SERVICE TAX CIRCULARS & NOTIFICATIONS (15-06-12 T0 02-07-12)

 

CIRCULARS AND NOTIFICATIONS ISSUED BY SERVICE TAX AUTHORITIES

FROM 15-06-12 TO 02-07-12

 

Service Tax (Removal of Difficulty) Order, 2012 – Amendment in section 68 of the Finance Act, 1994

Order No. 1/2012 [F. No. 334/1/2012-TRU], dated 15-6-2012

Whereas difficulties have arisen in giving effect to the provisions of section 143 of the Finance Act, 2012 (23 of 2012), insofar as it relates to insertion of section 66B in Chapter V of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act);

Now, therefore, in exercise of the powers conferred by sub-section (1-I) of section 95 of the Finance Act, the Central Government, hereby makes the following Order, namely:-

1. (1) This Order may be called the Service Tax (Removal of Difficulty) Order, 2012.

(2) This Order shall come into force on the 1st day of July, 2012.

2. In sub-sections (1) and (2) of section 68 of the Finance Act, for the figures “66”, the figures and letter “66B” shall be substituted.

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Section 65(83), read with section 65(105)(s) of the Finance Act, 1994 – Practicing Chartered Accountant – Clarification regarding leviability of Service Tax on audit fees collected by CAG

Circular No. 159/10/2012-ST, dated 19-6-2012

1. A doubt has been raised whether service tax is leviable on the audit fees collected by the CAG for conducting directly, audit of corporations. Reportedly some field formations are inclined to take a view that such ‘audit fee’ collected by the CAG is leviable to service tax under the authority of the inclusive portion of the definition of “practicing chartered accountant” read with the relevant definition of the taxable service [Section 65(83) read with section 65(105)(s) of Finance Act, 1994].

2. The issue has been examined. The definition of the practicing chartered accountant in section 65(83) of Finance Act, 1994 reads as follows:

“practicing chartered accountant” means person who is a member of the Institute of Chartered Accountants of India and is holding a certificate of practice granted under the provisions of the Chartered Accountants Act, 1949 (38 of 1949) and includes any concern engaged in rendering services in the field of chartered accountancy” [emphasis added].

3. According to the Law Lexicon [by Shri P. Ramanatha Aiyar] the expression “concern” means: “an organization or establishment for business”. It further elaborates that the word “concern” is a mercantile term. CAG being a constitutional authority cannot be considered as a concern in the same manner as a firm of chartered accountants. CAG is a constitutional authority and by no stretch of imagination be covered by the meaning of expression “concern” appearing in the definition of “practicing chartered accountant”.

4. It is further added that the words “in the field of chartered accountancy” would mean such services as are ordinarily rendered by a chartered accountant. The services of CAG are not services as are rendered by a chartered accountant even though both may be engaged in the sphere of the auditing. The scope of work of the CAG goes far beyond that of a statutory company auditor and is often carried out by persons who may not even be professional chartered accountants. These audits are done in terms of section 18 of the CAG (Duties, Powers and Conditions of Service) Act, 1971, which is entirely different from the powers vested in a chartered accountant under the Chartered Accountant Act, 1949.

5. The services of CAG are also not covered by the heading Business Support Services specified in clause (zzzq) of section 65. When the business support services were taxed for the first time in the year 2006, the TRU circular stated as follows:

“Business entities outsource a number of services for use in business or commerce. These services include transaction processing, routine administration or accountancy, customer relationship management and tele-marketing. There are also business entities which provide infrastructural support such as providing instant offices along with secretarial assistance known as “Business Centre Services”. It is proposed to tax all such outsourced services. If these services are provided on behalf of a person, they are already taxed under Business Auxiliary Service. Definition of support services of business or commerce gives indicative list of outsourced services.”

It is evident that this circular has clarified that the new service was meant to capture such services as are ordinarily outsourced by business entities. The audit activity is not an outsourced function but is carried out in statutory fulfillment of duties. Thus the services by CAG would also not be covered by the service head “Business Support Service”.

6. This circular may be communicated to the field formations and service tax assessees through Public Notice/Trade Notice.

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Service Tax (Removal of Difficulties) Second Order, 2012 – Insertion of Explanation to section 66B of the Finance Act, 1994

ORDER NO. 2/2012, dated 29-6-2012

Whereas difficulties have arisen in giving effect to the provisions of section 143 of the Finance Act, 2012 (23 of 2012), in so far as it relates to insertion of section 66B in Chapter V of the Finance Act, 1994 (32 of 1994);

Now, therefore, in exercise of the powers conferred by sub-section (1-I) of section 95 of the said Finance Act, the Central Government, hereby makes the following Order, namely:-

1. (1) This Order may be called the Service Tax (Removal of Difficulties) Second Order, 2012.

(2) It shall come into force on the 1st day of July, 2012.

2. In the Finance Act, 1994 (32 of 1994), after section 66B, the following Explanation shall be inserted, namely:-

Explanation.- For the removal of doubts, it is hereby clarified that the references to the provisions of section 66 in Chapter V of the Finance Act, 1994(32 of 1994) or any other Act, for the purpose of levy and collection of service tax, shall be construed as references to the provisions of section 66B.”

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Applicability of provisions of Finance Act, 2004 and 2007 relating to education cess and secondary & higher education cess respectively

Instruction D.O.F. No. 334/1/2012-TRU, dated 29-6-2012

You will be already aware that the Negative List, together with many other accompanying changes, comes into operation from July 1, 2012.

2. The necessary notifications from 25/2012-ST to 40/2012-ST and Notification No. 28/2012-CX (NT) were issued on June 20, 2012 and have comprehensive changes relating to exemptions, Place of Provision Rules, 2012, changes to Service Tax Rules, 1994, Cenvat Credit Rules, 2004 and details of all the notifications that are being rescinded.

3. Notification No. 52/2011-ST, dated 30-12-2011 relating to refunds on specified services has also been revised in accordance with the new regime and the new notification No. 41/2012-ST, dated 29-6-2012 has been issued under the revised section 93A. Services of commission agents to exporters on the existing lines have also been validated by the issue of Notification No. 42/2012-ST, dated 29-6-2012.

4. There has been some doubt regarding the applicability of provisions of the Finance Act, 2004 relating to education cess and the Finance Act, 2007 relating to secondary and higher education cess as the concerned acts make reference to section 66 of the Finance Act, 1994, which shall cease to have effect from July 1, 2012. In this connection, as also in general, you may kindly refer to the sub-section (1) of section 8 of the General Clauses Act, 1897 which reads as under:

“Where this Act, or any Central Act or Regulation made after reference to the commencement of this Act, repeals and re-enacts, with or without modification, any provision of a former enactment, then references in any other enactment or in any instrument to the provision so repealed shall, unless a different intention appears, be construed as references to the provisions so re-enacted.”

Thus any reference to section 66 of the Finance Act, 1994 shall be construed as reference to the newly re-enacted provision i.e. section 66B of the same Act. Despite the stated position of law, the matter has been settled by the issue of Removal of Difficulties Order No. 2/2012, dated 29-6-2012.

5. It may be noted that Notification No. 11/2005-ST, dated 19-4-2005 has not been rescinded to enable sanction of pending rebates. It shall, however, automatically cease to have effect for exports on or after July 1, 2012 as the Export of Services Rules, 2005 will stand superseded from the said date.

6. You may kindly go through all the changes and let me know at the earliest if anything is required in any manner for the smooth implementation of the new provisions.

7. The successful implementation of this reform requires an involved approach at all levels, in particular in the initial months. It is necessary that these changes are well understood by the tax payers as well as our staff. To this end CBEC has released an elaborate Educational Guide (with further improvisation over the draft Guidance Papers that were released at the time of budget) and adequate copies of the same should be available to you already or shortly. You may also like to download the same from CBEC website (from the dropdown menu under the title service tax).

8. It is clarified that any Board circular that is contrary to the revised law will stand automatically superseded. In case you have any doubt about any specific circular the same may be referred to the Board.

9. CBEC has already held five seminars during this month at Delhi, Chennai, Kolkata, Ahmedabad and Hyderabad for both the trade and some of the officers in and around these places. Seminar at Mumbai is scheduled on July 13, 2012.

10. It will be desirable if similar events are held locally, supplemented also by training of our officers who have to implement the new provisions. If you need, some of the TRU officers could also assist subject a little bit to the exigencies of work here. Those who desire may source a copy of the power point presentation from TRU (by sending a request at garg.vk@nic.in).

11. Despite a very elaborate consultative process starting from August, 2011, when the first concept paper was released, it is likely that the actual implementation of negative list will throw some issues that appear a little complex. You may like to discuss them appropriately within your own set up and in appropriate cases refer them to the Board for suitable examination. Any precipitated action will be ill-advised at the early stages of implementation unless the revenue is at immediate stakes.

12. A list of services that are likely to come into the tax net in your charge may be drawn and communicated to me. This would help us to share the same with other formations as also provide information from other formations to you so that a coordinated approach is followed until the system gets streamlined.

13. In general any case resulting in taxation of an activity that is not liable to tax under the present regime should at least receive the attention of the Commissioner in charge before it is taken up for any further action.

14. Of equal importance is to devote attention to activities that are presently liable to tax and may cease to be taxed in future. Some of these have been clearly exempted. There could be others where, either due to a particular interpretation or due to applicability of Place of Provision Rules, 2012 or in some other manner, an interpretation may be taken that the same are no more liable to tax. Such cases may be immediately identified and in case of doubt referred to the Board.

15. The allotment of accounting heads is being communicated by a separate communication.

16. A spirit of Helpfulness, Understanding and Guidance (HUG for short) should guide us in balancing our task keeping in perspective the enormity of changes that are being implemented shortly.

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Applicability of provisions of Finance Act, 2004 and 2007 relating to education cess and secondary & higher education cess respectively

Circular No. 160/11/2012-ST, dated 29-6-2012

There has been some doubt regarding the applicability of provisions of the Finance Act, 2004 relating to education cess and the Finance Act, 2007 relating to secondary and higher education cess as the concerned Acts make reference to section 66 of the Finance Act, 1994, which shall cease to have effect from July 1, 2012. In this connection, as also in general, you may kindly refer to the sub-section (1) of section 8 of the General Clauses Act, 1897 which reads as under:

“Where this Act, or any Central Act or Regulation made after reference to the commencement of this Act, repeals and re-enacts, with or without modification, any provision of a former enactment, then references in any other enactment or in any instrument to the provision so repealed shall, unless a different intention appears, be construed as references to the provisions so re-enacted.”

Thus any reference to section 66 of the Finance Act, 1994 shall be construed as reference to the newly re-enacted provision i.e. section 66B of the same Act. Despite the stated position of law, the matter has been settled by the issue of Removal of Difficulties Order No. 2/2012 dated 29.06.2012.

2. This circular may be communicated to the field formations and service tax assessees through Public Notice/Trade Notice.

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rule 5 of the CENVAT Credit Rules, 2004 – Refund of CENVAT Credit – Refund to be subjected to specified safeguards, conditions and limitations

Notification No. 27/2012-CE(N.T.), dated 18-6-2012

[SUPERSESSION OF NOTIFICATION NO. 5/2006-CE(N.T.), DATED 14-3-2006]

In exercise of the powers conferred by rule 5 of the CENVAT Credit Rules, 2004 (hereinafter referred to as the “said rules”), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No 5/2006 – Central Excise (N.T), dated the 14th March, 2006, published in Gazette of India, Extraordinary, part II, section 3, sub-section (i) vide number G.S.R 156(E), dated the 14th March, 2006, the Central Board of Excise and Customs hereby directs that refund of CENVAT credit shall be allowed subject to the procedure, safeguards, conditions and limitations as specified below, namely:-.

Safeguards, conditions and limitations.

2. Refund of CENVAT Credit under rule 5 of the said rules, shall be subjected to the following safeguards, conditions and limitations, namely:-

(a)  the manufacturer or provider of output service shall submit not more than one claim of refund under this rule for every quarter:

Provided that a person exporting goods and service simultaneously, may submit two refund claims one in respect of goods exported and other in respect of the export of services every quarter.

(b)  in this notification quarter means a period of three consecutive months with the first quarter beginning from 1st April of every year, second quarter from 1st July, third quarter from 1st October and fourth quarter from 1st January of every year.

(c)  the value of goods cleared for export during the quarter shall be the sum total of all the goods cleared by the exporter for exports during the quarter as per the monthly or quarterly return filed by the claimant.

(d)  the total value of goods cleared during the quarter shall be the sum total of value of all goods cleared by the claimant during the quarter as per the monthly or quarterly return filed by the claimant.

(e)  in respect of the services, for the purpose of computation of total turnover, the value of export services shall be determined in accordance with clause (D) of sub-rule (1) of rule 5 of the said rules.

(f)  for the value of all services other than export during the quarter, the time of provision of services shall be determined as per the provisions of the Point of Taxation Rules, 2011.

(g)  the amount of refund claimed shall not be more than the amount lying in balance at the end of quarter for which refund claim is being made or at the time of filing of the refund claim, whichever is less.

(h)  the amount that is claimed as refund under rule 5 of the said rules shall be debited by the claimant from his CENVAT credit account at the time of making the claim.

(i)  In case the amount of refund sanctioned is less than the amount of refund claimed, then the claimant may take back the credit of the difference between the amount claimed and amount sanctioned.

Procedure for filing the refund claim.

3. (a) The manufacturer or provider of output service, as the case may be, shall submit an application in Form A annexed to the notification, to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, in whose jurisdiction,-

(i)  the factory from which the final products are exported is situated.

(ii)  the registered premises of the provider of service from which output services are exported is situated.

(b) The application in the Form A along with the documents specified therein and enclosures relating to the quarter for which refund is being claimed shall be filed by the claimant, before the expiry of the period specified in section 11B of the Central Excise Act, 1944 (1 of 1944).

(c) The application for the refund should be signed by-

(i)  the individual or the proprietor in the case of proprietary firm or karta in case of Hindu Undivided Family as the case may be;

(ii)  any partner in case of a partnership firm;

(iii)  a person authorized by the Board of Directors in case of a limited company;

(iv)  in other cases, a person authorized to sign the refund application by the entity.

(d) The applicant shall file the refund claim along with the copies of bank realization certificate in respect of the services exported.

(e) The refund claim shall be accompanied by a certificate in Annexure A-I, duly signed by the auditor (statutory or any other) certifying the correctness of refund claimed in respect of export of services.

(f) The Assistant Commissioner or Deputy Commissioner to whom the application for refund is made may call for any document in case he has reason to believe that information provided in the refund claim is incorrect or insufficient and further enquiry needs to be caused before the sanction of refund claim.

(g) At the time of sanctioning the refund claim the Assistant Commissioner or Deputy Commissioner shall satisfy himself or herself in respect of the correctness of the claim and the fact that goods cleared for export or services provided have actually been exported and allow the claim of exporter of goods or services in full or part as the case may be.

 

ANNEXURE

FORM A

Application for refund of CENVAT Credit under rule 5 of the CENVAT  
Credit Rules, 2004 for the Quarter ending  

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d

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y

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To,

The Assistant Commissioner or Deputy Commissioner of Central Excise,

………………………………………………………….

Sir,

I/ We have exported, the final products or output services during the Quarter and am/ are claiming the refund of CENVAT Credit in terms of Rule 5 of the CENVAT Credit Rules, 2004 as per the details below:

S. No.

Description

Amount in Rs.

1

Total value of the goods cleared for export and exported during the quarter.  

2

Export turnover of the services determined in terms of Clause D of sub-rule (1) of rule 5.  

3

Total CENVAT Credit taken on inputs and input services during the quarter.  

4

Amount reversed in terms of sub-rule (5C) of rule 3.  

5

Net CENVAT Credit = (3) – (4)  

6

Total value of all goods cleared during the quarter including exempted goods, dutiable goods and goods for export.  

7

Export turnover of services and value of all other services, provided during the said quarter.  

8

All inputs removed as such under sub-rule (5) of rule 3, against an invoice during the quarter.  

9

Total Turnover = (6) + (7) + (8)  

10

Refund amount as per the formula = (1) * (5)/(9), in respect of goods exported.  

11

Refund amount as per the formula = (2) * (5)/(9), in respect of services exported.  

12

Balance of CENVAT Credit available on the last day of quarter.  

13

Balance of CENVAT Credit available on the day of filing the refund claim.  

14

Amount claimed as refund, [Amount shall be less than the minimum of (10), (12) and (13) in case of goods or the minimum of (11), (12) and (13) in case of services].  

15

Amount debited from the CENVAT account [shall be equal to the Amount claimed as refund (14)].  

2. Details of the Bank Account to which the refund amount to be credited: Refund sanctioned in my favour should be credited in my/ our bank account.

Details furnished below;

(i)  Account Number :

(ii)  Name of the Bank :

(iii)  Branch (with address) :

3. Declaration

(i)  I/ We certify that the aforesaid particulars are correct.

(ii)  I/ We certify that we satisfy all the conditions that are contained in rule 5 of the CENVAT Credit Rules, 2004 and in notification No. /2012 – CE (N.T) dated June, 2012.

(iii)  I/ We am/ are the rightful claimant(s) of the refund of CENVAT Credit in terms of rule 5, the same may be allowed in our favour.

(iv)  I/ We declare that no separate claim for drawback or refund has been or will be made under the Customs and Central Excise Duties Service Tax Drawback Rules, 1995 or for claim of rebate under Central Excise Rules, 2002 or the Export of Services Rules, 2005 or under section 93 or 93A of Finance Act, 1994( 32 of 1994).

(v)  I/ We declare that we have not filed or will not file any other claim for refund under rule 5 of CENVAT Credit Rules, 2004, for the same quarter to which this claim relates.

Date

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  Signature of the Claimant ………………………..
      Name of the Claimant ………………………..
      Registration Number ………………………..
      Address of the Claimant ………………………..

4. Enclosures:

(i)  Copies of Customs Certified ARE-1 form along with the copies of shipping bill and bill of lading in case of the export of goods.

(ii)  Copies of the Bank Realization Certificates for the export of services. [refer 3(d)]

(iii)  Certificate in Annexure A-I from the Auditor (statutory or any other) certifying the correctness of refund claimed in respect of export of services. [refer 3(e)]


5. Refund Order No.

Date

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The refund claim filed by Shri/ Messrs __________________________________ has been scrutinized with the relevant Central Excise/ Service Tax records. The said refund claim has been examined with respect to relevant enclosures and has/ has not been found in order. A refund of Rs _____________ (Rupees _________________________________________) is sanctioned/ The refund claim filed is rejected.

Assistant Commissioner or Deputy Commissioner of Central Excise

Forwarded to-

(i)  The Chief Accounts officer, Central Excise, for information and necessary action.

(ii)  The Commissioner of Central Excise.

Assistant Commissioner or Deputy Commissioner of Central Excise


(i)  Passed for payment of Rs ______________ (Rupees ______________________ ). The amount is adjustable under head “0038 – Union Excise Duties – Deduct Refunds/ 0044 – Service tax – Deduct Refunds”.

(ii)  Amount credited to the account of the claimant as per the details below:

Amount refunded  
Account Number  
Reference No. of transfer  
Name of the Bank  
Address of the Branch  

 

Date

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  Chief Accounts officer  

 


Annexure A – I

It is certified that:

(a)  I am qualified auditor to audit the books of account of M/s ____________________

(b)  I have audited the books of account of M/s __________________________ for the quarter ending __________________

(c)  The value of the export turnover of services and total turnover of services mentioned at S. Nos. 2 and 7 in the table in Form A.

(i)  Is correct as per the books of account and relevant records of M/s ______________

(ii)  Is in accordance with the provisions of rule 5 of the CENVAT Credit Rules, 2004.

Date

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  Auditor  

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Section 66B of the Finance Act, 1994 – Charge of Service tax on and after Finance Act, 2012 – Exemption to specified services

Notification No. 25/2012-ST, dated 20-6-2012

[Supersession of Notification No. 12/2012 – ST, dated 17-3-2012]

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 said Act) and in supersession of notification number 12/2012- Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 210 (E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:—

1.  Services provided to the United Nations or a specified international organization;

2.  Health care services by a clinical establishment, an authorised medical practitioner or para-medics;

3.  Services by a veterinary clinic in relation to health care of animals or birds;

4.  Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities;

5.  Services by a person by way of —

(a)  renting of precincts of a religious place meant for general public; or

(b)  conduct of any religious ceremony;

6.  Services provided by —

(a)  an arbitral tribunal to –

(i)  any person other than a business entity; or

(ii)  a business entity with a turnover up to rupees ten lakh in the preceding financial year;

(b)  an individual as an advocate or a partnership firm of advocates by way of legal services to,-

(i)  an advocate or partnership firm of advocates providing legal services ;

(ii)  any person other than a business entity; or

(iii)  a business entity with a turnover up to rupees ten lakh in the preceding financial year; or

(c)  a person represented on an arbitral tribunal to an arbitral tribunal;

7.  Services by way of technical testing or analysis of newly developed drugs, including vaccines and herbal remedies, on human participants by a clinical research organisation approved to conduct clinical trials by the Drug Controller General of India;

8.  Services by way of training or coaching in recreational activities relating to arts, culture or sports;

9.  Services provided to or by an educational institution in respect of education exempted from service tax, by way of,-

(a)  auxiliary educational services; or

(b)  renting of immovable property;

10.  Services provided to a recognised sports body by-

(a)  an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body;

(b)  another recognised sports body;

11.  Services by way of sponsorship of sporting events organised,-

(a)  by a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, state or zone;

(b)  by Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat;

(c)  by Central Civil Services Cultural and Sports Board;

(d)  as part of national games, by Indian Olympic Association; or

(e)  under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;

12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –

(a)  a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;

(b)  a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);

(c)  a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment;

(d)  canal, dam or other irrigation works;

(e)  pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal; or

(f)  a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65 B of the said Act;

13.  Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-

(a)  a road, bridge, tunnel, or terminal for road transportation for use by general public;

(b)  a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;

(c)  a building owned by an entity registered under section 12 AA of the Income tax Act, 1961(43 of 1961) and meant predominantly for religious use by general public;

(d)  a pollution control or effluent treatment plant, except located as a part of a factory; or a structure meant for funeral, burial or cremation of deceased;

14.  Services by way of construction, erection, commissioning, or installation of original works pertaining to,-

(a)  an airport, port or railways, including monorail or metro;

(b)  a single residential unit otherwise than as a part of a residential complex;

(c)  low- cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;

(d)  post-harvest storage infrastructure for agricultural produce including a cold storages for such purposes; or

(e)  mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages;

15.  Temporary transfer or permitting the use or enjoyment of a copyright covered under clauses (a) or (b) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical, artistic works or cinematograph films;

16.  Services by a performing artist in folk or classical art forms of (i) music, or (ii) dance, or (iii) theatre, excluding services provided by such artist as a brand ambassador;

17.  Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India;

18.  Services by way of renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent;

19.  Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year, and (ii) a licence to serve alcoholic beverages;

20.  Services by way of transportation by rail or a vessel from one place in India to another of the following goods –

(a)  petroleum and petroleum products falling under Chapter heading 2710 and 2711 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(b)  relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

(c)  defence or military equipments;

(d)  postal mail or mail bags;

(e)  household effects;

(f)  newspaper or magazines registered with the Registrar of Newspapers;

(g)  railway equipments or materials;

(h)  agricultural produce;

(i)  foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages; or

(j)  chemical fertilizer and oilcakes;

21. Services provided by a goods transport agency by way of transportation of –

(a)  fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;

(b)  goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or

(c)  goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;

22. Services by way of giving on hire –

(a)  to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or

(b)  to a goods transport agency, a means of transportation of goods;

23. Transport of passengers, with or without accompanied belongings, by –

(a)  air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;

(b)  a contract carriage for the transportation of passengers, excluding tourism, conducted tour, charter or hire; or

(c)  ropeway, cable car or aerial tramway;

24. Services by way of vehicle parking to general public excluding leasing of space to an entity for providing such parking facility;

25. Services provided to Government, a local authority or a governmental authority by way of –

(a)  carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation; or

(b)  repair or maintenance of a vessel or an aircraft;

26. Services of general insurance business provided under following schemes –

(a)  Hut Insurance Scheme;

(b)  Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated Rural Development Programme);

(c)  Scheme for Insurance of Tribals;

(d)  Janata Personal Accident Policy and Gramin Accident Policy;

(e)  Group Personal Accident Policy for Self-Employed Women;

(f)  Agricultural Pumpset and Failed Well Insurance;

(g)  premia collected on export credit insurance;

(h)  Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture;

(i)  Jan Arogya Bima Policy;

(j)  National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);

(k)  Pilot Scheme on Seed Crop Insurance;

(l)  Central Sector Scheme on Cattle Insurance;

(m)  Universal Health Insurance Scheme;

(n)  Rashtriya Swasthya Bima Yojana; or

(o)  Coconut Palm Insurance Scheme;

27. Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-

(a)  the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and

(b)  a period of three years has not been elapsed from the date of entering into an agreement as an incubatee;

28. Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –

(a)  as a trade union;

(b)  for the provision of carrying out any activity which is exempt from the levy of service tax; or

(c)  up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex;

29. Services by the following persons in respective capacities –

(a)  sub-broker or an authorised person to a stock broker;

(b)  authorised person to a member of a commodity exchange;

(c)  mutual fund agent to a mutual fund or asset management company;

(d)  distributor to a mutual fund or asset management company;

(e)  selling or marketing agent of lottery tickets to a distributer or a selling agent;

(f)  selling agent or a distributer of SIM cards or recharge coupon vouchers;

(g)  business facilitator or a business correspondent to a banking company or an insurance company, in a rural area; or

(h)  sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;

30. Carrying out an intermediate production process as job work in relation to –

(a)  agriculture, printing or textile processing;

(b)  cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986);

(c)  any goods on which appropriate duty is payable by the principal manufacturer; or

(d)  processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year;

31. Services by an organiser to any person in respect of a business exhibition held outside India;

32. Services by way of making telephone calls from –

(a)  departmentally run public telephone;

(b)  guaranteed public telephone operating only for local calls; or

(c)  free telephone at airport and hospital where no bills are being issued;

33. Services by way of slaughtering of bovine animals;

34. Services received from a provider of service located in a non- taxable territory by –

(a)  Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;

(b)  an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or

(c)  a person located in a non-taxable territory;

35. Services of public libraries by way of lending of books, publications or any other knowledge- enhancing content or material;

36. Services by Employees’ State Insurance Corporation to persons governed under the Employees’ Insurance Act, 1948 (34 of 1948);

37. Services by way of transfer of a going concern, as a whole or an independent part thereof;

38. Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets;

39. Services by a governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243W of the Constitution.

2. Definitions. – For the purpose of this notification, unless the context otherwise requires, –

(a)  “Advocate” has the meaning assigned to it in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961 ( 25 of 1961);

(b)  “appropriate duty” means duty payable on manufacture or production under a Central Act or a State Act, but shall not include ‘Nil’ rate of duty or duty wholly exempt;

(c)  “arbitral tribunal” has the meaning assigned to it in clause (d) of section 2 of the Arbitration and Conciliation Act, 1996 (26 of 1996);

(d)  “authorised medical practitioner” means a medical practitioner registered with any of the councils of the recognised system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force;

(e)  “authorised person” means any person who is appointed as such either by a stock broker (including trading member) or by a member of a commodity exchange and who provides access to trading platform of a stock exchange or a commodity exchange as an agent of such stock broker or member of a commodity exchange;

(f)  “auxiliary educational services” means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution;

(g)  “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act,1934(2 of 1934);

(h)  “brand ambassador” means a person engaged for promotion or marketing of a brand of goods, service, property or actionable claim, event or endorsement of name, including a trade name, logo or house mark of any person;

(i)  “business facilitator or business correspondent” means an intermediary appointed under the business facilitator model or the business correspondent model by a banking company or an insurance company under the guidelines issued by Reserve Bank of India;

(j)  “clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;

(k)  “charitable activities” means activities relating to –

(i)  public health by way of –

(a)  care or counseling of (i) terminally ill persons or persons with severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or

(b)  public awareness of preventive health, family planning or prevention of HIV infection;

(ii) advancement of religion or spirituality;

(iii)  advancement of educational programmes or skill development relating to,-

(a)  abandoned, orphaned or homeless children;

(b)  physically or mentally abused and traumatized persons;

(c)  prisoners; or

(d)  persons over the age of 65 years residing in a rural area;

(iv)  preservation of environment including watershed, forests and wildlife; or

(v)  advancement of any other object of general public utility up to a value of,-

(a)  eighteen lakh and seventy five thousand rupees for the year 2012-13 subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during 2011-12;

(b) twenty five lakh rupees in any other financial year subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during the preceding financial year;

(l)  “commodity exchange” means an association as defined in section 2 (j) and recognized under section 6 of the Forward Contracts (Regulation) Act,1952 (74 of 1952);

(m)  “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(n)  “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air-conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit;

(o)  “distributor or selling agent” has the meaning assigned to them in clause (c) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), vide number G.S.R. 278(E), dated the 1st April, 2010 and shall include distributor or selling agent authorised by the lottery- organising State;

(p)  “general insurance business” has the meaning assigned to it in clause (g) of section 3 of General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);

(q)  “general public” means the body of people at large sufficiently defined by some common quality of public or impersonal nature;

(r)  “goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(s)  “governmental authority” means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W of the Constitution;

(t)  “health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;

(u)  “incubatee” means an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognised by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India and who has entered into an agreement with the TBI or the STEP to enable himself to develop and produce hi-tech and innovative products;

(v)  “insurance company” means a company carrying on life insurance business or general insurance business;

(w)  “legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;

(x)  “life insurance business” has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(y)  “original works” means has the meaning assigned to it in Rule 2A of the Service Tax (Determination of Value) Rules, 2006;

(z)  “principal manufacturer” means any person who gets goods manufactured or processed on his account from another person;

(za)  “recognized sports body” means – (i) the Indian Olympic Association, (ii) Sports Authority of India, (iii) a national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliate federations, (iv) national sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government, (v) the International Olympic Association or a federation recognised by the International Olympic Association or (vi) a federation or a body which regulates a sport at international level and its affiliated federations or bodies regulating a sport in India;

(zb)  “religious place” means a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation, or spirituality;

(zc)  “residential complex” means any complex comprising of a building or buildings, having more than one single residential unit;

(zd)  “rural area” means the area comprised in a village as defined in land revenue records, excluding-

the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area committee; or

any area that may be notified as an urban area by the Central Government or a State Government;

(ze) “single residential unit” means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family;

(zf) “specified international organization” means an international organization declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply;

(zg) “state transport undertaking” has the meaning assigned to it in clause (42) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(zh) “sub-broker” has the meaning assigned to it in sub-clause (gc) of clause 2 of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992;

(zi) “trade union” has the meaning assigned to it in clause (h) of section 2 of the Trade Unions Act,1926(16 of 1926).

3. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of Service tax on and after Finance Act, 2012 – Exemption to specified services by way of abatement

Notification No. 26/2012- ST, dated 20-6-2012

[Supersession of Notification No. 13/2012-ST, dated 17-3-2012]

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 said Act), and in supersession of notification number 13/2012- Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 211 (E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of the description specified in column (2) of the Table below, from so much of the service tax leviable thereon under section 66B of the said 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 (3) of the said Table, of the amount charged by such service provider for providing the said taxable service, unless specified otherwise, subject to the relevant conditions specified in the corresponding entry in column (4) of the said Table, namely;—

TABLE

Sl. No.

Description of taxable service

Percentage

Conditions

(1)

(2)

(3)

(4)

1.

Services in relation to financial leasing including hire purchase

10

Nil.

2.

Transport of goods by rail

30

Nil.

3.

Transport of passengers, with or without accompanied belongings by rail

30

Nil.

4.

Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises

70

(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

5.

Transport of passengers by air, with or without accompanied belongings

40

CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

6.

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.

60

Same as above.

7.

Services of goods transport agency in relation to transportation of goods.

25

CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

8.

Services provided in relation to chit

70

Same as above.

9.

Renting of any motor vehicle designed to carry passengers

40

Same as above.

10.

Transport of goods in a vessel

50

Same as above.

11.

Services by a tour operator in relation to,-

(i) a package tour

25

(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

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

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

10

(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

(ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation.

(iii) 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.

(iii) any services other than specified at (i) and (ii) above.

40

(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii) The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.

12.

Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority

25

(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004.

(ii)The value of land is included in the amount charged from the service receiver.

Explanation. –

A. For the purposes of exemption at Serial number 1 –

(i)  The amount charged shall be an amount, forming or representing as interest, i.e. the difference between the installments paid towards repayment of the lease amount and the principal amount contained in such installments;

(ii)  the exemption shall not apply to an amount, other than an amount forming or representing as interest, charged by the service provider such as lease management fee, processing fee, documentation charges and administrative fee, which shall be added to the amount calculated in terms of (i) above.

