SERVICE TAX TERMINOLOGY – PART-V

[Dr. Sanjiv Agarwal]

Declared Service

 ‘Declared service’ means any activity carried out by a person for another person for a consideration and declared as such under section 66E Declared Service

Section 66E defines ‘declared service’ as follows –

The following shall constitute declared services, namely:––

(a) renting of immovable property;

(b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of completion-certificate by the competent authority.

Explanation.— For the purposes of this clause,—

(I) the expression "competent authority" means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:––

(A) architect registered with the Council of Architecture constituted under the Architects Act, 1972; or

(B) chartered engineer registered with the Institution of Engineers (India); or

(C) licensed surveyor of the respective local body of the city or town or village or

development or planning authority;

(II) the expression "construction" includes additions, alterations, replacements or remodeling of any existing civil structure;

(c) temporary transfer or permitting the use or enjoyment of any intellectual property right;

(d) development, design, programming, customisation, adaptation, upgradation,

enhancement, implementation of information technology software;

(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;

(f) transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;

(g) activities in relation to delivery of goods on hire purchase or any system of payment by instalments;

(h) service portion in the execution of a works contract;

(i) service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity.

The definition of service u/s 65B (44) includes declared services. These services are covered as ‘declared service’ though they are amply covered by the definition  of service and have been declared to remove confusion and ambiguity.

Following nine activities have been specified in section 66E as declared services –

(1) renting of immovable property;

(2) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of certificate of completion by a competent authority;

(3) temporary transfer or permitting the use or enjoyment of any intellectual property right;

(4) development, design, programming, customization, adaptation, up gradation, enhancement, implementation of information technology software;

(5) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;

(6) transfer of goods by way of hiring, leasing, licensing or any such manner without transfer of right to use such goods;

(7) activities in relation to delivery of goods on hire purchase or any system of payment by instalments;

(8) service portion in execution of a works contract;

(9) service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as part of the activity.

Declared services should be -

• activity or activities
• carried out by one person for another
• for a consideration

= = = = = = = = = =