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Prescribes effective rate of service tax on various services - 001/2006 - Service Tax

 
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Rescinded vide Notification No. 34/2012- Service Tax, Dated 20/06/2012

Prescribes effective rate of service tax on various services

Notification No. 1/2006 ST dated 1-3-2006

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) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of the description specified in column (3) of the Table below and specified in the relevant sub-clauses of clause (105) of section 65 of the Finance Act, specified in the corresponding entry in column (2) of the said Table, from so much of the service tax leviable thereon under section 66 of the said Finance Act, as is in excess of the service tax calculated on a value which is equivalent to a percentage specified in the corresponding entry in column (5) of the said Table, of the gross amount charged by such service provider for providing the said taxable service, subject to the relevant conditions specified in the corresponding entry in column (4) of the Table aforesaid:

S..No..

Sub- clause of clause  (105) of   Section 65

Description of taxable service

Conditions

Percentage

(1)

(2)

(3)

(4)

(5)

1

(m)

(1)  The use of mandap, including the facilities provided 6[to any person] in relation to such use and also for the catering charges.

This exemption shall apply only in such cases where the mandap keeper also provides catering services, that is, supply of food and the invoice, bill or challan  issued indicates that it is inclusive of the charges for catering service.

60

 

 

(2) Taxable service provided by a hotel as mandap keeper in such cases where services provided include catering services, that is, supply of food alongwith any service in   relation to use of a mandap.

The invoice, bill or challan issued indicates that it is inclusive of charges for catering services.

Explanation.- The expression hotel means a place that provides boarding and lodging facilities to public on commercial basis.

60

4[2

(n)

(i) Services provided or to be provided to any person, by a tour operator in relation to a package tour.

Explanation.- The expression "package tour" means a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour.

The bill issued for this purpose indicates that it is inclusive of charges for such a tour.

 

25

 

(ii) Services provided or to be provided to any person, by a tour operator in relation to a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour.

(a) The invoice, bill or challan issued indicates that it is towards charges for such accommodation, and

(b) this exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.

10

 

(iii) Services, other than services specified in (i) and (ii) above, provided or to be provided to any person, by a tour operator in relation to a tour

The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.

40]

3

11[(o) or (zn) or (zzl) or (zzm)]

Rent a Cab

 

40

4

(zc)

Holding of a convention, where service provided includes catering service.

The gross amount charged from 6[recipient of service] is inclusive of the charges for the catering service.

60

7[4A.

(zm)

 

Services provided in relation to chit. 

Explanation.- "Chit" means a transaction whether called chit, chit fund, chitty, kuri, or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.

-

70]

3[4A.

(zzb)

Business auxiliary service in relation to production or processing of parts and accessories used in the manufacture of cycles, cycle rickshaws and hand-operated sewing machines, for, or on behalf of, the client.

The gross amount charged from the client is inclusive of the cost of inputs and input services, whether or not supplied by the client.

70 ]

5

11[(zzd) or (zn) or (zzl) or (zzm)]

Erection, commissioning or installation, under a contract for supplying a 2[plant, machinery, equipment or structures] and erection, commissioning or installation of such 2[plant, machinery, equipment or structures].

This exemption is optional to the commissioning and installation agency.

Explanation.-  The gross amount charged  from the 6[recipient of service] shall include the value of the 2[plant, machinery,  equipment, structures] or parts and any other material sold by   the commissioning and installation agency, during the course of providing erection, commissioning or installation service.

33

5[6

***]

 

 

 

7

11[(zzq) or (zn) or (zzl) or (zzm)]

Commercial or industrial construction service.

This exemption shall not apply in such cases where the    taxable services provided are only completion and finishing services in relation to building or civil structure, referred to in sub-clause (c) of clause (25b) of section 65 of the Finance Act.

 Explanation.-  The gross amount charged shall include the value of goods and materials supplied  or provided or used by the provider of  the construction  service for providing such service.

33

9[7a

11[(zzq) or (zn) or (zzl) or (zzm)]

 

Commercial or Industrial Construction

This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to building or civil structure, referred to in sub-clause (c) of clause (25b) of section 65 of the Finance Act.

Explanation.- The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.

This exemption shall not apply in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.]

25]

8

(zzt)

Catering

This exemption shall apply in cases where,-

 (i) the outdoor caterer also provides food; and

 (ii) the invoice, bill or challan issued indicates that it is inclusive of charges for supply of food. 

50

9

(zzw)

Services    in    relation    to pandal or shamiana in any manner, including services rendered as a caterer.

This exemption shall apply only in cases where,- 

(i) the pandal or shamiana contractor also provides catering services, that is, supply of food; and

(ii) the invoice, bill or challan issued indicates that it is inclusive of charges for catering service.

70

10

11[(zzzh) or (zn) or (zzl) or (zzm)]

Construction of complex.

This exemption shall not apply in      

cases  where  the taxable services provided  are  only  completion and finishing services in relation to residential complex, referred to in sub-clause  (b)  of  clause  (30a)  of section 65 of the Finance Act.

 Explanation.-  The gross amount charged shall include the value of goods  and materials supplied or provided or used for providing the taxable service by the service provider.

33

10[10a

11[(zzzh) or (zn) or (zzl) or (zzm)]

Construction of Complex

This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to residential complex, referred to in sub-clause (b) of clause (30a) of section 65 of the Finance Act.

Explanation.- The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.

This exemption shall not apply in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.

25]

1[11.

11[(zzzp) or (zn) or (zzl) or (zzm)]

 

8[Transport of goods by rail.]

