provisions of section 67, the value of the taxable services shall include‚–

(i)        the commission or brokerage charged by a broker on the sale or purchase of securities including the commission or brokerage paid by the stock-broker to any sub-broker;

(ii)       the adjustments made by the telegraph authority from any deposits made by the subscriber at the time of application for telephone connection or pager or facsimile or telegraph or telex or for leased circuit;

(iii)        the amount of premium charged by the insurer from the policy holder;

(iv)        the commission received by the air travel agent from the airline;

(v)         the commission, fee or any other sum received by an actuary, or intermediary or insurance intermediary or insurance agent from the insurer;

(vi)        the reimbursement received by the authorised service station, from manufacturer for carrying out any service of any motor car, light motor vehicle or two wheeled motor vehicle manufactured by such manufacturer;

(vii)       the commission or any amount received by the rail travel agent from the Railways or the customer;

(viii)      the remuneration or commission, by whatever name called, paid to such agent by the client engaging such agent for the services provided by a clearing and forwarding agent to a client rendering services of clearing and forwarding operations in any manner; and

(ix)       the commission, fee or any other sum, by whatever name called, paid to such agent by the insurer appointing such agent in relation to insurance auxiliary services provided by an insurance agent.

(2)        Subject to the provisions contained in sub-rule (1), the value of any taxable service, as the case may be, does not include–

(i)         initial deposit made by the subscriber at the time of application for telephone connection or pager or facsimile (FAX) or telegraph or telex or  for leased circuit;

(ii)        the airfare collected by air travel agent in respect of service provided by him;

(iii)       the rail fare collected by air travel agent in respect of service provided by him;and

(iv)       interest on loans.

 

7.   Actual consideration to be the value of taxable service provided from outside India.–

(1)        The value of taxable service received under the provisions of section 66A, shall be such amount as is equal to the actual consideration charged for the services provided or to be provided.

(2)        Notwithstanding anything contained in sub-rule (1), the value of taxable services specified in clause (ii) of rule 3 of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006, as are partly performed in India, shall be the total consideration paid by the recipient for such services including the value of service partly performed outside India.

 F. No. B1/4/2006-TRU

19th April, 2006.

Notification No.11/2006-Service Tax

In exercise of the powers conferred by sections 93 and 94, read with section 66A of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules, namely:- 

1.         Short title and commencement.–

(1)        These rules may be called the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006.

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

 

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

(a)    “Act” means the Finance Act, 1994 (32 of 1994);

(b)    “input” shall have the meaning assigned to it in clause (k) of rule 2 of the CENVAT Credit Rules, 2004;

(c)    “input service” shall have the meaning assigned to it in clause (l) of rule 2 of the CENVAT Credit Rules, 2004;

(d)    “output service” shall have the meaning assigned to it in clause (p) of rule 2 of the CENVAT Credit Rules, 2004;

(e)     “India” includes the designated areas in the Continental Shelf and Exclusive Economic Zone of India as declared by the notifications of the Government of India in the Ministry of External Affairs numbers S.O.429 (E), dated the 18th July, 1986 and S.O.643(E), dated the 19th September 1996;

(f)     words and expressions used in these rules and not defined, but defined in the Act shall have the meanings respectively assigned to them in the Act.

 

3.         Taxable services provided from outside India and received in India.– Subject to section 66A of the Act, the taxable services provided from outside India and received in India shall, in relation to taxable services‚–

 

(i)        specified in sub-clauses (d), (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc), (zzzh) and (zzzr) of clause (105) of section 65 of the Act, be such services as are provided or to be provided in relation to an immovable property  situated in India;

 

(ii)        specified in sub-clauses (a), (f), (h),(i), (j), (l), (m), (n), (o), (s), (t), (u), (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv), (zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zzl), (zzm), (zzn), (zzo), (zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf), and (zzzp) of clause (105) of section 65 of the Act, be such services as are performed in  India:

 

Provided that where such taxable service is partly performed in India, it shall be treated as performed in India and the value of such taxable service shall be  determined under section 67 of the Act and the rules made thereunder;

 

(iii)         specified in clause (105) of section 65 of the Act, but excluding‚–

(a)    sub-clauses (zzzo) and (zzzv);

(b)    those specified in clause (i) of this rule except when the provision of taxable services specified in clauses (d), (zzzc), and  (zzzr) does not relate to immovable property; and

(c)    those specified in clause (ii) of this rule,

be such services as are  received by a recipient located in India  for use in relation to  business or commerce.