B. For the purposes of exemption at Serial number 4 –

The amount charged shall be the sum total of the gross amount charged and the fair market value of all goods and services supplied in or in relation to the supply of food or any other article of human consumption or any drink (whether or not intoxicating) and whether or not supplied under the same contract or any other contract, after deducting-

(i)  the amount charged for such goods or services supplied to the service provider, if any; and

(ii)  the value added tax or sales tax, if any, levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

C. For the purposes of exemption at Serial number 12 –

The amount charged shall be the sum total of the amount charged for the service including the fair market value of all goods and services supplied by the recipient(s) in or in relation to the service, whether or not supplied under the same contract or any other contract, after deducting-

(i)  the amount charged for such goods or services supplied to the service provider, if any; and

(ii)  the value added tax or sales tax, if any, levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

2. For the purposes of this notification, unless the context otherwise requires,-

a.  “chit” means a transaction whether called chit, chit fund, chitty, kuri, or by whatever 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 a prize amount,

b.  “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,

c.  “tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours,

3. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of Service tax on and after Finance Act, 2012 – Exemption to services for Official use of Foreign Diplomatic Mission

Notification No. 27/2012-ST, dated 20-6-2012

In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services provided by any person, for the official use of a foreign diplomatic mission or consular post in India, or for personal use or for the use of the family members of diplomatic agents or career consular officers posted therein from whole of the service tax leviable under section 66B of the said Act, subject to the following conditions, namely:—

(i)  that the foreign diplomatic mission or consular post in India, or diplomatic agents or career consular officers posted therein, are entitled to exemption from service tax, as stipulated in the certificate issued by the Protocol Division of the Ministry of External Affairs, based on the principle of reciprocity;

(ii)  that in case of diplomatic agents or career consular officers posted in the foreign diplomatic mission or consular post in India, the Protocol Division of the Ministry of External Affairs or the Protocol Department of the State concerned issues to each of such diplomatic agent or career consular officer an identification card bearing unique identification number and containing a photograph and name of such diplomatic agent or career consular officer and the name of the foreign diplomatic mission or consular post in India, where he is posted;

(iii)  that the head of the foreign diplomatic mission or consular post, or any person of such mission or post authorised by him, shall furnish to the provider of taxable service, a copy of such certificate duly authenticated by him or the authorised person, alongwith an undertaking in original, signed by him or the authorised person, bearing running serial number commencing from a financial year and stating that the services received are for official purpose of the said foreign diplomatic mission or consular post; or for personal use of the said diplomatic agent or career consular officer or members of his/her family mentioning the unique identification number as appearing in the identification card issued to them and stating that the services received are for personal use of the said diplomatic agent or career consular officer or members of his/her family;

(iv)  that the head of the foreign diplomatic mission or consular post or the authorized person shall maintain an account of the undertakings issued during a financial year and the account shall contain;—

(a)  the serial number and date of issue of the undertakings;

(b)  in case of personal use of diplomatic agents or career consular officers posted in the foreign diplomatic mission or consular post in India, the name, designation and unique identification number of the diplomatic agent or career consular officer in favour of whom the undertaking has been issued;

(c)  the name and the registration number of the provider of taxable service; and

(d)  the description of taxable service and invoice number.

(v)  The invoice or bill, or as the case may be, the challan issued under the provisions contained in rule 4A of the Service Tax Rules, 1994, shall, in addition to the information required to be furnished under the said rule, contain the serial number and the date of the undertaking furnished by the said head of foreign diplomatic mission or consular post or in case of diplomatic agents or career consular officers posted in such foreign diplomatic mission or consular post in India, the unique identification number of the diplomatic agent or career consular officer, as the case may be; and

(vi)  that the provider of taxable service shall retain the documents referred to in the conditions (i), (ii) and (iii) along with a duplicate copy of the invoice issued, for the purposes of verification.

2. In case the Protocol Division of the Ministry of External Affairs, after having issued a certificate to any foreign diplomatic mission or consular post in India or as the case may be, the identification card issued to a diplomatic agent or career consular officer, decides to withdraw any one or both of them subsequently, it shall communicate the withdrawal of such certificate or identification card, as the case may be, to the foreign diplomatic mission or consular post.

3. The exemption from the whole of the service tax granted to the foreign diplomatic mission or consular post in India for official purpose or for the personal use or use of their family members shall not be available from the date of withdrawal of such certificate or identification card, as the case may be.

4. This notification shall come into force on the 1st day of July, 2012.

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Cenvat Credit (Sixth Amendment) Rules, 2012 – Amendment in rules 2, 3, 5, 6, 7, 9 & 13 and insertion of rule 5A

Notification No. 28/2012-CE (N.T), dated 20-6-2012

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government, hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1) These rules may be called the CENVAT Credit (Sixth Amendment) Rules, 2012.

(2) They shall come into force on the 1st day of July, 2012.

2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule 2, –

(a)  in clause (a), –

(i)  in sub-clause (A), in item(viii), after the words, “their chassis” the words “but including dumpers and tippers” shall be inserted;

(ii)  for sub-clause (B), the following sub-clause shall be substituted, namely:-

“(B) motor vehicle designed for transportation of goods including their chassis registered in the name of the service provider, when used for-

(i)  providing an output service of renting of such motor vehicle; or

(ii)  transportation of inputs and capital goods used for providing an output service; or

(iii)  providing an output service of courier agency”

(iii)  for sub-clause (C), the following sub-clause shall be substituted, namely:-

“(C) motor vehicle designed to carry passengers including their chassis, registered in the name of the provider of service, when used for providing output service of-

(i)  transportation of passengers; or

(ii)  renting of such motor vehicle; or

(iii)  imparting motor driving skills”

(b)  for clause (e), the following shall be substituted, namely:-

‘(e) “exempted service” means a-

(1) taxable service which is exempt from the whole of the service tax leviable thereon; or

(2) service, on which no service tax is leviable under section 66B of the Finance Act; or

(3) taxable service whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken;

but shall not include a service which is exported in terms of rule 6A of the Service Tax Rules, 1994.’

(c)  in clause (k), for sub clause (B), the following sub-clause shall be substituted, namely:-

“(B) any goods used for –

(a)  construction or execution of works contract of a building or a civil structure or a part thereof; or

(b)  laying of foundation or making of structures for support of capital goods, except for the provision of service portion in the execution of a works contract or construction service as listed under clause (b) of section 66E of the Act;”

(d)  in clause (l),-

(i)  for the words “taxable service”, the words “output service” shall be substituted;

(ii)  in sub-clause (ii), for the words “but excludes services”, the words “but excludes” shall be substituted;

(iii)  for sub-clause (A), the following sub-clause shall be substituted, namely:-

“(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for –

(a)  construction or execution of works contract of a building or a civil structure or a part thereof; or

(b)  laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or”;

(iv)  in sub-clause (B), for the words, brackets, letters and figures “specified in sub-clauses (o) and (zzzzj) of clause (105) of section 65 of the Finance Act”, the words “services provided by way of renting of a motor vehicle” shall be substituted;

(v)  for sub-clause (BA), the following sub-clause shall be substituted, namely: –

“(BA) service of general insurance business, servicing, repair and maintenance , in so far as they relate to a motor vehicle which is not a capital goods, except when used by –

(a)  a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person ; or

(b)  an insurance company in respect of a motor vehicle insured or reinsured by such person; or”;

(e)  for clause (p), the following clause shall be substituted, namely:-

‘(p) “output service” means any service provided by a provider of service located in the taxable territory but shall not include a service,-

(1) specified in section 66D of the Finance Act; or

(2) where the whole of service tax is liable to be paid by the recipient of service.’

3. In rule 3 of the said rules,-

(a)  in sub-rule (1),-

(i)  for the words, “provider of taxable service”, wherever they occur, the word ” provider of output service” shall be substituted;

(ii)  after item (ixa), the following item shall be inserted, namely:-

“(ixb) the service tax leviable under section 66B of the Finance Act;”,

(iii)  after item (xi), in item (i), for the words “premises of” the words “by” shall be substituted;

(b)  after sub-rule (4) of the said rules, following shall be inserted, namely:-

“Explanation. – CENVAT credit cannot be used for payment of service tax in respect of services where the person liable to pay tax is the service recipient”

(c)  in the proviso to sub-rule (5B), for the words “taxable services” the words “output services” shall be substituted;

4. In rule 5,-

(i)  in sub-rule (2), in the second proviso, for the words and figures “Export of Services Rules, 2005” the words and figures, “Service Tax Rules, 1994” shall be substituted;

(ii)  in Explanation 1, for the words and figures “the provisions of Export of Services Rules, 2005, whether the payment is received or not” the words, figures and letter “rule 6A of the Service Tax Rules 1994” shall be substituted;

5. In the said rules, after rule 5A, the following rule shall be inserted, namely:-

“5B.Refund of CENVAT credit to service providers providing services taxed on reverse charge basis.A provider of service providing services notified under sub-section (2) of section 68 of the Finance Act and being unable to utilise the CENVAT credit availed on inputs and input services for payment of service tax on such output services, shall be allowed refund of such unutilised CENVAT credit subject to procedure, safeguards, conditions and limitations, as may be specified by the Board by notification in the Official Gazette.

6. In the said rules, in rule 6,-

(i)  in the marginal heading, for the words “provider of taxable service” the words, “provider of output service” shall be substituted;

(ii)  in sub-rule (3), after the second proviso, the following proviso shall be inserted, namely:-

“Provided that in case of transportation of goods or passengers by rail the amount required to be paid under clause (i) shall be an amount equal to 2 per cent. of value of the exempted services.”

(iii)  in sub-rule (3A), in clauses (a), (b), (c) and (h), for the words “taxable” wherever they occur, the words, “output” shall be substituted;

(iv)  in sub-rule 3(B), for the words, brackets, letters and figures “providing taxable service specified in sub-clause (zm) of clause (105) of section 65 of the Finance Act” the words, “engaged in providing services by way of extending deposits, loans or advances” shall be substituted;

(v)  in sub-rule 3(D), for the Explanation I, the following Explanation shall be substituted, namely:-

Explanation I. – “Value” for the purpose of sub-rules (3) and (3A),-

(a)  shall have the same meaning as assigned to it under section 67 of the Finance Act, read with rules made thereunder or, as the case may be, the value determined under section 3, 4 or 4A of the Excise Act, read with rules made thereunder;

(b)  in the case of a taxable service, when the option available under sub-rules (7),(7A),(7B) or (7C) of rule 6 of the Service Tax Rules, 1994, has been availed, shall be the value on which the rate of service tax under section 66B of the Finance Act, read with an exemption notification, if any, relating to such rate, when applied for calculation of service tax results in the same amount of tax as calculated under the option availed; or

(c)  in case of trading, shall be the difference between the sale price and the cost of goods sold (determined as per the generally accepted accounting principles without including the expenses incurred towards their purchase) or ten per cent of the cost of goods sold, whichever is more.

(d)  in case of trading of securities, shall be the difference between the sale price and the purchase price of the securities traded or one per cent. of the purchase price of the securities traded, whichever is more.

(e)  shall not include the value of services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;”

(vi)  for sub-rule (6A), the following sub-rules shall be inserted, namely:-

“(7) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the taxable services are provided, without payment of service tax, to a unit in a Special Economic Zone or to a developer of a Special Economic Zone for their authorised operations or when a service is exported,

(8) For the purpose of this rule, a service provided or agreed to be provided shall not be an exempted service when:-

(a)  the service satisfies the conditions specified under rule 6A of the Service Tax Rules, 1994 and the payment for the service is to be received in convertible foreign currency; and

(b)  such payment has not been received for a period of six months or such extended period as maybe allowed from time-to-time by the Reserve Bank of India, from the date of provision.”

7. In the said rules, in rule 7,-

(i)  for clause (d), the following clause shall be substituted, namely:-

“(d) credit of service tax attributable to service used in more than one unit shall be distributed pro rata on the basis of the turnover during the relevant period of the concerned unit to the sum total of the turnover of all the units to which the service relates during the same period.”

(ii)  after Explanation 2, the following Explanation shall be inserted, namely:-

Explanation 3. – (a) The relevant period shall be the month previous to the month during which the CENVAT credit is distributed.

(b) In case if any of its unit pays tax or duty on quarterly basis as provided in rule 6 of Service Tax Rules, 1994 or rule 8 of Central Excise Rules, 2002 then the relevant period shall be the quarter previous to the quarter during which the CENVAT credit is distributed.

(c) In case of an assessee who does not have any total turnover in the said period, the input service distributor shall distribute any credit only after the end of such relevant period wherein the total turnover of its units is available.”

8. In the said rules, in rule 9, in sub-rule (2), in the proviso, for the words, “provider of taxable service”, the words “provider of output service” shall be substituted;

9. In the said rules, in rule 13, for the words “taxable service” wherever they occur, the words, “output service” shall be substituted.

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Place of Provision of Services Rules, 2012

Notification No. 28/2012 – ST, dated 20-6-2012

[Supersession of Notification No.9/2005-ST, dated 3-3-2005 and notification no.11/2006-st, dated 19-5-2007]

In exercise of the powers conferred by sub-section (1) of section 66C and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 9/2005-ST, dated the 3rd March, 2005 published in the Gazette of India Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 151 (E), dated the 3rd March, 2005 and the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 11/2006-ST, dated the 19th May, 2006 published in the Gazette of India Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 227 (E), dated the 19th May, 2006, except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following rules for the purpose of determination of the place of provision of services, namely:-

Short title, extent and commencement

1. (1) These rules may be called the Place of Provision of Services Rules, 2012.

(2) They shall come into force on 1st day of July, 2012.

Definitions

2. In these rules, unless the context otherwise requires,-

(a)  “Act” means the Finance Act, 1994 (32 of 1994);

(b)  “account” means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account;

(c)  “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

(d)  “continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by one service provider or through one agent acting on behalf of more than one service provider, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued;

(e)  “financial institution” has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act,1934 (2 of 1934);

(f)  “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the ‘main’ service) between two or more persons, but does not include a person who provides the main service on his account.;

(g)  “leg of journey” means a part of the journey that begins where passengers embark or disembark the conveyance, or where it is stopped to allow for its servicing or refueling, and ends where it is next stopped for any of those purposes;

(h)  “location of the service provider” means-

(a)  where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;

(b)  where the service provider is not covered under sub-clause (a):

(i)  the location of his business establishment; or

(ii)  where the services are provided from a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or

(iii)  where services are provided from more than one establishment, whether business or fixed, the establishment most directly concerned with the provision of the service; and

(iv)  in the absence of such places, the usual place of residence of the service provider.

(i)  “location of the service receiver” means:-

(a)  where the recipient of service has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;

(b)  where the recipient of service is not covered under sub-clause (a):

(i)  the location of his business establishment; or

(ii)  where services are used at a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or

(iii)  where services are used at more than one establishment, whether business or fixed, the establishment most directly concerned with the use of the service; and

(iv)  in the absence of such places, the usual place of residence of the recipient of service.

Explanation:-. For the purposes of clauses (h) and (i), “usual place of residence” in case of a body corporate means the place where it is incorporated or otherwise legally constituted.

Explanation 2:-. For the purpose of clause (i), in the case of telecommunication service, the usual place of residence shall be the billing address.

(j)  “means of transport” means any conveyance designed to transport goods or persons from one place to another;

(k)  “non-banking financial company” means-

(i)  a financial institution which is a company; or

(ii)  a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; or

(iii)  such other non-banking institution or class of such institutions, as the Reserve Bank of India may, with the previous approval of the Central Government and by notification in the Official Gazette specify;

(l)   “online information and database access or retrieval services” means providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;

(m)  “person liable to pay tax” shall mean the person liable to pay service tax under section 68 of the Act or under sub-clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules, 1994;

(n)  “provided” includes the expression “to be provided”;

(o)  “received” includes the expression “to be received”;

(p)  “registration” means the registration under rule 4 of the Service Tax Rules, 1994;

(q)  “telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means but shall not include broadcasting services.

(r)  words and expressions used in these rules and not defined, but defined in the Act, shall have the meanings respectively assigned to them in the Act.

Place of provision generally

3. The place of provision of a service shall be the location of the recipient of service:

Provided that in case the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service.

Place of provision of performance based services

4. The place of provision of following services shall be the location where the services are actually performed, namely:-

(a)  services provided in respect of goods that are required to be made physically available by the recipient of service to the provider of service, or to a person acting on behalf of the provider of service, in order to provide the service:

Provided that when such services are provided from a remote location by way of electronic means the place of provision shall be the location where goods are situated at the time of provision of service:

Provided further that this sub-rule shall not apply in the case of a service provided in respect of goods that are temporarily imported into India for repairs, reconditioning or reengineering for re-export, subject to conditions as may be specified in this regard.

(b)  services provided to an individual, represented either as the recipient of service or a person acting on behalf of the recipient, which require the physical presence of the receiver or the person acting on behalf of the receiver, with the provider for the provision of the service.

Place of provision of services relating to immovable property

5. The place of provision of services provided directly in relation to an immovable property, including services provided in this regard by experts and estate agents, provision of hotel accommodation by a hotel, inn, guest house, club or campsite, by whatever, name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including architects or interior decorators, shall be the place where the immovable property is located or intended to be located.

Place of provision of services relating to events

6. The place of provision of services provided by way of admission to, or organization of, a cultural, artistic, sporting, scientific, educational, or entertainment event, or a celebration, conference, fair, exhibition, or similar events, and of services ancillary to such admission, shall be the place where the event is actually held.

Place of provision of services provided at more than one location

7. Where any service referred to in rules 4, 5, or 6 is provided at more than one location, including a location in the taxable territory, its place of provision shall be the location in the taxable territory where the greatest proportion of the service is provided.

Place of provision of services where provider and recipient are located in taxable territory

8. Place of provision of a service, where the location of the provider of service as well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service.

Place of provision of specified services

9. The place of provision of following services shall be the location of the service provider:-

(a)  Services provided by a banking company, or a financial institution, or a non-banking financial company, to account holders;

(b)  Online information and database access or retrieval services;

(c)  Intermediary services;

(d)  Service consisting of hiring of means of transport, upto a period of one month.

Place of provision of goods transportation services

10. The place of provision of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of the goods:

Provided that the place of provision of services of goods transportation agency shall be the location of the person liable to pay tax.

Place of provision of passenger transportation service

11. The place of provision in respect of a passenger transportation service shall be the place where the passenger embarks on the conveyance for a continuous journey.

Place of provision of services provided on board a conveyance

12. Place of provision of services provided on board a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while on board, shall be the first scheduled point of departure of that conveyance for the journey.

Powers to notify description of services or circumstances for certain purposes

13. In order to prevent double taxation or non-taxation of the provision of a service, or for the uniform application of rules, the Central Government shall have the power to notify any description of service or circumstances in which the place of provision shall be the place of effective use and enjoyment of a service.

Order of application of rules

14. Notwithstanding anything stated in any rule, where the provision of a service is, prima facie, determinable in terms of more than one rule, it shall be determined in accordance with the rule that occurs later among the rules that merit equal consideration.

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Section 66B of the Finance Act, 1994 – Charge of Service tax on and after Finance Act, 2012 – Exemption on property tax paid on immovable property

Notification No. 29/2012- ST, dated 20-6-2012

[Supersession of Notification No. 24/2007-ST, dated 22-5-2007]

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), and in supersession of the Government of India in the Ministry of Finance (Department of Revenue) notification No. 24/2007-Service Tax, dated the 22nd May, 2007, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 370 (E), dated the 22nd May, 2007, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of renting of an immovable property, from so much of the service tax leviable thereon under section 66B of the said Finance Act, as is in excess of the service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely property tax levied and collected by local bodies:

Provided that any amount such as interest, penalty paid to the local authority by the service provider on account of delayed payment of property tax or any other reasons shall not be treated as property tax for the purposes of deduction from the gross amount charged:

Provided further that wherever the period for which property tax paid is different from the period for which service tax is paid or payable, property tax proportionate to the period for which service tax is paid or payable shall be calculated and the amount so calculated shall be excluded from the gross amount charged for renting of the immovable property for the said period, for the purposes of levy of service tax.

Example:

Property tax paid for April to September = Rs. 12,000/-

Rent received for April = Rs. 1, 00,000/-

Service tax payable for April = Rs. 98,000/- (1, 00,000 -12,000/6) * applicable rate of service tax

2. This notification shall come into force on the 1st day of July, 2012.

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Section 68 of the Finance Act, 1994 – Payment of service tax – Service tax payABLE on specified services

Notification No. 30/2012-ST, dated 20-6-2012 [Corrected by corrigendum [f. no. 334/1/2012-tru], dated 29-6-2012

[Supersession of Notification No. 15/2012-ST, dated 17-3-2012 and NOTIFICATION No. 36/2004-ST, dated 31-12-2004]

In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), and in supersession of (i) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 15/2012-Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 213(E), dated the 17th March, 2012, and (ii) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2004-Service Tax, dated the 31st December, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 849 (E), dated the 31st December, 2004, except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies the following taxable services and the extent of service tax payable thereon by the person liable to pay service tax for the purposes of the said sub-section, namely:-

I. The taxable services,-

(A)   (i)  provided or agreed to be provided by an insurance agent to any person carrying on the insurance business;

(ii)  provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,-

(a)  any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(c)  any co-operative society established by or under any law;

(d)  any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e)  any body corporate established, by or under any law; or

(f)  any partnership firm whether registered or not under any law including association of persons;

(iii) provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firm located in the taxable territory;

(iv) provided or agreed to be provided by,-

(A) an arbitral tribunal, or

(B) an individual advocate or a firm of advocates by way of legal* services, or

(C) Government or local authority by way of support services excluding,-

(1) renting of immovable property, and

(2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994,

to any business entity located in the taxable territory;

(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 or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory;

(B) provided or agreed to be provided by any person which is located in a non-taxable territory and received by any person located in the taxable territory;

(II) The extent of service tax payable thereon by the person who provides the service and the person who receives the service for the taxable services specified in (I) shall be as specified in the following Table, namely:-

TABLE

Sl. No.

Description of a service

Percentage of service tax payable by the person providing service

Percentage of service tax payable by the person receiving the service

1.

in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business

Nil

100%

2.

in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road

Nil

100%

3.

in respect of services provided or agreed to be provided by way of sponsorship

Nil

100%

4.

in respect of services provided or agreed to be provided by an arbitral tribunal

Nil

100%

5.

in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services

Nil

100%

6.

in respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994

Nil

100%

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

Nil

100 %

(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

60%

40%

8.

in respect of services provided or agreed to be provided by way of supply of manpower for any purpose

25%

75 %

9.

in respect of services provided or agreed to be provided in service portion in execution of works contract

50%

50%

10.

in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory

Nil

100%

Explanation-I. – The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.

Explanation-II. – In works contract services, where both service provider and service recipient is the persons liable to pay tax, the service recipient has the option of choosing the valuation method as per choice, independent of valuation method adopted by the provider of service.

2. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of service tax on and after Finance Act, 2012 – Exemption to specified services received by exporter of goods

Notification No. 31/2012-ST, dated 20-6-2012 [Corrected by corrigendum [f. no. 334/1/2012-tru], dated 29-6-2012

[Supersession of Notification No. 18/2009-ST, dated 7-7-2009]

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 said Act) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 18/2009-Service Tax, dated the 7th July, 2009, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 490 (E), dated the 7th July, 2009, except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service received by an exporter of goods (hereinafter referred to as the exporter) and used for export of goods (hereinafter referred to as the said goods), of the description specified in column (2) of the Table below (hereinafter referred to as the specified service), from the whole of the service tax leviable thereon under section 66B of the said Act, subject to the conditions specified in column (3) of the said Table, namely:-

TABLE

Sr. No.

Description of the taxable service

Conditions

(1)

 (2)

(3)

1.

Service provided to an exporter for transport of the said goods by goods transport agency in a goods carriage from any container freight station or inland container depot to the port or airport, as the case may be, from where the goods are exported; or Service provided to an exporter in relation to transport of the said goods by goods transport agency in a goods carriage directly from their place of removal, to an inland container depot, a container freight station, a port or airport, as the case may be, from where the goods are exported. The exporter shall have to produce the consignment note, by whatever name called, issued in his name.

Provided that-

(a)  the exemption shall be available to an exporter who,-

(i)  informs the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory or the regional office or the head office, as the case may be, in Form EXP1 appended to this notification, before availing the said exemption;

(ii)  is registered with an export promotion council sponsored by the Ministry of Commerce or the Ministry of Textiles, as the case may be;

(iii)  is a holder of Import-Export Code Number;

(iv)  is registered under section 69 of the said Act;

(v)  is liable to pay service tax under sub-section (2) of section 68 of said Act, read with item (B) of sub-clause (i) of clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules,1994, for the specified service;

(b)  the invoice, bill or challan, or any other document by whatever name called issued by the service provider to the exporter, on which the exporter intends to avail exemption, shall be issued in the name of the exporter, showing that the exporter is liable to pay the service tax in terms of item (v) of clause (a);

(c)  the exporter availing the exemption shall file the return in Form EXP2, every six months of the financial year, within fifteen days of the completion of the said six months;

(d)  the exporter shall submit with the half yearly return, after certification, the documents in original specified in clause (b) and the certified copies of the documents specified in column (3)* of the said Table;

(e)  the documents enclosed with the return shall contain a certification from the exporter or the authorised person, to the effect that taxable service to which the document pertains, has been received and used for export of goods by mentioning the specific shipping bill number on the said document.

(f)  where the exporter is a proprietorship concern or partnership firm, the documents enclosed with the return shall be certified by the exporter himself and where the exporter is a limited company, the documents enclosed with the return shall be certified by the person authorised by the Board of Directors;

2. This notification shall come into force on the 1st day of July, 2012.

Form EXP1

[See item (i) of clause (a) of proviso ]

S.No———————-

(to be filled in by the office of jurisdictional Assistant / Deputy Commissioner)

To, The Deputy Commissioner/Assistant Commissioner of Central Excise

Sir,

I/We intend to avail of the exemption from service tax under Notification No. 31/2012-ST, dated 20th June, 2012 in respect of service for transport of the said goods by road, which has been used for export of goods and the relevant particulars are as follows.

1. Name of the exporter………

2. Service Tax Registration No……….

3. Division ……… Commissionerate ……………

4. Membership No. the Export Council………….

5. Name of the Export Council…………

6. Address of the registered / head office of exporter:……..

7. Tel. No. and e-mail ID of the exporter……..:

8. Import -Export Code No…………..

9. Details of Bank Account (Name of Bank, branch address and account number)……..

I/we undertake that I/we shall comply with the conditions laid down in the said notification and in case of any change in aforementioned particulars; I/We shall intimate the same.

Date:…..

Place:……..

Signature and full address of Exporter

(Affix stamp)

Receipt (to be given by office of Assistant Commissioner/ Deputy Commissioner having jurisdiction) Received Form EXP1 dated –/–/– submitted by __________( name of the exporter). The said intimation is accepted and given acknowledgment No. _____( S. No. Above)

For Assistant, / Deputy Commissioner

(Stamp)

Form EXP2

[See clause (c) of proviso]

To, The Deputy Commissioner /Assistant Commissioner of Central Excise

Sir,

I/We have availed of exemption of service tax under Notification No. 31/2012-ST, dated 20th June, 2012 in respect of services, namely, the services provided for transport of said goods in a goods carriage by goods transport agency, and has used the same for export of goods during the period from …… to….. .. and the relevant particulars are as follows:-

1. Name of the exporter………..

2. Address of the registered / head office of exporter…………

3. Tel. No. and e-mail ID of the exporter……..:

4. Service Tax Registration No…….

5. Division ……… Commissionerate ……………

6. Membership No. Of the Export Council………

7. Import Export Code No…………..

8. Name of the Export Council………..

9. Details of Bank Account (Name of Bank, branch address and account number)……..

TABLE-A

Sr. No. Details of goods exported (on which exemption of service tax availed) during the six months ending on…………………………..
  Details of Shipping Bill/ Bill of export (Please enclose self attested copy of Shipping Bill or Bill of Export) and Details of goods exported (in case of exports of more than one commodity, please fill in the proforma, commodity-wise)
 

No.

Date

Date of Let export order

Export invoice no

Date

Description of goods exported

Quantity (please mention the unit)

FOB value (in rupees in lakh)

                 
                 

TABLE- B

Details of specified service used for export of goods, covered under the Shipping Bill or Bill of Export mentioned in Table A in respect of which the exemption has been availed during the six months ending on………………………….. Details of documents attached showing the use of such service for export, the details of which are mentioned in Table A (self attested) Total amount of service tax claimed as exemption (rupees in lakhs)
Name of service provider Address of service provider Invoice No. Date  
           

9. Declaration:-

I / We hereby declare that-

(i)  I have complied with all the conditions mentioned in Notification No. 31/2012-ST, dated 20th June, 2012;

(ii)  the information given in this application form is true, correct and complete in every respect and that I am authorised to sign on behalf of the exporter;

(iii)  no CENVAT credit of service tax paid on the specified service used for export of said goods taken under the CENVAT Credit Rules, 2004;

(iv)  I/we, am/are enclosing all the required documents. Further, I understand that failure to file the return within stipulated time or non-enclosure of the required document, duly certified, would debar me/us for the refund claimed aforesaid.

Date :………….

Place :………….

Signature and full address of Exporter

(Affix stamp)

■Section 66B of the Finance Act, 1994 – Charge of Service Tax on and after Finance Act, 2012 – Exemption to services provided by TBI/STEP

Notification No. 32/2012-ST, dated 20-6-2012

[Supersession of Notification No. 9/2007-ST, dated 1-3-2007]

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) and in supersession of the Government of India in the Ministry of Finance (Department of Revenue) notification number 9/2007-ST, dated the 1st March, 2007, published in the Gazette of India, Extraordinary, vide number G.S.R. 163 (E), dated the 1st March,2007, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services, provided or to be provided, by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India, from the whole of the service tax leviable thereon under section 66B of the said Finance Act, subject to following conditions, namely:-

1.  that the STEP or the TBI, who intends to avail the exemption, shall furnish the requisite information in Format I below containing the details of the incubator along with the information in Format II below received from each incubatee to the concerned Assistant Commissioner or the Deputy Commissioner of Central Excise, as the case may be, before availing the exemption; and

2.  that the STEP or the TBI shall furnish the information in the said Format I and Format II in the same manner before the 30th day of June of each financial year.

Format – I – Information to be furnished by TBI or the STEP

Filed in the financial year ………….

(a)  Name of the Technology Business Incubator/Science and Technology Entrepreneurship Park ………………..

(b)  Address …………….

(c)  Whether availing benefit of exemption for first time ………………

(d)  If the answer to 3 is not in affirmative, the date from which benefit is being availed ………..

(e)  Details of taxable services provided during the previous financial year :-

  Sl. No. Description of Taxable Service

Value of taxable Service Provided

 

To incubatee

To others

         

(f)  Details of Taxable services provided by incubatees as per enclosure …………………..

Place ………………..

Date ……………….

Signature of the authorised person

Acknowledgement

I hereby acknowledge the receipt of Format I for the period …………………

Place ………………..

Date ……………

Signature of the Officer of Central Excise and Service Tax (with Name and Official seal)

Format II – Information to be obtained by TBI / STEP from each incubatee and to be filed along with Format I

1. Name of the Incubatee ………………

2. Address ……………….

3. Details of the project ……………….

4. Date of signing agreement with the TBI/STEP (incubator) …………….

5. Total business turnover during the previous financial year ……………..

6. Details of taxable services provided during the previous financial year ……………..

Sl. No. Description of Taxable Service Value of Service Provided
     

Place ………

Date ………….

Signature of the authorized person

2. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of Service Tax on and after Finance Act, 2012 – Exemption to small service providers

Notification No. 33/2012-ST, dated 20-6-2012

[Supersession of Notification No. 6/2005-ST, dated 1-3-2005]

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 said Finance Act), and in supersession of the Government of India in the Ministry of Finance (Department of Revenue) notification No. 6/2005-Service Tax, dated the 1st March, 2005, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. number 140(E), dated the 1st March, 2005, except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B of the said Finance Act:

Provided that nothing contained in this notification shall apply to,-

(i)  taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or

(ii)  such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules,1994.

2. The exemption contained in this notification shall apply subject to the following conditions, namely:-

(i)  the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;

(ii)  the provider of taxable service shall not avail the CENVAT credit of service tax paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 (herein after referred to as the said rules), used for providing the said taxable service, for which exemption from payment of service tax under this notification is availed of;

(iii)  the provider of taxable service shall not avail the CENVAT credit under rule 3 of the said rules, on capital goods received, during the period in which the service provider avails exemption from payment of service tax under this notification;

(iv)  the provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax, and used for the provision of taxable services for which service tax is payable;

(v)  the provider of taxable service who starts availing exemption under this notification shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in respect of such inputs lying in stock or in process on the date on which the provider of taxable service starts availing exemption under this notification;

(vi)  the balance of CENVAT credit lying unutilised in the account of the taxable service provider after deducting the amount referred to in sub-paragraph (v), if any, shall not be utilised in terms of provision under sub-rule (4) of rule 3 of the said rules and shall lapse on the day such service provider starts availing the exemption under this notification;

(vii)  where a taxable service provider provides one or more taxable services from one or more premises, the exemption under this notification shall apply to the aggregate value of all such taxable services and from all such premises and not separately for each premises or each services; and

(viii)  the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

3. For the purposes of determining aggregate value not exceeding ten lakh rupees, to avail exemption under this notification, in relation to taxable service provided by a goods transport agency, the payment received towards the gross amount charged by such goods transport agency under section 67 of the said Finance Act for which the person liable for paying service tax is as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994, shall not be taken into account.

Explanation. – For the purposes of this notification,-

(A)  “brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person;

(B)  “aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of the said Finance Act under any other notification.”

4. This notification shall come into force on the 1st day of July, 2012.

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Section 65(105)(zzzo) of the Finance Act, 1994 – Transport of passengers by air service – Abatement provision – Supersession of specified NOTIFICATIONS

Notification No. 34/2012-ST, dated 20-6-2012

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby rescinds the following notifications of the Government of India in the Ministry of Finance (Department of Revenue), as specified in column (2) of the Table below, except as respects things done or omitted to be done before such recession namely:-

TABLE

SL. No. (1)

Notification No. and Date (2)

1.

 06/2012- Service Tax, dated 17-03-2012.[G.S.R. 204(E), dated 17-03-2012]

2.

 45/2011 – Service Tax, dated 12-09-2011.[G.S.R. 672(E), dated 12-09-2011]

3.

 42/2011 – Service Tax, dated 25-07-2011.[G.S.R. 566(E), dated 25-07-2011]

4.

 33/2011 – Service Tax, dated 25-04-2011.[G.S.R 341(E) dated 25-04-2011]

5.

 31/2011 – Service Tax, dated 25-04-2011.[G.S.R 339(E) dated 25-04-2011]

6.

 30/2011 – Service Tax, dated 25-04-2011.[G.S.R 338(E) dated 25-04-2011]

7.

 11/2011 – Service Tax, dated 01-03-2011 .[G.S.R 168(E) dated 01-03-2011]

8.

 10/2011 – Service Tax, dated 01-03-2011 .[G.S.R.167(E) dated 01-03-2011]

9.

 09/2011 – Service Tax, dated 01-03-2011. [G.S.R.166(E) dated 01-03-2011]

10.

 08/2011 – Service Tax, dated 01-03-2011. [G.S.R.165(E) dated 01-03-2011]

11.

 07/2011 – Service Tax, dated 01-03-2011. [G.S.R.164(E) dated 01-03-2011]

12.

 06/2011 – Service Tax, dated 01-03-2011. [G.S.R. 163(E) dated 01-03-2011]

13.

