About the book - This book is a compilation of key Service Tax Legal provisions (Updated up to 15.07.2014).Wherever possible, relevant am...
About the book - This book is a compilation of key Service Tax Legal provisions (Updated up to 15.07.2014).Wherever possible, relevant amendments have been shown in red colour/ track change. Also, Central Excise provisions which are applicable (vide sec. 83 of FA‘ 1994) to ST legislation are highlighted in green colour.
Free E book on Service Tax :Includes
Free E book on Service Tax :Includes
- Service Tax Act,
- Service Tax Rules ,
- Place of provision rules,
- ST Voluntary Compliance Encouragement Scheme, 2013,
- Point of taxation rules ,
- Cenvat Credit rules ,
- Service Tax Voluntary Compliance Encouragement Rules, 2013,
- All Notifications from applicable from 01.07.2012
- All Circular ,Orders after implementation of Service Tax Negative List regime wef 01.07.2012 up to 15.07.2014.
- Brief of all procedures under service tax like registration ,Payment, service tax return ,Due dates , Forms etc has also been given.
- Charts of abatement ,Reverse charge
- And many more details about service Tax
Service Tax |Negative List Regime
CA Pritam Mahure
9th E d i t i o n ,January,2014
contents
1. ABOUT THE BOOK .............................................................................. 9
2. NEGATIVE LIST – IN A NUTSHELL .................................................... 11
A. In a nutshell ..................................................................................... 11
B. Negative vis-à-vis Positive list regime – A Comparative Analysis ............. 11
C. Rules deleted/ substituted .................................................................. 11
D. Key provisions and effective date ........................................................ 12
E. Abatement (Refer Not. No. 26/2012 and Valuation Rules) ....................... 12
F. Reverse Charge Mechanism (Refer Not. No. 30/2012-ST) ....................... 13
G. Brief Note on Negative List regime ...................................................... 15
3. EXISTING INDIRECT TAX SYSTEM IN INDIA .................................... 18
Key features of specified indirect taxes: ................................................... 18
Current Indirect tax implications on various transactions ............................ 20
4. SERVICE TAX — STATUTORY PROVISIONS ....................................... 22
5. APPLICABLE CENTRAL EXCISE PROVISIONS .................................... 85
6. SERVICE TAX RULES, 1994 .............................................................. 123
1. Short title and commencement ......................................................... 123
2. Definitions ...................................................................................... 123
3. Appointment of officers .................................................................... 127
4. Registration .................................................................................... 127
4A. Taxable service distributed on invoice, bill or challan .......................... 129
4B. Issue of consignment note .............................................................. 131
5. Records .......................................................................................... 132
5A. Access to a registered premises....................................................... 132
6. Payment of service tax ..................................................................... 133
6A. Export of services.- ........................................................................ 139
7. Returns .......................................................................................... 140
7A. Returns ........................................................................................ 141
7B. Revision of return .......................................................................... 141
7C. Amount to be paid for delay in furnishing return ................................ 141
8. Form of appeals to commissioner of central excise (appeals) ................ 142
9. Form of appeals to appellate tribunal ................................................. 142
10. Procedure and facilities for large taxpayer......................................... 143
7. SERVICE TAX (DETERMINATION OF VALUE) RULES, 2006 ............... 145
1.Short title and commencement. — ...................................................... 145
2.Definitions ....................................................................................... 145
Page 3 of 805
2A. Determination of value of works contract .......................................... 145
2B.Determination of value of service in relation to money changing ........... 148
2C. Determination of value of supply of food ......................................... 149
3.Manner of determination of value ....................................................... 150
4.Rejection of value ............................................................................. 150
5.Inclusion in or exclusion .................................................................... 151
6.Cases in which the commission, costs, etc., will be included or excluded . 153
8. POINT OF TAXATION RULES, 2011 .................................................. 156
1.Short title and commencement .......................................................... 156
2.Definitions ....................................................................................... 156
2A. Date of payment ........................................................................... 156
3.Determination of point of taxation ...................................................... 157
4.Determination of POT in case of change in effective rate of tax .............. 158
5. Payment of tax in case of new services .............................................. 159
