TMI BlogAmendment of Act 32 of 1994.X X X X Extracts X X X X X X X X Extracts X X X X ..... e requires, (1) "actionable claim" shall have the meaning assigned to it in section 3 of the Transfer of Property Act, 1882; (2) "advertisement" means any form of presentation for promotion of, or bringing awareness about, any event, idea, immovable property, person, service, goods or actionable claim through newspaper, television, radio or any other means but does not include any presentation made in person; (3) "agriculture" means the cultivation of plants and rearing of all life-forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products; (4) "agricultural extension" means application of scientific research and knowledge to agricultural practices through farmer education or training; (5) "agricultural produce" means any produce of agriculture on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market; (6) "Agricultural Produce Marketing Committee or Board" means any committee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstituted under the Central Boards of Revenue Act, 1963; (54 of 1963.) (17) "business entity" means any person ordinarily carrying out any activity relating to industry, commerce or any other business; (18) "Central Electricity Authority" means the authority constituted under section 3 of the Electricity (Supply) Act, 1948; (54 of 1948.) (19) "Central Transmission Utility" shall have the meaning assigned to it in clause (10) of section 2 of the Electricity Act, 2003; (36 of 2003.) (20) "courier agency" means any person engaged in the door-to-door transportation of time-sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles; (21) "customs station" shall have the meaning assigned to it in clause (13) of section 2 of the Customs Act, 1962. (52 of 1962.) (22) "declared service" means any activity carried out by a person for another person for consideration and declared as such under section 66E; (23) "electricity transmission or distribution utility" means the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (29) "inland waterway" means national waterways as defined in clause (h) of section 2 of the Inland Waterways Authority of India Act, 1985 (82 of 1985.) or other waterway on any inland water, as defined in clause (b) of section 2 of the Inland Vessels Act, 1917; (1 of 1917.) (30) "interest" has the meaning assigned to it in clause (28A) of section 2 of the Income-tax Act, 1961; (43 of 1961.) (31) "local authority" means- (a) a Panchayat as referred to in clause (d) of article 243 of the Constitution; (b) a Municipality as referred to in clause (e) of article 243P of the Constitution; (c) a Municipal Committee and a District Board, legally entitled to, or entrusted by the Government with, the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (41 of 2006.) (e) a regional council or a district council constituted under the Sixth Schedule to the Constitution; (f) a development board constituted under article 371 of the Constitution; or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess amounting to manufacture of alcoholic liquors for human consumption, opium, Indian hemp and other narcotic drugs and narcotics on which duties of excise are leviable under any State Act for the time being in force; (41) "renting" means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property; (42) "Reserve Bank of India" means the bank established under section 3 of the Reserve Bank of India Act, 1934; (2 of 1934.) (43) "securities" has the meaning assigned to it in clause (h) of section 2 of the Securities Contract (Regulation) Act, 1956; (42 of 1956.) (44) "service" means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include (a) an activity which constitutes merely, (i) a transfer of title in goods or immovable property, by way of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (49) "support services" means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of immovable property, security, testing and analysis; (50) "tax" means service tax leviable under the provisions of this Chapter; (51) "taxable service" means any service on which service tax is leviable under section 66B; (52) "taxable territory" means the territory to which the provisions of this Chapter apply; (53) "vessel" has the meaning assigned to it in clause (z) of section 2 of the Major Port Trusts Act, 1963; (38 of 1963.) (54) "works contract" means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6D. The negative list shall comprise of the following services, namely: (a) services by Government or a local authority excluding the following services to the extent they are not covered elsewhere (i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers; or (iv) support services, other than services covered under clauses (i) to (iii) above, provided to business entities; (b) services by the Reserve Bank of India; (c) services by a foreign diplomatic mission located in India; (d) services relating to agriculture by way of (i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing; (ii) supply of farm labour; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) a stage carriage; (ii) railways in a class other than (A) first class; or (B) an airconditioned coach; (iii) metro, monorail or tramway; (iv) inland waterways; (v) public transport, other than predominantly for tourism purpose, in a vessel of less than fifteen tonne net; and (vi) metered cabs, radio taxis or auto rickshaws; (p) services by way of transportation of goods (i) by road except the services of (A) a goods transportation agency; or (B) a courier agency; (ii) by an aircraft or a vessel from a place outside India to the first customs station of landing in India; or (iii) by inland waterways; (q) funeral, burial, crematorium or mortuary services including transportation of the deceased. Declared services. 66E. The following shall constitute declared services, namely: (a) renting of immovable property; (b) construction of a complex, building, civil structure or a part t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any purpose based on its description, the most specific description shall be preferred over a more general description. (3) Subject to the provisions of sub-section (2), the taxability of a bundled service shall be determined in the following manner, namely: (a) if various elements of such service are naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which gives such bundle its essential character; (b) if various elements of such service are not naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which results in highest liability of service tax. Explanation . For the purposes of sub-section (3), the expression "bundled service" means a bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of any other service or services. ; (G) in section 67, in the Explanation, clause (b) shall be omitted, with effect from such date as the Central Government may, by notification, appoint; (H) after section 67, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may direct such person to get his accounts audited by a chartered accountant or cost accountant nominated by him, to the extent and for the period as may be specified by the Commissioner. (2) The chartered accountant or cost accountant referred to in sub-section (1) shall, within the period specified by the said Commissioner, submit a report duly signed and certified by him to the said Commissioner mentioning therein such other particulars as may be specified by him. (3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of such person have been audited under any other law for the time being in force. (4) The person liable to pay tax shall be given an opportunity of being heard in respect of any material gathered on the basis of the audit under sub-section (1) and proposed to be utilised in any proceeding under the provisions of this Chapter or rules made thereunder. Explanation . For the purposes of this section, (i) "chartered accountant" shall have the meaning assigned to it in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949; (38 of 1949.