 05/2011 – Service Tax, dated 01-03-2011. [G.S.R. 162(E) dated 01-03-2011]

14.

 58/2010 – Service Tax, dated 21-12-2010. [G.S.R.996(E) dated 21-12-2010]

15.

 53/2010 – Service Tax, dated 21-12-2010. [G.S.R.991(E) dated 21-12-2010]

16.

 50/2010 – Service Tax, dated 08-10-2010. [G.S.R.823(E) dated 08-10-2010]

17.

 47/2010 – Service Tax, dated 03-09-2010. [G.S.R 727(E) dated 03-09-2010]

18.

 42/2010 – Service Tax, dated 28-06-2010. [G.S.R.563(E) dated 28-06-2010]

19.

 41/2010 – Service Tax, dated 28-06-2010. [G.S.R.562(E) dated 28-06-2010]

20.

 38/2010 – Service Tax, dated 28-06-2010. [G.S.R.559(E) dated 28-06-2010]

21.

 32/2010 – Service Tax, dated 22-06-2010. [G.S.R.538(E) dated 22-06-2010]

22.

 31/2010 – Service Tax, dated 22-06-2010. [G.S.R.537(E) dated 22-06-2010]

23.

 30/2010 – Service Tax, dated 22-06-2010. [G.S.R.536(E) dated 22-06-2010]

24.

 28/2010 – Service Tax, dated 22-06-2010. [G.S.R.534(E) dated 22-06-2010]

25.

 27/2010 – Service Tax, dated 22-06-2010. [G.S.R.533(E) dated 22-06-2010]

26.

 25/2010 – Service Tax, dated 22-06-2010. [G.S.R. 531(E)dated 22-06-2010]

27.

 23/2010 – Service Tax, dated 29-04-2010. [G.S.R.345(E) dated 29-04-2010]

28.

 13/2010 – Service Tax, dated 27-02-2010. [G.S.R.157(E) dated 27-02-2010]

29.

 12/2010 – Service Tax, dated 27-02-2010. [G.S.R.156(E) dated 27-02-2010]

30.

 11/2010 – Service Tax, dated 27-02-2010. [G.S.R.155(E) dated 27-02-2010]

31.

 10/2010 – Service Tax, dated 27-02-2010. [G.S.R.154(E) dated 27-02-2010]

32.

 08/2010 – Service Tax, dated 27-02-2010. [G.S.R.152(E) dated 27-02-2010]

33.

 42/2009 – Service Tax, dated 12-11-2009. [G.S.R.821(E) dated 12-11-2009]

34.

 41/2009 – Service Tax, dated 23-10-2009. [G.S.R.776(E) dated 23-10-2009]

35.

 39/2009 – Service Tax, dated 23-09-2009. [G.S.R.696(E) dated 23-09-2009]

36.

 33/2009- Service Tax, dated 1-9-2009. [G.S.R.627(E) dated 1-9-2009]

37.

 32/2009 – Service Tax, dated 1-09-2009. [G.S.R.626(E) dated 1-9-2009]

38.

 31/2009 – Service Tax, dated 1-09-2009. [G.S.R.625(E) dated 1-9-2009]

39.

 30/2009 – Service Tax, dated 31-08-2009. [G.S.R.619(E) dated 31-08-2009]

40.

 24/2009- Service Tax, dated 27-7-2009. [G.S.R.551(E) dated 27-7-2009]

41.

 20/2009 – Service Tax, dated 07-07-2009. [G.S.R.492(E) dated 07-07-2009]

42.

 19/2009 – Service Tax, dated 07-07-2009. [G.S.R.491(E) dated 07-07-2009]

43.

 01/2009 – Service Tax, dated 05-01-2009. [G.S.R.10(E) dated 05-01-2009]

44.

 14/2008 – Service Tax, dated 01-03-2008. [G.S.R.158(E) dated 01-03-2008]

45.

 13/2008- Service Tax, dated 01-03-2008. [G.S.R.157(E) dated 01-03-2008]

46.

 34/2007 – Service Tax, dated 23-05-2007. [G.S.R.387(E) dated 23-05-2007]

47.

 33/2007 – Service Tax, dated 23-05-2007. [G.S.R.386(E) dated 23-05-2007]

48.

 25/2007- Service Tax, dated 22-05-2007. [G.S.R.371(E) dated 22-05-2007]

49.

 12/2007- Service Tax dated 01-03-2007. [G.S.R.166(E) dated 01-03-2007]

50.

 11/2007- Service Tax dated 01-03-2007. [G.S.R.165(E) dated 01-03-2007]

51.

 10/2007- Service Tax dated 01-03-2007. [G.S.R.164(E) dated 01-03-2007]

52.

 08/2007- Service Tax dated 01-03-2007. [G.S.R.162(E) dated 01-03-2007]

53.

 22/2006- Service Tax, dated 31-05-2006. [G.S.R.328(E) dated 31-05-2006]

54.

 06/2006- Service Tax, dated 01-03-2006. [G.S.R.120(E) dated 01-03-2006]

55.

 04/2006- Service Tax, dated 01-03-2006. [G.S.R.118(E) dated 01-03-2006]

56.

 01/2006- Service Tax, dated 01-03-2006. [G.S.R.115(E) dated 01-03-2006]

57.

 29/2005- Service Tax, dated 15-07-2005. [G.S.R.477(E) dated 15-07-2005]

58.

 21/2005- Service Tax, dated 07-06-2005. [G.S.R.363(E) dated 07-06-2005]

59.

 17/2005- Service Tax, dated 07-06-2005. [G.S.R.359(E) dated 07-06-2005]

60.

 08/2005- Service Tax, dated 01-03-2005. [G.S.R.142(E) dated 01-03-2005]

61.

 34/2004- Service Tax, dated 03-12-2004. [G.S.R.789(E) dated 03-12-2004]

62.

 33/2004- Service Tax, dated 3-12-2004. [G.S.R.788(E) dated 3-12-2004]

63.

 29/2004- Service Tax, dated 22-09-2004. [G.S.R.632(E) dated 22-09-2004]

64.

 24/2004- Service Tax, dated 10-09-2004. [G.S.R.598(E) dated 10-09-2004]

65.

 17/2004- Service Tax, dated 10-09-2004. [G.S.R.591(E) dated 10-09-2004]

66.

 14/2004- Service Tax, dated 10-09-2004. [G.S.R.588(E) dated 10-09-2004]

67.

 13/2004- Service Tax, dated 10-09-2004. [G.S.R.587(E) dated 10-09-2004]

68.

 16/2003- Service Tax, dated 11-07-2003. [G.S.R.542(E) dated 11-07-2003]

69.

 14/2003- Service Tax, dated 20-06-2003. [G.S.R.505(E) dated 20-06-2003]

70.

 13/2003- Service Tax, dated 20-06-2003. [G.S.R.504(E) dated 20-06-2003]

71.

 12/2003- Service Tax, dated 20-06-2003. [G.S.R.503(E) dated 20-06-2003]

72.

 10/2003- Service Tax, dated 20-06-2003. [G.S.R.502(E) dated 20-06-2003]

73.

 18/2002- Service Tax, dated 16-12-2002. [G.S.R.823(E) dated 16-12-2002]

74.

 16/2002- Service Tax, dated 02-08-2002. [G.S.R.546(E) dated 02-08-2002]

75.

 10/2002- Service Tax, dated 01-08-2002. [G.S.R.538(E)dated 01-08-2002]

76.

 4/2000- Service Tax, dated 31-07-2000. [G.S.R.643(E) dated 31-07-2000]

77.

 3/2000- Service Tax, dated 06-07-2000. [G.S.R.588(E) dated 06-07-2000]

78.

 2/2000- Service Tax, dated 01-03-2000. [G.S.R.210(E) dated 01-03-2000]

79.

 22/1997- Service Tax, dated 26-06-1997. [G.S.R. 348(E) dated 26-06-1997]

80.

 12/1997- Service Tax, dated 14-02-1997. [G.S.R.74(E) dated 14-02-1997]

81.

 03/1994- Service Tax, dated 30-06-1994. [G.S.R.555(E) dated 30-06-1994]

2. This notification shall come into force on the 1st day of July, 2012.

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Works Contract (Composition Scheme for Payment of Service tax) Rules, 2007 – Rescission of Notification No. 32/2007-ST, dated 22-5-2007

Notification No. 35/2012-ST, dated 20-6-2012

In exercise of the powers conferred by sections 93 and 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby rescinds the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 32/ 2007 – Service Tax, dated the 22nd May, 2007, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 378(E), dated the 22nd May 2007, except as respects things done or omitted to be done before such rescission.

2. This notification shall come into force on the 1st day of July, 2012.

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Service Tax (Second Amendment) Rules, 1994 – Amendment in rules 2, 4, 4A, 5, 6; omission of rule 5B and insertion of rule 6A

Notification No. 36/2012-ST, dated 20-6-2012

[corrected by f.no. 334/01/2012-tru, dated 2-7-2012]

In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:-

1. (1) These rules may be called the Service Tax (Second Amendment) Rules, 2012.

(2) They shall come into force on the 1st day of July, 2012.

2. In the Service Tax Rules, 1994 (hereinafter referred to as the principal rules), in rule 2,-

(i) after sub-clause (b), the following three sub-clauses shall be inserted, namely:-

“(bb) “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

(bc) “body corporate” has the meaning assigned to it in clause (7) of section 2 of the Companies Act, 1956 (1 of 1956);

(bd) “financial institution” has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);”

(ii) after sub-clause (c), the following sub-clause shall be inserted, namely:-

“(c1a) “goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);”

(iii) after sub-clause (cb), the following sub-clause shall be inserted, namely:-

“(cba) “insurance agent” has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);”

(iv) after sub-clause (cc), the following sub-clauses shall be inserted, namely:-

‘(cca)”legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;

(ccb) “life insurance business” has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(ccc) “non banking financial company” has the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);’

(v) for sub-clause (d), the following shall be substituted, namely:-

“(d) “person liable for paying service tax”, –

(i) in respect of the taxable services notified under sub-section (2) of section 68 of the Act, means,-

(A) in relation to service provided or agreed to be provided by an insurance agent to any person carrying on the insurance business, the recipient of the service.

(B) in relation to service provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,-

(I) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(II) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(III) any co-operative society established by or under any law;

(IV) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(V) any body corporate established, by or under any law; or

(VI) any partnership firm whether registered or not under any law including association of persons;

any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage:

Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service tax.

(C) in relation to service provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firm located in the taxable territory, the recipient of such service;

(D) in relation to service provided or agreed to be provided by,-

(I) an arbitral tribunal, or

(II) an individual advocate or a firm of advocates by way of legal services, to any business entity located in the taxable territory, the recipient of such service;

(E) in relation to support services provided or agreed to be provided by Government or local authority except,-

(a)  renting of immovable property, and

(b)  services specified sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994,

to any business entity located in the taxable territory, the recipient of such service;

(F) in relation to services provided or agreed to be provided by way of :-

(a)  renting of a motor vehicle designed to carry passengers, to any person who is not engaged in a similar business; or

(b)  supply of manpower for any purpose; or

(c)  service portion in execution of a works contract-

by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as a body corporate, located in the taxable territory, both the service provider and the service recipient to the extent notified under sub-section (2) of section 68 of the Act, for each respectively.

(G) in relation to any taxable service provided or agreed to be provided by any person which is located in a non-taxable territory and received by any person located in the taxable territory, the recipient of such service;

(ii) in a case other than sub-clause (i), means the provider of service.”

(vi) after sub-clause (d), the following sub-clause shall be inserted, namely:-

‘(dd) “place of provision” shall be the place as determined by Place of Provision of Services Rules 2012;’

(vii) after sub-clause (e), the following sub-clauses shall be inserted, namely:-

‘(f) “renting of immovable property” means any service provided or agreed to be provided by renting of immovable property or any other service in relation to such renting.

(g) “supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’

3. In the principal rules, in rule 4, in sub-rule (1), for the word and figures “section 66”, the word, figures and letter “section 66B”shall be substituted;

4. In the principal rules, in rule 4A,-

(A) in sub-rule (1),-

(i)  for the words “provided or to be provided”, the words “provided or agreed to be provided” shall be substituted;

(ii)  for clause (iii), the following shall be substituted, namely:-

“(iii)  description and value of taxable service provided or agreed to be provided; and”,

(iii)  for the first proviso, the following proviso shall be substituted, namely:-

Provided that in case the provider of taxable service is a banking company or a financial institution including a non-banking financial company providing service to any person, an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered, and whether or not containing address of the person receiving taxable service but containing other information in such documents as required under this sub-rule :”;

(iv)  for the fourth proviso, the following proviso shall be substituted, namely:-

Provided also that in case the provider of taxable service is a banking company or a financial institution including a non-banking financial company providing service to any person, the period within which the invoice, bill or challan, as the case may be, is to be issued, shall be forty-five days:” ;

(v)  for the fifth proviso, the following proviso shall be substituted, namely:-

Provided that in case the provider of taxable service is providing the service of transport of passenger, an invoice, a bill or as the case may be, challan shall include ticket in any form by whatever name called and whether or not containing registration number of the provider of service and address of the recipient of service but containing other information in such documents as required under this sub-rule”;

(B) in sub-rule (2), for the first proviso, the following proviso shall be substituted, namely:-

Provided that in case the input service distributor is an office of a banking company or a financial institution including a non-banking financial company providing service to any person an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered but containing other information in such documents as required under this sub-rule:”;

5. In the principal rules, in rule 5, in sub-rule (2), in clause (i), for sub-clause (a), the following shall be substituted, namely:-

“(a)  providing of any service;”

6. In the principal rules, rule 5B, shall be omitted;

7. In the principal rules, in rule 6,-

(1) in sub-rule (1),-

(i)  the third proviso shall be omitted;

(ii)  after the third proviso as so amended, in the fourth proviso, for the words “provided or to be provided”, the words “provided or agreed to be provided” shall be substituted;

(2) in sub-rule (4B), the word “classification,” shall be omitted;

(3) for sub-rule (4C), the following shall be substituted, namely:-

“(4C) Notwithstanding anything contained in sub-rules (4), (4A) and (4B), where the person liable to pay service tax in respect of service of renting of immovable property has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, on account of non-availment of deduction of property tax paid in terms of notification No. 29/2012-Service Tax, dated the 20th June, 2012, from the gross amount charged for renting of the immovable property for the said period at the time of payment of service tax, the assessee may adjust such excess amount paid by him against his service tax liability within one year from the date of payment of such property tax and the details of such adjustment shall be intimated to the Superintendent of Central Excise having jurisdiction over the service provider within a period of fifteen days from the date of such adjustment.”;

(4) in sub-rule (7),-

(a)  after the words “to the services”, the words “of booking of tickets for travel by air” shall be inserted;

(b)  for the word and figures “section 66”, the word, figures and letter “section 66B” shall be substituted;

(5) in sub rule (7A), for the word and figures “section 66”, the word, figures and letter “section 66B” shall be substituted;

(6) in sub-rule (7B), for the portion beginning with the brackets, figure, letter and words, “(7B) The person liable to pay” and ending with the words and figures “Chapter V of the Act, namely :”, the following shall be substituted, namely:-

“(7B) The person liable to pay service tax in relation to purchase or sale of foreign currency, including money changing, shall have the option to pay an amount calculated at the following rate towards discharge of his service tax liability instead of paying service tax at the rate specified in section 66B of Chapter V of the Act, namely :”

(7) in the sub-rule (7C),-

(i)  for the for the portion beginning with the brackets, figure, letter and words, “(7C) The distributor” and ending with the words, figures and letters “section 66 of Chapter V of the said Act:”, the following shall be substituted, namely:-

“(7C) The distributor or selling agent, liable to pay service tax for the taxable service of promotion, marketing, organising or in any other manner assisting in organising lottery, shall have the option to pay an amount at the rate specified in column (2) of the Table given below, subject to the conditions specified in the corresponding entry in column (3) of the said Table, instead of paying service tax at the rate specified in section 66B of Chapter V of the said Act :”

(ii)  in the third proviso, for the words “service under the said sub-clause”, the words “such service” shall be substituted;

8. In the principal rules, after rule 6, the following rule shall be inserted, namely:-

RULE 6A. Export of services.- (1) The provision of any service provided or agreed to be provided shall be treated as export of service when,-

(a)  the provider of service is located in the taxable territory ,

(b)  the recipient of service is located outside India,

(c)  the service is not a service specified in the section 66D of the Act,

(d)  the place of provision of the service is outside India,

(e)  the payment for such service has been received by the provider of service in convertible foreign exchange, and

(f)  the provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 3* of clause (44) of section 65B of the Act

(2) Where any service is exported, the Central Government may, by notification, grant rebate of service tax or duty paid on input services or inputs, as the case may be, used in providing such service and the rebate shall be allowed subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification.”

■■

Point of Taxation (Amendment) Rules, 2012 – Amendment in rule 2 and substitution of certain words

Notification No. 37/2012-ST, dated 20-6-2012

In exercise of the powers conferred by clause (a) and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Point of Taxation Rules, 2011, namely:—

1. (a) These rules may be called the Point of Taxation (Amendment) Rules, 2012.

(b) They shall come into force on the 1st day of July, 2012.

2. In the Point of Taxation Rules, 2011,-

(a)  in rule 2, sub-rules (b) and (f) shall be omitted.

(b)  for the words, “provided or to be provided” wherever they occur, the words “provided or agreed to be provided” shall be substituted.

■■

Continuous services notified for purpose of point of Taxation Rules, 2011 – Amendment in Notification No. 28/2011-ST, dated 1-4-2011

Notification No. 38/2012-ST, dated 20-6-2012

In exercise of the powers conferred by sections 93 and 94 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 28/2011-Service Tax, dated the 1st April, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 293(E), dated the 1st April, 2011, namely:-

In the said notification, for the words, brackets, letters and figures “referred to in clauses (zzq), (zzzh), (zzzx), (zzzu) and (zzzza) of section 65(105) of the Finance Act” the words “of telecommunication service and service portion in execution of a works contract” shall be substituted.

2. This notification shall come into force come into force from the 1st day of July, 2012.

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Rule 6A of the Service Tax Rules, 1994 – Export of Services – Exemption to input services provided to any country other than Nepal & Bhutan

Notification No.39/2012-ST, dated 20-6-2012

In exercise of the powers conferred by rule 6A of the Service Tax Rules, 1994 (hereinafter referred to as the said rules), the Central Government hereby directs that there shall be granted rebate of the whole of the duty paid on excisable inputs or the whole of the service tax and cess paid on all input services (herein after referred to as ‘input services’), used in providing service exported in terms of rule 6A of the said rules, to any country other than Nepal and Bhutan, subject to the conditions, limitations and procedures specified hereinafter,-

2. Conditions and limitations:-

(a) that the service has been exported in terms of rule 6A of the said rules;

(b) that the duty on the inputs, rebate of which has been claimed, has been paid to the supplier;

(c) that the service tax and cess, rebate of which has been claimed, have been paid on the input services to the provider of service;

Provided if the person is himself is liable to pay for any input services; he should have paid the service tax and cess to the Central Government.

(d) the total amount of rebate of duty, service tax and cess admissible is not less than one thousand rupees;

(e) no CENVAT credit has been availed of on inputs and input services on which rebate has been claimed; and

(f) that in case,-

(i) the duty or, as the case may be, service tax and cess, rebate of which has been claimed, has not been paid; or

(ii) the service, rebate for which has been claimed, has not been exported; or

(iii) CENVAT credit has been availed on inputs and input services on which rebate has been claimed,

the rebate paid, if any, shall be recoverable with interest in accordance with the provisions of section 73 and section 75 of the Finance Act, 1994 (32 of 1994)

3. Procedure

3.1 Filing of Declaration.- The provider of service to be exported shall, prior to date of export of service, file a declaration with the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, specifying the service intended to be exported with,-

(a) description, quantity, value, rate of duty and the amount of duty payable on inputs actually required to be used in providing service to be exported;

(b) description, value and the amount of service tax and cess payable on input services actually required to be used in providing service to be exported.

3.2 Verification of declaration.- The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall verify the correctness of the declaration filed prior to such export of service, if necessary, by calling for any relevant information or samples of inputs and if after such verification, the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise is satisfied that there is no likelihood of evasion of duty, or as the case may be, service tax and cess, he may accept the declaration.

3.3 Procurement of input materials and receipt of input services.- The provider of service to be exported shall,-

(i) obtain the inputs required for use in providing service to be exported, directly from a registered factory or from a dealer registered for the purposes of the CENVAT Credit Rules, 2004 accompanied by invoices issued under the Central Excise Rules, 2002;

(ii) receive the input services required for use in providing service to be exported and an invoice, a bill or, as the case may be, a challan issued under the provisions of Service Tax Rules, 1994.

3.4 Presentation of claim for rebate.-

(a)   (i) claim of rebate of the duty paid on the inputs or the service tax and cess paid on input services shall be filed with the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, after the service has been exported;

(ii) such application shall be accompanied by, –

(a) invoices for inputs issued under the Central Excise Rules, 2002 and invoice, a bill, or as the case may be, a challan for input services issued under the Service Tax Rules, 1994, in respect of which rebate is claimed;

(b) documentary evidence of receipt of payment against service exported, payment of duty on inputs and service tax and cess on input services used for providing service exported, rebate of which is claimed;

(c) a declaration that such service, has been exported in terms of rule 6A of the said rules, along with documents evidencing such export.

(b) The jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having regard to the declaration, if satisfied that the claim is in order, shall sanction the rebate either in whole or in part.

Explanation 1.- For the purposes of this notification “service tax and cess” means,-

(a) service tax leviable under section 66 or section 66B of the Finance Act, 1994 (32 of 1994);

(b) education cess on taxable service levied under section 91 read with section 95 of the Finance (No.2) Act, 2004 (23 of 2004); and

(c) Secondary and Higher Education Cess on taxable services levied under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007).

Explanation 2.- For the purposes of this notification “duty” means, duties of excise leviable under the following enactments, namely:-

(a) the Central Excise Act, 1944 (1 of 1944);

(b) the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);

(c) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);

(d) National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), as amended by section 169 of the Finance Act, 2003 (32 of 2003), section 3 of the Finance Act, 2004 (13 of 2004) and further amended by section 123 of the Finance Act, 2005 (18 of 2005);

(e) special duty of excise collected under a Finance Act;

(f) additional duty of excise as levied under section 157 of the Finance Act, 2003 (32 of 2003);

(g) Education Cess on excisable goods as levied under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004); and

(h) the additional duty of excise leviable under section 85 of the Finance Act, 2005 (18 of 2005).

(i) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007).

ANNEXURE

FORM ASTR-2

(Application for filing a claim of rebate of duty paid on inputs, service tax and cess paid on input services)

(PART A: To be filled by the applicant)

Date………….

Place…………

To,

Assistant Commissioner of Central Excise/Deputy Commissioner of Central Excise ………………………….. (full postal address).

Madam/Sir,

I/We…………………………………..,(name of the person claiming rebate) holding service tax registration No. …………………………………………, located in………………………. (address of the registered premises) hereby declare that I/We have exported ………………………………………service (name of the service) under rule 6A of the Service Tax Rules, 1994 to ……………………(name of the country to which service has been exported), and service tax amounting to ……………………. (amount in rupees of service tax) and education cess amounting to ……………………. (amount in rupees of cess) has been paid on input services and duty amounting to ………… (amount in rupees of duty) has been paid on inputs.

2. I/We also declare that the payment against such service exported has already been received in India in full…………………………………………………. (details of receipt of payment).

3. I/We request that the rebate of the duty, service tax and cess on inputs and input services used in providing service exported by me/us in terms of rule 6A of the Service Tax Rules, 1994 may be granted at the earliest. The following documents are enclosed in support of this claim for rebate.

1.

2.

3.

Declaration:

(a) We hereby certify that we have not availed CENVAT credit on inputs and input services on which rebate has been claimed.

(b) We have been granted permission by Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, vide C. No. ______, dated ______ for working under notification No. _____ , dated _____ .

(Signature and name of the service provider or his authorised agent with date)

(PART B: To be filled by the sanctioning authority)

Date of receipt of the rebate claim:    ______________

Date of sanction of the rebate claim:  ______________

Amount of rebate claimed:         Rs.  ______________

Amount of rebate sanctioned:     Rs. ______________

If the claim is not processed within 15 days of the receipt of the claim, indicated briefly reasons for delay.

Place:

Date:

Signature of the Assistant Commissioner/

Deputy Commissioner of Central Excise.

 

4. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of service tax on and after Finance Act, 2012 – Exemption on services provided to SEZ authorised operations

Notification No. 40/2012-ST, dated 20-6-2012

[Supersession of Notification No. 17/2011-ST, dated 1-3-2011]

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 said Act) read with sub-section 3 of section 95 of Finance (No.2), Act, 2004 (23 of 2004) and sub-section 3 of section 140 of the Finance Act, 2007(22 of 2007) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 17/2011-Service Tax, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.174(E), dated the 1st March, 2011, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the services on which service tax is leviable under section 66B of the said Act, received by a unit located in a Special Economic Zone (hereinafter referred to as SEZ) or Developer of SEZ and used for the authorised operations, from the whole of the service tax, education cess and secondary and higher education cess leviable thereon.

2. The exemption contained in this notification shall be subject to the following conditions, namely:-

(a) the exemption shall be provided by way of refund of service tax paid on the specified services received by a unit located in a SEZ or the developer of SEZ and used for the authorised operations:

Provided that where the specified services received in SEZ and used for the authorised operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not to pay the service tax ab initio instead of the SEZ unit or the developer claiming exemption by way of refund in terms of this notification.

Explanation.- For the purposes of this notification, the expression “wholly consumed” refers to such specified services received by the unit of a SEZ or the developer and used for the authorised operations, where the place of provision determinable in accordance with the Place of Provision of Services Rules, 2012(hereinafter referred as the POP Rules) is as under:-

(i) in respect of services specified in rule 4 of the POP Rules, the place where the services are actually performed is within the SEZ ; or

(ii) in respect of services specified in rule 5 of the POP Rules, the place where the property is located or intended to be located is within the SEZ; or

(iii) in respect of services other than those falling under clauses (i) and (ii), the recipient does not own or carry on any business other than the operations in SEZ;

(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods and services multiplied by the service tax paid on services other than wholly consumed services to the total turnover for the given period to which the claim relates, i.e.,

  Refund amount = (Export turnover of goods + Services of SEZ Unit/Developer) × Service tax paid on services other than wholly consumed Services (both for SEZ and DTA)

Total turnover for the period

Explanation.- For the purposes of condition (b),-

(A) “refund amount” means the maximum refund that is admissible for the period;

(B) “export turnover of goods” means the value of final products and intermediate products cleared during the relevant period and exported;

(C) “export turnover of services” means the value of the export service calculated in the following manner, namely:-

Export turnover of services = payments received during the relevant period for export services + export services whose provision has been completed for which payment had been received in advance in any period prior to the relevant period – advances received for export services for which the provision of service has not been completed during the relevant period;

(D) “total turnover” means sum total of the value of-

(a) all excisable goods cleared during the relevant period including exempted goods, dutiable goods and excisable goods exported;

(b) export turnover of services determined in terms of clause (C) and the value of all other services, during the relevant period; and

(c) for the purpose of claiming exemption, the Unit of a SEZ or developer shall obtain a list of services that are liable to service tax as are required for the authorised operations approved by the Approval Committee (hereinafter referred to as the specified services) of the concerned SEZ;

(d) for the purpose of claiming ab initio exemption, the unit of a SEZ or developer shall furnish a declaration in Form A-1, verified by the Specified Officer of the SEZ, in addition to the list specified under condition (c); the unit of a SEZ or developer who does not own or carry on any business other than the operations in SEZ, shall declare to that effect in Form A-1;

(e) the unit of a SEZ or developer claiming the exemption shall declare that the specified services on which exemption and/ or refund is claimed, have been used for the authorised operations;

(f) the unit of a SEZ or developer claiming the exemption by way of refund, should have paid the amount indicated in the invoice, bill or as the case may be, challan, including the service tax payable, to the person liable to pay the said tax or the amount of service tax payable under reverse charge, as the case may be, under the provisions of the said Act;

(g) no CENVAT credit of service tax paid on the specified services used for the authorised operations in a SEZ has been taken under the CENVAT Credit Rules, 2004;

(h) no refund shall be available on services wholly consumed for operations in the Domestic Tariff Area (DTA) worked out in the same manner as clauses (i) and (ii) of the explanation to condition (a);

(i) exemption or refund of service tax paid on the specified services other than wholly consumed services used for the authorised operations in a SEZ shall not be claimed except under this notification;

(j) the unit of a SEZ or developer, who intends to avail exemption and or refund under this notification, shall maintain proper account of receipt and use of the specified services on which exemption is claimed, for authorised operations in the SEZ.

3. The following procedure should be adopted for claiming the benefit of the exemption contained in this notification, namely:-

(a) the unit of a SEZ or developer, who has paid the service tax leviable under section 66B of the said Act shall avail the exemption by filling a claim for refund of service tax paid on specified services used for the authorised operations;

(b) the unit of a SEZ or developer who is registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said Act or the rules made thereunder, shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the SEZ or registered office or the head office of the SEZ unit or developer, as the case may be, in Form A-2;

(c) the unit of a SEZ or developer who is not so registered under the provisions referred to in clause (b), shall, before filing a claim for refund under this notification, file a declaration with the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the SEZ or registered office or the head office of the SEZ unit or developer, as the case may be, in Form A-3;

(d) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code number to the unit of a SEZ or developer, referred to in clause (c), within seven days from the date of receipt of the said declaration, in Form A-3;

(e) claim for refund shall be filed, within one year from the end of the month in which actual payment of service tax was made by such developer or unit, to the registered service provider or such extended period as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall permit;

(f) the refund claim shall be accompanied by the following documents, namely:-

(i) a copy of the list of specified services as are required for the authorized operations in the SEZ, as approved by the Approval Committee; wherever applicable, a copy of the declaration made in Form A-1;

(ii) invoice or a bill or as the case may be, a challan, issued in accordance with the provisions of the said Act or rules made thereunder, in the name of the unit of a SEZ or developer, by the registered service provider, along with proof of payment for such specified services used for the authorised operations and service tax paid, in original;

(iii) a declaration by the unit of a SEZ or developer, claiming such exemption, to the effect that-

(A) the specified services on which refund of service tax claimed, has been used for the authorized operations in the SEZ ;

(B) proper account of the specified services received and used for the authorised operations are maintained by the developer or unit of the SEZ and the same shall be produced to the officer sanctioning refund, on demand;

(C) accounts or documents furnished by the unit of a SEZ or developer as proof of payment of service tax claimed as refund, based on the invoice, or bill , or as the case may be challan issued by the registered service provider indicating the service tax paid on such specified services, are true and correct in all respects;

(g) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, after verifying that,-

(i) the refund claim is complete in all respects;

(ii) the information furnished in Form A-2 and in supporting documents correctly indicate the service tax involved in the specified services used for the authorised operations in the SEZ, which is claimed as refund, and has been actually paid to the service provider,

shall refund the service tax paid on the specified services;

(h) a service provider shall provide the specified services falling under wholly consumed category, under ab initio exemption granted by this notification, to a unit of a SEZ or developer, for authorised operations, subject to the submission of list specified in condition (c) under paragraph 2 and a declaration in Form A-1;

(i) where any refund of service tax paid on specified services is erroneously refunded for any reasons whatsoever, such service tax refunded shall be recoverable under the provisions of the said Act and the rules made there under, as if it is recovery of service tax erroneously refunded;

4. Words and expressions used in this notification and defined in the Special Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, shall apply, so far as may be, in relation to refund of service tax under this notification as they apply in relation to a SEZ.

Explanation.- For the purposes of this notification, “statutory auditor” refers to a Chartered Accountant who audits the annual accounts of the unit of a SEZ or developer for the purposes of the Companies Act, 1956 (1 of 1956) or the Income tax Act, 1961(43 of 1961).

5. This notification shall come into force on the 1st day of July, 2012.

FORM A-1

DECLARATION BY THE UNIT OF A SEZ OR DEVELOPER FOR AVAILING AB INITIO EXEMPTION UNDER NOTIFICATION No._____ DATED ____

[Refer condition (d) under paragraph 2]

  1. Name of the SEZ Unit/Developer:

2. Address of the SEZ Unit/Developer with Telephone and Email:

3. Permanent Account Number(PAN) of the SEZ Unit/Developer:

4. Import and Export Code Number:

5. Jurisdictional Central Excise/Service Tax Division:

6. Service Tax Registration Number/Service Tax Code:

7. Declaration: I/We hereby declare that-

(i) The information given in this application form is true, correct and complete in every respect and I am authorised to sign on behalf of the SEZ Unit/Developer;

(ii) I/We maintain proper account of specified services, as approved by the Approval Committee of SEZ, received and used for authorised operations in SEZ; I/we shall make available such accounts and related records, at all reasonable times, to the jurisdictional Central Excise Officers for inspection or scrutiny.

(iii) I/We shall use/have used specified services for authorised operations in the SEZ.

(iv) I/We declare that we do not own or carry on any business other than the operations in SEZ [where this item is not applicable, declaration may be submitted after striking out the inapplicable portion];

(v) I/We are aware that the Declaration is valid only for the purpose specified in Notification _______ dated ______ and is subject to fulfillment of conditions.

(vi) I/We intend to claim ab initio exemption from the following service provider(s) in the Domestic Tariff Area(DTA):

Sl.No. specified service(s) to be received from the DTA service provider(s)

DTA Service provider(s) who provide(s) the specified service(s), for SEZ authorised operations

Name and address

Service Tax Registration No.

(1)

(2)

(3)

(4)

       

 

Signature and Name of Authorised Person with stamp

Date:

Place:

I have verified the above Declaration; it is correct

 

Signature, date and stamp of the Specified Officer of the SEZ (Specified Officer shall retain a copy of the verified Declaration, for the purpose of record)

FORM A-2

APPLICATION FOR CLAIMING REFUND OF SERVICE TAX PAID ON SPECIFIED SERVICES USED FOR AUTHORISED OPERATIONS IN SEZ

To

The Assistant/Deputy Commissioner of Central Excise/Service Tax

___________ Division, _______ Commissionerate

Sir,

I /We claim refund of Rs……………… (Rupees in words)

(a) in respect of service tax paid on ‘wholly consumed’ specified services used for the authorized operations in SEZ, as approved by the Approval Committee of the _________ SEZ [Rupees ____________]

(b) in respect of service tax paid on specified services, other than those that are wholly consumed, used for the authorized operations of SEZ Unit/Developer, as approved by the Approval Committee of the _________ SEZ [ Rupees ____________].