 

4.         Registration and payment of service tax.– The recipient of taxable services provided from outside India and received in India shall make an application for registration and for this purpose, the provisions of section 69 of the Act and the rules made thereunder shall apply.

5.         Taxable services not to be treated as output services.– The taxable services provided from outside India and received in India shall not be treated as output services for the purpose of availing   credit of duty  of excise paid on any input  or service tax paid on any input services under CENVAT Credit Rules, 2004.

 F. No. B1/4/2006-TRU

19th April, 2006

 

Notification No. 10/2006-Service Tax

 

In exercise of the powers conferred by sub-sections (1) and (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely :-  

 

 

1.         (1)        These rules may be called the Service Tax (Second Amendment) Rules, 2006.

 

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

 

2.         In the Service Tax Rules, 1994, (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), in clause (d), for sub-clause (iv), the following sub-clause shall be substituted, namely:-

 

“(iv) in relation to any taxable service provided or to be provided by any person from a country other than India and received by any person in India under section 66A of the Act, the recipient of such service;”.

 

3.                                                                                                                                 In the said rules, in rule 6, sub-rules (8) and (9) shall be omitted.

 

 F. No. B1/4/2006-TRU

  

Note.-    The principal rules were published vide notification No. 2/94-Service Tax, dated the 28th June, 1994, G.S.R. 546(E), dated the 28th June, 1994 and was last amended vide notification No. 5/2006-Service Tax, dated the 1st March, 2006, G.S.R. 119(E), dated the 1st March, 2006.

 

19th April, 2006

 

Notification No. 9/2006-Service Tax

 

 

In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 36/2004-Service Tax, dated the 31st December, 2004, G.S.R. 849 (E), dated the 31st December, 2004, namely:-

 

In the said notification, for paragraph (B), the following paragraph shall be substituted, namely:-

 

“(B) any taxable service provided or to be provided from a country other than India and received in India, under section 66A of the Finance Act, 1994.”.

 

F. No. B1/4/2006-TRU

 

Note.-     The principal notification No. 36/2004-Service Tax, dated the 31st December, 2004 was published vide number G.S.R. 849(E), dated the 31st December, 2004 and was last amended vide notification No. 24/2005-Service Tax, dated the 7th June, 2005, G.S.R. 366(E), dated the 7th June, 2005.

 

19th April, 2006

Notification No. 8/2006-Service Tax

 

G.S.R.    (E).- In exercise of the powers conferred by section 73B of the Finance Act, 1994 (32 of 1994), the Central Government hereby fixes the rate of interest at thirteen per cent. per annum for the purpose of said section.

 

  F.No. B1/4/2006-TRU

 

 

Notification No. 7/2006-Service Tax

 

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (herein referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services, provided or to be provided to any person, by Reserve Bank of India, from the whole of service tax leviable thereon under section 66 of the Finance Act.

 

[F. No. 334/3/2006-TRU]

(G. G. Pai)

Under Secretary to the Government of India

 

 

Notification No. 6/2006-Service Tax

 

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (herein referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do,  hereby exempts the taxable service specified in sub-clause (zzh) of clause (105) of section 65 of the Finance Act, provided or to be provided to any person, by a Government owned State or District level laboratory in relation to testing and analysis of water quality, from the whole of service tax leviable thereon under section 66 of the Finance Act.

 

[F. No. 334/3/2006-TRU]

(G. G. Pai)

Under Secretary to the Government of India

 

Notification No. 5/2006-Service Tax

 

G.S.R. (E).- In exercise of the powers conferred by sub-sections (1) and (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely :­

1.         (1)        These rules may be called the Service Tax (Amendment) Rules, 2006.