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) after sub-section (3), the following sub-section shall be inserted, namely: "(3A) An appeal shall be presented within two months from the date of receipt of the decision or order of such adjudicating authority, made on and after the Finance Bill, 2012 receives the assent of the President, relating to service tax, interest or penalty under this Chapter: Provided that the Commissioner of Central Excise (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of two months, allow it to be presented within a further period of one month."; (O) in section 86, (i) in sub-section (1), after the words "against such order", the words "within three months of the date of receipt of the order" shall be inserted; (ii) for sub-section (3), the following sub-section shall be substituted, namely: "(3) Every appeal under sub-section (2) or sub-section (2A) shall be filed within four months from the date on which the order sought to be appealed against is received by the Committee of Chief Commissioners or, as the case may be, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such provisions, as may be necessary or expedient for the purpose of removing the difficulty from such date, which shall include the power to give retrospective effect from a date not earlier than the date of coming into force of the Finance Act, 2012: Provided that no such order shall be made after the expiry of a period of two years from the date of coming into force of these provisions."; (V) in section 96C, in sub-section (2), for clause (e), the following clause shall be substituted, namely: "(e) admissibility of credit of duty or tax in terms of the rules made in this regard;"; (W) after section 96J, the following sections shall be inserted, namely: Insertion of new sections 97 and 98. Special provision for exemption in certain cases relating to management, etc., of roads. "97. (1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of roads, during the period on and from the 16th day of June, 2005 to the 26th day of July, 2009 (both days inclusive). (2) Refund shall be made of all such service tax which has been collected but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, approved vocational education course, assessee, associated enterprise, authorised dealer of foreign exchange, betting or gambling, Board, business entity, Central Electricity Authority, Central Transmission Utility, courier agency, customs station, declared service, electricity transmission or distribution utility, entertainment event, goods, goods transport agency, India, information technology software, inland waterway, interest, local authority, metered cab, money, negative list, non-taxable territory, notification, person, port, prescribed, process amounting to manufacture or production of goods, renting, Reserve Bank of India, securities, service, Special Economic Zone, stage carriage, State Electricity Board, State Transmission Utility, support services, tax, taxable service, taxable territory, vessel, works contract. This amendment shall have effect from such date as the Central Government may, by notification in the Official Gazette, appoint. Sub-clause (D) seeks to insert a proviso in section 66 so as to provide that the provisions of that section shall not apply with effect from such date as the Central Government may, by notification, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the primary market; (iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (v) loading, unloading, packing, storage or warehousing of agricultural produce; (vi) agricultural extension services; (vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce; (e) trading of goods; (f) any process amounting to manufacture or production of goods; (g) selling of space or time slots for advertisements other than advertisements broadcast by radio or television; (h) service by way of access to a road or a bridge on payment of toll charges; (i) betting, gambling or lottery; (j) admission to entertainment events or access to amusement facilities; (k) transmission or distribution of electricity by an electricity transmission or distribution utility; (l) services by way of- (i) pre-school education and education up to higher secondary school ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice from one year to eighteen months. It is further proposed to insert sub-section (1A) with a view to provide that where a notice or notices have been served under sub-section (1), service of a statement of details of service tax not levied, or not paid or short levied or short paid or erroneously refunded, on the person chargeable with service tax, shall be deemed to be service of notice on such person if the grounds relied upon are the same. This amendment will take effect from the date on which this Bill receives the assent of the President. Sub-clause (L) seeks to amend section 80 with a view to provide for penalty waiver on the service tax payable on service of renting of immovable property as on the 6th day of March, 2012, subject to the condition that the service tax and interest are paid in full within a period of six months from the date on which the Finance Bill, 2012 receives the assent of the President. This amendment will take effect from the date on which this Bill receives the assent of the President. Sub-clause (M) seeks to amend section 83 with a view to make certain provisions of the Central Excise Act applicable to the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax or duties paid on inputs and input services or for carrying out the provisions of Chapter V of the Finance Act, 1994. This amendment will take effect from the date on which this Bill receives the assent of the President. Sub-clause (T) seeks to amend sub-section (2) of section 94, to omit clause (ee), to amend clause (hhh) and to insert new clauses (i) and (j) relating to power to make rules. These amendments will take effect from the date on which this Bill receives the assent of the President. Sub-clause (U) seeks to amend section 95 of the said Act, so as to empower the Central Government to issue orders for removal of difficulty in case of certain provisions inserted by the proposed legislation in this Chapter, up to two years from the date of enactment of the Finance Bill, 2012. This amendment will take effect from the date on which this Bill receives the assent of the President. Sub-clause (V) seeks to amend sub-section (2) of section 96C so as to substitute clause (e) thereof to provide for admissibility of credit of duty or tax in terms of rules made in this regard. This amendment will take effect from the date o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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