7. Determination of POT in case of specified services or persons ............... 159
8.Determination of point of taxation in case of copyrights, etc .................. 160
8A. Determination of point of taxation in other cases ............................... 160
9.Transitional Provisions ...................................................................... 160
9. PLACE OF PROVISION OF SERVICES RULES, 2012 ........................... 162
1. Short title, extent and commencement .......................................... 162
2. Definitions .................................................................................. 162
3. Place of provision generally .......................................................... 165
4. Place of provision of performance based services ............................ 165
5. Place of provision of services relating to immovable property ............ 166
6. Place of provision of services relating to events ............................... 166
7. Place of provision of services provided at more than one location ...... 166
8. POPS where provider and recipient are located in taxable territory .... 166
9. Place of provision of specified services ........................................... 167
10. Place of provision of goods transportation services .......................... 167
11. Place of provision of passenger transportation service ...................... 167
12. Place of provision of services provided on board a conveyance .......... 168
13. Powers to notify .......................................................................... 168
14. Order of application of rules.......................................................... 168
10. CENVAT CREDIT RULES, 2004 ....................................................... 169
1.Short title, extent and commencement ................................................ 169
2.Definitions ....................................................................................... 169
Page 4 of 805
3.CENVAT credit .................................................................................. 175
4.Conditions for allowing CENVAT credit ................................................. 185
5. Refund of CENVAT Credit .................................................................. 190
5A.Refund of CENVAT credit to units in specified areas ............................ 191
5B. Refund of CENVAT credit ................................................................ 192
6.Obligation of a manufacturer and a provider of output service ................ 192
7.Manner of distribution of credit by input service distributor .................... 200
7A.Distribution of credit on inputs ......................................................... 201
8.Storage of input outside the factory of the manufacturer ....................... 202
9.Documents and accounts ................................................................... 202
9A.Information relating to principal inputs .............................................. 206
10.Transfer of CENVAT credit ................................................................ 207
10A. Transfer of CENVAT credit of additional duty ................................... 207
11.Transitional provision ...................................................................... 208
12.Special dispensation ........................................................................ 210
12A. Procedure and facilities for large tax payer ...................................... 210
12AAA. Power to impose restrictions in certain types of cases ................... 214
13.Power of Central Government to notify .............................................. 215
14.Recovery of CENVAT credit wrongly taken or erroneously refunded ....... 215
15.Confiscation and penalty .................................................................. 215
15A. General penalty ........................................................................... 216
16.Supplementary provision ................................................................. 216
11. SERVICE TAX VCES , 2013 ............................................................. 217
12. Service Tax Voluntary Compliance Encouragement Rules, 2013 ... 221
1. Short title and commencement ......................................................... 221
2. Definitions ...................................................................................... 221
3. Registration .................................................................................... 221
4. Form of declaration .......................................................................... 221
5. Form of acknowledgment of declaration ............................................. 221
6. Payment of tax dues ........................................................................ 221
7. Form of acknowledgement of discharge .............................................. 222
FORM VCES-2 ........................................................................................ 224
FORM VCES-3 ........................................................................................ 226
13. Notifications .................................................................................. 227
14/2012 - Research & development cess ................................................ 227
25/2012 - Mega exemption notification .................................................. 228
Page 5 of 805
26/2012 - Abatement notification .......................................................... 246
27/2012 - Exemption for foreign diplomatic mission ................................ 254
29/2012 - Exemption on property tax paid ............................................. 257
30/2012 - Reverse charge mechanism ................................................... 259