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

2.         In the Service Tax Rules, 1994, (hereinafter referred to as the said rules), in rule 4, ­

(1) after sub-rule (5), the following sub-rule shall be inserted, namely:­

                         

“ (5A) Where there is a change in any information or details furnished by an assessee in Form ST-1 at the time of obtaining registration or he intends to furnish any additional information or detail, such change or information or details shall be intimated, in writing, by the assessee, to the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, within a period of thirty days of such change.”;

 

(2) in sub-rule (7),  the following words shall be inserted at the end, namely, “ to the Superintendent of Central Excise. ” ;

 

(3) after sub-rule (7), the following sub-rule shall be inserted, namely: ­“(8) On receipt of the certificate under sub-rule (7), the Superintendent of Central Excise shall ensure that the assessee has paid all monies due to the Central Government under the provisions of the Act, and the rules and the notifications issued thereunder, and thereupon cancel the registration certificate.”.

 

3.         In the said rules, in rule 5, ­

(1)        in sub-rule (1),  the brackets, shall be omitted;

(2)        after sub-rule (2),  the following sub-rules shall be inserted, namely:­

“ (3)      All such records shall be preserved at least for a period of five years immediately after the financial year to which such records pertain.

(4)         Every assessee shall make available, at the registered premises, at all reasonable time, such records as mentioned in sub-rule (3), for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be.

Explanation. -For the purposes of this rule, “registered premises” includes all premises or offices from where an assessee is providing taxable services.”.

[F. No. 334/3/2006-TRU]

(G. G. Pai)

Under Secretary to the Government of India

 

Note:-  The principal rules were notified vide notification no. 2/94-Service Tax, dated the 28th June, 1994 and published in the Gazette of India, Extraordinary, vide number G.S.R.546 (E), dated the 28th June, 1994 and were last amended vide notification No. 31/2005-Service Tax, dated the 20th October, 2005 and published in the Gazette of India, Extraordinary, vide number G.S.R. 639 (E), dated the 20th October , 2005.

 

 

Notification No. 4/2006-Service Tax

 

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (herein referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do,  hereby exempts the taxable service, specified in sub-clause (zm) of clause (105) of section 65 of the Finance Act, that is to say the financial leasing services including equipment leasing and hire-purchase as defined in item (i) of sub-clause (a) of clause (12) of section 65 of the Finance Act, provided or to be provided to any person, from so much of the service tax leviable thereon under section 66 of the said Finance Act, as is equivalent to the service tax calculated on ninety per cent. of an amount, forming or representing as interest, i.e. the difference between the installment paid towards repayment of the lease amount and the principal amount contained in such installment paid.

 

Explanation.- This exemption shall not apply to any amount, other than an amount forming or representing as interest, charged by the service provider such as lease management fee, processing fee, documentation charges and administration fee.

 

[F. No. 334/3/2006-TRU]

(G. G. Pai)

Under Secretary to the Government of India

 

Notification No. 3/2006-Service Tax

 

G.S.R. (E).In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 3/94-Service Tax, dated the 30th June, 1994 which was published in the Gazette of India, Extraordinary vide number G.S.R.555 (E), dated the 30th June, 1994, namely:­

In the said notification, in the TABLE, Sr.Nos. 9 and 10 and the entries relating thereto shall be omitted.

 

[F. No. 334/3/2006-TRU]

(G. G. Pai)

Under Secretary to the Government of India

Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 30th June, 1994 vide number G.S.R. 555(E), of the same date.

 

Notification No. 2/2006-Service Tax

 

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby rescinds the following notifications of the Government of India in the Ministry of Finance (Department of Revenue), as specified in column (2) of the Table below, except as respects things done or omitted to be done before such rescission with effect from the 1st day of March, 2006, namely:­

Table

S.No.

Notification Number, its G.S.R. number and date

(1)

(2)

1.

21/97-Service Tax, dated the 26th June, 1997 [G.S.R. 347(E), dated the 26th June, 1997];

2.

