Service Tax

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SIGNIFICANT AMENDMENTS MADE THROUGH NOTIFICATIONS/CIRCULARS ISSUED BETWEEN 01.07.2011 TO 30.06.2012 A. 1. NEW EXEMPTIONS/AMENDMENTS IN/WITHDRAWAL OF EXISTING EXEMPTIONS Rate of service tax restored to 12% As per section 66, the charging section under earlier regime, rate of service tax was 12% of the value of taxable services. However, the rate of service tax was reduced to 10% vide Notification No. 8/2009 ST dated 24.02.2009. With effect from 01.04.2012, Notification No. 02/2012-ST dated 17.03.2012 rescinded the said notification and the rate of service tax was restored to 12% for the period between 01.04.2012 to 30.06.2012. With effect from 01.07.2012, new charging section, section 66B has come into effect. The rate of service tax is 12% as per the new charging section also. 2. Rescission of the earlier Notifications With the introduction of negative list approach of taxation of services, a large number of earlier notifications which were either not in line with the new provisions or which have been subsumed in mega exemption or abatement notification or a new notification has been issued, have been rescinded vide Notification No. 34/2012-ST dated 20.06.2012. The rescinded notifications have been tabulated as under:S.No. 1. 2. Notification No. 45/2011-ST dated 12-09-2011 33/2011-ST dated 25-04-2011 Description of the Notification Exemption to the taxable services provided to any business entity, by an arbitral tribunal, in respect of arbitration. Exemption to preschool coaching and training and coaching or training relating to educational qualifications that are recognized by law. Exemption to accommodation services when the declared tariff for providing of such accommodation is less than ` 1000 per day Exemption to health services Exemption to works contract service provided wholly within a port/other port for construction, repair, alteration and renovation of wharves, quays, docks, stages, jetties, piers and railways. Exemption to works contract service provided wholly within an airport and 113

3.

31/2011-ST dated 25-04-2011

4. 5.

30/2011-ST dated 25-04-2011 11/2011-ST dated 01-03-2011

6.

10/2011-ST dated 01-03-2011

classified under 65(105)(zzm) 7. 8. 09/2011-ST dated 01.03.2011 08/2011-ST dated 01-03-2011

erstwhile

section

Exemption to the transport of goods by air service to the extent air freight is included in the customs value of goods. Exemption to services of transportation of goods by air/road/rail provided to a person located in India when the goods are transported from a place outside India to a destination outside India Exemption to the general insurance service provided under “Rashtriya Swasthya Bima Yojna” Exemption to works contract service rendered for carrying out construction services under Jawaharlal Nehru Urban Renewable Mission (JNURM) and Rajiv Awaas Yojana Exemption to business exhibition held outside India Exemption to the general insurance business provided under the Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme Exemption to packaged/canned software from service tax on specified taxable service when excise/customs duty is paid Exemption to persons marketing lottery tickets to authorized Distributors/Selling Agents opting for the optional Composition Scheme Exemption to outdoor Catering for MidDay Meal Scheme Exemption to commercial or Industrial Construction provided wholly within the airport Exemptions to cargo handling agency and storage or warehouse keeper in respect of agricultural produce, air 114

9. 10.

07/2011-ST dated 01-03-2011 06/2011-ST dated 01-03-2011

11. 12.

05/2011-ST dated 01-03-2011 58/2010-ST dated 21-12-2010

13.

53/2010-ST dated 21.12.2010

14.

50/2010-ST dated 08-10-2010

15. 16. 17.

47/2010-ST dated 03-09-2010 42/2010-ST dated 28-06-2010 41/2010-ST dated 28-06-2010

transport of export goods and site formation and clearance, excavation and earthmoving and demolition and...
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