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Minor Change in Service Tax had Major Impacts on Clients

Service Tax - By: - Priyesh Agrawal - Dated:- 10-2-2016 - The only thing permanent in the world is Change . Government each year announces budget for coming financial year, under which Government changes taxation laws , which are major source of finance to Government. Through this article we would like to bring to the kind attention of all my professional friends about a small change made by Government at the time of announcement of Financial Budget (No. 2) 2014, which went un-noted by my friend .....

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rpose. Since July 2012, in Negative List Regime this services are also covered under Section 68(2) of The Finance Act, 1994 (hereinafter referred as The Act ) vide Notification 30/2012 ST dated 20/06/2012 which was read as under - Part I of said notification, Clause A (v) - (v) provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose 2[or security services] or .....

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e tax other than the service provider 7 (a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business (b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non-abated value to any person who is not engaged in the similar line of business Nil 40% 100% 60% The above table brings .....

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dit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 Thus w.e.f. 01/07/2012 if a person being Individual, HUF, Partnership firm, AOP provides renting of motor vehicle designed to carry passengers service to a company for transportation of its employees and was claiming the benefit of abatement was not required to pay service tax as his services would fall under reverse charge. In summary we can say that .....

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ndment. Budget Notification 08/2014 ST dated 11/07/2014 amended Notification 26/2012 ST dated 20/06/2012 (w.e.f. 01/10/2014) and the abatement which was available to all the motor vehicles designed to passenger had been curtailed and was made limited to Renting of Motor Cab . What is Motor Cab? The Provisions of The Finance Act, 1994 and rules made thereunder had not yet defined the word motor cab . Thus for serving the purpose we need to refer Motor Vehicle Act, 1988, which defines it as - moto .....

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