1. Name of the SEZ Unit/Developer:

2. Address of the SEZ Unit/Developer with Telephone and Email:

3. Address of the Registered/Head Office with Telephone and Email:

4. Permanent Account Number(PAN) of the SEZ Unit/Developer:

5. Import and Export Code Number:

6. Jurisdictional Central Excise/Service Tax Division:

7. Service Tax Registration Number/Service Tax Code:

8. Information regarding Bank Account ( Bank, Address of Branch, Account Number) in which refund amount should be credited/to be deposited:

9. Details regarding Service Tax refund claimed:

a. Refund arising out of ‘wholly consumed’ specified services:

Table-A

Sl.No.

Details regarding specified services used in the authorized operations of SEZ, as approved by the Approval Committee

 Amount of service tax claimed as Refund (including education cess) (Rupees)

Document enclosed as proof of payment of service tax by the SEZ Unit/Developer, (sl.no and date of invoice/ bill / challan)
Description of taxable service (as per the invoice) used in the authorized operations of SEZ

Name and address of Service Provider

Service Tax Registration Number of Service Provider

Invoice/Bill/Challan (original enclosed) Amount of Service tax paid (including education cess) (Rupees)
Number Date Value of taxable service (Rupees)

(1)

(2)

(3)

(4)

 (5)

(6)

(7)

(8)

 (9)

(10)

1.

2.

TOTAL

9.2. Refunds arising out of specified services, other than those are ‘wholly consumed’:

I/We request refund of service tax paid on specified services, other than those that are ‘wholly consumed’,-

(a) used in the manufacture of final products exported from SEZ

(b) used in providing output services exported from SEZ

I/We furnish following true and correct particulars, in Tables ‘B’ and ‘C’, for the purpose of above refund:

Table – B

No.

Specified services other than those that are ‘wholly consumed’, used for authorised operations by SEZ Unit/Developer, during the period for which refund is claimed

Document enclosed as proof of payment of service tax (sl.no and date of invoice/ bill / challan)
Description of taxable service (as per the invoice) used in the authorized operations of SEZ

Name and address of Service Provider

Service Tax Registration Number of Service Provider

Invoice/Bill/Challan (original enclosed)

Amount of Service tax paid (including education cess) (Rupees)
Number Date Value of taxable service (Rupees)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

1.                
2.                

TOTAL

   

Table – C

Details

Details for the period to which the invoices pertain and refund is claimed

Export turnover of SEZ Unit(s)/Developer

Service tax paid on input services other than wholly consumed services

Total turnover

(1)

(2)

(3)

-Goods (a)  

 
Output services (b)  

—-

 
Others(Bought out goods sold) (c)

—-

—-

 
Total (a)+(b)+(c)=(d)

 

 

Instructions for compilation of the above statistical table:

(i) To calculate the export turnover of SEZ, in the case of export of goods, FOB value provided in Shipping Bills or Bills of Export, should be taken into account, which have been duly certified by the officer of customs to the effect that the goods have been exported;

(ii) To calculate the export turnover of SEZ, in the case of export of services, value of output services exported shall be on the basis of certificates issued by the bank certifying the realization of export proceeds.

(iii) Amount of service tax claimed as refund, under Table B read with Table C: Rupees__________________

(iv) Particulars filled in the Table C should be verified and certified as true by the statutory auditor of the SEZ Unit/Developer


10. I/We Declare that-

(i) information given in this application for refund is true, correct and complete in every respect and that I am authorised to sign this application for refund of service tax;

(ii) the specified services, as approved by the Approval Committee of SEZ, on which exemption/refund is claimed are actually used for the authorised operations in a SEZ;

(iii) refund is being claimed only on the service tax actually paid on the specified services used for the authorised operations in a SEZ; refund of service tax has not been claimed or received earlier, on the basis of above documents/information;

(iv) We have not taken any CENVAT credit of service tax paid on the specified services under the CENVAT Credit Rules, 2004;

(v) accounts or documents furnished as proof of payment of service tax being claimed as refund, as per the invoice, bill or challan of the service provider indicating the service tax paid on such specified services, are true and correct in all respects;

(vi) proper account of receipt and use of the specified services on which exemption/refund is claimed, for the authorised operations in the SEZ, is maintained and the same shall be produced to the Officer sanctioning refund, on demand.

Signature and name

(of proprietor/managing partner/

person authorised by managing director of SEZ Unit/Developer)

with complete address, telephone and e-mail

Date:

Place:

FORM A-3

DECLARATION FOR OBTAINING SERVICE TAX CODE

[Refer clause (c) under paragraph 3]

  1. Name of the SEZ Unit/Developer:

2. Address of the SEZ Unit/Developer with Telephone and Email:

3. Address of the Registered/Head Office:

4. Permanent Account Number(PAN) of the SEZ Unit/Developer:

5. Import and Export Code Number:

6. Jurisdictional Central Excise/Service Tax Division:

7. Service Tax Registration Number/Service tax Code:

8. Details of Bank Account ( Bank, Address of Branch, Account Number)

9. (a) Constitution of SEZ Unit/Developer [proprietorship/partnership/Registered Private Limited Company/Registered Public Limited Company/Others(specify)]

(b) Name, Address, Telephone number of Proprietor/partner/director(s)

10. Name, designation and address of the authorised signatory/signatories

11. I/We hereby declare that-

(i) The information given in this application form is true, correct and complete in every respect and that I am authorised to sign on behalf of the SEZ Unit/Developer;

(ii) I/We shall maintain proper account of specified services as approved by the Approval Committee of SEZ, received and used for authorised operations in SEZ; and shall make available such accounts and related records, at all reasonable times, to the Department for inspection or scrutiny.

(iii) I/We shall use/have used specified services for authorised operations in the SEZ.

Signature and Name of Authorised Person with stamp

Date:

Place:

■■

Rebate of service tax paid on taxable services which are received by an exporter of goods and used for export of goods

Notification No. 41/2012-ST, dated 29-6-2012

In exercise of the powers conferred by section 93A of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) number 52/2011 – Service Tax, dated the 30th December, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 945(E), dated the 30th December, 2011, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby grants rebate of service tax paid(hereinafter referred to as rebate) on the taxable services which are received by an exporter of goods (hereinafter referred to as the exporter) and used for export of goods, subject to the extent and manner specified herein below, namely:-

Provided that–

(a)  the rebate shall be granted by way of refund of service tax paid on the specified services.

Explanation. – For the purposes of this notification,-

(A)  “specified services” means-

(i)  in the case of excisable goods, taxable services that have been used beyond the place of removal, for the export of said goods;

(ii)  in the case of goods other than (i) above, taxable services used for the export of said goods;

but shall not include any service mentioned in sub-clauses (A), (B), (BA) and (C) of clause (l) of rule (2) of the CENVAT Credit Rules, 2004;

(B) “place of removal” shall have the meaning assigned to it in section 4 of the Central Excise Act,1944(1 of 1944);

(b) the rebate shall be claimed either on the basis of rates specified in the Schedule of rates annexed to this notification (hereinafter referred to as the Schedule), as per the procedure specified in paragraph 2 or on the basis of documents, as per the procedure specified in paragraph 3;

(c)  the rebate under the procedure specified in paragraph 3 shall not be claimed wherever the difference between the amount of rebate under the procedure specified in paragraph 2 and paragraph 3 is less than twenty per cent of the rebate available under the procedure specified in paragraph 2;

(d) no CENVAT credit of service tax paid on the specified services used for export of goods has been taken under the CENVAT Credit Rules, 2004;

(e)  the rebate shall not be claimed by a unit or developer of a Special Economic Zone;

(2) the rebate shall be claimed in the following manner, namely:-

(a)  manufacturer-exporter, who is registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder shall register his central excise registration number and bank account number with the customs;

(b)  exporter who is not so registered under the provisions referred to in clause (a), shall register his service tax code number and bank account number with the customs;

(c)  service tax code number referred to in clause (b), shall be obtained by filing a declaration in Form A-2 to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, of such exporter;

(d)  the exporter shall make a declaration in the electronic shipping bill or bill of export, as the case may be, while presenting the same to the proper officer of customs, to the effect that–

(i)  the rebate of service tax paid on the specified services is claimed as a percentage of the declared Free On Board(FOB) value of the said goods, on the basis of rate specified in the Schedule;

(ii) no further rebate shall be claimed in respect of the specified services, under procedure specified in paragraph 3 or in any other manner, including on the ground that the rebate obtained is less than the service tax paid on the specified services;

(iii)  conditions of the notification have been fulfilled;

(e)  service tax paid on the specified services eligible for rebate under this notification, shall be calculated by applying the rate prescribed for goods of a class or description, in the Schedule, as a percentage of the FOB value of the said goods;

(f)  amount so calculated as rebate shall be deposited in the bank account of the exporter;

(g) shipping bill or bill of export on which rebate has been claimed on the basis of rate specified in the Schedule, by way of procedure specified in this paragraph, shall not be used for rebate claim on the basis of documents, specified in paragraph 3;

(h)  where the rebate involved in a shipping bill or bill of export is less than rupees fifty, the same shall not be allowed;

(3) the rebate shall be claimed in the following manner, namely:-

(a)  rebate may be claimed on the service tax actually paid on any specified service on the basis of duly certified documents;

(b) the person liable to pay service tax under section 68 of the said Act on the taxable service provided to the exporter for export of goods shall not be eligible to claim rebate under this notification;

(c) the manufacturer-exporter, who is registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, shall file a claim for rebate of service tax paid on the taxable service used for export of goods to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture in Form A-1;

(d)  the exporter who is not so registered under the provisions referred to in clause (c), shall before filing a claim for rebate of service tax, file a declaration in Form A-2, seeking allotment of service tax code, to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, of such exporter;

(e)  the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code number to the exporter referred to in clause (d), within seven days from the date of receipt of the said Form A-2;

(f)  on obtaining the service tax code, exporter referred to in clause (d), shall file the claim for rebate of service tax to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, in Form A-1;

(g)  the claim for rebate of service tax paid on the specified services used for export of goods shall be filed within one year from the date of export of the said goods.

Explanation.- For the purposes of this clause the date of export shall be the date on which the proper officer of Customs makes an order permitting clearance and loading of the said goods for exportation under section 51 of the Customs Act, 1962 (52 of 1962);

(h)  where the total amount of rebate sought under a claim is upto 0.50% of the total FOB value of export goods and the exporter is registered with the Export Promotion Council sponsored by Ministry of Commerce or Ministry of Textiles, Form A-1 shall be submitted along with relevant invoice, bill or challan, or any other document for each specified service, in original, issued in the name of the exporter, evidencing payment for the specified service used for export of the said goods and the service tax paid thereon, certified in the manner specified in sub-clauses (A) and (B):

(A) if the exporter is a proprietorship concern or partnership firm, the documents enclosed with the claim shall be self-certified by the exporter and if the exporter is a limited company, the documents enclosed with the claim shall be certified by the person authorised by the Board of Directors;

(B)  the documents enclosed with the claim shall also contain a certificate from the exporter or the person authorised by the Board of Directors, to the effect that specified service to which the document pertains has been received, the service tax payable thereon has been paid and the specified service has been used for export of the said goods under the shipping bill number;

(i)  where the total amount of rebate sought under a claim is more than 0.50% of the total FOB value of the goods exported, the procedure specified in clause (h) above shall stand modified to the extent that the certification prescribed thereon, in sub-clauses (A) and (B) shall be made by the Chartered Accountant who audits the annual accounts of the exporter for the purposes of the Companies Act, 1956 (1 of 1956) or the Income Tax Act, 1961(43 of 1961), as the case may be;

(j)  where the rebate involved in a claim is less than rupees five hundred, the same shall not be allowed;

(k)  the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself,-

(i)   that the service tax rebate claim filed in Form A-1 is complete in every respect;

(ii)   that duly certified documents have been submitted evidencing the payment of service tax on the specified services;

(iii)  that rebate has not been already received on the shipping bills or bills of export on the basis of procedure prescribed in paragraph 2;and

(iv)  that the rebate claimed is arithmetically accurate,

refund the service tax paid on the specified service within a period of one month from the receipt of said claim:

Provided that where the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, has reason to believe that the claim, or the enclosed documents are not in order or that there is a reason to deny such rebate, he may, after recording the reasons in writing, take action, in accordance with the provisions of the said Act and the rules made thereunder;

(4) Where any rebate of service tax paid on the specified services has been allowed to an exporter on export of goods but the sale proceeds in respect of said goods are not received by or on behalf of the exporter, in India, within the period allowed by the Reserve Bank of India under section 8 of the Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, such rebate shall be deemed never to have been allowed and may be recovered under the provisions of the said Act and the rules made thereunder;

(5) This notification shall come into effect on the 1st day of July, 2012.

Form A – 1

Application for claiming rebate of service tax paid on specified services used for export of goods, under Notification No.___/20__-ST

To,

The Deputy/Assistant Commissioner of Central Excise

Sir,

I/We claim rebate of Rs……….. (Rupees in words), under Notification No.____ dated______ , in respect of service tax paid on the specified services used for export of goods.

1.  Name of the exporter:

2.  Membership number of the Export Council:

3.  Name of the Export Council:

4.  Address of the registered/head office of exporter:

5.  Telephone Number and e-mail ID of the exporter:

6.  Division ……… Commissionerate ……………

7.  Central Excise Registration Number (for manufacturer exporter)/Service Tax Code Number (for exporters other than manufacturer exporter)

8.  Import Export Code Number…………..

9.  Details of Bank Account (Name of Bank, branch address and account number)

10. Details of the rebate claim (separately for each Shipping Bill):

(Rupees in thousands)

S. No.

Details of specified services used for export of goods on which rebate of service tax is claimed

Details of shipping bill/bill of export, etc.

(2)

Details of goods exported

(3)

No

Date

Date of Let Export Order

Bill of Lading or Airway Bill Number

Date

Description of goods exported

Quantity

Unit

FOB value

1

 

Details of specified services used for export of goods mentioned in Columns 2 and 3.

(4)

Documents attached to evidence the amount of service tax paid and establish the use of specified service in the export of goods.

(5)

Total amount of service tax paid which is claimed as rebate.

(6)

Name of service provider

Service Tax Registration No./Service Tax Code

Invoice No (pl. attach original invoice)

Date

Description of specified service as per the invoice

Value of specified service used for export of goods as per the invoice

Total amount of service tax paid.

In Figures.

As a percentage of f.o.b. value in shipping bill

 

 

9. Declaration:-

I/We hereby declare that-

(i)  the information given in this application form is true, correct and complete in every respect, in accordance with the notification and that I am authorised to sign on behalf of the exporter; electronic rebate of service tax has not been received from customs on the shipping bills on which rebate is claimed;

(ii)  no CENVAT credit of service tax paid on the specified services used for export of goods has been taken/shall be taken under the CENVAT Credit Rules, 2004;

(iii)  rebate has been claimed for service tax which has been actually paid on the specified services used for export of goods;

(iv) I/we shall maintain records pertaining to the specified services used for export of goods and shall make available, at the declared premises, at all reasonable time, such records for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be.

Date:

Place:

Signature and full address of Exporter

(Affix stamp)

Form A-2

Declaration by an exporter, for obtaining Service Tax Code

(referred under paragraph 2 (c) and 3(d) of Notification No. ___/20__- ST dated __________)

 1.  Name of the exporter:

2.  Address of the registered office or head office of the Exporter :

3.  Permanent Account Number (PAN) of the Exporter :

4.  Import Export Code (IEC) of the Exporter:

5.  Details of Bank Account of the Exporter:

(a) Name of the Bank :

(b) Name of the Branch :

(c) Account Number :

6.  (a) Constitution of Exporter [Proprietorship/Partnership/Registered Private Limited Company/Registered Public Limited Company/Others (specify)]

(b) Name, address and telephone number of proprietor/partner/director

7.  Name, designation and address of the authorised signatory/signatories:

8.  I/We hereby declare that-

(i)  the information given in this application form is true, correct and complete in every respect and that I am authorised to sign on behalf of the exporter;

(ii)  I/we shall maintain records pertaining to specified services used for export of goods and shall make available, at the declared premises, at all reasonable time, such records for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be.

(Signature of the applicant/authorised person with stamp)

Date:

Place:

Schedule of rates

The Chapter or sub-Heading and descriptions of goods in the following Schedule are aligned with the tariff items and descriptions of goods in the First Schedule to the Customs Tariff Act, 1975(51 of 1975). The General Rules for the Interpretation of the First Schedule to the said Customs Tariff Act, 1975 shall mutatis mutandis apply for classifying the export goods listed in the Schedule.

Sl. No.

Chapter or sub-Heading No.

Description of goods

Rate

(1)

(2)

(3)

(4)

1

01

Live animal Nil

2

02

Meat and edible meat offal 0.12

3

03

Fish and crustaceans, molluscs and other aquatic invertebrates 0.12

4

04

Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included 0.12

5

05

Product of animal origin not elsewhere specified or included. 0.12

6

06

Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage 0.12

7

 07

Edible vegetables and certain roots and tubers 0.12

8

08

Edible fruits and nuts, peel of citrus fruit or melons 0.12

9

09

Coffee, tea, mate and spices 0.12

10

10

Cereals 0.12

11

11

Products of the milling industry; malt; starches; inulin; wheat gluten. 0.12

12

12

Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial and medicinal plants; straw and fodder 0.12

13

13

Lac; gums, resins and other vegetable saps and extracts 0.12

14

14

Vegetable plaiting materials; vegetable products, not elsewhere specified or included. 0.12

15

15

Animal or vegetable fats and oils and their cleavage products prepared edible fats; animal or vegetable waxes 0.12

16

16

Preparations of meat, or fish or of crustaceans, molluscs or other aquatic invertebrates 0.12

17

17

Sugars and sugar confectionery 0.12

18

18

Cocoa and cocoa preparations 0.12

19

19

Preparations of cereals, flour, starch or milk; pastry cooks’ products 0.12

20

20

Preparation of vegetables, fruits, nuts or other parts of plants 0.20

21

21

Miscellaneous edible preparations 0.12

22

2201

Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter not flavoured; ice and snow 0.12

23

2202

Waters, including mineral waters and aerated waters containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 2009 0.12

24

2203

Beer made from malt 0.12

25

2204

Wine of fresh grapes, including fortified wines; grape must other than that of heading 2009 0.12

26

2205

Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances 0.12

27

2206

Other fermented beverages (for example cider, perry, mead); mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included 0.12

28

2207

Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher; ethyl alcohol and other spirits, denatured, of any strength 0.12

29

2208

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.; spirit, liquors and other spirituous beverages 0.12

30

2209

Vinegar and substitutes for vinegar obtained from acetic acid 0.12

31

23

 Residues and waste from the food industries; prepared animal fodder 0.06

32

24

Tobacco and manufactured tobacco substitutes 0.04

33

25

Salt; sulphur; earths and stone; plastering materials, lime and cement 0.12

34

26

Ores, slag and ash 0.20

35

27

Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes Nil

36

28

Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes 0.12

37

29

Organic chemicals 0.12

38

30

Pharmaceutical products 0.20

39

31

Fertilizers Nil

40

32

Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks 0.04

41

33

Essential oils and resinoids; perfumery, cosmetic or toilet preparations 0.12

42

34

Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modeling pastes, “dental waxes” and dental preparations with a basis of plaster 0.12

43

35

Albuminoidal substances; modified starches; glues; enzymes 0.12

44

36

Explosives 0.12

45

37

Photographic or cinematographic goods 0.12

46

38

Miscellaneous chemical products 0.12

47

39

Plastics and articles thereof 0.12

48

40

Rubber and articles thereof 0.06

49

41

Raw hides and skins (other than fur skins) and leather 0.04

50

4201

Saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), of any material 0.12

51

4202

Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping-bags, wallets, purses, map-cases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottle- cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paper-board, or wholly or mainly covered with such materials or with paper 0.12

52

4203

Articles of apparel and clothing accessories, of leather or of composition leather 0.12

53

4204

Omitted

54

4205

Other articles of leather or of composition leather 0.12

55

4206

Articles of gut (other than silk-worm gut), of goldbeater’s skin, of bladders or of tendons 0.12

56

4301

Raw fur skins (including heads, tails, paws and other pieces or cuttings, suitable for furriers’ use), other than raw hides and skins of headings 4101, 4102 or 4103 Nil

57

4302

Tanned or dressed fur skins (including heads, tails, paws and other pieces or cuttings), unassembled, or assembled (without the addition of other materials) other than those of heading 4303 0.12

58

4303

Articles of apparel, clothing accessories and other articles of fur skin 0.12

59

4304

Artificial fur and articles thereof 0.12

60

4401

Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms Nil

61

4402

Wood charcoal (including shell or nut charcoal), whether or not agglomerated Nil

62

4403

Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared Nil

63

4404

Hoop wood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking sticks, umbrellas, tool handles or the like; chip wood and the like Nil

64

4405

Wood wool; wood flour Nil

65

4406

Railway or tramway sleepers (crossties) of wood Nil

66

4407

Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end jointed, of a thickness exceeding 6 mm Nil

67

4408

Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm 0.12

68

4409

Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, v-jointed, beaded, moulded, rounded or the like) along any of its edges or faces, whether or not planed, sanded or end-jointed 0.12

69

4410

Particle board, oriented strand board (OSB) and similar board (for example wafer board) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances 0.12

70

4411

Fiberboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances 0.12

71

4412

Plywood, veneered panels and similar laminated wood 0.12

72

4413

Densified wood, in blocks, plates, strips or profile shapes 0.12

73

4414

Wooden frames for paintings, photographs, mirrors or similar objects 0.12

74

4415

Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, Box pallets and other load boards, of wood; pallet collars of wood 0.12

75

4416

Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves 0.12

76

4417

Tools, tool bodies, tool handles, broom or brush bodies and handles, of wood; boot or shoe lasts and trees, of wood 0.12

77

4418

Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, Shingles and shakes 0.12

78

4419

Tableware and kitchenware, of wood 0.12

79

4420

Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling in chapter 94 0.12

80

4421

Other articles of wood 0.12

81

45

Cork and articles of cork Nil

82

46

Manufactures of straw, of esparto or of other plaiting materials; basket-ware and wickerwork. 0.12

83

47

Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard Nil

84

4801

Newsprint, in rolls or sheets 0.12

85

4802

Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non perforated punch card and punch tape paper , in rolls or rectangular (including square)sheets of any size, other than paper of heading 4801 or 4803; hand-made paper and paperboard 0.12

86

4803

Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibres, whether or not creped, crinkled, embossed, perforated, surface-coloured, surface-decorated or printed, in rolls or sheets 0.12

87

4804

Uncoated craft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803 0.12

88

4805

Other uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specified in Note 3 to this Chapter 0.12

89

4806

Vegetable parchment, greaseproof papers, tracing papers and glassine and other glazed transparent or translucent papers, in rolls or sheets 0.12

90

4807

Composite paper and paperboard (made by sticking flat layers of paper or paperboard together with an adhesive), not surface-coated or impregnated, whether or not internally reinforced, in rolls or sheets 0.12

91

4808

Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803 0.12

92

4809

Carbon paper, self-copy paper and other copying or transfer papers (including coated or impregnated paper for duplicator stencils or offset plates), whether or not printed, in rolls or sheets 0.12

93

4810

Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface – coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size 0.12

94

4811

Paper, paperboard, cellulose wadding and webs of cellulose fibres, coated, impregnated, covered, surface coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810 0.12

95

4812

Filter blocks, slabs and plates, of paper pulp 0.12

96

4813

Cigarette paper, whether or not cut to size or in the form of booklets or tubes 0.12

97

4814

Wallpaper and similar wall coverings; window transparencies of paper 0.12

98

4815

Omitted

99

4816

Carbon-paper, self-copy paper and other copying or transfer papers (other than those of heading 4809), duplicator stencils and offset plates, of paper, whether or not put up in boxes 0.12

100

4817

Envelopes, letter cards, plain postcards and correspondence cards, of paper or paperboard; boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery 0.18

101

4818

Toilet paper and similar paper, cellulose wadding or webs of cellulose fibres, of a kind used for household or sanitary purposes, in rolls of a width not exceeding 36 cm, or cut to size or shape; handkerchiefs, cleansing tissues, towels, table cloths, serviettes, napkins for babies, tampons, bed sheets and similar household, sanitary or hospital articles, articles of apparel and clothing accessories, of paper pulp, paper, cellulose wadding or webs of cellulose fibres 0.18

102

4819

Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like 0.18

103

4820

Registers, account books, note books, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, excise books, blotting-pads, binders (loose-leaf or other), folders, file covers, manifold business forms, interleaved carbon sets and other articles of stationery, of paper or paperboard; albums for samples or for collections and book covers, of paper or paperboard 0.18

104

4821

Paper or paperboard labels of all kinds, whether or not printed 0.18

105

4822

Bobbins, spools, cops and similar supports of paper pulp, paper or paperboard (whether or not perforated or hardened) 0.18

106

4823

Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres 0.18

107

49

Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans 0.12

108

50

Silk 0.12

109

51

Wool, fine or coarse animal hair, horsehair yarn and woven fabrics 0.12

110

5201

Cotton, not carded or combed 0.04

111

5202

Cotton waste (including yarn waste and garnetted stock) 0.04

112

5203

Cotton, carded or combed 0.04

113

5204

Cotton sewing thread, whether or not put up for retail sale 0.04

114

5205

Cotton yarn (other than sewing thread), containing 85% or more by weight of cotton, not put up for retail sale 0.06

115

5206

Cotton yarn (other than sewing thread), containing less than 85% by weight of cotton, not put up for retail sale 0.06

116

5207

Cotton yarn (other than sewing thread) put up for retail sale 0.06

117

5208

Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200 g/m2 0.12

118

5209

Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200 g/m2 0.12

119

5210

Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200 g/m2 0.12

120

5211

Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200 g/m2 0.12

121

5212

Other woven fabrics of cotton 0.12

122

53

Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn 0.12

123

5401

Sewing thread of man-made filaments, whether or not put up for retail sale 0.06

124

5402

Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex 0.06

125

5403

Artificial filament yarn (other than sewing thread), not put for retail sale, including artificial mono filament of less than 67 decitex 0.06

126

5404

Synthetic monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of synthetic textile materials of an apparent width not exceeding 5 mm 0.06

127

5405

Artificial monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of artificial textile materials of an apparent width not exceeding 5 mm 0.06

128

5406

Man-made filament yarn (other than sewing thread), put up for retail sale 0.06

129

5407

Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404 0.12

130

5408

Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of heading 5405 0.12

131

5501

Synthetic filament tow 0.06

132

5502

Artificial filament tow 0.06

133

5503

Synthetic staple fibres, not carded, combed or otherwise processed for spinning 0.06

134

5504

Artificial staple fibres, not carded, combed or otherwise processed for spinning 0.06

135

5505

Waste (including noils, yarn waste and garneted stock) of man-made fibres 0.06

136

5506

Synthetic staple fibres, carded, combed or otherwise processed for spinning 0.06

137

5507

Artificial staple fibres, carded, combed or otherwise processed for spinning 0.06

138

5508

Sewing thread of man-made staple fibres, whether or not put up for retail sale 0.06

139

5509

Yarn (other than sewing thread) of synthetic staple fibres, not put up for retail sale 0.06

140

5510

Yarn (other than sewing thread) of artificial staple fibres, not put up for retail sale 0.06

141

5511

Yarn (other than sewing thread) of man-made staple fibres, put up for retail sale 0.06

142

5512

Woven fabrics of synthetic staple fibres, containing 85% or more by weight of synthetic staple fibres 0.12

143

5513

Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight not exceeding 170g/m2 0.12

144

5514

Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight exceeding 170 g/m2 0.12

145

5515

Other woven fabrics of synthetic staple fibres 0.12

146

5516

Woven fabrics of artificial staple fibres 0.12

147

56

Wadding, felt and non-woven; special yarns; twine, cordage, ropes and cables and articles thereof 0.12

148

57

Carpets and other textile floor coverings 0.12

149

58

Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery 0.12

150

59

Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use 0.12

151

60

Knitted or crocheted fabrics 0.12

152

61

Articles of apparel and clothing accessories, knitted or crocheted 0.18

153

62

Articles of apparel and clothing accessories, not knitted or crocheted 0.18

154

63

Other made up textiles articles; sets; worn clothing and worn textile articles; rags 0.18

155

64

Footwear, gaiters and the like; parts of such articles 0.12

156

65

Headgear and parts thereof 0.06

157

66

Umbrellas, sun umbrellas, walking-sticks, whips, riding-crops and parts thereof 0.04

158

67

Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair 0.12

159

68

Articles of stone, plaster, cement, asbestos, mica or similar materials 0.18

160

69

Ceramic products 0.18

161

70

Glass and glassware 0.18

162

71

Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metals, and articles thereof; imitation jewellery; coin 0.06

163

7201

Pig iron and spiegeleisen in pigs, blocks or other primary forms 0.08

164

7202

Ferro alloys 0.08

165

7203

Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having minimum purity by weight of 99.94%, in lumps, pellets or similar forms 0.08

166

7204

Ferrous waste and scrap; remelting scrap ingots of iron or steel 0.08

167

7205

Granules and powders, of pig iron, spiegeleisen, iron or steel 0.08

168

7206

Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203) 0.08

169

7207

Semi-finished products of iron or non-alloy steel 0.08

170

7208

Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated 0.08

171

7209

Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated 0.08

172

7210

Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated 0.08

173

7211

Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated 0.08

174

7212

Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated 0.08

175

7213

Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel 0.08

176

7214

Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling 0.08

177

7215

Other bars and rods of iron or non-alloy steel 0.08

178

7216

Angles, shapes and sections of iron or non-alloy steel 0.08

179

7217

Wire of iron or non-alloy steel 0.08

180

7218

Stainless steel in ingots or other primary forms; semi-finished products of stainless steel 0.08

181

7219

Flat-rolled products of stainless steel, of a width of 600 mm or more 0.08

182

7220

Flat-rolled products of stainless steel, of a width of less than 600 mm 0.08

183

7221

Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel 0.08

184

7222

Other bars and rods of stainless steel; angles, shapes and sections of stainless steel 0.08

185

7223

Wire of stainless steel 0.08

186

7224

Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel 0.08

187

7225

Flat-rolled products of other alloy steel, of a width of 600 mm or more 0.08

188

7226

Flat-rolled products of other alloy steel, of a width of less than 600 mm 0.08

189

7227

Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel 0.08

190

7228

Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel 0.08

191

7229

Wire of other alloy steel 0.08

192

7301

Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel 0.08

193

7302

Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish-plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialized for jointing or fixing rails 0.08

194

7303

Tubes, pipes and hollow profiles, of cast iron 0.08

195

7304

Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel 0.08

196

7305

Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406.4 mm, of iron or steel 0.08

197

7306

Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel 0.08

198

7307

Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel 0.08

199

7308

Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel 0.08

200

7309

Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 0.08

201

7310

Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 0.08

202

7311

 Containers for compressed or liquefied gas, of iron or steel 0.08

203

7312

Stranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated 0.08

204

7313

Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or not, and loosely twisted double wire, of a kind used for fencing of iron or steel 0.08

205

7314

Cloth (including endless bands), Grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel 0.08

206

 7315

Chain and parts thereof, of iron or steel 0.08

207

7316

Anchors, grapnels and parts thereof, of iron or steel 0.08

208

 7317

Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper 0.08

209

 7318

Screws, bolts, nuts, coach-screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel 0.08

210

 7319

Sewing needles, knitting needles, bodkins, crochet hooks, embroidery stilettos and similar articles, for use in the hand, of iron or steel; safety pins and other pins, of iron or steel, not elsewhere specified or included 0.08

211

 7320

Springs and leaves for springs, of iron or steel 0.08

212

7321

Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, and parts thereof, of iron or steel 0.08

213

7322

Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel 0.08

214

7323

Table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel 0.08

215

7324

Sanitary ware and parts thereof, of iron or steel 0.08

216

7325

Other cast articles of iron or steel 0.08

217

7326

Other articles of iron and steel 0.08

218

7401

Copper mattes; cement copper (precipitated copper) 0.08

219

7402

Unrefined copper; copper anodes for electrolytic refining 0.08

220

7403

Refined copper and copper alloys, unwrought 0.08

221

7404

 Copper waste and scrap 0.08

222

7405

 Master alloys of copper 0.08

223

7406

 Copper powders and flakes 0.08

224

7407

 Copper bars, rods and profiles 0.08

225

7408

 Copper wire 0.08

226

7409

 Copper plates, sheets and strip, of a thickness exceeding 0.15 mm 0.08

227

 7410

Copper foil (whether or not printed or backed with paper, per board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.15 mm 0.08

228

7411

 Copper tubes and pipes 0.08

229

 7412

Copper tube or pipe fittings (for example, couplings, elbows, sleeves) 0.08

230

 7413

Stranded wire, cables, plated bands and the like, of copper, not electrically insulated 0.08

231

7414

 Omitted

232

7415

Nails, tacks, drawing pins, staples (other than those of heading 8305) and similar articles, of copper or of iron or steel with heads of copper; screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of copper 0.08

233

 7416

Omitted

234

 7417

Omitted

235

 7418

Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper; sanitary ware and parts thereof, of copper 0.08

236

7419

Other articles of copper 0.08

237

75

Nickel and articles thereof 0.08

238

 7601

Unwrought aluminium 0.08

239

 7602

Aluminium waste and scrap 0.08

240

 7603

Aluminium powders and flakes 0.08

241

 7604

Aluminium bars, rods and profiles 0.08

242

7605

Aluminium wire 0.08

243

7606

Aluminium plates, sheets and strip, of a thickness exceeding 0.2 mm 0.08

244

7607

Aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2mm 0.08

245

7608

Aluminium tubes and pipes 0.08

246

7609

Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves) 0.08

247

7610

Aluminium structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures 0.08

248

7611

Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 0.08

249

7612

Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 0.08

250

7613

Aluminium containers for compressed or liquefied gas 0.08

251

7614

Stranded wire, cables, plaited bands and the like, of aluminium, not electrically insulated 0.08

252

7615

Table, kitchen or other household articles and parts thereof, of aluminium; pot scourers and scouring or polishing pads, gloves and the like, of aluminium; sanitary ware and parts thereof, of aluminium 0.08

253

7616

Other articles of aluminium 0.08

254

78

Lead and articles thereof 0.06

255

79

Zinc and articles thereof 0.06

256

80

Tin and articles thereof 0.06

257

81

Other base metals; cermets, articles thereof 0.06

258

82

Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal 0.12

259

83

Miscellaneous articles of base metal 0.12

260

84

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 0.08

261

85

Electrical machinery and equipment and parts thereof ; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 0.08

262

86

Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds 0.06

263

8701

Tractors (other than tractors of heading 8709) 0.06

264

8702

Motor vehicles for the transport of ten or more persons, including the driver 0.06

265

8703

Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars 0.06

266

8704

Motor vehicles for the transport of goods 0.06

267

8705

Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixers lorries, spraying lorries, mobile workshops, mobile radiological units) 0.06

268

8706

Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705 0.06

269

8707

Bodies (including cabs), for the motor vehicles of headings 8701 to 8705 0.06

270

8708

Parts and accessories of the motor vehicles of headings 8701 to 8705 0.06

271

8709

Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles 0.06

272

8710

Tanks and other armoured fighting vehicles, motorized, whether or not fitted with weapons, and parts of such vehicles 0.06

273

8711

Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; 0.06

274

8712

Bicycles and other cycles (including delivery tricycles), not motorised 0.12

275

8713

Carriages for disabled persons, whether or not motorised or otherwise mechanically propelled 0.06

276

8714

Parts and accessories of vehicles of headings 8711 to 8713 0.12

277

8715

Baby carriages and parts thereof 0.06

278

8716

Trailers and semi-trailers; other vehicles, not mechanically propelled; parts thereof 0.06

279

88

Aircraft , spacecraft, and parts thereof 0.06

280

89

Ships, boats and floating structures 0.06

281

90

Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof 0.12

282

91

Clocks and watches and parts thereof 0.06

283

92

Musical instruments; parts and accessories of such articles 0.20

284

93

Arms and ammunition; parts and accessories thereof Nil

285

94

Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings 0.06

286

95

Toys, games and sports requisites; parts and accessories thereof 0.20

287

96

Miscellaneous manufactured articles 0.06

288

97

Works of art, collector’s’ pieces and antiques Nil

■■

Exemption to taxable services received by an exporter of goods and used for export of goods to the extent specified

Notification No 42/2012 – ST, dated 29-6-2012

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 said Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service received by an exporter of goods (hereinafter referred to as the exporter) and used for export of goods (hereinafter referred to as the said goods), of the description specified in column (2) of the Table below (hereinafter referred to as the specified service), from so much of the service tax leviable thereon under section 66B of the said Act, as is in excess of the service tax calculated on a value up to ten per cent of the free on board value of export goods for which the said specified service has been used, subject to the conditions specified in column (3) of the said Table, namely:-

TABLE

Sr. No.

