Posts Tagged ‘Service Tax’


Regarding Service Tax on Services by way of Transportation of Goods by Rail/Vessel – Transportation of Milk

Circular No.167/2 /2013 – ST, F.No.B-1/2/2010 –TRU dated 1st January, 2013

To

Chief Commissioners of Central Excise and Customs (All), Director General (Service Tax), Director General(Systems), Director General (Central Excise Intelligence),  Director General (Audit),Commissioners of Service Tax (All), Commissioners of Central Excise (All), Commissioners of Central Excise and Customs (All)

Representation has been received from the Indian Railways seeking clarification as to whether service by way of transportation of milk by rail is covered by Notification No.25/2012-ST dated 20.06.2012, serial number 20(i).

2. The representation has been examined. The expression ‘foodstuff’ appearing in Notification No.25/2012-ST dated 20.06.2012, serial number 20(i) includes milk. Therefore, it is clarified that the service by way of transportation of milk by rail or a vessel from one place in India to another, is covered by the Notification No.25/2012-ST dated 20.06.2012.

3. Trade Notice/Public Notice may be issued to the field formations and tax payers. Please acknowledge receipt of this Circular. Hindi version follows.

Source: Directorate of Service Tax.


Circular No.166/1/2013 –ST, F.No 354/190/2012- TRU, dated 1st January, 2013

To

Chief Commissioner of Customs and Central Excise (All);

Chief Commissioner of Central Excise & Service Tax (All);

Director General of Service Tax; Director General of Central Excise Intelligence; Director General of Audit;

Commissioner of Customs and Central Excise (All);

Commissioner of Central Excise and Service Tax (All);

Commissioner of Service Tax (All)

It has been represented by life insurance companies that in terms of the practice followed, reminder notices/letters are being issued to the policy holders to pay renewal premiums. Such reminder notices only solicit furtherance of service which if accepted by policy holder by payment of premium results in a service.  Clarification has been desired whether service tax needs to be paid on the basis of such reminders.

3. The matter has been examined. Under the Point of Taxation Rules 2011, the point of taxation generally is the date of issue of invoice or receipt of payment whichever is earlier. The invoice mentioned refers to the invoices as issued under Rule 4A of the Service Tax Rules 1994. No tax point arises on account of such reminders. Thus it is clarified that reminder letters/notices for insurance policies not being invoices would not invite levy of service tax. In case of issuance of any invoice, point of taxation shall accordingly be determined.

4. The above clarification is issued only for life insurance sector.

5. Trade Notice/Public Notice may be issued to the field formations accordingly.

6. Please acknowledge the receipt of this circular. Hindi version to follow.

Source: Directorate of Service Tax.


Notification No.49 /2012 – Service Tax, [F.No. 354 /190/ 2012-TRU], dated 24th December, 2012

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, 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.25/2012-Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), number G.S.R. 467 (E), dated the 20th June, 2012, namely:-

In the said notification, after entry 26, the following shall be inserted namely:-

“26A. Services of life insurance business provided under following schemes –

(a)    Janashree Bima Yojana (JBY); or

(b)   Aam Aadmi Bima Yojana (AABY);”.

Source: Directorate of Service Tax.


Seeks to Amend Form ST-1 so as to enable Applicants seeking Registration to choose the Description of the Service being provided by them.

Notification No. 48/2012, F. No 137/22/2012-Service Tax, dated 30th November, 2012

In exercise of the powers conferred by sub-section(1) read with sub-section (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, 2012.

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

2. In the Service Tax Rules, 1994, in Form ST-1,-

a) in serial no.7, for the table, the following table shall be substituted, namely:-

S.No Description of  taxable service (Choose from ANNEXURE)

(1)

(2)

   

b) after the ACKNOWLEDGEMENT, the following Annexure shall be inserted , namely:-

.

.

.

.

.

Click here to view the complete text of the above Notification- Notification No. 48/2012, dated 30.11.2012.

Source: Directorate of Service Tax.


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

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.