Applicability/Non-Applicability of Negative List and Related Topics in Syllabus of Part II: Service Tax and VAT of Paper 4: Taxation (IPCC) from May 2013 Examination Onwards

Posted: 02/12/2012 in ICAI
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The Examination Committee at its 498th meeting held on September 23, 2012 has decided that the following sections of the Finance Act, 1994/rules will be covered under point no. 1 (Concepts and General principles) and point no. 2 (Charge of service tax and taxable services) of syllabus of Part II:

Service tax & VAT in Paper 4: Taxation from May 2013 examination onwards:

(i) Section 64 – Extent, commencement and application

(ii) Sections 65B – Interpretations [only relevant ones which would be required to explain the concepts included]

(iii) Section 66B – Charge of service tax on and after Finance Act, 2012

(iv) Section 66D – Negative list of services

(v) Section 66F – Principles of interpretation of specified descriptions of services or bundled services.

(vi) Section 67A – Date of determination of rate of tax, value of taxable service and rate of exchange

(vii) Point of Taxation Rules, 2011

It may be noted that the above-stated Sr. No.(i) – Section 64 and Sr. No.(vii) – Point of Taxation Rules, 2011 have already been covered in the existing syllabus so far. Thus, only Sr. Nos.(ii) to (vi) have been included as new topics in the syllabus under point no.1 (Concepts and General principles) and point no.2 (Charge of service tax and Taxable services).

The Committee further decided that the following topics pertaining to service tax law will not be included in the syllabus:

(i) Section 66C – Determination of place of provision of service

(ii) Section 66E – Declared services

(iii) Place of Provision of Service Rules, 2012

(iv) Section 68(2) and Reverse Charge notification

(v) Export of Services vide rule 6A of the Service Tax Rules, 1994

(vi) Mega exemption notification and other exemptions

(vii) Abatement notification

In furtherance to the above-mentioned decision, it is clarified that other topics viz., valuation of taxable service, payment of service tax and filing of returns, topics related to VAT etc. as covered in the Study Material will continue to apply as they used to apply before.

In view of the far-reaching changes effected with the introduction of negative list approach of taxation in service tax, Study Material and Practice Manual of Part-II: Service tax & VAT of Paper 4: Taxation (contained in Volume III) [November edition] have been completely revamped. Students may note that the revised Study Material and Practice Manual have been prepared in accordance with the abovementioned decision of the Examination Committee.

In other words, all the chapters of the revised Study Material and Practice Manual would be applicable for examination purposes.

Hence, students with the older editions of the Study Material and Practice Manual are advised to read the new edition [November edition].

Click here to download the above in PDF Format.

Source: The Institute of Chartered Accountants of India.


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