39/97-Service Tax, dated the 22nd August, 1997 [G.S.R. 481(E), dated the 22nd August, 1997];

3.

40/97-Service Tax, dated the 22nd August, 1997 [G.S.R. 482(E), dated the 22nd August, 1997];

4.

59/98-Service Tax, dated the 16th October, 1998 [G.S.R. 624(E), dated the 16th October, 1998];

5.

12/2001-Service Tax, dated the 20th December, 2001 [G.S.R. 907(E), dated the 20th December, 2001];

6.

8/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 499(E), dated the 20th June, 2003];

7.

11/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 502(E), dated the 20th June, 2003];

8.

19/2003-Service Tax, dated the 21st August, 2003 [G.S.R. 677(E), dated the 21st August, 2003];

9.

2/2004-Service Tax, dated the 5th February, 2004 [G.S.R. 101(E), dated the 5th February, 2004];

10.

9/2004-Service Tax, dated the 9th July, 2004 [G.S.R. 435(E), dated the 9th July, 2004];

11.

10/2004-Service Tax, dated the 9th July, 2004 [G.S.R. 436(E), dated the 9th July, 2004];

12.

15/2004-Service Tax, dated the 10th September, 2004 [G.S.R. 589(E), dated the 10th September, 2004];

13.

16/2004-Service Tax, dated the 10th September, 2004 [G.S.R. 590(E), dated the 10th September, 2004];

14.

19/2004-Service Tax, dated the 10th September, 2004 [G.S.R. 593(E), dated the 10th September, 2004];

15.

20/2004-Service Tax, dated the 10th September, 2004 [G.S.R. 594(E), dated the 10th September, 2004];

16.

21/2004-Service Tax, dated the 10th September, 2004 [G.S.R. 595(E), dated the 10th September, 2004];

17.

22/2004-Service Tax, dated the 10th September, 2004 [G.S.R. 596(E), dated the 10th September, 2004]; rdrd

18.

32/2004-Service Tax, dated the 3 December, 2004 [G.S.R. 787(E), dated the 3December, 2004];

19.

18/2005-Service Tax, dated 7th June, 2005 [G.S.R. 360(E), dated the 7th June, 2005].

 

[F. No. 334/3/2006-TRU]

(G. G. Pai)

Under Secretary to the Government of India

Note:

(1)        The principal notification No. 21/97-Service Tax, dated the 26th June, 1997 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 26th June, 1997, vide number G.S.R. 347 (E) dated the 26th June, 1997 and was amended by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number

G.S.R. 586 (E), dated the 10th September, 2004;

(2)        The principal notification No. 39/97-Service Tax, dated the 22nd August, 1997 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 22nd August, 1997, vide number G.S.R. 481 (E) dated the 22nd August, 1997 and was amended by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number G.S.R. 586 (E), dated the 10th September, 2004;

(3)        The principal notification No. 40/97-Service Tax, dated the 22nd August, 1997 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 22nd August, 1997, vide number G.S.R. 482 (E) dated the 22nd August, 1997 and was amended by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number G.S.R. 586 (E), dated the 10th September, 2004;

(4)        The principal notification No. 59/98-Service Tax, dated the 16th October, 1998 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 16th October, 1998, vide number G.S.R. 624(E) dated the 16th October, 1998 and was amended by notification No.15/2002-Service Tax, dated the 1st August, 2002 which was published vide number G.S.R. 543 (E), dated the 1st August, 2002 and last amended by notification No.6/2003-Service Tax, dated the 14th May, 2003, which was published vide number G.S.R. 403(E), dated the 14th May, 2003;

(5)        The principal notification No. 12/2001-Service Tax, dated the 20th December, 2001 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 20th December, 2001, vide number G.S.R. 907 (E) dated the 20th December, 2001 and was amended vide notification No. 2/2002-Service Tax, dated the 1st March, 2002 which was published vide number G.S.R. 154 (E) dated the 1st March, 2002, notification No. 3/2003­Service Tax, dated the 1st March, 2003 which was published vide number G.S.R. 157 (E) dated the 1st March, 2003, notification No. 8/2004-Service Tax, dated the 9th July, 2004 which was published vide number G.S.R. 434 (E) dated the 9th July, 2004 and last amended by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number G.S.R. 586 (E), dated the 10th September, 2004;