31/2012 - Exemption to gta services for exporter .................................... 265
32/2012 - Exemption of services provided by tbi and ............................... 272
33/2012 - Exemption to small service providers ...................................... 275
34/2012 - Rescinding of earlier 81 notifications ....................................... 278
35/2012 - Earlier works contract composition scheme rescinded ............... 282
28/2011 - Notified continuous supply of services ..................................... 283
39/2012 - Rebate on inputs and input services ....................................... 284
40/2012 - Exemption on services provided to sez operations .................... 291
41/2012 - Rebate for service tax paid — new scheme .............................. 305
42/2012 - Exemption to service of commission agent .............................. 332
27/2012(ce) – Cenvat credit refund (rule 5) .................................................... 339
43/2012 - Exemption to railways........................................................... 343
45/2012 – Rcm for directors and security services ................................... 344
46/2012 – STR amended for rcm for directors and security ...................... 345
47/2012 – Return due date .................................................................. 346
48/2012 - Amends ST-1 and Accounting codes re-notified ........................ 347
49/2012 - Exemption to Janashri and Aam Aadmi Bima Yojana ........................... 358
1/2013 - Amendment in Service Tax Rules, 1994 ............................................. 359
2/2013 - Construction of Complex – Taxable value 25% or 30% ............... 378
3/2013 - Mega Exemption Amended ...................................................... 379
4/2013 - Advance Ruling (Applicable for Public Company) ........................ 381
5/2013 - New ST-5, ST-6 and ST-7 notified ............................................ 382
6/2013 - Focus Market Scheme ............................................................. 392
7/2013 - Focus Product Scheme ............................................................ 397
8/2013 - Vishes Krishi and Gram Udyog Yojana ...................................... 400
9/2013 - Construction service – Change in abatement ............................. 402
10/2013 - Service Tax Voluntary Compliance Enco. Rules notified ............. 403
11/2013 - Amends Not. No. 6/2013-ST .................................................. 404
12/2013 - Special Economic Zone (SEZ) Developer / Unit ........................ 406
13/2013 – Amendment to Not. 25/2012 ......................................................... 416
1/1/2013 - AD-HOC EXEMPTION ............................................................... 417
12/2013 (CE) – Amendment in 3 (5A) of CCR ................................................. 418
Page 6 of 805
14/2013 – Catering in canteen .............................................................. 419
15/ 2013- Amendment in SEZ Not. ........................................................ 420
16 /2013- E-payment (1 lac) ................................................................ 421
17/2013-Amendment to FMS Not. ......................................................... 422
01/2014 – Amendment in Mega Not. ............................................................ 423
02/2014 – ST – Governmental Authority definition ............................................ 424
03/2014-ST – Forward contract sub-broker exemption ...................................... 425
05/2014-ST – FMS Amendment ................................................................. 427
18/2013-C.E. (N.T.) –Rescinded later .................................................... 428
01/2014-CE (NT) – CENVAT Credit amendment ............................................. 429
02/2014-CE(N.T.) – Amends Rule 12 ..................................................... 430
05/2014 – CE (NT) – Rule 7 (ISD Amendment) ............................................... 431
07/2014 – CE (NT) – Rescinds 18/2013 ................................................. 432
09/2014-CE(N.T.) – CCR Amendment .................................................... 433
11/2014–CE (N.T.) – Quarterly Return ................................................... 434
12/2014–CE (NT)- Refund for Partial RCM service providers ..................... 436
13/2014–CE (N.T.) – Rescinds Not. No. 6/2012CE (NT) ........................... 441
15/2014 - CE(N.T.) – 12AAA introduced ................................................. 442
06/2014-ST – Mega Not. amended ........................................................ 443
07/2014-ST – SEZ refund simplified ...................................................... 447
08/2014-ST – Abatement amended ....................................................... 450
09/2014-ST – RCM amended ................................................................ 453
10/2014-ST – RCM amended ................................................................ 455
11/2014-ST – Valuation Rules amended ................................................. 457
12/2014-ST – Interest rates notified ...................................................... 458
13/2014-ST – POT amended ................................................................. 459
14/2014-ST – POPS amended ............................................................... 461
15/2014-ST –Advance Ruling for private company .................................. 463
21/2014-CE(NT) – CCR amendment ...................................................... 464
14. CIRCULARS .................................................................................... 466
160/11/2012 - Applicablity of EC and SHEC ........................................... 466
161/12/2012 – Accounting code for Negative List .................................... 468
