Notes on Clauses Service Tax
Clause 112 of the Bill seeks to amend section 65 of the Finance Act, 1994 as under, -
sub-clause (1) seeks to amend clause (19) of the said section by redefining "Business Auxiliary Service" so as to provide that only those processes which result in the manufacture of excisable goods as defined in Central Excise Act shall be excluded from the purview of "Business Auxiliary Service".
sub-clause (2) seeks to amend clause (101) of the said section with a view to exclude sub-brokers from the purview of taxable service.
sub-clause (3) seeks to amend clause (105) of the said section as under, -
Item (a) thereof seeks to amend sub-clause (zzzp) so as to include imposition of service tax on transportation of goods by railways.
Item (b) thereof seeks to amend sub-clause (zzzze) for the purpose of fixing liability to pay service tax only on "provider" and not the "acquirer" of the right to use information technology software and therefore, it is proposed to substitute the word "acquiring" with the word "providing" with retrospective effect from 16th May, 2008, the date on which the service under subclause (zzzze) was included in Chapter V of Finance Act, 1994.
Item (c) thereof seeks to insert, -
sub-clause (zzzzk) to impose service tax on services provided or to be provided to any person, by any person, in relation to cosmetic surgery or plastic surgery other than the surgery undertaken to restore or reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, degenerative diseases, injury or trauma. sub-clause (zzzzl) to impose service tax on services provided or to be provided to any person, by any person, in relation to transport of coastal goods and goods through inland water.
sub-clause (zzzzm) to impose service tax on services provided or to be provided to any business entity, by any business entity, in relation to advice, consultancy or assistance in any branch of law excluding appearance before any court, tribunal or authority and the term 'business entity' has been defined to include association of persons, body of individuals, company or firm but not to include an individual.
Clause (B) proposes to make consequential amendments in section 66 for the purpose of bringing under its purview new services inserted vide sub-clauses (zzzzk), (zzzzl) and (zzzzm).
Clause (c) proposes to substitute section 84 with a view to align the appeal procedure of service tax with that of Central Excise. Therefore, it is proposed to do away with the power of revision by the Commissioner of Central Excise under section 84. By amendment to the said section, it is proposed to provide a procedure for referring the orders passed by any authority subordinate to the Commissioner of Central Excise to the Commissioner of Central Excise (Appeals), within the prescribed period, where any such direction is made by the Commissioner reviewing such orders. Further, it is proposed to include a saving clause by way of an explanation to provide that the amended provision shall not apply to any order passed by an authority subordinate to the Commissioner before the commencement of this Bill.
Clause (D) proposes to make consequential amendments in section 86 by omitting the words and figures "or section 84".
Clause (E) proposes to amend section 94 for empowering the Central Government to make rules with respect to the date for determination of rate of service tax and the place of provision of taxable service by inserting clause (hhh) in sub-section (2) thereof.
Clause (F) proposes to amend section 95 to empower the Central Government to remove difficulties by making an order.
Clause (G) proposes to validate certain actions taken or anything done by virtue of the provisions of items (v) and (vi) of sub-clause (zzzze) of clause (105) of section 65 retrospectively with effect from 16th day of May, 2008.
Clause (H) proposes to validate the exemption given to a person providing specified taxable services to goods transport agency by the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 10(E), dated 5th January, 2009, retrospectively with effect from 1st January, 2005. This has become necessary in order to validate certain actions affected by certain judicial pronouncements.
Clause (I) proposes to amend section 96A by amending the definition of "Authority" in clause (d) thereof.