Description of the taxable service

Conditions

(1)

 (2)

(3)

1.

Service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him. (1) The exporter shall declare the amount of commission paid or payable to the commission agent in the shipping bill or bill of export, as the case may be.

(2) The exemption shall be limited to the service tax calculated on a value of ten per cent of the free on board value of export goods for which the said service has been used.

(3) The exemption shall not be available on the export of canalised item, project export, or export financed under lines of credit extended by the Government of India or EXIM Bank, or export made by Indian partner in a company with equity participation in an overseas joint venture or wholly owned subsidiary.

(4) The exporter shall submit with the half-yearly return after certification of the same as specified in clause (g) of the proviso—

(i) the original documents showing actual payment of commission to the commission agent; and

(ii) a copy of the agreement or contract entered into between the commission agent located outside India and the exporter in relation to sale of export goods outside India:

Provided that-

(a)  the exemption shall be available to an exporter who,-

(i)  informs the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory or the regional office or the head office, as the case may be, in Form EXP3 appended to this notification, before availing the said exemption;

(ii)  is registered with an export promotion council sponsored by the Ministry of Commerce or the Ministry of Textiles, as the case may be;

(iii)  is a holder of Import-Export Code Number;

(iv)  is registered under section 69 of the said Act;

(v)  is liable to pay service tax under sub-section (2) of section 68 of said Act, read with item (G) of sub-clause (i) of clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules,1994, for the specified service;

(b)  the invoice, bill or challan, or any other document by whatever name called issued by the service provider to the exporter, on which the exporter intends to avail exemption, shall be issued in the name of the exporter.

(c)  the exporter availing the exemption shall file the return in Form EXP4, every six months of the financial year, within fifteen days of the completion of the said six months;

(d)  the exporter shall submit with the half yearly return, after certification, the documents in original specified in clause (b) and the certified copies of the documents specified in column (3) of the said Table;

(e)  the documents enclosed with the return shall contain a certification from the exporter or the authorised person, to the effect that specified service to which the document pertains, has been received and used for export of goods by mentioning the specific shipping bill number on the said document.

(f)  where the exporter is an individual or a proprietorship concern or an HUF or a partnership firm, the documents enclosed with the return shall be certified by the exporter himself and where the exporter is any other person, the documents enclosed with the return shall be certified by the person authorised by the Board of Directors or any other competent person;

(g)  where the amount of commission charged in respect of the specified service exceeds ten per cent. of the free on board value of the export then, the service tax shall be paid within the period specified under rule 6 of the Service Tax Rules, 1994, on such amount, which is in excess of the said ten per cent;

2. This notification shall come into force on the 1st day of July, 2012.

Form EXP3

[See item (i) of clause (a) of proviso ]

S.No———————-

(to be filled in by the office of jurisdictional Assistant / Deputy Commissioner)

To,

The Deputy Commissioner /Assistant Commissioner of Central Excise

Sir,

I/We intend to avail of the exemption from service tax under Notification No. …/2012-ST, dated ….June, 2012 in respect of services provided by a commission agent located outside India, which have been used for export of goods and the relevant particulars are as follows :

1.  Name of the exporter………

2.  Service Tax Registration No……….

3.  Division ……… Commissionerate ……………

4  Membership No. the Export Council………….

5  Name of the Export Council…………

6.  Address of the registered / head office of exporter:……..

7.  Tel. No. and e-mail ID of the exporter……..:

8.  Import -Export Code No…………..

9.  Details of Bank Account (Name of Bank, branch address and account number)……..

I/we undertake that I/we shall comply with the conditions laid down in the said notification and in case of any change in aforementioned particulars; I/We shall intimate the same.

Date:…..

Place:……..

Signature and full address of Exporter

(Affix stamp)

Receipt (to be given by office of Assistant Commissioner/ Deputy Commissioner having jurisdiction) Received Form EXP1 dated –/–/– submitted by __________( name of the exporter). The said intimation is accepted and given acknowledgment No. _____( S. No. Above)

For Assistant, / Deputy Commissioner

(Stamp)

Form EXP4

[See clause (c) of proviso]

To,

The Deputy Commissioner /Assistant Commissioner of Central Excise

Sir,

I/We have availed of exemption of service tax under Notification No. …/2012-ST, dated ……, 2012 in respect of services provided by a commission agent, located outside India and have used the same for export of goods and the relevant particulars are as follows:

1.  Name of the exporter………..

2.  Address of the registered / head office of exporter…………

3.  Tel. No. and e-mail ID of the exporter……..:

4.  Service Tax Registration No…….

5.  Division ……… Commissionerate ……………

6.  Membership No. Of the Export Council………

7.  Import Export Code No…………..

8.  Name of the Export Council………..

9.  Details of Bank Account (Name of Bank, branch address and account number)……..

TABLE-A

Sr. No.

 Details of goods exported (on which exemption of service tax availed) during the six months ending on…………………………..

Details of Shipping Bill/ Bill of export (Please enclose self attested copy of Shipping Bill or Bill of Export) and Details of goods exported (in case of exports of more than one commodity, please fill in the proforma, commodity-wise)

No.

Date

Date of Let export order

Export invoice no

Date

Description of goods exported

Quantity (please mention the unit)

FOB value (in rupees in lakh)

               

               

TABLE- B

Details of specified service used for export of goods, covered under the Shipping Bill or Bill of Export mentioned in Table A in respect of which the exemption has been availed during the six months ending on………………………….. Details of documents attached showing the use of such service for export, the details of which are mentioned in Table A (self attested) Total amount of service tax claimed as exemption (rupees in lakhs)

Name of service provider

Address of service provider

Invoice No.

Date

   
           
           

9. Declaration:-

I / We hereby declare that-

(i)  I have complied with all the conditions mentioned in Notification No. …/2012-ST, dated …. June, 2012;

(ii)  the information given in this application form is true, correct and complete in every respect and that I am authorised to sign on behalf of the exporter;

(iii)  no CENVAT credit of service tax paid on the specified service used for export of said goods taken under the CENVAT Credit Rules, 2004;

(iv)  I / we, am/ are enclosing all the required documents. Further, I understand that failure to file the return within stipulated time or non-enclosure of the required document, duly certified, would debar me/us for the refund claimed aforesaid.

Date:……..

Place:………

Signature and full address of Exporter

(Affix stamp)

Enclosures: as above

■■

 

 

section 66B of the finance act, 1994 – CHARGE OF service tax ON AND AFTER FINANCE ACT, 2012 – EXEMPTION to specified services RECEIVED BY EXPORTER OF GOODS – CORRIGENDUM

notification [F. NO.334/1/2012 -TRU], DATED 29-6-2012

In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 31/2012-Service Tax, dated the 20th June, 2012 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 473 (E), dated the 20th June, 2012, in the proviso, in clause (d),-

for “column (4)”, read “column (3)”.

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Section 68 of the Finance Act, 1994 – payment of service tax – service tax payable on specified services – CORRIGENDUM

Notification [F. No.334/1/2012 -TRU], dated 29-6-2012

In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 30/2012- Service Tax, dated the 20th June, 2012 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 472 (E), dated the 20th June, 2012, in para I, in clause (A), in sub-clause (iv), in item (B),-

for “support”, read “legal”.

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Section 66b of the finance act, 1994 – charge of service tax on and after finance act, 2012 – exemption to railways

Notification No. 43/2012-St, dated 2-7-2012

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 said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services of the description mentioned in the Table below, provided by the Indian Railways from the whole of service tax leviable thereon under section 66B of the said Act, with effect from the date of publication of this notification in the Official Gazette, upto and including the 30th day of September, 2012.

TABLE

Sl. No.

Description of taxable services

1.

Service of transportation of passengers, with or without accompanied belongings, by railways in —

(A) first class; or

(B) an air conditioned coach

2.

Services by way of transportation of goods by railways

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Service Tax (Second Amendment) Rules, 2012 – Corrigendum

Notification [F. No. 334/01/2012- TRU], dated 2-7-2012

In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2012-Service Tax, dated the 20th June, 2012 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 478 (E), dated the 20th June 2012, in rule 6A, in sub-rule (1), in clause (f),-

for “Explanation 2”, read “Explanation 3”.

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CIRCULARS AND NOTIFICATIONS ISSUED BY SERVICE TAX AUTHORITIES

FROM 15-06-12 TO 02-07-12

 

Service Tax (Removal of Difficulty) Order, 2012 – Amendment in section 68 of the Finance Act, 1994

Order No. 1/2012 [F. No. 334/1/2012-TRU], dated 15-6-2012

Whereas difficulties have arisen in giving effect to the provisions of section 143 of the Finance Act, 2012 (23 of 2012), insofar as it relates to insertion of section 66B in Chapter V of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act);

Now, therefore, in exercise of the powers conferred by sub-section (1-I) of section 95 of the Finance Act, the Central Government, hereby makes the following Order, namely:-

1. (1) This Order may be called the Service Tax (Removal of Difficulty) Order, 2012.

(2) This Order shall come into force on the 1st day of July, 2012.

2. In sub-sections (1) and (2) of section 68 of the Finance Act, for the figures “66”, the figures and letter “66B” shall be substituted.

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Section 65(83), read with section 65(105)(s) of the Finance Act, 1994 – Practicing Chartered Accountant – Clarification regarding leviability of Service Tax on audit fees collected by CAG

Circular No. 159/10/2012-ST, dated 19-6-2012

1. A doubt has been raised whether service tax is leviable on the audit fees collected by the CAG for conducting directly, audit of corporations. Reportedly some field formations are inclined to take a view that such ‘audit fee’ collected by the CAG is leviable to service tax under the authority of the inclusive portion of the definition of “practicing chartered accountant” read with the relevant definition of the taxable service [Section 65(83) read with section 65(105)(s) of Finance Act, 1994].

2. The issue has been examined. The definition of the practicing chartered accountant in section 65(83) of Finance Act, 1994 reads as follows:

“practicing chartered accountant” means person who is a member of the Institute of Chartered Accountants of India and is holding a certificate of practice granted under the provisions of the Chartered Accountants Act, 1949 (38 of 1949) and includes any concern engaged in rendering services in the field of chartered accountancy” [emphasis added].

3. According to the Law Lexicon [by Shri P. Ramanatha Aiyar] the expression “concern” means: “an organization or establishment for business”. It further elaborates that the word “concern” is a mercantile term. CAG being a constitutional authority cannot be considered as a concern in the same manner as a firm of chartered accountants. CAG is a constitutional authority and by no stretch of imagination be covered by the meaning of expression “concern” appearing in the definition of “practicing chartered accountant”.

4. It is further added that the words “in the field of chartered accountancy” would mean such services as are ordinarily rendered by a chartered accountant. The services of CAG are not services as are rendered by a chartered accountant even though both may be engaged in the sphere of the auditing. The scope of work of the CAG goes far beyond that of a statutory company auditor and is often carried out by persons who may not even be professional chartered accountants. These audits are done in terms of section 18 of the CAG (Duties, Powers and Conditions of Service) Act, 1971, which is entirely different from the powers vested in a chartered accountant under the Chartered Accountant Act, 1949.

5. The services of CAG are also not covered by the heading Business Support Services specified in clause (zzzq) of section 65. When the business support services were taxed for the first time in the year 2006, the TRU circular stated as follows:

“Business entities outsource a number of services for use in business or commerce. These services include transaction processing, routine administration or accountancy, customer relationship management and tele-marketing. There are also business entities which provide infrastructural support such as providing instant offices along with secretarial assistance known as “Business Centre Services”. It is proposed to tax all such outsourced services. If these services are provided on behalf of a person, they are already taxed under Business Auxiliary Service. Definition of support services of business or commerce gives indicative list of outsourced services.”

It is evident that this circular has clarified that the new service was meant to capture such services as are ordinarily outsourced by business entities. The audit activity is not an outsourced function but is carried out in statutory fulfillment of duties. Thus the services by CAG would also not be covered by the service head “Business Support Service”.

6. This circular may be communicated to the field formations and service tax assessees through Public Notice/Trade Notice.

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Service Tax (Removal of Difficulties) Second Order, 2012 – Insertion of Explanation to section 66B of the Finance Act, 1994

ORDER NO. 2/2012, dated 29-6-2012

Whereas difficulties have arisen in giving effect to the provisions of section 143 of the Finance Act, 2012 (23 of 2012), in so far as it relates to insertion of section 66B in Chapter V of the Finance Act, 1994 (32 of 1994);

Now, therefore, in exercise of the powers conferred by sub-section (1-I) of section 95 of the said Finance Act, the Central Government, hereby makes the following Order, namely:-

1. (1) This Order may be called the Service Tax (Removal of Difficulties) Second Order, 2012.

(2) It shall come into force on the 1st day of July, 2012.

2. In the Finance Act, 1994 (32 of 1994), after section 66B, the following Explanation shall be inserted, namely:-

Explanation.- For the removal of doubts, it is hereby clarified that the references to the provisions of section 66 in Chapter V of the Finance Act, 1994(32 of 1994) or any other Act, for the purpose of levy and collection of service tax, shall be construed as references to the provisions of section 66B.”

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Applicability of provisions of Finance Act, 2004 and 2007 relating to education cess and secondary & higher education cess respectively

Instruction D.O.F. No. 334/1/2012-TRU, dated 29-6-2012

You will be already aware that the Negative List, together with many other accompanying changes, comes into operation from July 1, 2012.

2. The necessary notifications from 25/2012-ST to 40/2012-ST and Notification No. 28/2012-CX (NT) were issued on June 20, 2012 and have comprehensive changes relating to exemptions, Place of Provision Rules, 2012, changes to Service Tax Rules, 1994, Cenvat Credit Rules, 2004 and details of all the notifications that are being rescinded.

3. Notification No. 52/2011-ST, dated 30-12-2011 relating to refunds on specified services has also been revised in accordance with the new regime and the new notification No. 41/2012-ST, dated 29-6-2012 has been issued under the revised section 93A. Services of commission agents to exporters on the existing lines have also been validated by the issue of Notification No. 42/2012-ST, dated 29-6-2012.

4. There has been some doubt regarding the applicability of provisions of the Finance Act, 2004 relating to education cess and the Finance Act, 2007 relating to secondary and higher education cess as the concerned acts make reference to section 66 of the Finance Act, 1994, which shall cease to have effect from July 1, 2012. In this connection, as also in general, you may kindly refer to the sub-section (1) of section 8 of the General Clauses Act, 1897 which reads as under:

“Where this Act, or any Central Act or Regulation made after reference to the commencement of this Act, repeals and re-enacts, with or without modification, any provision of a former enactment, then references in any other enactment or in any instrument to the provision so repealed shall, unless a different intention appears, be construed as references to the provisions so re-enacted.”

Thus any reference to section 66 of the Finance Act, 1994 shall be construed as reference to the newly re-enacted provision i.e. section 66B of the same Act. Despite the stated position of law, the matter has been settled by the issue of Removal of Difficulties Order No. 2/2012, dated 29-6-2012.

5. It may be noted that Notification No. 11/2005-ST, dated 19-4-2005 has not been rescinded to enable sanction of pending rebates. It shall, however, automatically cease to have effect for exports on or after July 1, 2012 as the Export of Services Rules, 2005 will stand superseded from the said date.

6. You may kindly go through all the changes and let me know at the earliest if anything is required in any manner for the smooth implementation of the new provisions.

7. The successful implementation of this reform requires an involved approach at all levels, in particular in the initial months. It is necessary that these changes are well understood by the tax payers as well as our staff. To this end CBEC has released an elaborate Educational Guide (with further improvisation over the draft Guidance Papers that were released at the time of budget) and adequate copies of the same should be available to you already or shortly. You may also like to download the same from CBEC website (from the dropdown menu under the title service tax).

8. It is clarified that any Board circular that is contrary to the revised law will stand automatically superseded. In case you have any doubt about any specific circular the same may be referred to the Board.

9. CBEC has already held five seminars during this month at Delhi, Chennai, Kolkata, Ahmedabad and Hyderabad for both the trade and some of the officers in and around these places. Seminar at Mumbai is scheduled on July 13, 2012.

10. It will be desirable if similar events are held locally, supplemented also by training of our officers who have to implement the new provisions. If you need, some of the TRU officers could also assist subject a little bit to the exigencies of work here. Those who desire may source a copy of the power point presentation from TRU (by sending a request at garg.vk@nic.in).

11. Despite a very elaborate consultative process starting from August, 2011, when the first concept paper was released, it is likely that the actual implementation of negative list will throw some issues that appear a little complex. You may like to discuss them appropriately within your own set up and in appropriate cases refer them to the Board for suitable examination. Any precipitated action will be ill-advised at the early stages of implementation unless the revenue is at immediate stakes.

12. A list of services that are likely to come into the tax net in your charge may be drawn and communicated to me. This would help us to share the same with other formations as also provide information from other formations to you so that a coordinated approach is followed until the system gets streamlined.

13. In general any case resulting in taxation of an activity that is not liable to tax under the present regime should at least receive the attention of the Commissioner in charge before it is taken up for any further action.

14. Of equal importance is to devote attention to activities that are presently liable to tax and may cease to be taxed in future. Some of these have been clearly exempted. There could be others where, either due to a particular interpretation or due to applicability of Place of Provision Rules, 2012 or in some other manner, an interpretation may be taken that the same are no more liable to tax. Such cases may be immediately identified and in case of doubt referred to the Board.

15. The allotment of accounting heads is being communicated by a separate communication.

16. A spirit of Helpfulness, Understanding and Guidance (HUG for short) should guide us in balancing our task keeping in perspective the enormity of changes that are being implemented shortly.

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Applicability of provisions of Finance Act, 2004 and 2007 relating to education cess and secondary & higher education cess respectively

Circular No. 160/11/2012-ST, dated 29-6-2012

There has been some doubt regarding the applicability of provisions of the Finance Act, 2004 relating to education cess and the Finance Act, 2007 relating to secondary and higher education cess as the concerned Acts make reference to section 66 of the Finance Act, 1994, which shall cease to have effect from July 1, 2012. In this connection, as also in general, you may kindly refer to the sub-section (1) of section 8 of the General Clauses Act, 1897 which reads as under:

“Where this Act, or any Central Act or Regulation made after reference to the commencement of this Act, repeals and re-enacts, with or without modification, any provision of a former enactment, then references in any other enactment or in any instrument to the provision so repealed shall, unless a different intention appears, be construed as references to the provisions so re-enacted.”

Thus any reference to section 66 of the Finance Act, 1994 shall be construed as reference to the newly re-enacted provision i.e. section 66B of the same Act. Despite the stated position of law, the matter has been settled by the issue of Removal of Difficulties Order No. 2/2012 dated 29.06.2012.

2. This circular may be communicated to the field formations and service tax assessees through Public Notice/Trade Notice.

■■

rule 5 of the CENVAT Credit Rules, 2004 – Refund of CENVAT Credit – Refund to be subjected to specified safeguards, conditions and limitations

Notification No. 27/2012-CE(N.T.), dated 18-6-2012

[SUPERSESSION OF NOTIFICATION NO. 5/2006-CE(N.T.), DATED 14-3-2006]

In exercise of the powers conferred by rule 5 of the CENVAT Credit Rules, 2004 (hereinafter referred to as the “said rules”), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No 5/2006 – Central Excise (N.T), dated the 14th March, 2006, published in Gazette of India, Extraordinary, part II, section 3, sub-section (i) vide number G.S.R 156(E), dated the 14th March, 2006, the Central Board of Excise and Customs hereby directs that refund of CENVAT credit shall be allowed subject to the procedure, safeguards, conditions and limitations as specified below, namely:-.

Safeguards, conditions and limitations.

2. Refund of CENVAT Credit under rule 5 of the said rules, shall be subjected to the following safeguards, conditions and limitations, namely:-

(a)  the manufacturer or provider of output service shall submit not more than one claim of refund under this rule for every quarter:

Provided that a person exporting goods and service simultaneously, may submit two refund claims one in respect of goods exported and other in respect of the export of services every quarter.

(b)  in this notification quarter means a period of three consecutive months with the first quarter beginning from 1st April of every year, second quarter from 1st July, third quarter from 1st October and fourth quarter from 1st January of every year.

(c)  the value of goods cleared for export during the quarter shall be the sum total of all the goods cleared by the exporter for exports during the quarter as per the monthly or quarterly return filed by the claimant.

(d)  the total value of goods cleared during the quarter shall be the sum total of value of all goods cleared by the claimant during the quarter as per the monthly or quarterly return filed by the claimant.

(e)  in respect of the services, for the purpose of computation of total turnover, the value of export services shall be determined in accordance with clause (D) of sub-rule (1) of rule 5 of the said rules.

(f)  for the value of all services other than export during the quarter, the time of provision of services shall be determined as per the provisions of the Point of Taxation Rules, 2011.

(g)  the amount of refund claimed shall not be more than the amount lying in balance at the end of quarter for which refund claim is being made or at the time of filing of the refund claim, whichever is less.

(h)  the amount that is claimed as refund under rule 5 of the said rules shall be debited by the claimant from his CENVAT credit account at the time of making the claim.

(i)  In case the amount of refund sanctioned is less than the amount of refund claimed, then the claimant may take back the credit of the difference between the amount claimed and amount sanctioned.

Procedure for filing the refund claim.

3. (a) The manufacturer or provider of output service, as the case may be, shall submit an application in Form A annexed to the notification, to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, in whose jurisdiction,-

(i)  the factory from which the final products are exported is situated.

(ii)  the registered premises of the provider of service from which output services are exported is situated.

(b) The application in the Form A along with the documents specified therein and enclosures relating to the quarter for which refund is being claimed shall be filed by the claimant, before the expiry of the period specified in section 11B of the Central Excise Act, 1944 (1 of 1944).

(c) The application for the refund should be signed by-

(i)  the individual or the proprietor in the case of proprietary firm or karta in case of Hindu Undivided Family as the case may be;

(ii)  any partner in case of a partnership firm;

(iii)  a person authorized by the Board of Directors in case of a limited company;

(iv)  in other cases, a person authorized to sign the refund application by the entity.

(d) The applicant shall file the refund claim along with the copies of bank realization certificate in respect of the services exported.

(e) The refund claim shall be accompanied by a certificate in Annexure A-I, duly signed by the auditor (statutory or any other) certifying the correctness of refund claimed in respect of export of services.

(f) The Assistant Commissioner or Deputy Commissioner to whom the application for refund is made may call for any document in case he has reason to believe that information provided in the refund claim is incorrect or insufficient and further enquiry needs to be caused before the sanction of refund claim.

(g) At the time of sanctioning the refund claim the Assistant Commissioner or Deputy Commissioner shall satisfy himself or herself in respect of the correctness of the claim and the fact that goods cleared for export or services provided have actually been exported and allow the claim of exporter of goods or services in full or part as the case may be.

 

ANNEXURE

FORM A

Application for refund of CENVAT Credit under rule 5 of the CENVAT  
Credit Rules, 2004 for the Quarter ending  

d

d

m

m

y

y

y

y

To,

The Assistant Commissioner or Deputy Commissioner of Central Excise,

………………………………………………………….

Sir,

I/ We have exported, the final products or output services during the Quarter and am/ are claiming the refund of CENVAT Credit in terms of Rule 5 of the CENVAT Credit Rules, 2004 as per the details below:

S. No.

Description

Amount in Rs.

1

Total value of the goods cleared for export and exported during the quarter.  

2

Export turnover of the services determined in terms of Clause D of sub-rule (1) of rule 5.  

3

Total CENVAT Credit taken on inputs and input services during the quarter.  

4

Amount reversed in terms of sub-rule (5C) of rule 3.  

5

Net CENVAT Credit = (3) – (4)  

6

Total value of all goods cleared during the quarter including exempted goods, dutiable goods and goods for export.  

7

Export turnover of services and value of all other services, provided during the said quarter.  

8

All inputs removed as such under sub-rule (5) of rule 3, against an invoice during the quarter.  

9

Total Turnover = (6) + (7) + (8)  

10

Refund amount as per the formula = (1) * (5)/(9), in respect of goods exported.  

11

Refund amount as per the formula = (2) * (5)/(9), in respect of services exported.  

12

Balance of CENVAT Credit available on the last day of quarter.  

13

Balance of CENVAT Credit available on the day of filing the refund claim.  

14

Amount claimed as refund, [Amount shall be less than the minimum of (10), (12) and (13) in case of goods or the minimum of (11), (12) and (13) in case of services].  

15

Amount debited from the CENVAT account [shall be equal to the Amount claimed as refund (14)].  

2. Details of the Bank Account to which the refund amount to be credited: Refund sanctioned in my favour should be credited in my/ our bank account.

Details furnished below;

(i)  Account Number :

(ii)  Name of the Bank :

(iii)  Branch (with address) :

3. Declaration

(i)  I/ We certify that the aforesaid particulars are correct.

(ii)  I/ We certify that we satisfy all the conditions that are contained in rule 5 of the CENVAT Credit Rules, 2004 and in notification No. /2012 – CE (N.T) dated June, 2012.

(iii)  I/ We am/ are the rightful claimant(s) of the refund of CENVAT Credit in terms of rule 5, the same may be allowed in our favour.

(iv)  I/ We declare that no separate claim for drawback or refund has been or will be made under the Customs and Central Excise Duties Service Tax Drawback Rules, 1995 or for claim of rebate under Central Excise Rules, 2002 or the Export of Services Rules, 2005 or under section 93 or 93A of Finance Act, 1994( 32 of 1994).

(v)  I/ We declare that we have not filed or will not file any other claim for refund under rule 5 of CENVAT Credit Rules, 2004, for the same quarter to which this claim relates.

Date

d

d

m

m

y

y

y

y

  Signature of the Claimant ………………………..
      Name of the Claimant ………………………..
      Registration Number ………………………..
      Address of the Claimant ………………………..

4. Enclosures:

(i)  Copies of Customs Certified ARE-1 form along with the copies of shipping bill and bill of lading in case of the export of goods.

(ii)  Copies of the Bank Realization Certificates for the export of services. [refer 3(d)]

(iii)  Certificate in Annexure A-I from the Auditor (statutory or any other) certifying the correctness of refund claimed in respect of export of services. [refer 3(e)]


5. Refund Order No.

Date

d

d

m

m

y

y

y

y

The refund claim filed by Shri/ Messrs __________________________________ has been scrutinized with the relevant Central Excise/ Service Tax records. The said refund claim has been examined with respect to relevant enclosures and has/ has not been found in order. A refund of Rs _____________ (Rupees _________________________________________) is sanctioned/ The refund claim filed is rejected.

Assistant Commissioner or Deputy Commissioner of Central Excise

Forwarded to-

(i)  The Chief Accounts officer, Central Excise, for information and necessary action.

(ii)  The Commissioner of Central Excise.

Assistant Commissioner or Deputy Commissioner of Central Excise


(i)  Passed for payment of Rs ______________ (Rupees ______________________ ). The amount is adjustable under head “0038 – Union Excise Duties – Deduct Refunds/ 0044 – Service tax – Deduct Refunds”.

(ii)  Amount credited to the account of the claimant as per the details below:

Amount refunded  
Account Number  
Reference No. of transfer  
Name of the Bank  
Address of the Branch  

 

Date

d

d

m

m

y

y

y

y

  Chief Accounts officer  

 


Annexure A – I

It is certified that:

(a)  I am qualified auditor to audit the books of account of M/s ____________________

(b)  I have audited the books of account of M/s __________________________ for the quarter ending __________________

(c)  The value of the export turnover of services and total turnover of services mentioned at S. Nos. 2 and 7 in the table in Form A.

(i)  Is correct as per the books of account and relevant records of M/s ______________

(ii)  Is in accordance with the provisions of rule 5 of the CENVAT Credit Rules, 2004.