163/14/2012 - Clarification on remittances ............................................. 470
164/15/2012 – Clarification on vocational education ................................ 472
165/16/2012 - Circular on restoration of accounting codes ....................... 474
166/1/2013 –reminder letters for insurance policies ................................ 486
Page 7 of 805
167/2/2013 - Milk transportation by rail ................................................. 487
969/03/2013-CX – CESTAT Appeal forms ..................................................... 488
168/3/2013 - Clarification on Pandal and Shamiyana ............................... 492
169/4/2013 - Clarification on VCES ....................................................... 494
170/5 /2013 - Clarification on VCES ...................................................... 496
171/6/2013 - Circular on Arrest and Bail ........................................................ 501
172/7/2013 – Education services – Clarification ............................................... 505
173/8/2013 – Restaurant clarifications .......................................................... 508
174/9/2013 – VCES clarifications ................................................................ 510
175/01/2014 ST – RWA Clarification ...................................................... 513
176/2/2014 – ST – VCES Discharge and CENVAT ........................................... 515
177/03/2014 – ST – Rice, paddy clarification .................................................. 516
974/08/2013-CX - Arrest and Bail ......................................................... 517
178/4/2014-ST – ISD clarification ......................................................... 523
15. POTR CIRCULARS ..................................................................... 526
341/34/2010-TRU - POTR Clarifications .................................................. 526
154/5/2012-ST – POTR clarification ....................................................... 530
155/6/2012-ST – POTR Clarifications ..................................................... 531
158/9/2012-ST – Change in Rate .......................................................... 532
162/13/2012 - Clarification on POTR...................................................... 533
16. DRAFT CIRCULAR ................................................................ 536
Draf t c i rcular on s taf f benef i ts ................................................... 536
Draft circular on service tax on air transport ........................................... 542
17. INSTRUCTIONS/ ORDERS ............................................................. 545
instructions – Negative List Of Service Tax Regime .................................. 545
FILING OF ST-3 .................................................................................. 548
Order 3/2012 - Due date for filing of Service Tax return ..................................... 550
Service Tax Instruction ........................................................................ 551
Order 2/2013 - ST-3 [30 April 2013] ..................................................... 553
Order 3/2013 - ST-3 [31 August 2013] .................................................. 554
Order 4/2013 - ST-3 [10 September 2013] ............................................ 555
F.No: 137/116/2012- E-payment 1 lacs ................................................. 556
F. No. B1/19/2013-TRU (Pt.) - VCES...................................................... 558
F. No. 137/50/2013-VCES .................................................................... 560
F.No.275/05/2014-CX.8A – Validity of Stay ............................................ 561
17/1/2012-CX.1 – Proposed amendment in Rule 6 of CCR ........................ 562
Page 8 of 805
18. Budget 2013 ................................................................................. 564
Union FM –Budget Speech (Extracts) ..................................................... 564
TRU – Budget 2013 – Service Tax ......................................................... 568
Article – Budget 2013 – Changes in Service Tax – CA Pritam Mahure ......... 571
Supply of food in restaurant, ‗sale‘ or ‗service‘? – CA Pritam Mahure .......... 576
ST on Foreign Bank Charges ................................................................. 579
CEVAT Credit of ST paid under VCES ..................................................... 583
Applicability of VAT on flat .................................................................... 587
19. Interim Budget - 2014 ................................................................... 591
Service Tax - Budget 2014 changes ....................................................... 591
Economic Times - Service tax applicable on transport etc rice, cotton ........ 593
Economic Times - Tax Tribunal Posts on Pause ........................................ 595
Barter between Landowner and Developer – ‗Complex‘ construction .......... 596
Applicability of Excise duty on Sales Tax Retention .................................. 601
Service Tax on Mid-day meal scheme .................................................... 605
CENVAT Credit - ‗Interest‘ing issue ........................................................ 610
20. Budget 2014 ................................................................................. 613
Budget 2014 – Key Service Tax changes in chronological order ................. 613
Service Tax TRU letter ......................................................................... 618
21. FAQ on VCES – CBEC ..................................................................... 633
22. Education Guide – CBEC ................................................................. 645
Download Free E Book on Service tax Updated 15.07.2014
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