(6)        The principal notification No. 8/2003-Service Tax, dated the 20th June, 2003 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 20th June, 2003, vide number G.S.R. 499 (E) dated the 20th June, 2003 and was amended by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number G.S.R. 586 (E), dated the 10th September, 2004;

(7)        The principal notification No. 11/2003-Service Tax, dated the 20th June, 2003 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 20th June, 2003, vide number G.S.R. 502 (E), dated the 20th June, 2003;

(8)        The principal notification No. 19/2003-Service Tax, dated the 21st August, 2003 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 21st August, 2003, vide number G.S.R. 677 (E) dated the 21st August, 2003 and was amended  by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number G.S.R. 586 (E), dated the 10th September, 2004;

(9)        The principal notification No. 2/2004-Service Tax, dated the 5th February, 2004 was published in the Gazette of India , Extraordinary, Part II, Section 3, Sub-Section (i), dated the 5th February, 2004, vide number G.S.R. 101 (E) dated the 5th February, 2004 and was amended vide notification No. 8/2004-Service Tax, dated the 9th July, 2004 which was published vide number G.S.R. 434 (E) dated the 9th July, 2004 and last amended by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number G.S.R. 586 (E), dated the 10th September, 2004;

(10)       The principal notification No. 9/2004-Service Tax, dated the dated the 9th July, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 9th July, 2004, vide number G.S.R. 435 (E) dated the 9th July, 2004 and was amended by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number G.S.R. 586 (E), dated the 10th September, 2004;

(11)       The principal notification No. 10/2004-Service Tax, dated the dated the 9th July, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 9th July, 2004, vide number G.S.R. 436 (E) dated the 9th July, 2004 and was amended by notification No.12/2004-Service Tax, dated the 10th September, 2004 which was published vide number G.S.R. 586 (E), dated the 10th September, 2004;

(12)       The principal notification No. 15/2004-Service Tax, dated the 10th September, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 10th September, 2004, vide number G.S.R. 589(E), dated the 10th September, 2004 and was amended by notification No.19/2005-Service Tax, dated the 7th June, 2005 which was published vide number G.S.R. 361(E), dated the 7th June, 2005;

(13)       The principal notification No. 16/2004-Service Tax, dated the 10th September, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 10th September, 2004, vide number G.S.R. 590(E), dated the 10th September, 2004;

(14)       The principal notification No. 19/2004-Service Tax, dated the 10th September, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 10th September, 2004 vide number G.S.R. 593(E), dated the 10th September, 2004;

(15)       The principal notification No. 20/2004-Service Tax, dated the 10th September, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 10th September, 2004 vide number G.S.R. 594(E), dated the 10th September, 2004;

(16)       The principal notification No. 21/2004-Service Tax, dated the 10th September, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 10th September, 2004, vide number G.S.R. 595(E), dated the 10th September, 2004;

(17)       The principal notification No. 22/2004-Service Tax, dated the 10th September, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 10th September, 2004, vide number G.S.R. 596(E), dated the 10th September, 2004;

(18)       The principal notification No.32/2004-Service Tax, dated the 3rd December, 2004 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 3rd December, 2004, vide number G.S.R. 787(E), dated the 3rd December, 2004;

(19)       The principal notification No. 18/2005-Service Tax, dated 7th June, 2005 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), dated the 7th June, 2005, vide number G.S.R. 360(E), dated the 7th June, 2005.

 

Notification No. 1/2006-Service Tax

 

G.S.R. (E). � In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of the description specified in column (3) of the Table below and specified in the relevant sub-clauses of clause (105) of section 65 of the Finance Act, specified in the corresponding entry in column (2) of the said Table, from so much of the service tax leviable thereon under section 66 of the said Finance Act, as is in excess of the service tax calculated on a value which is equivalent to a percentage specified in the corresponding entry in column (5) of the said Table, of the gross amount charged by such service provider for providing the said taxable service, subject to the relevant conditions specified in the corresponding entry in column (4) of the Table aforesaid: Table Provided that this notification shall not apply in cases where, ­

 

S. No

Sub­clause of clause (105) of Section 65

Description of taxable service

Conditions

Perce­ntage

(1)

(2)

(3)

(4)

(5)

1.

