TMI BlogUnion Budget 2017 - Changes in Service Tax - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... nts made to,- Chapters V and VA of the Finance Act, 1994; the Service Tax (Determination of Value) Rules, 2006 ; Other changes are being given effect to by inserting new entries, and amending/omitting existing entries in notification No. 25/2012-ST dated 20.6.2012 and by amending the CENVAT Credit Rules, 2004 . 2. It may be noted that changes being made in the Budget are coming into effect on various dates, as indicated in the following paragraphs. These changes are categorized below based on the above criterion: (i) Changes coming into effect immediately w.e.f. the 2nd day of February, 2017; (ii) The amendments which will get incorporated in the Finance Act, 1994 on enactment of the Finance Bill, 2017 [paras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling as constituted under section 28E of the Customs Act, 1962 . Section 28 (E) of the Customs Act, 1962 , is also being amended so as to substitute the definition of Authority to mean the Authority for Advance Ruling as constituted under section 245-O of the Income-tax Act, 1961 . (Clause 122 of the Bill refers) (b) Section 245P of the Income-tax Act, 1961 provides that no proceeding before, or pronouncement of advance ruling by the Authority for Advance Ruling would be invalidated on the ground merely due to any vacancy or defect in the constitution of the Authority. In view of the same, Section 96B relating to vacancies not to invalidate proceedings is being omitted. (Clause 123 of the Bill refers) (c) S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the exemption from service tax under notification No. 14/2012-ST would be not available to a taxable service involving import of technology on which Research and Development Cess is not payable. Full service tax along with cesses (Swachh Bharat Cess and Krishi Kalyan Cess) would be applicable to such taxable service. 4. Other Legislative provisions: (a) Service tax exemption to taxable services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force under the Group Insurance Schemes of the Central Government, is being made effective from 10th day of September, 2004, the date from when the services of life insurance became taxable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he word residential appearing in the notification. The exemption remains the same in all other respects. S. No. 9B of notification No. 25/2012-ST exempts services provided by Indian Institutes of Management (IIMs) by way of two year full time residential Post Graduate Programmes (PGP) in Management for the Post Graduate Diploma in Management (PGDM), to which admissions are made on the basis of the Common Admission Test (CAT), conducted by IIM. ( S. No. 9B of notification No. 25/2012-ST refers) (c) Under the Regional Connectivity Scheme (RCS), exemption from service tax is being provided in respect of the amount of viability gap funding (VGF) payable to the selected airline operator for the services of transport of passengers, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard, subject to the fulfillment of the conditions prescribed under Rule 10 (3). ( CENVAT Credit Rules, 2004 as amended by notification No. 04/2017-C.E.(NT), dated 2nd February, 2017 refer). 7. General 7.1 Changes explained above are not an exhaustive list and are meant only to draw attention to major changes. The text of the statutory provisions and the wordings of the notifications should be read carefully for interpreting the law. 7.2 Field formations are requested to go through the changes made in the Budget carefully. Any issues or doubts which may arise or any omission/error observed may kindly be brought to the notice of the undersigned, Dr. Somesh Chander, Director at somesh.chander@nic.in or Shri Pramod Kumar, O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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