TMI BlogNOTES ON CLAUSES - SERVICE TAXX X X X Extracts X X X X X X X X Extracts X X X X ..... ident. Service tax to be levied on the services provided by radio taxis or radio cabs, whether or not air-conditioned. The abatement presently available to rent-a-cab service would also be made available to radio taxi service, to bring them on par. Service tax on radio taxi services will come into effect from a date to be notified later, after the Finance (No.2) Bill, 2014 receives the assent of the President. (ii) Review of general exemptions extended under Notification No. 25/2012-ST in exercise of powers conferred under section 93(1) of the Finance Act,1994: Exemption extended to clinical research on human participants is being withdrawn. Exemption extended to air-conditioned contract carriag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) services relating to admission to such institution or conduct of examination, are being exempted from service tax. In view of this rationalization, exemption extended so far in respect of renting of immovable property service received by educational institutions, stands withdrawn. Exemption available to accommodation services provided by hotels, dharamshalas or ashrams when they provide rooms for less than Rupees One Thousand per day, is being re-worded to bring out the intent clearly. However, in cases of (ii) and (iii) above, where the general exemptions are withdrawn, if the aggregate value of taxable service provided in a financial year does not exceed Rupees Ten Lakh, exemption will be available in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, custodial services, securities lending services, etc. are being exempted. Services provided by Indian tour operators to foreign tourists in relation to a tour wholly conducted outside India are being exempted. New exemptions will come into effect immediately,i.e.11.7.2014 V. Retrospective Exemption: Service provided by Employees State Insurance Corporation (ESIC) during the period prior to 1.7.2012 to be exempted from service tax. VI. Certain other amendments in Chapter V of the Finance Act, 1994: (i) In section 67A, for determination of rate of exchange, rules to be prescribed. (ii) Section 73 to be amended to prescribe time limit for completion of adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Commissioner (Appeals) or the Tribunal at the first stage and 10% of the duty demanded or penalty imposed or both, for filing the second stage appeal before the Tribunal. The amount of pre-deposit payable would be subject to a ceiling of ₹ 10 Crore. All pending appeals/stay applications would be governed by the statutory provisions prevailing at the time of filing such stay applications/appeals. When the amended section 35F in the Central Excise Act comes into force, it would, mutatis mutandis, apply to service tax by virtue of section 83 of the Finance Act, 1994. (vii) Sub-section (6A) of section 86 proposed to be amended to omit the words for grant of stay or . (viii) In section 87, power to rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service provided by a Director to a body corporate to be brought under the reverse charge mechanism; service receiver, who is a body corporate will be the person liable to pay service tax. Services provided by Recovery Agents to Banks, Financial Institutions and NBFC to be brought under the reverse charge mechanism; service receiver will be the person liable to pay service tax. IX. Cenvat Credit: Service tax paid under full reverse charge: the condition to pay invoice value to the service provider for availing credit of tax paid, to be omitted [change to have immediate effect]. Re-credit of Cenvat credit reversed on account of non-receipt of export proceeds within the specified period, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral rule, which is place of location of the service receiver. [The above changes to have effect from 1st October 2014] XI. Point of Taxation Rules: In case of reverse charge services, to bring certainty in the determination of point of taxation, it is proposed to provide that point of taxation will be the payment date or first day after three months from the date of invoice, whichever is earlier. The amended point of taxation will apply to invoices issued after 1st October 2014. A transition rule is proposed to be prescribed [change to have effect from 1st October, 2014]. XII. Simplification of partial reverse charge mechanism: In renting of motor vehicle, portion of service tax payable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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