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ANALYSIS OF SERVICE TAX NOTIFICATIONS OF THE YEAR 2012

 

CONTENTS

ANALYSIS OF SERVICE TAX NOTIFICATIONS OF THE YEAR 2012. 1

Services of life insurance business. 1

Services by a director of a company. 1

Service by way of Supply of manpower or security services. 1

Slaughtering of Animal 1

Transportation of goods and passengers by Railway. 1

Taxable service received from commission agent located outside India by an Exporter and used to Export the Goods.. 1

Refund on specified services to exporter of goods. 2

Refund on specified services to exporter of goods. 2

Rebate of Service Tax on Excisable Goods. 2

Small Scale Service Provider. 2

Services by TBI or STEP. 2

Transport of Goods for export. 3

Property tax paid on immovable property. 3

Service to Foreign Diplomatic Mission. 3

Import of Technology. 3

Time period for Issuance of Invoice under POT Rules, 2011. 3

 

 

Sr. No.

Notification No.

The Topics to which it is relevant

Relevant sections

Interpretation

1.     

49/2012-ST dt.24/12/2012

Services of life insurance business

Mega Exemptions [Notification No. 25/2012 dated 20/06/2012]

Service of life insurances business provided under following scheme:

         Janashree Bima Yojana (JBY); or

         Aam Aadmi Bima Yojana (AABY); will be EXEMPT

2.     

46/2012-ST dt. 07/08/2012

Services by a director of a company

Service Tax Rules,1994, Rule 2(1) clause (d) :Person liable to pay tax

Service provided or agreed to be provided by Director of the company to said company, the recipient of the service i.e. the company is liable to pay tax.

3.     

45/2012-ST dt.

07/08/2012

Service by way of Supply of manpower or security services

Service Tax Rules,1994, Rule 2(1) clause (d) :Person liable to pay tax

Any service provided in relation to supply of manpower for any purpose or security service by any Individual, HUF, partnership Firm to business entity will fall under partial reverse charge i.e. both service provider and service receiver are liable to pay tax 25% and 75% respectively.

4.     

44/2012-ST dt.07/08/2012

Slaughtering of Animal

Mega Exemptions [Notification No. 25/2012 dated 20/06/2012]

Services by way of slaughtering of not only Bovine animals but all animals are EXEMPT(Withdrawal of the word bovine from the notification thus making slaughtering of all animals exempt from service tax)

5.     

43/2012-ST dt. 02/07/2012

Transportation of goods and passengers by Railway

Section 66B

The following services will be exempt:

-Service of transportation of passengers, with or without accompanied belongings, by railways in --

(A)   first class; or

(B)   an air conditioned coach and

-Services by way of transportation of goods by railways;

with effect from the date of publication of this notification in the Official Gazette, up to and including the 30th day of September, 2012.

6.     

42/2012-ST dt.29/06/2012

Taxable service received from commission agent located outside India by an Exporter and used to Export the Goods.

 

Any Service received by exporter from commission Agent located outside India will be exempt.

         Exemption shall be limited to the service tax calculated on a value of 10% of FOB value of export Goods for which such services are used.

         The exemption will not be available on the export of canalized item, project export, or export financed under lines of credit extended by the Government of India or EXIM Bank, or export made by Indian partner in a company with equity participation in an overseas joint venture or wholly owned subsidiary.

         Exporter availing the exemption shall file return in form EXP4

         Exporter shall submit the certified documents showing actual payment of commission to agent and contract or agreement with the Agent located outside India along with half early return.

This notification shall came into force on 01/07/2012

7.     

41/2012-ST dt.29/06/2012

Refund on specified services to exporter of goods

 

It grants rebate of service tax paid to the service provider on the taxable services which are received by an exporter of goods in the manner specified.

8.     

39/2012-ST dt 20/06/2012

Refund on specified services to exporter of goods

 

It grants rebate of service tax paid to the service provider on the taxable services which are received by an exporter of goods in the manner specified.

9.     

39/2012-ST dt 20/06/2012

Rebate of Service Tax on Excisable Goods

Rule 6A of Service Tax Rules, 1994

Rebate of the whole of the Duty paid on excisable inputs or whole of Service tax paid on input service used in providing service exported in terms of Rule 6A of Service tax Rules, 1994 to any country except Nepal and Bhutan, would be granted subject to certain condition and limitation.

This notification shall came into force from 01/07/2012

10.  

 

33/2012-ST dt. 20/06/2012

Small Scale Service Provider

 

Taxable service of aggregate value not exceeding Rs 10 lakh in any Financial year would be EXEMPT from service tax. However, this would not apply to taxable service provided by a person under:

         Brand name or;

         Trade name whether registered or not, of any other person.

This notification shall came into force from 01/07/2012

11.  

32/2012-ST dt.20/06/2012

Services by TBI or STEP

 

Taxable service provided or to be provided by a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognized by NSTEDB of the department will be EXEMPT from whole of service tax.

This notification shall came into force from 01/07/2012

12.  

31/2012-ST dt.29/06/2012

Transport of Goods for export

 

Service provided to an exporter for transport of the said goods by GTA in a Goods carriage from any container freight station or inland container depot to the port or airport, from where the goods are exported would be EXEMPT from service tax. Such exemption would be granted subject to conditions specified.

This notification shall came into force from 01/07/2012

13.  

29/2012-ST dt. 20/06/2012

Property tax paid on immovable property

66B

The taxable service of renting of immovable property would be EXEMPT from so much of service tax, as is in excess of the service tax calculated on a value which is equivalent to the gross amount charged for renting of immovable property less property tax paid.

In short, the property tax levied on renting of immovable property is exempt from service tax.

This notification shall came into force from 01/07/2012

14.  

14/2012-ST dt. 17/03/2012

Service to Foreign Diplomatic Mission

 

The taxable services provided by any person, for official use of a foreign diplomatic mission or consular post in India or for personal use or for the use of family member would be EXEMPT.

15.  

14/2012-ST dt. 17/03/2012

Import of Technology

 

Taxable service involving import of technology would be EXEMPT from so much of service tax, as is equivalent to the amount of Research & Development Cess payable on the said import of technology subject to conditions specified.

16.  

03/2012-ST dt. 17/03/2012

Time period for Issuance of Invoice under POT Rules, 2011

Rule 4A of Service tax Rules, 1994

         Every person providing taxable service shall, not later than 30 days from the date of provision of service or receipt of payment shall issue an invoice.

         In case when provider of service is Non-banking Financial Company or any other company or person providing service in relation to banking shall not less than 45 days shall issue an invoice.