Date

d

d

m

m

y

y

y

y

  Auditor  

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Section 66B of the Finance Act, 1994 – Charge of Service tax on and after Finance Act, 2012 – Exemption to specified services

Notification No. 25/2012-ST, dated 20-6-2012

[Supersession of Notification No. 12/2012 – ST, dated 17-3-2012]

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 said Act) and in supersession of notification number 12/2012- Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 210 (E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66B of the said Act, namely:—

1.  Services provided to the United Nations or a specified international organization;

2.  Health care services by a clinical establishment, an authorised medical practitioner or para-medics;

3.  Services by a veterinary clinic in relation to health care of animals or birds;

4.  Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities;

5.  Services by a person by way of —

(a)  renting of precincts of a religious place meant for general public; or

(b)  conduct of any religious ceremony;

6.  Services provided by —

(a)  an arbitral tribunal to –

(i)  any person other than a business entity; or

(ii)  a business entity with a turnover up to rupees ten lakh in the preceding financial year;

(b)  an individual as an advocate or a partnership firm of advocates by way of legal services to,-

(i)  an advocate or partnership firm of advocates providing legal services ;

(ii)  any person other than a business entity; or

(iii)  a business entity with a turnover up to rupees ten lakh in the preceding financial year; or

(c)  a person represented on an arbitral tribunal to an arbitral tribunal;

7.  Services by way of technical testing or analysis of newly developed drugs, including vaccines and herbal remedies, on human participants by a clinical research organisation approved to conduct clinical trials by the Drug Controller General of India;

8.  Services by way of training or coaching in recreational activities relating to arts, culture or sports;

9.  Services provided to or by an educational institution in respect of education exempted from service tax, by way of,-

(a)  auxiliary educational services; or

(b)  renting of immovable property;

10.  Services provided to a recognised sports body by-

(a)  an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body;

(b)  another recognised sports body;

11.  Services by way of sponsorship of sporting events organised,-

(a)  by a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, state or zone;

(b)  by Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat;

(c)  by Central Civil Services Cultural and Sports Board;

(d)  as part of national games, by Indian Olympic Association; or

(e)  under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;

12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –

(a)  a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;

(b)  a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);

(c)  a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment;

(d)  canal, dam or other irrigation works;

(e)  pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal; or

(f)  a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65 B of the said Act;

13.  Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-

(a)  a road, bridge, tunnel, or terminal for road transportation for use by general public;

(b)  a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;

(c)  a building owned by an entity registered under section 12 AA of the Income tax Act, 1961(43 of 1961) and meant predominantly for religious use by general public;

(d)  a pollution control or effluent treatment plant, except located as a part of a factory; or a structure meant for funeral, burial or cremation of deceased;

14.  Services by way of construction, erection, commissioning, or installation of original works pertaining to,-

(a)  an airport, port or railways, including monorail or metro;

(b)  a single residential unit otherwise than as a part of a residential complex;

(c)  low- cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;

(d)  post-harvest storage infrastructure for agricultural produce including a cold storages for such purposes; or

(e)  mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages;

15.  Temporary transfer or permitting the use or enjoyment of a copyright covered under clauses (a) or (b) of sub-section (1) of section 13 of the Indian Copyright Act, 1957 (14 of 1957), relating to original literary, dramatic, musical, artistic works or cinematograph films;

16.  Services by a performing artist in folk or classical art forms of (i) music, or (ii) dance, or (iii) theatre, excluding services provided by such artist as a brand ambassador;

17.  Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India;

18.  Services by way of renting of a hotel, inn, guest house, club, campsite or other commercial places meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent;

19.  Services provided in relation to serving of food or beverages by a restaurant, eating joint or a mess, other than those having (i) the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year, and (ii) a licence to serve alcoholic beverages;

20.  Services by way of transportation by rail or a vessel from one place in India to another of the following goods –

(a)  petroleum and petroleum products falling under Chapter heading 2710 and 2711 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(b)  relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

(c)  defence or military equipments;

(d)  postal mail or mail bags;

(e)  household effects;

(f)  newspaper or magazines registered with the Registrar of Newspapers;

(g)  railway equipments or materials;

(h)  agricultural produce;

(i)  foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages; or

(j)  chemical fertilizer and oilcakes;

21. Services provided by a goods transport agency by way of transportation of –

(a)  fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;

(b)  goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or

(c)  goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;

22. Services by way of giving on hire –

(a)  to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or

(b)  to a goods transport agency, a means of transportation of goods;

23. Transport of passengers, with or without accompanied belongings, by –

(a)  air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;

(b)  a contract carriage for the transportation of passengers, excluding tourism, conducted tour, charter or hire; or

(c)  ropeway, cable car or aerial tramway;

24. Services by way of vehicle parking to general public excluding leasing of space to an entity for providing such parking facility;

25. Services provided to Government, a local authority or a governmental authority by way of –

(a)  carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation; or

(b)  repair or maintenance of a vessel or an aircraft;

26. Services of general insurance business provided under following schemes –

(a)  Hut Insurance Scheme;

(b)  Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated Rural Development Programme);

(c)  Scheme for Insurance of Tribals;

(d)  Janata Personal Accident Policy and Gramin Accident Policy;

(e)  Group Personal Accident Policy for Self-Employed Women;

(f)  Agricultural Pumpset and Failed Well Insurance;

(g)  premia collected on export credit insurance;

(h)  Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture;

(i)  Jan Arogya Bima Policy;

(j)  National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);

(k)  Pilot Scheme on Seed Crop Insurance;

(l)  Central Sector Scheme on Cattle Insurance;

(m)  Universal Health Insurance Scheme;

(n)  Rashtriya Swasthya Bima Yojana; or

(o)  Coconut Palm Insurance Scheme;

27. Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-

(a)  the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and

(b)  a period of three years has not been elapsed from the date of entering into an agreement as an incubatee;

28. Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –

(a)  as a trade union;

(b)  for the provision of carrying out any activity which is exempt from the levy of service tax; or

(c)  up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex;

29. Services by the following persons in respective capacities –

(a)  sub-broker or an authorised person to a stock broker;

(b)  authorised person to a member of a commodity exchange;

(c)  mutual fund agent to a mutual fund or asset management company;

(d)  distributor to a mutual fund or asset management company;

(e)  selling or marketing agent of lottery tickets to a distributer or a selling agent;

(f)  selling agent or a distributer of SIM cards or recharge coupon vouchers;

(g)  business facilitator or a business correspondent to a banking company or an insurance company, in a rural area; or

(h)  sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;

30. Carrying out an intermediate production process as job work in relation to –

(a)  agriculture, printing or textile processing;

(b)  cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986);

(c)  any goods on which appropriate duty is payable by the principal manufacturer; or

(d)  processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year;

31. Services by an organiser to any person in respect of a business exhibition held outside India;

32. Services by way of making telephone calls from –

(a)  departmentally run public telephone;

(b)  guaranteed public telephone operating only for local calls; or

(c)  free telephone at airport and hospital where no bills are being issued;

33. Services by way of slaughtering of bovine animals;

34. Services received from a provider of service located in a non- taxable territory by –

(a)  Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;

(b)  an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or

(c)  a person located in a non-taxable territory;

35. Services of public libraries by way of lending of books, publications or any other knowledge- enhancing content or material;

36. Services by Employees’ State Insurance Corporation to persons governed under the Employees’ Insurance Act, 1948 (34 of 1948);

37. Services by way of transfer of a going concern, as a whole or an independent part thereof;

38. Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets;

39. Services by a governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243W of the Constitution.

2. Definitions. – For the purpose of this notification, unless the context otherwise requires, –

(a)  “Advocate” has the meaning assigned to it in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961 ( 25 of 1961);

(b)  “appropriate duty” means duty payable on manufacture or production under a Central Act or a State Act, but shall not include ‘Nil’ rate of duty or duty wholly exempt;

(c)  “arbitral tribunal” has the meaning assigned to it in clause (d) of section 2 of the Arbitration and Conciliation Act, 1996 (26 of 1996);

(d)  “authorised medical practitioner” means a medical practitioner registered with any of the councils of the recognised system of medicines established or recognized by law in India and includes a medical professional having the requisite qualification to practice in any recognised system of medicines in India as per any law for the time being in force;

(e)  “authorised person” means any person who is appointed as such either by a stock broker (including trading member) or by a member of a commodity exchange and who provides access to trading platform of a stock exchange or a commodity exchange as an agent of such stock broker or member of a commodity exchange;

(f)  “auxiliary educational services” means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge – enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution;

(g)  “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act,1934(2 of 1934);

(h)  “brand ambassador” means a person engaged for promotion or marketing of a brand of goods, service, property or actionable claim, event or endorsement of name, including a trade name, logo or house mark of any person;

(i)  “business facilitator or business correspondent” means an intermediary appointed under the business facilitator model or the business correspondent model by a banking company or an insurance company under the guidelines issued by Reserve Bank of India;

(j)  “clinical establishment” means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases;

(k)  “charitable activities” means activities relating to –

(i)  public health by way of –

(a)  care or counseling of (i) terminally ill persons or persons with severe physical or mental disability, (ii) persons afflicted with HIV or AIDS, or (iii) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or

(b)  public awareness of preventive health, family planning or prevention of HIV infection;

(ii) advancement of religion or spirituality;

(iii)  advancement of educational programmes or skill development relating to,-

(a)  abandoned, orphaned or homeless children;

(b)  physically or mentally abused and traumatized persons;

(c)  prisoners; or

(d)  persons over the age of 65 years residing in a rural area;

(iv)  preservation of environment including watershed, forests and wildlife; or

(v)  advancement of any other object of general public utility up to a value of,-

(a)  eighteen lakh and seventy five thousand rupees for the year 2012-13 subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during 2011-12;

(b) twenty five lakh rupees in any other financial year subject to the condition that total value of such activities had not exceeded twenty five lakhs rupees during the preceding financial year;

(l)  “commodity exchange” means an association as defined in section 2 (j) and recognized under section 6 of the Forward Contracts (Regulation) Act,1952 (74 of 1952);

(m)  “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(n)  “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air-conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit;

(o)  “distributor or selling agent” has the meaning assigned to them in clause (c) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), vide number G.S.R. 278(E), dated the 1st April, 2010 and shall include distributor or selling agent authorised by the lottery- organising State;

(p)  “general insurance business” has the meaning assigned to it in clause (g) of section 3 of General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);

(q)  “general public” means the body of people at large sufficiently defined by some common quality of public or impersonal nature;

(r)  “goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(s)  “governmental authority” means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W of the Constitution;

(t)  “health care services” means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma;

(u)  “incubatee” means an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognised by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India and who has entered into an agreement with the TBI or the STEP to enable himself to develop and produce hi-tech and innovative products;

(v)  “insurance company” means a company carrying on life insurance business or general insurance business;

(w)  “legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;

(x)  “life insurance business” has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(y)  “original works” means has the meaning assigned to it in Rule 2A of the Service Tax (Determination of Value) Rules, 2006;

(z)  “principal manufacturer” means any person who gets goods manufactured or processed on his account from another person;

(za)  “recognized sports body” means – (i) the Indian Olympic Association, (ii) Sports Authority of India, (iii) a national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliate federations, (iv) national sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government, (v) the International Olympic Association or a federation recognised by the International Olympic Association or (vi) a federation or a body which regulates a sport at international level and its affiliated federations or bodies regulating a sport in India;

(zb)  “religious place” means a place which is primarily meant for conduct of prayers or worship pertaining to a religion, meditation, or spirituality;

(zc)  “residential complex” means any complex comprising of a building or buildings, having more than one single residential unit;

(zd)  “rural area” means the area comprised in a village as defined in land revenue records, excluding-

the area under any municipal committee, municipal corporation, town area committee, cantonment board or notified area committee; or

any area that may be notified as an urban area by the Central Government or a State Government;

(ze) “single residential unit” means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family;

(zf) “specified international organization” means an international organization declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply;

(zg) “state transport undertaking” has the meaning assigned to it in clause (42) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(zh) “sub-broker” has the meaning assigned to it in sub-clause (gc) of clause 2 of the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992;

(zi) “trade union” has the meaning assigned to it in clause (h) of section 2 of the Trade Unions Act,1926(16 of 1926).

3. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of Service tax on and after Finance Act, 2012 – Exemption to specified services by way of abatement

Notification No. 26/2012- ST, dated 20-6-2012

[Supersession of Notification No. 13/2012-ST, dated 17-3-2012]

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 said Act), and in supersession of notification number 13/2012- Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 211 (E), dated the 17th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of the description specified in column (2) of the Table below, from so much of the service tax leviable thereon under section 66B of the said 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 (3) of the said Table, of the amount charged by such service provider for providing the said taxable service, unless specified otherwise, subject to the relevant conditions specified in the corresponding entry in column (4) of the said Table, namely;—

TABLE

Sl. No.

Description of taxable service

Percentage

Conditions

(1)

(2)

(3)

(4)

1.

Services in relation to financial leasing including hire purchase

10

Nil.

2.

Transport of goods by rail

30

Nil.

3.

Transport of passengers, with or without accompanied belongings by rail

30

Nil.

4.

Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises

70

(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

5.

Transport of passengers by air, with or without accompanied belongings

40

CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

6.

Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.

60

Same as above.

7.

Services of goods transport agency in relation to transportation of goods.

25

CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

8.

Services provided in relation to chit

70

Same as above.

9.

Renting of any motor vehicle designed to carry passengers

40

Same as above.

10.

Transport of goods in a vessel

50

Same as above.

11.

Services by a tour operator in relation to,-

(i) a package tour

25

(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

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

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

10

(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

(ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation.

(iii) 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.

(iii) any services other than specified at (i) and (ii) above.

40

(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii) The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.

12.

Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority

25

(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004.

(ii)The value of land is included in the amount charged from the service receiver.

Explanation. –

A. For the purposes of exemption at Serial number 1 –

(i)  The amount charged shall be an amount, forming or representing as interest, i.e. the difference between the installments paid towards repayment of the lease amount and the principal amount contained in such installments;

(ii)  the exemption shall not apply to an amount, other than an amount forming or representing as interest, charged by the service provider such as lease management fee, processing fee, documentation charges and administrative fee, which shall be added to the amount calculated in terms of (i) above.

B. For the purposes of exemption at Serial number 4 –

The amount charged shall be the sum total of the gross amount charged and the fair market value of all goods and services supplied in or in relation to the supply of food or any other article of human consumption or any drink (whether or not intoxicating) and whether or not supplied under the same contract or any other contract, after deducting-

(i)  the amount charged for such goods or services supplied to the service provider, if any; and

(ii)  the value added tax or sales tax, if any, levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

C. For the purposes of exemption at Serial number 12 –

The amount charged shall be the sum total of the amount charged for the service including the fair market value of all goods and services supplied by the recipient(s) in or in relation to the service, whether or not supplied under the same contract or any other contract, after deducting-

(i)  the amount charged for such goods or services supplied to the service provider, if any; and

(ii)  the value added tax or sales tax, if any, levied thereon:

Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.

2. For the purposes of this notification, unless the context otherwise requires,-

a.  “chit” means a transaction whether called chit, chit fund, chitty, kuri, or by whatever 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 a prize amount,

b.  “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,

c.  “tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours,

3. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of Service tax on and after Finance Act, 2012 – Exemption to services for Official use of Foreign Diplomatic Mission

Notification No. 27/2012-ST, dated 20-6-2012

In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services provided by any person, for the official use of a foreign diplomatic mission or consular post in India, or for personal use or for the use of the family members of diplomatic agents or career consular officers posted therein from whole of the service tax leviable under section 66B of the said Act, subject to the following conditions, namely:—

(i)  that the foreign diplomatic mission or consular post in India, or diplomatic agents or career consular officers posted therein, are entitled to exemption from service tax, as stipulated in the certificate issued by the Protocol Division of the Ministry of External Affairs, based on the principle of reciprocity;

(ii)  that in case of diplomatic agents or career consular officers posted in the foreign diplomatic mission or consular post in India, the Protocol Division of the Ministry of External Affairs or the Protocol Department of the State concerned issues to each of such diplomatic agent or career consular officer an identification card bearing unique identification number and containing a photograph and name of such diplomatic agent or career consular officer and the name of the foreign diplomatic mission or consular post in India, where he is posted;

(iii)  that the head of the foreign diplomatic mission or consular post, or any person of such mission or post authorised by him, shall furnish to the provider of taxable service, a copy of such certificate duly authenticated by him or the authorised person, alongwith an undertaking in original, signed by him or the authorised person, bearing running serial number commencing from a financial year and stating that the services received are for official purpose of the said foreign diplomatic mission or consular post; or for personal use of the said diplomatic agent or career consular officer or members of his/her family mentioning the unique identification number as appearing in the identification card issued to them and stating that the services received are for personal use of the said diplomatic agent or career consular officer or members of his/her family;

(iv)  that the head of the foreign diplomatic mission or consular post or the authorized person shall maintain an account of the undertakings issued during a financial year and the account shall contain;—

(a)  the serial number and date of issue of the undertakings;

(b)  in case of personal use of diplomatic agents or career consular officers posted in the foreign diplomatic mission or consular post in India, the name, designation and unique identification number of the diplomatic agent or career consular officer in favour of whom the undertaking has been issued;

(c)  the name and the registration number of the provider of taxable service; and

(d)  the description of taxable service and invoice number.

(v)  The invoice or bill, or as the case may be, the challan issued under the provisions contained in rule 4A of the Service Tax Rules, 1994, shall, in addition to the information required to be furnished under the said rule, contain the serial number and the date of the undertaking furnished by the said head of foreign diplomatic mission or consular post or in case of diplomatic agents or career consular officers posted in such foreign diplomatic mission or consular post in India, the unique identification number of the diplomatic agent or career consular officer, as the case may be; and

(vi)  that the provider of taxable service shall retain the documents referred to in the conditions (i), (ii) and (iii) along with a duplicate copy of the invoice issued, for the purposes of verification.

2. In case the Protocol Division of the Ministry of External Affairs, after having issued a certificate to any foreign diplomatic mission or consular post in India or as the case may be, the identification card issued to a diplomatic agent or career consular officer, decides to withdraw any one or both of them subsequently, it shall communicate the withdrawal of such certificate or identification card, as the case may be, to the foreign diplomatic mission or consular post.

3. The exemption from the whole of the service tax granted to the foreign diplomatic mission or consular post in India for official purpose or for the personal use or use of their family members shall not be available from the date of withdrawal of such certificate or identification card, as the case may be.

4. This notification shall come into force on the 1st day of July, 2012.

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Cenvat Credit (Sixth Amendment) Rules, 2012 – Amendment in rules 2, 3, 5, 6, 7, 9 & 13 and insertion of rule 5A

Notification No. 28/2012-CE (N.T), dated 20-6-2012

In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government, hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1) These rules may be called the CENVAT Credit (Sixth Amendment) Rules, 2012.

(2) They shall come into force on the 1st day of July, 2012.

2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule 2, –

(a)  in clause (a), –

(i)  in sub-clause (A), in item(viii), after the words, “their chassis” the words “but including dumpers and tippers” shall be inserted;

(ii)  for sub-clause (B), the following sub-clause shall be substituted, namely:-

“(B) motor vehicle designed for transportation of goods including their chassis registered in the name of the service provider, when used for-

(i)  providing an output service of renting of such motor vehicle; or

(ii)  transportation of inputs and capital goods used for providing an output service; or

(iii)  providing an output service of courier agency”

(iii)  for sub-clause (C), the following sub-clause shall be substituted, namely:-

“(C) motor vehicle designed to carry passengers including their chassis, registered in the name of the provider of service, when used for providing output service of-

(i)  transportation of passengers; or

(ii)  renting of such motor vehicle; or

(iii)  imparting motor driving skills”

(b)  for clause (e), the following shall be substituted, namely:-

‘(e) “exempted service” means a-

(1) taxable service which is exempt from the whole of the service tax leviable thereon; or

(2) service, on which no service tax is leviable under section 66B of the Finance Act; or

(3) taxable service whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken;

but shall not include a service which is exported in terms of rule 6A of the Service Tax Rules, 1994.’

(c)  in clause (k), for sub clause (B), the following sub-clause shall be substituted, namely:-

“(B) any goods used for –

(a)  construction or execution of works contract of a building or a civil structure or a part thereof; or

(b)  laying of foundation or making of structures for support of capital goods, except for the provision of service portion in the execution of a works contract or construction service as listed under clause (b) of section 66E of the Act;”

(d)  in clause (l),-

(i)  for the words “taxable service”, the words “output service” shall be substituted;

(ii)  in sub-clause (ii), for the words “but excludes services”, the words “but excludes” shall be substituted;

(iii)  for sub-clause (A), the following sub-clause shall be substituted, namely:-

“(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for –

(a)  construction or execution of works contract of a building or a civil structure or a part thereof; or

(b)  laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or”;

(iv)  in sub-clause (B), for the words, brackets, letters and figures “specified in sub-clauses (o) and (zzzzj) of clause (105) of section 65 of the Finance Act”, the words “services provided by way of renting of a motor vehicle” shall be substituted;

(v)  for sub-clause (BA), the following sub-clause shall be substituted, namely: –

“(BA) service of general insurance business, servicing, repair and maintenance , in so far as they relate to a motor vehicle which is not a capital goods, except when used by –

(a)  a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person ; or

(b)  an insurance company in respect of a motor vehicle insured or reinsured by such person; or”;

(e)  for clause (p), the following clause shall be substituted, namely:-

‘(p) “output service” means any service provided by a provider of service located in the taxable territory but shall not include a service,-

(1) specified in section 66D of the Finance Act; or

(2) where the whole of service tax is liable to be paid by the recipient of service.’

3. In rule 3 of the said rules,-

(a)  in sub-rule (1),-

(i)  for the words, “provider of taxable service”, wherever they occur, the word ” provider of output service” shall be substituted;

(ii)  after item (ixa), the following item shall be inserted, namely:-

“(ixb) the service tax leviable under section 66B of the Finance Act;”,

(iii)  after item (xi), in item (i), for the words “premises of” the words “by” shall be substituted;

(b)  after sub-rule (4) of the said rules, following shall be inserted, namely:-

“Explanation. – CENVAT credit cannot be used for payment of service tax in respect of services where the person liable to pay tax is the service recipient”

(c)  in the proviso to sub-rule (5B), for the words “taxable services” the words “output services” shall be substituted;

4. In rule 5,-

(i)  in sub-rule (2), in the second proviso, for the words and figures “Export of Services Rules, 2005” the words and figures, “Service Tax Rules, 1994” shall be substituted;

(ii)  in Explanation 1, for the words and figures “the provisions of Export of Services Rules, 2005, whether the payment is received or not” the words, figures and letter “rule 6A of the Service Tax Rules 1994” shall be substituted;

5. In the said rules, after rule 5A, the following rule shall be inserted, namely:-

“5B.Refund of CENVAT credit to service providers providing services taxed on reverse charge basis.A provider of service providing services notified under sub-section (2) of section 68 of the Finance Act and being unable to utilise the CENVAT credit availed on inputs and input services for payment of service tax on such output services, shall be allowed refund of such unutilised CENVAT credit subject to procedure, safeguards, conditions and limitations, as may be specified by the Board by notification in the Official Gazette.

6. In the said rules, in rule 6,-

(i)  in the marginal heading, for the words “provider of taxable service” the words, “provider of output service” shall be substituted;

(ii)  in sub-rule (3), after the second proviso, the following proviso shall be inserted, namely:-

“Provided that in case of transportation of goods or passengers by rail the amount required to be paid under clause (i) shall be an amount equal to 2 per cent. of value of the exempted services.”

(iii)  in sub-rule (3A), in clauses (a), (b), (c) and (h), for the words “taxable” wherever they occur, the words, “output” shall be substituted;

(iv)  in sub-rule 3(B), for the words, brackets, letters and figures “providing taxable service specified in sub-clause (zm) of clause (105) of section 65 of the Finance Act” the words, “engaged in providing services by way of extending deposits, loans or advances” shall be substituted;

(v)  in sub-rule 3(D), for the Explanation I, the following Explanation shall be substituted, namely:-

Explanation I. – “Value” for the purpose of sub-rules (3) and (3A),-

(a)  shall have the same meaning as assigned to it under section 67 of the Finance Act, read with rules made thereunder or, as the case may be, the value determined under section 3, 4 or 4A of the Excise Act, read with rules made thereunder;

(b)  in the case of a taxable service, when the option available under sub-rules (7),(7A),(7B) or (7C) of rule 6 of the Service Tax Rules, 1994, has been availed, shall be the value on which the rate of service tax under section 66B of the Finance Act, read with an exemption notification, if any, relating to such rate, when applied for calculation of service tax results in the same amount of tax as calculated under the option availed; or

(c)  in case of trading, shall be the difference between the sale price and the cost of goods sold (determined as per the generally accepted accounting principles without including the expenses incurred towards their purchase) or ten per cent of the cost of goods sold, whichever is more.

(d)  in case of trading of securities, shall be the difference between the sale price and the purchase price of the securities traded or one per cent. of the purchase price of the securities traded, whichever is more.

(e)  shall not include the value of services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;”

(vi)  for sub-rule (6A), the following sub-rules shall be inserted, namely:-

“(7) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the taxable services are provided, without payment of service tax, to a unit in a Special Economic Zone or to a developer of a Special Economic Zone for their authorised operations or when a service is exported,

(8) For the purpose of this rule, a service provided or agreed to be provided shall not be an exempted service when:-

(a)  the service satisfies the conditions specified under rule 6A of the Service Tax Rules, 1994 and the payment for the service is to be received in convertible foreign currency; and

(b)  such payment has not been received for a period of six months or such extended period as maybe allowed from time-to-time by the Reserve Bank of India, from the date of provision.”

7. In the said rules, in rule 7,-

(i)  for clause (d), the following clause shall be substituted, namely:-

“(d) credit of service tax attributable to service used in more than one unit shall be distributed pro rata on the basis of the turnover during the relevant period of the concerned unit to the sum total of the turnover of all the units to which the service relates during the same period.”

(ii)  after Explanation 2, the following Explanation shall be inserted, namely:-

Explanation 3. – (a) The relevant period shall be the month previous to the month during which the CENVAT credit is distributed.

(b) In case if any of its unit pays tax or duty on quarterly basis as provided in rule 6 of Service Tax Rules, 1994 or rule 8 of Central Excise Rules, 2002 then the relevant period shall be the quarter previous to the quarter during which the CENVAT credit is distributed.

(c) In case of an assessee who does not have any total turnover in the said period, the input service distributor shall distribute any credit only after the end of such relevant period wherein the total turnover of its units is available.”

8. In the said rules, in rule 9, in sub-rule (2), in the proviso, for the words, “provider of taxable service”, the words “provider of output service” shall be substituted;

9. In the said rules, in rule 13, for the words “taxable service” wherever they occur, the words, “output service” shall be substituted.

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Place of Provision of Services Rules, 2012

Notification No. 28/2012 – ST, dated 20-6-2012

[Supersession of Notification No.9/2005-ST, dated 3-3-2005 and notification no.11/2006-st, dated 19-5-2007]

In exercise of the powers conferred by sub-section (1) of section 66C and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 9/2005-ST, dated the 3rd March, 2005 published in the Gazette of India Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 151 (E), dated the 3rd March, 2005 and the notification of the Government of India in the Ministry of Finance, Department of Revenue, number 11/2006-ST, dated the 19th May, 2006 published in the Gazette of India Extraordinary, Part II, Section 3, Sub-Section (i) vide number G.S.R. 227 (E), dated the 19th May, 2006, except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following rules for the purpose of determination of the place of provision of services, namely:-

Short title, extent and commencement

1. (1) These rules may be called the Place of Provision of Services Rules, 2012.

(2) They shall come into force on 1st day of July, 2012.

Definitions

2. In these rules, unless the context otherwise requires,-

(a)  “Act” means the Finance Act, 1994 (32 of 1994);

(b)  “account” means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account;

(c)  “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

(d)  “continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by one service provider or through one agent acting on behalf of more than one service provider, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued;

(e)  “financial institution” has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act,1934 (2 of 1934);

(f)  “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the ‘main’ service) between two or more persons, but does not include a person who provides the main service on his account.;

(g)  “leg of journey” means a part of the journey that begins where passengers embark or disembark the conveyance, or where it is stopped to allow for its servicing or refueling, and ends where it is next stopped for any of those purposes;

(h)  “location of the service provider” means-

(a)  where the service provider has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;

(b)  where the service provider is not covered under sub-clause (a):

(i)  the location of his business establishment; or

(ii)  where the services are provided from a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or

(iii)  where services are provided from more than one establishment, whether business or fixed, the establishment most directly concerned with the provision of the service; and

(iv)  in the absence of such places, the usual place of residence of the service provider.

(i)  “location of the service receiver” means:-

(a)  where the recipient of service has obtained a single registration, whether centralized or otherwise, the premises for which such registration has been obtained;

(b)  where the recipient of service is not covered under sub-clause (a):

(i)  the location of his business establishment; or

(ii)  where services are used at a place other than the business establishment, that is to say, a fixed establishment elsewhere, the location of such establishment; or

(iii)  where services are used at more than one establishment, whether business or fixed, the establishment most directly concerned with the use of the service; and

(iv)  in the absence of such places, the usual place of residence of the recipient of service.

Explanation:-. For the purposes of clauses (h) and (i), “usual place of residence” in case of a body corporate means the place where it is incorporated or otherwise legally constituted.

Explanation 2:-. For the purpose of clause (i), in the case of telecommunication service, the usual place of residence shall be the billing address.

(j)  “means of transport” means any conveyance designed to transport goods or persons from one place to another;

(k)  “non-banking financial company” means-

(i)  a financial institution which is a company; or

(ii)  a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; or

(iii)  such other non-banking institution or class of such institutions, as the Reserve Bank of India may, with the previous approval of the Central Government and by notification in the Official Gazette specify;

(l)   “online information and database access or retrieval services” means providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;

(m)  “person liable to pay tax” shall mean the person liable to pay service tax under section 68 of the Act or under sub-clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules, 1994;

(n)  “provided” includes the expression “to be provided”;

(o)  “received” includes the expression “to be received”;

(p)  “registration” means the registration under rule 4 of the Service Tax Rules, 1994;

(q)  “telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means but shall not include broadcasting services.

(r)  words and expressions used in these rules and not defined, but defined in the Act, shall have the meanings respectively assigned to them in the Act.

Place of provision generally

3. The place of provision of a service shall be the location of the recipient of service:

Provided that in case the location of the service receiver is not available in the ordinary course of business, the place of provision shall be the location of the provider of service.

Place of provision of performance based services

4. The place of provision of following services shall be the location where the services are actually performed, namely:-

(a)  services provided in respect of goods that are required to be made physically available by the recipient of service to the provider of service, or to a person acting on behalf of the provider of service, in order to provide the service:

Provided that when such services are provided from a remote location by way of electronic means the place of provision shall be the location where goods are situated at the time of provision of service:

Provided further that this sub-rule shall not apply in the case of a service provided in respect of goods that are temporarily imported into India for repairs, reconditioning or reengineering for re-export, subject to conditions as may be specified in this regard.

(b)  services provided to an individual, represented either as the recipient of service or a person acting on behalf of the recipient, which require the physical presence of the receiver or the person acting on behalf of the receiver, with the provider for the provision of the service.

Place of provision of services relating to immovable property

5. The place of provision of services provided directly in relation to an immovable property, including services provided in this regard by experts and estate agents, provision of hotel accommodation by a hotel, inn, guest house, club or campsite, by whatever, name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including architects or interior decorators, shall be the place where the immovable property is located or intended to be located.

Place of provision of services relating to events

6. The place of provision of services provided by way of admission to, or organization of, a cultural, artistic, sporting, scientific, educational, or entertainment event, or a celebration, conference, fair, exhibition, or similar events, and of services ancillary to such admission, shall be the place where the event is actually held.

Place of provision of services provided at more than one location

7. Where any service referred to in rules 4, 5, or 6 is provided at more than one location, including a location in the taxable territory, its place of provision shall be the location in the taxable territory where the greatest proportion of the service is provided.

Place of provision of services where provider and recipient are located in taxable territory

8. Place of provision of a service, where the location of the provider of service as well as that of the recipient of service is in the taxable territory, shall be the location of the recipient of service.

Place of provision of specified services

9. The place of provision of following services shall be the location of the service provider:-

(a)  Services provided by a banking company, or a financial institution, or a non-banking financial company, to account holders;

(b)  Online information and database access or retrieval services;

(c)  Intermediary services;

(d)  Service consisting of hiring of means of transport, upto a period of one month.

Place of provision of goods transportation services

10. The place of provision of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of the goods:

Provided that the place of provision of services of goods transportation agency shall be the location of the person liable to pay tax.

Place of provision of passenger transportation service

11. The place of provision in respect of a passenger transportation service shall be the place where the passenger embarks on the conveyance for a continuous journey.

Place of provision of services provided on board a conveyance

12. Place of provision of services provided on board a conveyance during the course of a passenger transport operation, including services intended to be wholly or substantially consumed while on board, shall be the first scheduled point of departure of that conveyance for the journey.

Powers to notify description of services or circumstances for certain purposes

13. In order to prevent double taxation or non-taxation of the provision of a service, or for the uniform application of rules, the Central Government shall have the power to notify any description of service or circumstances in which the place of provision shall be the place of effective use and enjoyment of a service.

Order of application of rules

14. Notwithstanding anything stated in any rule, where the provision of a service is, prima facie, determinable in terms of more than one rule, it shall be determined in accordance with the rule that occurs later among the rules that merit equal consideration.

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Section 66B of the Finance Act, 1994 – Charge of Service tax on and after Finance Act, 2012 – Exemption on property tax paid on immovable property

Notification No. 29/2012- ST, dated 20-6-2012

[Supersession of Notification No. 24/2007-ST, dated 22-5-2007]

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), and in supersession of the Government of India in the Ministry of Finance (Department of Revenue) notification No. 24/2007-Service Tax, dated the 22nd May, 2007, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 370 (E), dated the 22nd May, 2007, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of renting of an immovable property, from so much of the service tax leviable thereon under section 66B of the said Finance Act, as is in excess of the service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely property tax levied and collected by local bodies:

Provided that any amount such as interest, penalty paid to the local authority by the service provider on account of delayed payment of property tax or any other reasons shall not be treated as property tax for the purposes of deduction from the gross amount charged:

Provided further that wherever the period for which property tax paid is different from the period for which service tax is paid or payable, property tax proportionate to the period for which service tax is paid or payable shall be calculated and the amount so calculated shall be excluded from the gross amount charged for renting of the immovable property for the said period, for the purposes of levy of service tax.

Example:

Property tax paid for April to September = Rs. 12,000/-

Rent received for April = Rs. 1, 00,000/-

Service tax payable for April = Rs. 98,000/- (1, 00,000 -12,000/6) * applicable rate of service tax

2. This notification shall come into force on the 1st day of July, 2012.

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Section 68 of the Finance Act, 1994 – Payment of service tax – Service tax payABLE on specified services

Notification No. 30/2012-ST, dated 20-6-2012 [Corrected by corrigendum [f. no. 334/1/2012-tru], dated 29-6-2012

[Supersession of Notification No. 15/2012-ST, dated 17-3-2012 and NOTIFICATION No. 36/2004-ST, dated 31-12-2004]

In exercise of the powers conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of 1994), and in supersession of (i) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 15/2012-Service Tax, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 213(E), dated the 17th March, 2012, and (ii) notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2004-Service Tax, dated the 31st December, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 849 (E), dated the 31st December, 2004, except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies the following taxable services and the extent of service tax payable thereon by the person liable to pay service tax for the purposes of the said sub-section, namely:-

I. The taxable services,-

(A)   (i)  provided or agreed to be provided by an insurance agent to any person carrying on the insurance business;

(ii)  provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,-

(a)  any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(c)  any co-operative society established by or under any law;

(d)  any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e)  any body corporate established, by or under any law; or

(f)  any partnership firm whether registered or not under any law including association of persons;

(iii) provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firm located in the taxable territory;

(iv) provided or agreed to be provided by,-

(A) an arbitral tribunal, or

(B) an individual advocate or a firm of advocates by way of legal* services, or

(C) Government or local authority by way of support services excluding,-

(1) renting of immovable property, and

(2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994,

to any business entity located in the taxable territory;

(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 or service portion in execution of works contract by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory;

(B) provided or agreed to be provided by any person which is located in a non-taxable territory and received by any person located in the taxable territory;

(II) The extent of service tax payable thereon by the person who provides the service and the person who receives the service for the taxable services specified in (I) shall be as specified in the following Table, namely:-

TABLE

Sl. No.

Description of a service

Percentage of service tax payable by the person providing service

Percentage of service tax payable by the person receiving the service

1.

in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business

Nil

100%

2.

in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road

Nil

100%

3.

in respect of services provided or agreed to be provided by way of sponsorship

Nil

100%

4.

in respect of services provided or agreed to be provided by an arbitral tribunal

Nil

100%

5.

in respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services

Nil

100%

6.

in respect of services provided or agreed to be provided by Government or local authority by way of support services excluding,- (1) renting of immovable property, and (2) services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994

Nil

100%

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

Nil

100 %

(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

60%

40%

8.

in respect of services provided or agreed to be provided by way of supply of manpower for any purpose

25%

75 %

9.

in respect of services provided or agreed to be provided in service portion in execution of works contract

50%

50%

10.

in respect of any taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory

Nil

100%

Explanation-I. – The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.

Explanation-II. – In works contract services, where both service provider and service recipient is the persons liable to pay tax, the service recipient has the option of choosing the valuation method as per choice, independent of valuation method adopted by the provider of service.

2. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of service tax on and after Finance Act, 2012 – Exemption to specified services received by exporter of goods

Notification No. 31/2012-ST, dated 20-6-2012 [Corrected by corrigendum [f. no. 334/1/2012-tru], dated 29-6-2012

[Supersession of Notification No. 18/2009-ST, dated 7-7-2009]

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 said Act) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 18/2009-Service Tax, dated the 7th July, 2009, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 490 (E), dated the 7th July, 2009, except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service received by an exporter of goods (hereinafter referred to as the exporter) and used for export of goods (hereinafter referred to as the said goods), of the description specified in column (2) of the Table below (hereinafter referred to as the specified service), from the whole of the service tax leviable thereon under section 66B of the said Act, subject to the conditions specified in column (3) of the said Table, namely:-

TABLE

Sr. No.

Description of the taxable service

Conditions

(1)

 (2)

(3)

1.

Service provided to an exporter for transport of the said goods by goods transport agency in a goods carriage from any container freight station or inland container depot to the port or airport, as the case may be, from where the goods are exported; or Service provided to an exporter in relation to transport of the said goods by goods transport agency in a goods carriage directly from their place of removal, to an inland container depot, a container freight station, a port or airport, as the case may be, from where the goods are exported. The exporter shall have to produce the consignment note, by whatever name called, issued in his name.

Provided that-

(a)  the exemption shall be available to an exporter who,-

(i)  informs the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory or the regional office or the head office, as the case may be, in Form EXP1 appended to this notification, before availing the said exemption;

(ii)  is registered with an export promotion council sponsored by the Ministry of Commerce or the Ministry of Textiles, as the case may be;

(iii)  is a holder of Import-Export Code Number;

(iv)  is registered under section 69 of the said Act;

(v)  is liable to pay service tax under sub-section (2) of section 68 of said Act, read with item (B) of sub-clause (i) of clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules,1994, for the specified service;

(b)  the invoice, bill or challan, or any other document by whatever name called issued by the service provider to the exporter, on which the exporter intends to avail exemption, shall be issued in the name of the exporter, showing that the exporter is liable to pay the service tax in terms of item (v) of clause (a);

(c)  the exporter availing the exemption shall file the return in Form EXP2, every six months of the financial year, within fifteen days of the completion of the said six months;

(d)  the exporter shall submit with the half yearly return, after certification, the documents in original specified in clause (b) and the certified copies of the documents specified in column (3)* of the said Table;

(e)  the documents enclosed with the return shall contain a certification from the exporter or the authorised person, to the effect that taxable service to which the document pertains, has been received and used for export of goods by mentioning the specific shipping bill number on the said document.

(f)  where the exporter is a proprietorship concern or partnership firm, the documents enclosed with the return shall be certified by the exporter himself and where the exporter is a limited company, the documents enclosed with the return shall be certified by the person authorised by the Board of Directors;

2. This notification shall come into force on the 1st day of July, 2012.

Form EXP1

[See item (i) of clause (a) of proviso ]

S.No———————-

(to be filled in by the office of jurisdictional Assistant / Deputy Commissioner)

To, The Deputy Commissioner/Assistant Commissioner of Central Excise

Sir,

I/We intend to avail of the exemption from service tax under Notification No. 31/2012-ST, dated 20th June, 2012 in respect of service for transport of the said goods by road, which has been used for export of goods and the relevant particulars are as follows.

1. Name of the exporter………

2. Service Tax Registration No……….

3. Division ……… Commissionerate ……………

4. Membership No. the Export Council………….

5. Name of the Export Council…………

6. Address of the registered / head office of exporter:……..

7. Tel. No. and e-mail ID of the exporter……..:

8. Import -Export Code No…………..

9. Details of Bank Account (Name of Bank, branch address and account number)……..

I/we undertake that I/we shall comply with the conditions laid down in the said notification and in case of any change in aforementioned particulars; I/We shall intimate the same.

Date:…..

Place:……..

Signature and full address of Exporter

(Affix stamp)

Receipt (to be given by office of Assistant Commissioner/ Deputy Commissioner having jurisdiction) Received Form EXP1 dated –/–/– submitted by __________( name of the exporter). The said intimation is accepted and given acknowledgment No. _____( S. No. Above)

For Assistant, / Deputy Commissioner

(Stamp)

Form EXP2

[See clause (c) of proviso]

To, The Deputy Commissioner /Assistant Commissioner of Central Excise

Sir,

I/We have availed of exemption of service tax under Notification No. 31/2012-ST, dated 20th June, 2012 in respect of services, namely, the services provided for transport of said goods in a goods carriage by goods transport agency, and has used the same for export of goods during the period from …… to….. .. and the relevant particulars are as follows:-

1. Name of the exporter………..

2. Address of the registered / head office of exporter…………

3. Tel. No. and e-mail ID of the exporter……..:

4. Service Tax Registration No…….

5. Division ……… Commissionerate ……………

6. Membership No. Of the Export Council………

7. Import Export Code No…………..

8. Name of the Export Council………..

9. Details of Bank Account (Name of Bank, branch address and account number)……..

TABLE-A

Sr. No. Details of goods exported (on which exemption of service tax availed) during the six months ending on…………………………..
  Details of Shipping Bill/ Bill of export (Please enclose self attested copy of Shipping Bill or Bill of Export) and Details of goods exported (in case of exports of more than one commodity, please fill in the proforma, commodity-wise)
 

No.

Date

Date of Let export order

Export invoice no

Date

Description of goods exported

Quantity (please mention the unit)

FOB value (in rupees in lakh)

                 
                 

TABLE- B

Details of specified service used for export of goods, covered under the Shipping Bill or Bill of Export mentioned in Table A in respect of which the exemption has been availed during the six months ending on………………………….. Details of documents attached showing the use of such service for export, the details of which are mentioned in Table A (self attested) Total amount of service tax claimed as exemption (rupees in lakhs)
Name of service provider Address of service provider Invoice No. Date  
           

9. Declaration:-

I / We hereby declare that-

(i)  I have complied with all the conditions mentioned in Notification No. 31/2012-ST, dated 20th June, 2012;

(ii)  the information given in this application form is true, correct and complete in every respect and that I am authorised to sign on behalf of the exporter;

(iii)  no CENVAT credit of service tax paid on the specified service used for export of said goods taken under the CENVAT Credit Rules, 2004;

(iv)  I/we, am/are enclosing all the required documents. Further, I understand that failure to file the return within stipulated time or non-enclosure of the required document, duly certified, would debar me/us for the refund claimed aforesaid.

Date :………….

Place :………….

Signature and full address of Exporter

(Affix stamp)

■Section 66B of the Finance Act, 1994 – Charge of Service Tax on and after Finance Act, 2012 – Exemption to services provided by TBI/STEP

Notification No. 32/2012-ST, dated 20-6-2012

[Supersession of Notification No. 9/2007-ST, dated 1-3-2007]

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) and in supersession of the Government of India in the Ministry of Finance (Department of Revenue) notification number 9/2007-ST, dated the 1st March, 2007, published in the Gazette of India, Extraordinary, vide number G.S.R. 163 (E), dated the 1st March,2007, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services, provided or to be provided, by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India, from the whole of the service tax leviable thereon under section 66B of the said Finance Act, subject to following conditions, namely:-

1.  that the STEP or the TBI, who intends to avail the exemption, shall furnish the requisite information in Format I below containing the details of the incubator along with the information in Format II below received from each incubatee to the concerned Assistant Commissioner or the Deputy Commissioner of Central Excise, as the case may be, before availing the exemption; and

2.  that the STEP or the TBI shall furnish the information in the said Format I and Format II in the same manner before the 30th day of June of each financial year.

Format – I – Information to be furnished by TBI or the STEP

Filed in the financial year ………….

(a)  Name of the Technology Business Incubator/Science and Technology Entrepreneurship Park ………………..

(b)  Address …………….

(c)  Whether availing benefit of exemption for first time ………………

(d)  If the answer to 3 is not in affirmative, the date from which benefit is being availed ………..

(e)  Details of taxable services provided during the previous financial year :-

  Sl. No. Description of Taxable Service

Value of taxable Service Provided

 

To incubatee

To others

         

(f)  Details of Taxable services provided by incubatees as per enclosure …………………..

Place ………………..

Date ……………….

Signature of the authorised person

Acknowledgement

I hereby acknowledge the receipt of Format I for the period …………………

Place ………………..

Date ……………

Signature of the Officer of Central Excise and Service Tax (with Name and Official seal)

Format II – Information to be obtained by TBI / STEP from each incubatee and to be filed along with Format I

1. Name of the Incubatee ………………

2. Address ……………….

3. Details of the project ……………….

4. Date of signing agreement with the TBI/STEP (incubator) …………….

5. Total business turnover during the previous financial year ……………..

6. Details of taxable services provided during the previous financial year ……………..

Sl. No. Description of Taxable Service Value of Service Provided
     

Place ………

Date ………….

Signature of the authorized person

2. This notification shall come into force on the 1st day of July, 2012.

■■

Section 66B of the Finance Act, 1994 – Charge of Service Tax on and after Finance Act, 2012 – Exemption to small service providers

Notification No. 33/2012-ST, dated 20-6-2012

[Supersession of Notification No. 6/2005-ST, dated 1-3-2005]

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 said Finance Act), and in supersession of the Government of India in the Ministry of Finance (Department of Revenue) notification No. 6/2005-Service Tax, dated the 1st March, 2005, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. number 140(E), dated the 1st March, 2005, except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B of the said Finance Act:

Provided that nothing contained in this notification shall apply to,-

(i)  taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or

(ii)  such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules,1994.

2. The exemption contained in this notification shall apply subject to the following conditions, namely:-

(i)  the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;

(ii)  the provider of taxable service shall not avail the CENVAT credit of service tax paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 (herein after referred to as the said rules), used for providing the said taxable service, for which exemption from payment of service tax under this notification is availed of;

(iii)  the provider of taxable service shall not avail the CENVAT credit under rule 3 of the said rules, on capital goods received, during the period in which the service provider avails exemption from payment of service tax under this notification;

(iv)  the provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax, and used for the provision of taxable services for which service tax is payable;

(v)  the provider of taxable service who starts availing exemption under this notification shall be required to pay an amount equivalent to the CENVAT credit taken by him, if any, in respect of such inputs lying in stock or in process on the date on which the provider of taxable service starts availing exemption under this notification;

(vi)  the balance of CENVAT credit lying unutilised in the account of the taxable service provider after deducting the amount referred to in sub-paragraph (v), if any, shall not be utilised in terms of provision under sub-rule (4) of rule 3 of the said rules and shall lapse on the day such service provider starts availing the exemption under this notification;

(vii)  where a taxable service provider provides one or more taxable services from one or more premises, the exemption under this notification shall apply to the aggregate value of all such taxable services and from all such premises and not separately for each premises or each services; and

(viii)  the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

3. For the purposes of determining aggregate value not exceeding ten lakh rupees, to avail exemption under this notification, in relation to taxable service provided by a goods transport agency, the payment received towards the gross amount charged by such goods transport agency under section 67 of the said Finance Act for which the person liable for paying service tax is as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994, shall not be taken into account.

Explanation. – For the purposes of this notification,-

(A)  “brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person;

(B)  “aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of the said Finance Act under any other notification.”

4. This notification shall come into force on the 1st day of July, 2012.

■■

Section 65(105)(zzzo) of the Finance Act, 1994 – Transport of passengers by air service – Abatement provision – Supersession of specified NOTIFICATIONS

Notification No. 34/2012-ST, dated 20-6-2012

In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby rescinds the following notifications of the Government of India in the Ministry of Finance (Department of Revenue), as specified in column (2) of the Table below, except as respects things done or omitted to be done before such recession namely:-

TABLE

SL. No. (1)

Notification No. and Date (2)

1.

 06/2012- Service Tax, dated 17-03-2012.[G.S.R. 204(E), dated 17-03-2012]

2.

 45/2011 – Service Tax, dated 12-09-2011.[G.S.R. 672(E), dated 12-09-2011]

3.

 42/2011 – Service Tax, dated 25-07-2011.[G.S.R. 566(E), dated 25-07-2011]

4.

 33/2011 – Service Tax, dated 25-04-2011.[G.S.R 341(E) dated 25-04-2011]

5.

 31/2011 – Service Tax, dated 25-04-2011.[G.S.R 339(E) dated 25-04-2011]

6.

 30/2011 – Service Tax, dated 25-04-2011.[G.S.R 338(E) dated 25-04-2011]

7.

 11/2011 – Service Tax, dated 01-03-2011 .[G.S.R 168(E) dated 01-03-2011]

8.

 10/2011 – Service Tax, dated 01-03-2011 .[G.S.R.167(E) dated 01-03-2011]

9.

 09/2011 – Service Tax, dated 01-03-2011. [G.S.R.166(E) dated 01-03-2011]

10.

 08/2011 – Service Tax, dated 01-03-2011. [G.S.R.165(E) dated 01-03-2011]

11.

 07/2011 – Service Tax, dated 01-03-2011. [G.S.R.164(E) dated 01-03-2011]

12.

 06/2011 – Service Tax, dated 01-03-2011. [G.S.R. 163(E) dated 01-03-2011]

13.

 05/2011 – Service Tax, dated 01-03-2011. [G.S.R. 162(E) dated 01-03-2011]

14.

 58/2010 – Service Tax, dated 21-12-2010. [G.S.R.996(E) dated 21-12-2010]

15.

 53/2010 – Service Tax, dated 21-12-2010. [G.S.R.991(E) dated 21-12-2010]

16.

 50/2010 – Service Tax, dated 08-10-2010. [G.S.R.823(E) dated 08-10-2010]

17.

 47/2010 – Service Tax, dated 03-09-2010. [G.S.R 727(E) dated 03-09-2010]

18.

 42/2010 – Service Tax, dated 28-06-2010. [G.S.R.563(E) dated 28-06-2010]

19.

 41/2010 – Service Tax, dated 28-06-2010. [G.S.R.562(E) dated 28-06-2010]

20.

 38/2010 – Service Tax, dated 28-06-2010. [G.S.R.559(E) dated 28-06-2010]

21.

 32/2010 – Service Tax, dated 22-06-2010. [G.S.R.538(E) dated 22-06-2010]

22.

 31/2010 – Service Tax, dated 22-06-2010. [G.S.R.537(E) dated 22-06-2010]

23.

 30/2010 – Service Tax, dated 22-06-2010. [G.S.R.536(E) dated 22-06-2010]

24.

 28/2010 – Service Tax, dated 22-06-2010. [G.S.R.534(E) dated 22-06-2010]

25.

 27/2010 – Service Tax, dated 22-06-2010. [G.S.R.533(E) dated 22-06-2010]

26.

 25/2010 – Service Tax, dated 22-06-2010. [G.S.R. 531(E)dated 22-06-2010]

27.

 23/2010 – Service Tax, dated 29-04-2010. [G.S.R.345(E) dated 29-04-2010]

28.

 13/2010 – Service Tax, dated 27-02-2010. [G.S.R.157(E) dated 27-02-2010]

29.

 12/2010 – Service Tax, dated 27-02-2010. [G.S.R.156(E) dated 27-02-2010]

30.

 11/2010 – Service Tax, dated 27-02-2010. [G.S.R.155(E) dated 27-02-2010]

31.

 10/2010 – Service Tax, dated 27-02-2010. [G.S.R.154(E) dated 27-02-2010]

32.

 08/2010 – Service Tax, dated 27-02-2010. [G.S.R.152(E) dated 27-02-2010]

33.

 42/2009 – Service Tax, dated 12-11-2009. [G.S.R.821(E) dated 12-11-2009]

34.

 41/2009 – Service Tax, dated 23-10-2009. [G.S.R.776(E) dated 23-10-2009]

35.

 39/2009 – Service Tax, dated 23-09-2009. [G.S.R.696(E) dated 23-09-2009]

36.

 33/2009- Service Tax, dated 1-9-2009. [G.S.R.627(E) dated 1-9-2009]

37.

 32/2009 – Service Tax, dated 1-09-2009. [G.S.R.626(E) dated 1-9-2009]

38.

 31/2009 – Service Tax, dated 1-09-2009. [G.S.R.625(E) dated 1-9-2009]

39.

 30/2009 – Service Tax, dated 31-08-2009. [G.S.R.619(E) dated 31-08-2009]

40.

 24/2009- Service Tax, dated 27-7-2009. [G.S.R.551(E) dated 27-7-2009]

41.

 20/2009 – Service Tax, dated 07-07-2009. [G.S.R.492(E) dated 07-07-2009]

42.

 19/2009 – Service Tax, dated 07-07-2009. [G.S.R.491(E) dated 07-07-2009]

43.

 01/2009 – Service Tax, dated 05-01-2009. [G.S.R.10(E) dated 05-01-2009]

44.

 14/2008 – Service Tax, dated 01-03-2008. [G.S.R.158(E) dated 01-03-2008]

45.

 13/2008- Service Tax, dated 01-03-2008. [G.S.R.157(E) dated 01-03-2008]

46.

 34/2007 – Service Tax, dated 23-05-2007. [G.S.R.387(E) dated 23-05-2007]

47.

 33/2007 – Service Tax, dated 23-05-2007. [G.S.R.386(E) dated 23-05-2007]

48.

 25/2007- Service Tax, dated 22-05-2007. [G.S.R.371(E) dated 22-05-2007]

49.

 12/2007- Service Tax dated 01-03-2007. [G.S.R.166(E) dated 01-03-2007]

50.

 11/2007- Service Tax dated 01-03-2007. [G.S.R.165(E) dated 01-03-2007]

51.

 10/2007- Service Tax dated 01-03-2007. [G.S.R.164(E) dated 01-03-2007]

52.

 08/2007- Service Tax dated 01-03-2007. [G.S.R.162(E) dated 01-03-2007]

53.

 22/2006- Service Tax, dated 31-05-2006. [G.S.R.328(E) dated 31-05-2006]

54.

 06/2006- Service Tax, dated 01-03-2006. [G.S.R.120(E) dated 01-03-2006]

55.

 04/2006- Service Tax, dated 01-03-2006. [G.S.R.118(E) dated 01-03-2006]

56.

 01/2006- Service Tax, dated 01-03-2006. [G.S.R.115(E) dated 01-03-2006]

57.

 29/2005- Service Tax, dated 15-07-2005. [G.S.R.477(E) dated 15-07-2005]

58.

 21/2005- Service Tax, dated 07-06-2005. [G.S.R.363(E) dated 07-06-2005]

59.

 17/2005- Service Tax, dated 07-06-2005. [G.S.R.359(E) dated 07-06-2005]

60.

 08/2005- Service Tax, dated 01-03-2005. [G.S.R.142(E) dated 01-03-2005]

61.

 34/2004- Service Tax, dated 03-12-2004. [G.S.R.789(E) dated 03-12-2004]

62.

 33/2004- Service Tax, dated 3-12-2004. [G.S.R.788(E) dated 3-12-2004]

63.

 29/2004- Service Tax, dated 22-09-2004. [G.S.R.632(E) dated 22-09-2004]

64.

 24/2004- Service Tax, dated 10-09-2004. [G.S.R.598(E) dated 10-09-2004]

65.

 17/2004- Service Tax, dated 10-09-2004. [G.S.R.591(E) dated 10-09-2004]

66.

 14/2004- Service Tax, dated 10-09-2004. [G.S.R.588(E) dated 10-09-2004]

67.

 13/2004- Service Tax, dated 10-09-2004. [G.S.R.587(E) dated 10-09-2004]

68.

 16/2003- Service Tax, dated 11-07-2003. [G.S.R.542(E) dated 11-07-2003]

69.

 14/2003- Service Tax, dated 20-06-2003. [G.S.R.505(E) dated 20-06-2003]

70.

 13/2003- Service Tax, dated 20-06-2003. [G.S.R.504(E) dated 20-06-2003]

71.

 12/2003- Service Tax, dated 20-06-2003. [G.S.R.503(E) dated 20-06-2003]

72.

 10/2003- Service Tax, dated 20-06-2003. [G.S.R.502(E) dated 20-06-2003]

73.

 18/2002- Service Tax, dated 16-12-2002. [G.S.R.823(E) dated 16-12-2002]

74.

 16/2002- Service Tax, dated 02-08-2002. [G.S.R.546(E) dated 02-08-2002]

75.

 10/2002- Service Tax, dated 01-08-2002. [G.S.R.538(E)dated 01-08-2002]

76.

 4/2000- Service Tax, dated 31-07-2000. [G.S.R.643(E) dated 31-07-2000]

77.

 3/2000- Service Tax, dated 06-07-2000. [G.S.R.588(E) dated 06-07-2000]

78.

 2/2000- Service Tax, dated 01-03-2000. [G.S.R.210(E) dated 01-03-2000]

79.

 22/1997- Service Tax, dated 26-06-1997. [G.S.R. 348(E) dated 26-06-1997]

80.

 12/1997- Service Tax, dated 14-02-1997. [G.S.R.74(E) dated 14-02-1997]

81.

 03/1994- Service Tax, dated 30-06-1994. [G.S.R.555(E) dated 30-06-1994]

2. This notification shall come into force on the 1st day of July, 2012.

■■

Works Contract (Composition Scheme for Payment of Service tax) Rules, 2007 – Rescission of Notification No. 32/2007-ST, dated 22-5-2007

Notification No. 35/2012-ST, dated 20-6-2012

In exercise of the powers conferred by sections 93 and 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby rescinds the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 32/ 2007 – Service Tax, dated the 22nd May, 2007, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 378(E), dated the 22nd May 2007, except as respects things done or omitted to be done before such rescission.

2. This notification shall come into force on the 1st day of July, 2012.

■■

Service Tax (Second Amendment) Rules, 1994 – Amendment in rules 2, 4, 4A, 5, 6; omission of rule 5B and insertion of rule 6A

Notification No. 36/2012-ST, dated 20-6-2012

[corrected by f.no. 334/01/2012-tru, dated 2-7-2012]

In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:-

1. (1) These rules may be called the Service Tax (Second Amendment) Rules, 2012.

(2) They shall come into force on the 1st day of July, 2012.

2. In the Service Tax Rules, 1994 (hereinafter referred to as the principal rules), in rule 2,-

(i) after sub-clause (b), the following three sub-clauses shall be inserted, namely:-

“(bb) “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

(bc) “body corporate” has the meaning assigned to it in clause (7) of section 2 of the Companies Act, 1956 (1 of 1956);

(bd) “financial institution” has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);”

(ii) after sub-clause (c), the following sub-clause shall be inserted, namely:-

“(c1a) “goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);”

(iii) after sub-clause (cb), the following sub-clause shall be inserted, namely:-

“(cba) “insurance agent” has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);”

(iv) after sub-clause (cc), the following sub-clauses shall be inserted, namely:-

‘(cca)”legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;

(ccb) “life insurance business” has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(ccc) “non banking financial company” has the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);’

(v) for sub-clause (d), the following shall be substituted, namely:-

“(d) “person liable for paying service tax”, –

(i) in respect of the taxable services notified under sub-section (2) of section 68 of the Act, means,-

(A) in relation to service provided or agreed to be provided by an insurance agent to any person carrying on the insurance business, the recipient of the service.

(B) in relation to service provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,-

(I) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(II) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(III) any co-operative society established by or under any law;

(IV) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(V) any body corporate established, by or under any law; or

(VI) any partnership firm whether registered or not under any law including association of persons;

any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage:

Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service tax.

(C) in relation to service provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firm located in the taxable territory, the recipient of such service;

(D) in relation to service provided or agreed to be provided by,-

(I) an arbitral tribunal, or

(II) an individual advocate or a firm of advocates by way of legal services, to any business entity located in the taxable territory, the recipient of such service;

(E) in relation to support services provided or agreed to be provided by Government or local authority except,-

(a)  renting of immovable property, and

(b)  services specified sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994,

to any business entity located in the taxable territory, the recipient of such service;

(F) in relation to services provided or agreed to be provided by way of :-

(a)  renting of a motor vehicle designed to carry passengers, to any person who is not engaged in a similar business; or

(b)  supply of manpower for any purpose; or

(c)  service portion in execution of a works contract-

by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as a body corporate, located in the taxable territory, both the service provider and the service recipient to the extent notified under sub-section (2) of section 68 of the Act, for each respectively.

(G) in relation to any taxable service provided or agreed to be provided by any person which is located in a non-taxable territory and received by any person located in the taxable territory, the recipient of such service;

(ii) in a case other than sub-clause (i), means the provider of service.”

(vi) after sub-clause (d), the following sub-clause shall be inserted, namely:-

‘(dd) “place of provision” shall be the place as determined by Place of Provision of Services Rules 2012;’

(vii) after sub-clause (e), the following sub-clauses shall be inserted, namely:-

‘(f) “renting of immovable property” means any service provided or agreed to be provided by renting of immovable property or any other service in relation to such renting.

(g) “supply of manpower” means supply of manpower, temporarily or otherwise, to another person to work under his superintendence or control.’

3. In the principal rules, in rule 4, in sub-rule (1), for the word and figures “section 66”, the word, figures and letter “section 66B”shall be substituted;

4. In the principal rules, in rule 4A,-

(A) in sub-rule (1),-

(i)  for the words “provided or to be provided”, the words “provided or agreed to be provided” shall be substituted;

(ii)  for clause (iii), the following shall be substituted, namely:-

“(iii)  description and value of taxable service provided or agreed to be provided; and”,

(iii)  for the first proviso, the following proviso shall be substituted, namely:-

Provided that in case the provider of taxable service is a banking company or a financial institution including a non-banking financial company providing service to any person, an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered, and whether or not containing address of the person receiving taxable service but containing other information in such documents as required under this sub-rule :”;

(iv)  for the fourth proviso, the following proviso shall be substituted, namely:-

Provided also that in case the provider of taxable service is a banking company or a financial institution including a non-banking financial company providing service to any person, the period within which the invoice, bill or challan, as the case may be, is to be issued, shall be forty-five days:” ;

(v)  for the fifth proviso, the following proviso shall be substituted, namely:-

Provided that in case the provider of taxable service is providing the service of transport of passenger, an invoice, a bill or as the case may be, challan shall include ticket in any form by whatever name called and whether or not containing registration number of the provider of service and address of the recipient of service but containing other information in such documents as required under this sub-rule”;

(B) in sub-rule (2), for the first proviso, the following proviso shall be substituted, namely:-

Provided that in case the input service distributor is an office of a banking company or a financial institution including a non-banking financial company providing service to any person an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered but containing other information in such documents as required under this sub-rule:”;

5. In the principal rules, in rule 5, in sub-rule (2), in clause (i), for sub-clause (a), the following shall be substituted, namely:-

“(a)  providing of any service;”

6. In the principal rules, rule 5B, shall be omitted;

7. In the principal rules, in rule 6,-

(1) in sub-rule (1),-

(i)  the third proviso shall be omitted;

(ii)  after the third proviso as so amended, in the fourth proviso, for the words “provided or to be provided”, the words “provided or agreed to be provided” shall be substituted;

(2) in sub-rule (4B), the word “classification,” shall be omitted;

(3) for sub-rule (4C), the following shall be substituted, namely:-

“(4C) Notwithstanding anything contained in sub-rules (4), (4A) and (4B), where the person liable to pay service tax in respect of service of renting of immovable property has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, on account of non-availment of deduction of property tax paid in terms of notification No. 29/2012-Service Tax, dated the 20th June, 2012, from the gross amount charged for renting of the immovable property for the said period at the time of payment of service tax, the assessee may adjust such excess amount paid by him against his service tax liability within one year from the date of payment of such property tax and the details of such adjustment shall be intimated to the Superintendent of Central Excise having jurisdiction over the service provider within a period of fifteen days from the date of such adjustment.”;

(4) in sub-rule (7),-

(a)  after the words “to the services”, the words “of booking of tickets for travel by air” shall be inserted;

(b)  for the word and figures “section 66”, the word, figures and letter “section 66B” shall be substituted;

(5) in sub rule (7A), for the word and figures “section 66”, the word, figures and letter “section 66B” shall be substituted;

(6) in sub-rule (7B), for the portion beginning with the brackets, figure, letter and words, “(7B) The person liable to pay” and ending with the words and figures “Chapter V of the Act, namely :”, the following shall be substituted, namely:-

“(7B) The person liable to pay service tax in relation to purchase or sale of foreign currency, including money changing, shall have the option to pay an amount calculated at the following rate towards discharge of his service tax liability instead of paying service tax at the rate specified in section 66B of Chapter V of the Act, namely :”

(7) in the sub-rule (7C),-

(i)  for the for the portion beginning with the brackets, figure, letter and words, “(7C) The distributor” and ending with the words, figures and letters “section 66 of Chapter V of the said Act:”, the following shall be substituted, namely:-

“(7C) The distributor or selling agent, liable to pay service tax for the taxable service of promotion, marketing, organising or in any other manner assisting in organising lottery, shall have the option to pay an amount at the rate specified in column (2) of the Table given below, subject to the conditions specified in the corresponding entry in column (3) of the said Table, instead of paying service tax at the rate specified in section 66B of Chapter V of the said Act :”

(ii)  in the third proviso, for the words “service under the said sub-clause”, the words “such service” shall be substituted;

8. In the principal rules, after rule 6, the following rule shall be inserted, namely:-

RULE 6A. Export of services.- (1) The provision of any service provided or agreed to be provided shall be treated as export of service when,-

(a)  the provider of service is located in the taxable territory ,

(b)  the recipient of service is located outside India,

(c)  the service is not a service specified in the section 66D of the Act,

(d)  the place of provision of the service is outside India,

(e)  the payment for such service has been received by the provider of service in convertible foreign exchange, and

(f)  the provider of service and recipient of service are not merely establishments of a distinct person in accordance with item (b) of Explanation 3* of clause (44) of section 65B of the Act

(2) Where any service is exported, the Central Government may, by notification, grant rebate of service tax or duty paid on input services or inputs, as the case may be, used in providing such service and the rebate shall be allowed subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification.”

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Point of Taxation (Amendment) Rules, 2012 – Amendment in rule 2 and substitution of certain words

Notification No. 37/2012-ST, dated 20-6-2012

In exercise of the powers conferred by clause (a) and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Point of Taxation Rules, 2011, namely:—

1. (a) These rules may be called the Point of Taxation (Amendment) Rules, 2012.

(b) They shall come into force on the 1st day of July, 2012.

2. In the Point of Taxation Rules, 2011,-

(a)  in rule 2, sub-rules (b) and (f) shall be omitted.

(b)  for the words, “provided or to be provided” wherever they occur, the words “provided or agreed to be provided” shall be substituted.

■■

Continuous services notified for purpose of point of Taxation Rules, 2011 – Amendment in Notification No. 28/2011-ST, dated 1-4-2011

Notification No. 38/2012-ST, dated 20-6-2012

In exercise of the powers conferred by sections 93 and 94 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 28/2011-Service Tax, dated the 1st April, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 293(E), dated the 1st April, 2011, namely:-

In the said notification, for the words, brackets, letters and figures “referred to in clauses (zzq), (zzzh), (zzzx), (zzzu) and (zzzza) of section 65(105) of the Finance Act” the words “of telecommunication service and service portion in execution of a works contract” shall be substituted.

2. This notification shall come into force come into force from the 1st day of July, 2012.

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Rule 6A of the Service Tax Rules, 1994 – Export of Services – Exemption to input services provided to any country other than Nepal & Bhutan

Notification No.39/2012-ST, dated 20-6-2012

In exercise of the powers conferred by rule 6A of the Service Tax Rules, 1994 (hereinafter referred to as the said rules), the Central Government hereby directs that there shall be granted rebate of the whole of the duty paid on excisable inputs or the whole of the service tax and cess paid on all input services (herein after referred to as ‘input services’), used in providing service exported in terms of rule 6A of the said rules, to any country other than Nepal and Bhutan, subject to the conditions, limitations and procedures specified hereinafter,-

2. Conditions and limitations:-

(a) that the service has been exported in terms of rule 6A of the said rules;

(b) that the duty on the inputs, rebate of which has been claimed, has been paid to the supplier;

(c) that the service tax and cess, rebate of which has been claimed, have been paid on the input services to the provider of service;

Provided if the person is himself is liable to pay for any input services; he should have paid the service tax and cess to the Central Government.

(d) the total amount of rebate of duty, service tax and cess admissible is not less than one thousand rupees;

(e) no CENVAT credit has been availed of on inputs and input services on which rebate has been claimed; and

(f) that in case,-

(i) the duty or, as the case may be, service tax and cess, rebate of which has been claimed, has not been paid; or

(ii) the service, rebate for which has been claimed, has not been exported; or

(iii) CENVAT credit has been availed on inputs and input services on which rebate has been claimed,

the rebate paid, if any, shall be recoverable with interest in accordance with the provisions of section 73 and section 75 of the Finance Act, 1994 (32 of 1994)

3. Procedure

3.1 Filing of Declaration.- The provider of service to be exported shall, prior to date of export of service, file a declaration with the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, specifying the service intended to be exported with,-

(a) description, quantity, value, rate of duty and the amount of duty payable on inputs actually required to be used in providing service to be exported;

(b) description, value and the amount of service tax and cess payable on input services actually required to be used in providing service to be exported.

3.2 Verification of declaration.- The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall verify the correctness of the declaration filed prior to such export of service, if necessary, by calling for any relevant information or samples of inputs and if after such verification, the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise is satisfied that there is no likelihood of evasion of duty, or as the case may be, service tax and cess, he may accept the declaration.

3.3 Procurement of input materials and receipt of input services.- The provider of service to be exported shall,-

(i) obtain the inputs required for use in providing service to be exported, directly from a registered factory or from a dealer registered for the purposes of the CENVAT Credit Rules, 2004 accompanied by invoices issued under the Central Excise Rules, 2002;

(ii) receive the input services required for use in providing service to be exported and an invoice, a bill or, as the case may be, a challan issued under the provisions of Service Tax Rules, 1994.

3.4 Presentation of claim for rebate.-

(a)   (i) claim of rebate of the duty paid on the inputs or the service tax and cess paid on input services shall be filed with the jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, after the service has been exported;

(ii) such application shall be accompanied by, –

(a) invoices for inputs issued under the Central Excise Rules, 2002 and invoice, a bill, or as the case may be, a challan for input services issued under the Service Tax Rules, 1994, in respect of which rebate is claimed;

(b) documentary evidence of receipt of payment against service exported, payment of duty on inputs and service tax and cess on input services used for providing service exported, rebate of which is claimed;

(c) a declaration that such service, has been exported in terms of rule 6A of the said rules, along with documents evidencing such export.

(b) The jurisdictional Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, having regard to the declaration, if satisfied that the claim is in order, shall sanction the rebate either in whole or in part.