(m)

(1) The use of mandap, including the facilities provided to the client in relation to such use and also for the catering charges. (2) Taxable service provided by a hotel as mandap keeper in such cases where services provided include catering services, that is, supply of food alongwith any service in relation to use of a mandap.

This exemption shall apply only in such cases where the mandap keeper also provides catering services, that is, supply of food and the invoice, bill or challan issued indicates that it is inclusive of the charges for catering service. The invoice, bill or challan issued indicates that it is inclusive of charges for catering services. Explanation.­The expression “hotel” means a place that provides boarding and lodging facilities to public on commercial basis.

60 60

2.

(n)

(a) Se rvices provided in relation to a tour, by a tour operator, ­(1) where the tour operator provides a package tour; (2) where the services provided are other than in relation to a package tour.

The bill issued for this purpose indicates that it is inclusive of charges for such a tour. The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.

40

 

 

 

 

Explanation.­The expression “package tour” means a tour in which the provisions for transportation and accommodation for stay of the person undertaking the tour has been afforded by the tour operator.

 

 

 

(b) Services provided in relation to a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour.

(i) The invoice, bill or challan issued indicates that it is towards charges for such accommodation, and (ii) this exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator to the client only includes the service charges for arranging or booking accommodation for any person in relation to a tour and does not include the cost of such accommodation.

10

3.

(o)

Renting of a cab.

-

40

4.

(zc)

Holding of a convention, where service provided includes catering service.

The gross amount charged from the client is inclusive of the charges for the catering service.

60

5. 6.

(zzd) (zzp)

Erection, commissioning or installation, under a contract for supplying a plant, machinery or equipment and erection, commissioning or installation of such plant, machinery or equipment. Transport of goods by road in a goods carriage.

This exemption is optional to the commissioning and installation agency. Explanation.­The gross amount charged from the customer shall include the value of the plant, machinery, equipment, parts and any other material sold by the commissioning and installation agency, during the course of providing erection, commissioning or installation service. -

33 25

7.

(zzq)

Commercial or industrial construction service.

This exemption shall not apply in such cases where the taxable services provided are only completion and finishing services in relation to building or civil structure, referred to in sub-clause (c) of clause (25b) of section 65 of the Finance Act. Explanation.­The gross amount charged shall include the value of goods and materials supplied or provided or used by the provider of

33

 

 

 

 

the construction service for providing such service.

 

8.

(zzt)

Catering.

This exemption shall apply in cases where,­(i) the outdoor caterer also provides food; and (ii) the invoice, bill or challan issued indicates that it is inclusive of charges for supply of food.

50

9.

(zzw)

Services in relation to pandal or shamiana in any manner, including services rendered as a caterer.

This exemption shall apply only in cases where,­(i) the pandal or shamiana contractor also provides catering services, that is, supply of food; and (ii) the invoice, bill or challan issued indicates that it is inclusive of charges for catering service.

70

10.

(zzzh)

Construction of complex.

This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to residential complex, referred to in sub-clause (b) of clause (30a) of section 65 of the Finance Act. Explanation.­The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.

33

 

(i)         the CENVAT credit of duty on inputs or capital goods or the CENVAT credit of service tax on input services, used for providing such taxable service, has been taken under the provisions of the CENVAT Credit Rules, 2004; or

(ii)         the service provider has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003-Service Tax, dated the 20th June, 2003[G.S.R. 503 (E), dated the 20th June, 2003].

 

Explanation.- For the purposes of this notification, the expression “food” means a substantial and satisfying meal and the expression “catering service” shall be construed accordingly.

 

[F. No. 334/3/2006-TRU]

(G. G. Pai)

 Under Secretary to the Government of India