-

30]

12[12

(zzzzl)

Services provided or to be provided, to any person, by any other person, in relation to transport of-

i) Coastal goods;

ii) Goods through national waterway; or

iii) Goods through inland water.

-

75]

13[13.

(zzzzv)

Services provided or to be provided, to any person, by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has licence to serve alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in its premises;

-

30]

14[14.

(zzzzw)

Services provided or to be provided, to any person, by a hotel, inn, guest house, club or campsite, by whatever name called, in relation to providing of accommodation for a continuous period of less than three months;

-

 

50]

Provided that this notification shall not apply in cases where, -

(i)   the CENVAT credit of duty on inputs or capital goods or the CENVAT credit of service tax on input services, used for providing such taxable service, has been taken under the provisions of the CENVAT Credit Rules, 2004; or

(ii)  the  service  provide r  has  availed  the  benefit  under  the  notification  of  the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003-Service Tax, dated the 20th  June, 2003[G.S.R. 503 (E), dated the 20th June, 2003].

Explanation. - For the purposes of this notification, the expression "food" means a substantial and satisfying meal and the expression catering service shall be construed accordingly.

[F. No. 334/3/2006-TRU]

(G. G. Pai)

Under Secretary to the Government of India

 

**************************

Notes:-

1.

Has been inserted vide notification no. 20/2006 ST dated 25-4-2006

2.

For the words "plant, machinery or equipment" wherever they occur, the words "plant, machinery, equipment or structures" has been  substituted; vide Notification No.21/2006 dated 23/5/2006

3.

Has been inserted vide Notification No. 23/2006 dated 2/6/2006

4.

. Entry against SR. No. 2 has been substituted vide notification no. 38/2007 dated 23/8/2007, before substitution it was read as under:

2

(n)

(a)   Services   provided   in relation to a tour, by a tour operator, -

(1) where the tour operator provides a package tour;

(2)  where  the  services provided  are  other  than  in relation to a package tour.

The bill issued for this purpose indicates   that   it   is   inclusive   of charges for such a tour.

The  bill  issued  indicates  that  the amount  charged  in  the  bill  is  the gross  amount  charged  for  such  a tour.

 

40%

 

 

(b)   Services   provided   in relation to a tour, if the tour operator       is       providing services solely of arranging or booking accommodation for any person in relation to a tour.

 

(i)  The  invoice,  bill  or  challan issued  indicates  that  it  is  towards charges  for  such  accommodation, and

(ii) this exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator to  the  client  only  includes   the service  charges  for  arranging  or booking   accommodation  for  any person in relation to a tour and does not include the cost  of such accommodation.

10

5.

S.No.6 and the entries relating thereto has been omitted vide notification no. 12/2008 ST dated 1-3-2008

(zzp)

Transport of goods by road in a goods carriage.

 

-

25

6.

The following amendments made vide notification no. 22/2008 dated 10-5-2008 w.e.f. 16-5-2008

"(i) against S.No.1, in column (3), for the words "to the client", the words "to any person" substituted;

(ii) against S.No.4, in column (4), for the words "client", the words "recipient of service" substituted;

(iii) against S.No.5, in column (4), for the words "customer", the words "recipient of service" substituted."

7.

Sr. No. 4A inserted vide notification no. 27/2008 ST dated 28-5-2008

8.

Entry in column 3 of the Sr. no. 11 has be substituted vide notification no. Notification No. 29/2009-Service Tax dated 31-8-2009, before it was read as, "Transport of goods in containers by rail". This entry again substituted vide notification no. 34/2009 ST dated 1/9/2009, earlier it was read as, "Transport of goods by rail".  This again substituted vide notification no. 9/2010 ST dated 27-2-2010 w.e.f. 1-4-2010,  before substitution it was read as, "Transport of goods in containers by rail"

9.

Inserted vide notification no. 29/2010 ST dated 22-6-2010

10

Inserted vide notification no. 29/2010 ST dated 22-6-2010

11.

The following have been substituted vide notification no. 40/2010 ST dated 28-6-2010

           [(i) in S.No.3 for the entry in column (2), for the letters and brackets "(o)", letters and brackets "(o) or (zn) or (zzl) or (zzm)"

            (ii) in S.No.5 for the entry in column (2), for the letters and brackets "(zzd)", letters and brackets "(zzd) or (zn) or (zzl) or (zzm)"

           1[(iii) ***]

            (iv) in S.No.7 for the entry in column (2), for the letters and brackets "(zzq)", letters and brackets "(zzq) or (zn) or (zzl) or (zzm)"

            (v) in S.No.7(a) for the entry in column (2), for the letters and brackets "(zzq)", letters and brackets "(zzq) or (zn) or (zzl) or (zzm)"

            (vi) in S.No.10 for the entry in column (2), for the letters and brackets "(zzzh)", letters and brackets "(zzzh) or (zn) or (zzl) or (zzm)"

            (vii) in S.No.10(a) for the entry in column (2), for the letters and brackets "(zzzh)", letters and brackets "(zzzh) or (zn) or (zzl) or (zzm)"

            (viii) in S.No.11 for the entry in column (2), for the letters and brackets "(zzzp)", letters and brackets "(zzzp) or (zn) or (zzl) or (zzm)"]

12.

Inserted vide notification no. 16/2011 ST dated 1.3.2011

13.

Inserted vide notification no. 34/2011 ST dated 25-4-2011 w.e.f. 1.5.2011

14.

Inserted vide notification no. 34/2011 ST dated 25-4-2011 w.e.f. 1.5.2011

 
 
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