Explanation 1.- For the purposes of this notification “service tax and cess” means,-

(a) service tax leviable under section 66 or section 66B of the Finance Act, 1994 (32 of 1994);

(b) education cess on taxable service levied under section 91 read with section 95 of the Finance (No.2) Act, 2004 (23 of 2004); and

(c) Secondary and Higher Education Cess on taxable services levied under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007).

Explanation 2.- For the purposes of this notification “duty” means, duties of excise leviable under the following enactments, namely:-

(a) the Central Excise Act, 1944 (1 of 1944);

(b) the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);

(c) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);

(d) National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), as amended by section 169 of the Finance Act, 2003 (32 of 2003), section 3 of the Finance Act, 2004 (13 of 2004) and further amended by section 123 of the Finance Act, 2005 (18 of 2005);

(e) special duty of excise collected under a Finance Act;

(f) additional duty of excise as levied under section 157 of the Finance Act, 2003 (32 of 2003);

(g) Education Cess on excisable goods as levied under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004); and

(h) the additional duty of excise leviable under section 85 of the Finance Act, 2005 (18 of 2005).

(i) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of 2007).

ANNEXURE

FORM ASTR-2

(Application for filing a claim of rebate of duty paid on inputs, service tax and cess paid on input services)

(PART A: To be filled by the applicant)

Date………….

Place…………

To,

Assistant Commissioner of Central Excise/Deputy Commissioner of Central Excise ………………………….. (full postal address).

Madam/Sir,

I/We…………………………………..,(name of the person claiming rebate) holding service tax registration No. …………………………………………, located in………………………. (address of the registered premises) hereby declare that I/We have exported ………………………………………service (name of the service) under rule 6A of the Service Tax Rules, 1994 to ……………………(name of the country to which service has been exported), and service tax amounting to ……………………. (amount in rupees of service tax) and education cess amounting to ……………………. (amount in rupees of cess) has been paid on input services and duty amounting to ………… (amount in rupees of duty) has been paid on inputs.

2. I/We also declare that the payment against such service exported has already been received in India in full…………………………………………………. (details of receipt of payment).

3. I/We request that the rebate of the duty, service tax and cess on inputs and input services used in providing service exported by me/us in terms of rule 6A of the Service Tax Rules, 1994 may be granted at the earliest. The following documents are enclosed in support of this claim for rebate.

1.

2.

3.

Declaration:

(a) We hereby certify that we have not availed CENVAT credit on inputs and input services on which rebate has been claimed.

(b) We have been granted permission by Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, vide C. No. ______, dated ______ for working under notification No. _____ , dated _____ .

(Signature and name of the service provider or his authorised agent with date)

(PART B: To be filled by the sanctioning authority)

Date of receipt of the rebate claim:    ______________

Date of sanction of the rebate claim:  ______________

Amount of rebate claimed:         Rs.  ______________

Amount of rebate sanctioned:     Rs. ______________

If the claim is not processed within 15 days of the receipt of the claim, indicated briefly reasons for delay.

Place:

Date:

Signature of the Assistant Commissioner/

Deputy Commissioner of Central Excise.

 

4. This notification shall come into force on the 1st day of July, 2012.

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Section 66B of the Finance Act, 1994 – Charge of service tax on and after Finance Act, 2012 – Exemption on services provided to SEZ authorised operations

Notification No. 40/2012-ST, dated 20-6-2012

[Supersession of Notification No. 17/2011-ST, dated 1-3-2011]

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 said Act) read with sub-section 3 of section 95 of Finance (No.2), Act, 2004 (23 of 2004) and sub-section 3 of section 140 of the Finance Act, 2007(22 of 2007) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 17/2011-Service Tax, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.174(E), dated the 1st March, 2011, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the services on which service tax is leviable under section 66B of the said Act, received by a unit located in a Special Economic Zone (hereinafter referred to as SEZ) or Developer of SEZ and used for the authorised operations, from the whole of the service tax, education cess and secondary and higher education cess leviable thereon.

2. The exemption contained in this notification shall be subject to the following conditions, namely:-

(a) the exemption shall be provided by way of refund of service tax paid on the specified services received by a unit located in a SEZ or the developer of SEZ and used for the authorised operations:

Provided that where the specified services received in SEZ and used for the authorised operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not to pay the service tax ab initio instead of the SEZ unit or the developer claiming exemption by way of refund in terms of this notification.

Explanation.- For the purposes of this notification, the expression “wholly consumed” refers to such specified services received by the unit of a SEZ or the developer and used for the authorised operations, where the place of provision determinable in accordance with the Place of Provision of Services Rules, 2012(hereinafter referred as the POP Rules) is as under:-

(i) in respect of services specified in rule 4 of the POP Rules, the place where the services are actually performed is within the SEZ ; or

(ii) in respect of services specified in rule 5 of the POP Rules, the place where the property is located or intended to be located is within the SEZ; or

(iii) in respect of services other than those falling under clauses (i) and (ii), the recipient does not own or carry on any business other than the operations in SEZ;

(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods and services multiplied by the service tax paid on services other than wholly consumed services to the total turnover for the given period to which the claim relates, i.e.,

  Refund amount = (Export turnover of goods + Services of SEZ Unit/Developer) × Service tax paid on services other than wholly consumed Services (both for SEZ and DTA)

Total turnover for the period

Explanation.- For the purposes of condition (b),-

(A) “refund amount” means the maximum refund that is admissible for the period;

(B) “export turnover of goods” means the value of final products and intermediate products cleared during the relevant period and exported;

(C) “export turnover of services” means the value of the export service calculated in the following manner, namely:-

Export turnover of services = payments received during the relevant period for export services + export services whose provision has been completed for which payment had been received in advance in any period prior to the relevant period – advances received for export services for which the provision of service has not been completed during the relevant period;

(D) “total turnover” means sum total of the value of-

(a) all excisable goods cleared during the relevant period including exempted goods, dutiable goods and excisable goods exported;

(b) export turnover of services determined in terms of clause (C) and the value of all other services, during the relevant period; and

(c) for the purpose of claiming exemption, the Unit of a SEZ or developer shall obtain a list of services that are liable to service tax as are required for the authorised operations approved by the Approval Committee (hereinafter referred to as the specified services) of the concerned SEZ;

(d) for the purpose of claiming ab initio exemption, the unit of a SEZ or developer shall furnish a declaration in Form A-1, verified by the Specified Officer of the SEZ, in addition to the list specified under condition (c); the unit of a SEZ or developer who does not own or carry on any business other than the operations in SEZ, shall declare to that effect in Form A-1;

(e) the unit of a SEZ or developer claiming the exemption shall declare that the specified services on which exemption and/ or refund is claimed, have been used for the authorised operations;

(f) the unit of a SEZ or developer claiming the exemption by way of refund, should have paid the amount indicated in the invoice, bill or as the case may be, challan, including the service tax payable, to the person liable to pay the said tax or the amount of service tax payable under reverse charge, as the case may be, under the provisions of the said Act;

(g) no CENVAT credit of service tax paid on the specified services used for the authorised operations in a SEZ has been taken under the CENVAT Credit Rules, 2004;

(h) no refund shall be available on services wholly consumed for operations in the Domestic Tariff Area (DTA) worked out in the same manner as clauses (i) and (ii) of the explanation to condition (a);

(i) exemption or refund of service tax paid on the specified services other than wholly consumed services used for the authorised operations in a SEZ shall not be claimed except under this notification;

(j) the unit of a SEZ or developer, who intends to avail exemption and or refund under this notification, shall maintain proper account of receipt and use of the specified services on which exemption is claimed, for authorised operations in the SEZ.

3. The following procedure should be adopted for claiming the benefit of the exemption contained in this notification, namely:-

(a) the unit of a SEZ or developer, who has paid the service tax leviable under section 66B of the said Act shall avail the exemption by filling a claim for refund of service tax paid on specified services used for the authorised operations;

(b) the unit of a SEZ or developer who is registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, or the said Act or the rules made thereunder, shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the SEZ or registered office or the head office of the SEZ unit or developer, as the case may be, in Form A-2;

(c) the unit of a SEZ or developer who is not so registered under the provisions referred to in clause (b), shall, before filing a claim for refund under this notification, file a declaration with the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the SEZ or registered office or the head office of the SEZ unit or developer, as the case may be, in Form A-3;

(d) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code number to the unit of a SEZ or developer, referred to in clause (c), within seven days from the date of receipt of the said declaration, in Form A-3;

(e) claim for refund shall be filed, within one year from the end of the month in which actual payment of service tax was made by such developer or unit, to the registered service provider or such extended period as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall permit;

(f) the refund claim shall be accompanied by the following documents, namely:-

(i) a copy of the list of specified services as are required for the authorized operations in the SEZ, as approved by the Approval Committee; wherever applicable, a copy of the declaration made in Form A-1;

(ii) invoice or a bill or as the case may be, a challan, issued in accordance with the provisions of the said Act or rules made thereunder, in the name of the unit of a SEZ or developer, by the registered service provider, along with proof of payment for such specified services used for the authorised operations and service tax paid, in original;

(iii) a declaration by the unit of a SEZ or developer, claiming such exemption, to the effect that-

(A) the specified services on which refund of service tax claimed, has been used for the authorized operations in the SEZ ;

(B) proper account of the specified services received and used for the authorised operations are maintained by the developer or unit of the SEZ and the same shall be produced to the officer sanctioning refund, on demand;

(C) accounts or documents furnished by the unit of a SEZ or developer as proof of payment of service tax claimed as refund, based on the invoice, or bill , or as the case may be challan issued by the registered service provider indicating the service tax paid on such specified services, are true and correct in all respects;

(g) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, after verifying that,-

(i) the refund claim is complete in all respects;

(ii) the information furnished in Form A-2 and in supporting documents correctly indicate the service tax involved in the specified services used for the authorised operations in the SEZ, which is claimed as refund, and has been actually paid to the service provider,

shall refund the service tax paid on the specified services;

(h) a service provider shall provide the specified services falling under wholly consumed category, under ab initio exemption granted by this notification, to a unit of a SEZ or developer, for authorised operations, subject to the submission of list specified in condition (c) under paragraph 2 and a declaration in Form A-1;

(i) where any refund of service tax paid on specified services is erroneously refunded for any reasons whatsoever, such service tax refunded shall be recoverable under the provisions of the said Act and the rules made there under, as if it is recovery of service tax erroneously refunded;

4. Words and expressions used in this notification and defined in the Special Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, shall apply, so far as may be, in relation to refund of service tax under this notification as they apply in relation to a SEZ.

Explanation.- For the purposes of this notification, “statutory auditor” refers to a Chartered Accountant who audits the annual accounts of the unit of a SEZ or developer for the purposes of the Companies Act, 1956 (1 of 1956) or the Income tax Act, 1961(43 of 1961).

5. This notification shall come into force on the 1st day of July, 2012.

FORM A-1

DECLARATION BY THE UNIT OF A SEZ OR DEVELOPER FOR AVAILING AB INITIO EXEMPTION UNDER NOTIFICATION No._____ DATED ____

[Refer condition (d) under paragraph 2]

  1. Name of the SEZ Unit/Developer:

2. Address of the SEZ Unit/Developer with Telephone and Email:

3. Permanent Account Number(PAN) of the SEZ Unit/Developer:

4. Import and Export Code Number:

5. Jurisdictional Central Excise/Service Tax Division:

6. Service Tax Registration Number/Service Tax Code:

7. Declaration: I/We hereby declare that-

(i) The information given in this application form is true, correct and complete in every respect and I am authorised to sign on behalf of the SEZ Unit/Developer;

(ii) I/We maintain proper account of specified services, as approved by the Approval Committee of SEZ, received and used for authorised operations in SEZ; I/we shall make available such accounts and related records, at all reasonable times, to the jurisdictional Central Excise Officers for inspection or scrutiny.

(iii) I/We shall use/have used specified services for authorised operations in the SEZ.

(iv) I/We declare that we do not own or carry on any business other than the operations in SEZ [where this item is not applicable, declaration may be submitted after striking out the inapplicable portion];

(v) I/We are aware that the Declaration is valid only for the purpose specified in Notification _______ dated ______ and is subject to fulfillment of conditions.

(vi) I/We intend to claim ab initio exemption from the following service provider(s) in the Domestic Tariff Area(DTA):

Sl.No. specified service(s) to be received from the DTA service provider(s)

DTA Service provider(s) who provide(s) the specified service(s), for SEZ authorised operations

Name and address

Service Tax Registration No.

(1)

(2)

(3)

(4)

       

 

Signature and Name of Authorised Person with stamp

Date:

Place:

I have verified the above Declaration; it is correct

 

Signature, date and stamp of the Specified Officer of the SEZ (Specified Officer shall retain a copy of the verified Declaration, for the purpose of record)

FORM A-2

APPLICATION FOR CLAIMING REFUND OF SERVICE TAX PAID ON SPECIFIED SERVICES USED FOR AUTHORISED OPERATIONS IN SEZ

To

The Assistant/Deputy Commissioner of Central Excise/Service Tax

___________ Division, _______ Commissionerate

Sir,

I /We claim refund of Rs……………… (Rupees in words)

(a) in respect of service tax paid on ‘wholly consumed’ specified services used for the authorized operations in SEZ, as approved by the Approval Committee of the _________ SEZ [Rupees ____________]

(b) in respect of service tax paid on specified services, other than those that are wholly consumed, used for the authorized operations of SEZ Unit/Developer, as approved by the Approval Committee of the _________ SEZ [ Rupees ____________].

1. Name of the SEZ Unit/Developer:

2. Address of the SEZ Unit/Developer with Telephone and Email:

3. Address of the Registered/Head Office with Telephone and Email:

4. Permanent Account Number(PAN) of the SEZ Unit/Developer:

5. Import and Export Code Number:

6. Jurisdictional Central Excise/Service Tax Division:

7. Service Tax Registration Number/Service Tax Code:

8. Information regarding Bank Account ( Bank, Address of Branch, Account Number) in which refund amount should be credited/to be deposited:

9. Details regarding Service Tax refund claimed:

a. Refund arising out of ‘wholly consumed’ specified services:

Table-A

Sl.No.

Details regarding specified services used in the authorized operations of SEZ, as approved by the Approval Committee

 Amount of service tax claimed as Refund (including education cess) (Rupees)

Document enclosed as proof of payment of service tax by the SEZ Unit/Developer, (sl.no and date of invoice/ bill / challan)
Description of taxable service (as per the invoice) used in the authorized operations of SEZ

Name and address of Service Provider

Service Tax Registration Number of Service Provider

Invoice/Bill/Challan (original enclosed) Amount of Service tax paid (including education cess) (Rupees)
Number Date Value of taxable service (Rupees)

(1)

(2)

(3)

(4)

 (5)

(6)

(7)

(8)

 (9)

(10)

1.

2.

TOTAL

9.2. Refunds arising out of specified services, other than those are ‘wholly consumed’:

I/We request refund of service tax paid on specified services, other than those that are ‘wholly consumed’,-

(a) used in the manufacture of final products exported from SEZ

(b) used in providing output services exported from SEZ

I/We furnish following true and correct particulars, in Tables ‘B’ and ‘C’, for the purpose of above refund:

Table – B

No.

Specified services other than those that are ‘wholly consumed’, used for authorised operations by SEZ Unit/Developer, during the period for which refund is claimed

Document enclosed as proof of payment of service tax (sl.no and date of invoice/ bill / challan)
Description of taxable service (as per the invoice) used in the authorized operations of SEZ

Name and address of Service Provider

Service Tax Registration Number of Service Provider

Invoice/Bill/Challan (original enclosed)

Amount of Service tax paid (including education cess) (Rupees)
Number Date Value of taxable service (Rupees)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

1.                
2.                

TOTAL

   

Table – C

Details

Details for the period to which the invoices pertain and refund is claimed

Export turnover of SEZ Unit(s)/Developer

Service tax paid on input services other than wholly consumed services

Total turnover

(1)

(2)

(3)

-Goods (a)  

 
Output services (b)  

—-

 
Others(Bought out goods sold) (c)

—-

—-

 
Total (a)+(b)+(c)=(d)

 

 

Instructions for compilation of the above statistical table:

(i) To calculate the export turnover of SEZ, in the case of export of goods, FOB value provided in Shipping Bills or Bills of Export, should be taken into account, which have been duly certified by the officer of customs to the effect that the goods have been exported;

(ii) To calculate the export turnover of SEZ, in the case of export of services, value of output services exported shall be on the basis of certificates issued by the bank certifying the realization of export proceeds.

(iii) Amount of service tax claimed as refund, under Table B read with Table C: Rupees__________________

(iv) Particulars filled in the Table C should be verified and certified as true by the statutory auditor of the SEZ Unit/Developer


10. I/We Declare that-

(i) information given in this application for refund is true, correct and complete in every respect and that I am authorised to sign this application for refund of service tax;

(ii) the specified services, as approved by the Approval Committee of SEZ, on which exemption/refund is claimed are actually used for the authorised operations in a SEZ;

(iii) refund is being claimed only on the service tax actually paid on the specified services used for the authorised operations in a SEZ; refund of service tax has not been claimed or received earlier, on the basis of above documents/information;

(iv) We have not taken any CENVAT credit of service tax paid on the specified services under the CENVAT Credit Rules, 2004;

(v) accounts or documents furnished as proof of payment of service tax being claimed as refund, as per the invoice, bill or challan of the service provider indicating the service tax paid on such specified services, are true and correct in all respects;

(vi) proper account of receipt and use of the specified services on which exemption/refund is claimed, for the authorised operations in the SEZ, is maintained and the same shall be produced to the Officer sanctioning refund, on demand.

Signature and name

(of proprietor/managing partner/

person authorised by managing director of SEZ Unit/Developer)

with complete address, telephone and e-mail

Date:

Place:

FORM A-3

DECLARATION FOR OBTAINING SERVICE TAX CODE

[Refer clause (c) under paragraph 3]

  1. Name of the SEZ Unit/Developer:

2. Address of the SEZ Unit/Developer with Telephone and Email:

3. Address of the Registered/Head Office:

4. Permanent Account Number(PAN) of the SEZ Unit/Developer:

5. Import and Export Code Number:

6. Jurisdictional Central Excise/Service Tax Division:

7. Service Tax Registration Number/Service tax Code:

8. Details of Bank Account ( Bank, Address of Branch, Account Number)

9. (a) Constitution of SEZ Unit/Developer [proprietorship/partnership/Registered Private Limited Company/Registered Public Limited Company/Others(specify)]

(b) Name, Address, Telephone number of Proprietor/partner/director(s)

10. Name, designation and address of the authorised signatory/signatories

11. I/We hereby declare that-

(i) The information given in this application form is true, correct and complete in every respect and that I am authorised to sign on behalf of the SEZ Unit/Developer;

(ii) I/We shall maintain proper account of specified services as approved by the Approval Committee of SEZ, received and used for authorised operations in SEZ; and shall make available such accounts and related records, at all reasonable times, to the Department for inspection or scrutiny.

(iii) I/We shall use/have used specified services for authorised operations in the SEZ.

Signature and Name of Authorised Person with stamp

Date:

Place:

■■

Rebate of service tax paid on taxable services which are received by an exporter of goods and used for export of goods

Notification No. 41/2012-ST, dated 29-6-2012

In exercise of the powers conferred by section 93A of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) number 52/2011 – Service Tax, dated the 30th December, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 945(E), dated the 30th December, 2011, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby grants rebate of service tax paid(hereinafter referred to as rebate) on the taxable services which are received by an exporter of goods (hereinafter referred to as the exporter) and used for export of goods, subject to the extent and manner specified herein below, namely:-

Provided that–

(a)  the rebate shall be granted by way of refund of service tax paid on the specified services.

Explanation. – For the purposes of this notification,-

(A)  “specified services” means-

(i)  in the case of excisable goods, taxable services that have been used beyond the place of removal, for the export of said goods;

(ii)  in the case of goods other than (i) above, taxable services used for the export of said goods;

but shall not include any service mentioned in sub-clauses (A), (B), (BA) and (C) of clause (l) of rule (2) of the CENVAT Credit Rules, 2004;

(B) “place of removal” shall have the meaning assigned to it in section 4 of the Central Excise Act,1944(1 of 1944);

(b) the rebate shall be claimed either on the basis of rates specified in the Schedule of rates annexed to this notification (hereinafter referred to as the Schedule), as per the procedure specified in paragraph 2 or on the basis of documents, as per the procedure specified in paragraph 3;

(c)  the rebate under the procedure specified in paragraph 3 shall not be claimed wherever the difference between the amount of rebate under the procedure specified in paragraph 2 and paragraph 3 is less than twenty per cent of the rebate available under the procedure specified in paragraph 2;

(d) no CENVAT credit of service tax paid on the specified services used for export of goods has been taken under the CENVAT Credit Rules, 2004;

(e)  the rebate shall not be claimed by a unit or developer of a Special Economic Zone;

(2) the rebate shall be claimed in the following manner, namely:-

(a)  manufacturer-exporter, who is registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder shall register his central excise registration number and bank account number with the customs;

(b)  exporter who is not so registered under the provisions referred to in clause (a), shall register his service tax code number and bank account number with the customs;

(c)  service tax code number referred to in clause (b), shall be obtained by filing a declaration in Form A-2 to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, of such exporter;

(d)  the exporter shall make a declaration in the electronic shipping bill or bill of export, as the case may be, while presenting the same to the proper officer of customs, to the effect that–

(i)  the rebate of service tax paid on the specified services is claimed as a percentage of the declared Free On Board(FOB) value of the said goods, on the basis of rate specified in the Schedule;

(ii) no further rebate shall be claimed in respect of the specified services, under procedure specified in paragraph 3 or in any other manner, including on the ground that the rebate obtained is less than the service tax paid on the specified services;

(iii)  conditions of the notification have been fulfilled;

(e)  service tax paid on the specified services eligible for rebate under this notification, shall be calculated by applying the rate prescribed for goods of a class or description, in the Schedule, as a percentage of the FOB value of the said goods;

(f)  amount so calculated as rebate shall be deposited in the bank account of the exporter;

(g) shipping bill or bill of export on which rebate has been claimed on the basis of rate specified in the Schedule, by way of procedure specified in this paragraph, shall not be used for rebate claim on the basis of documents, specified in paragraph 3;

(h)  where the rebate involved in a shipping bill or bill of export is less than rupees fifty, the same shall not be allowed;

(3) the rebate shall be claimed in the following manner, namely:-

(a)  rebate may be claimed on the service tax actually paid on any specified service on the basis of duly certified documents;

(b) the person liable to pay service tax under section 68 of the said Act on the taxable service provided to the exporter for export of goods shall not be eligible to claim rebate under this notification;

(c) the manufacturer-exporter, who is registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, shall file a claim for rebate of service tax paid on the taxable service used for export of goods to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory of manufacture in Form A-1;

(d)  the exporter who is not so registered under the provisions referred to in clause (c), shall before filing a claim for rebate of service tax, file a declaration in Form A-2, seeking allotment of service tax code, to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, of such exporter;

(e)  the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after due verification, allot a service tax code number to the exporter referred to in clause (d), within seven days from the date of receipt of the said Form A-2;

(f)  on obtaining the service tax code, exporter referred to in clause (d), shall file the claim for rebate of service tax to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, in Form A-1;

(g)  the claim for rebate of service tax paid on the specified services used for export of goods shall be filed within one year from the date of export of the said goods.

Explanation.- For the purposes of this clause the date of export shall be the date on which the proper officer of Customs makes an order permitting clearance and loading of the said goods for exportation under section 51 of the Customs Act, 1962 (52 of 1962);

(h)  where the total amount of rebate sought under a claim is upto 0.50% of the total FOB value of export goods and the exporter is registered with the Export Promotion Council sponsored by Ministry of Commerce or Ministry of Textiles, Form A-1 shall be submitted along with relevant invoice, bill or challan, or any other document for each specified service, in original, issued in the name of the exporter, evidencing payment for the specified service used for export of the said goods and the service tax paid thereon, certified in the manner specified in sub-clauses (A) and (B):

(A) if the exporter is a proprietorship concern or partnership firm, the documents enclosed with the claim shall be self-certified by the exporter and if the exporter is a limited company, the documents enclosed with the claim shall be certified by the person authorised by the Board of Directors;

(B)  the documents enclosed with the claim shall also contain a certificate from the exporter or the person authorised by the Board of Directors, to the effect that specified service to which the document pertains has been received, the service tax payable thereon has been paid and the specified service has been used for export of the said goods under the shipping bill number;

(i)  where the total amount of rebate sought under a claim is more than 0.50% of the total FOB value of the goods exported, the procedure specified in clause (h) above shall stand modified to the extent that the certification prescribed thereon, in sub-clauses (A) and (B) shall be made by the Chartered Accountant who audits the annual accounts of the exporter for the purposes of the Companies Act, 1956 (1 of 1956) or the Income Tax Act, 1961(43 of 1961), as the case may be;

(j)  where the rebate involved in a claim is less than rupees five hundred, the same shall not be allowed;

(k)  the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself,-

(i)   that the service tax rebate claim filed in Form A-1 is complete in every respect;

(ii)   that duly certified documents have been submitted evidencing the payment of service tax on the specified services;

(iii)  that rebate has not been already received on the shipping bills or bills of export on the basis of procedure prescribed in paragraph 2;and

(iv)  that the rebate claimed is arithmetically accurate,

refund the service tax paid on the specified service within a period of one month from the receipt of said claim:

Provided that where the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, has reason to believe that the claim, or the enclosed documents are not in order or that there is a reason to deny such rebate, he may, after recording the reasons in writing, take action, in accordance with the provisions of the said Act and the rules made thereunder;

(4) Where any rebate of service tax paid on the specified services has been allowed to an exporter on export of goods but the sale proceeds in respect of said goods are not received by or on behalf of the exporter, in India, within the period allowed by the Reserve Bank of India under section 8 of the Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, such rebate shall be deemed never to have been allowed and may be recovered under the provisions of the said Act and the rules made thereunder;

(5) This notification shall come into effect on the 1st day of July, 2012.

Form A – 1

Application for claiming rebate of service tax paid on specified services used for export of goods, under Notification No.___/20__-ST

To,

The Deputy/Assistant Commissioner of Central Excise

Sir,

I/We claim rebate of Rs……….. (Rupees in words), under Notification No.____ dated______ , in respect of service tax paid on the specified services used for export of goods.

1.  Name of the exporter:

2.  Membership number of the Export Council:

3.  Name of the Export Council:

4.  Address of the registered/head office of exporter:

5.  Telephone Number and e-mail ID of the exporter:

6.  Division ……… Commissionerate ……………

7.  Central Excise Registration Number (for manufacturer exporter)/Service Tax Code Number (for exporters other than manufacturer exporter)

8.  Import Export Code Number…………..

9.  Details of Bank Account (Name of Bank, branch address and account number)

10. Details of the rebate claim (separately for each Shipping Bill):

(Rupees in thousands)

S. No.

Details of specified services used for export of goods on which rebate of service tax is claimed

Details of shipping bill/bill of export, etc.

(2)

Details of goods exported

(3)

No

Date

Date of Let Export Order

Bill of Lading or Airway Bill Number

Date

Description of goods exported

Quantity

Unit

FOB value

1

 

Details of specified services used for export of goods mentioned in Columns 2 and 3.

(4)

Documents attached to evidence the amount of service tax paid and establish the use of specified service in the export of goods.

(5)

Total amount of service tax paid which is claimed as rebate.

(6)

Name of service provider

Service Tax Registration No./Service Tax Code

Invoice No (pl. attach original invoice)

Date

Description of specified service as per the invoice

Value of specified service used for export of goods as per the invoice

Total amount of service tax paid.

In Figures.

As a percentage of f.o.b. value in shipping bill

 

 

9. Declaration:-

I/We hereby declare that-

(i)  the information given in this application form is true, correct and complete in every respect, in accordance with the notification and that I am authorised to sign on behalf of the exporter; electronic rebate of service tax has not been received from customs on the shipping bills on which rebate is claimed;

(ii)  no CENVAT credit of service tax paid on the specified services used for export of goods has been taken/shall be taken under the CENVAT Credit Rules, 2004;

(iii)  rebate has been claimed for service tax which has been actually paid on the specified services used for export of goods;

(iv) I/we shall maintain records pertaining to the specified services used for export of goods and shall make available, at the declared premises, at all reasonable time, such records for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be.

Date:

Place:

Signature and full address of Exporter

(Affix stamp)

Form A-2

Declaration by an exporter, for obtaining Service Tax Code

(referred under paragraph 2 (c) and 3(d) of Notification No. ___/20__- ST dated __________)

 1.  Name of the exporter:

2.  Address of the registered office or head office of the Exporter :

3.  Permanent Account Number (PAN) of the Exporter :

4.  Import Export Code (IEC) of the Exporter:

5.  Details of Bank Account of the Exporter:

(a) Name of the Bank :

(b) Name of the Branch :

(c) Account Number :

6.  (a) Constitution of Exporter [Proprietorship/Partnership/Registered Private Limited Company/Registered Public Limited Company/Others (specify)]

(b) Name, address and telephone number of proprietor/partner/director

7.  Name, designation and address of the authorised signatory/signatories:

8.  I/We hereby declare that-

(i)  the information given in this application form is true, correct and complete in every respect and that I am authorised to sign on behalf of the exporter;

(ii)  I/we shall maintain records pertaining to specified services used for export of goods and shall make available, at the declared premises, at all reasonable time, such records for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be.

(Signature of the applicant/authorised person with stamp)

Date:

Place:

Schedule of rates

The Chapter or sub-Heading and descriptions of goods in the following Schedule are aligned with the tariff items and descriptions of goods in the First Schedule to the Customs Tariff Act, 1975(51 of 1975). The General Rules for the Interpretation of the First Schedule to the said Customs Tariff Act, 1975 shall mutatis mutandis apply for classifying the export goods listed in the Schedule.

Sl. No.

Chapter or sub-Heading No.

Description of goods

Rate

(1)

(2)

(3)

(4)

1

01

Live animal Nil

2

02

Meat and edible meat offal 0.12

3

03

Fish and crustaceans, molluscs and other aquatic invertebrates 0.12

4

04

Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included 0.12

5

05

Product of animal origin not elsewhere specified or included. 0.12

6

06

Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage 0.12

7

 07

Edible vegetables and certain roots and tubers 0.12

8

08

Edible fruits and nuts, peel of citrus fruit or melons 0.12

9

09

Coffee, tea, mate and spices 0.12

10

10

Cereals 0.12

11

11

Products of the milling industry; malt; starches; inulin; wheat gluten. 0.12

12

12

Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial and medicinal plants; straw and fodder 0.12

13

13

Lac; gums, resins and other vegetable saps and extracts 0.12

14

14

Vegetable plaiting materials; vegetable products, not elsewhere specified or included. 0.12

15

15

Animal or vegetable fats and oils and their cleavage products prepared edible fats; animal or vegetable waxes 0.12

16

16

Preparations of meat, or fish or of crustaceans, molluscs or other aquatic invertebrates 0.12

17

17

Sugars and sugar confectionery 0.12

18

18

Cocoa and cocoa preparations 0.12

19

19

Preparations of cereals, flour, starch or milk; pastry cooks’ products 0.12

20

20

Preparation of vegetables, fruits, nuts or other parts of plants 0.20

21

21

Miscellaneous edible preparations 0.12

22

2201

Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter not flavoured; ice and snow 0.12

23

2202

Waters, including mineral waters and aerated waters containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 2009 0.12

24

2203

Beer made from malt 0.12

25

2204

Wine of fresh grapes, including fortified wines; grape must other than that of heading 2009 0.12

26

2205

Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances 0.12

27

2206

Other fermented beverages (for example cider, perry, mead); mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included 0.12

28

2207

Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher; ethyl alcohol and other spirits, denatured, of any strength 0.12

29

2208

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.; spirit, liquors and other spirituous beverages 0.12

30

2209

Vinegar and substitutes for vinegar obtained from acetic acid 0.12

31

23

 Residues and waste from the food industries; prepared animal fodder 0.06

32

24

Tobacco and manufactured tobacco substitutes 0.04

33

25

Salt; sulphur; earths and stone; plastering materials, lime and cement 0.12

34

26

Ores, slag and ash 0.20

35

27

Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes Nil

36

28

Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes 0.12

37

29

Organic chemicals 0.12

38

30

Pharmaceutical products 0.20

39

31

Fertilizers Nil

40

32

Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks 0.04

41

33

Essential oils and resinoids; perfumery, cosmetic or toilet preparations 0.12

42

34

Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modeling pastes, “dental waxes” and dental preparations with a basis of plaster 0.12

43

35

Albuminoidal substances; modified starches; glues; enzymes 0.12

44

36

Explosives 0.12

45

37

Photographic or cinematographic goods 0.12

46

38

Miscellaneous chemical products 0.12

47

39

Plastics and articles thereof 0.12

48

40

Rubber and articles thereof 0.06

49

41

Raw hides and skins (other than fur skins) and leather 0.04

50

4201

Saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), of any material 0.12

51

4202

Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping-bags, wallets, purses, map-cases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottle- cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paper-board, or wholly or mainly covered with such materials or with paper 0.12

52

4203

Articles of apparel and clothing accessories, of leather or of composition leather 0.12

53

4204

Omitted

54

4205

Other articles of leather or of composition leather 0.12

55

4206

Articles of gut (other than silk-worm gut), of goldbeater’s skin, of bladders or of tendons 0.12

56

4301

Raw fur skins (including heads, tails, paws and other pieces or cuttings, suitable for furriers’ use), other than raw hides and skins of headings 4101, 4102 or 4103 Nil

57

4302

Tanned or dressed fur skins (including heads, tails, paws and other pieces or cuttings), unassembled, or assembled (without the addition of other materials) other than those of heading 4303 0.12

58

4303

Articles of apparel, clothing accessories and other articles of fur skin 0.12

59

4304

Artificial fur and articles thereof 0.12

60

4401

Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms Nil

61

4402

Wood charcoal (including shell or nut charcoal), whether or not agglomerated Nil

62

4403

Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared Nil

63

4404

Hoop wood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking sticks, umbrellas, tool handles or the like; chip wood and the like Nil

64

4405

Wood wool; wood flour Nil

65

4406

Railway or tramway sleepers (crossties) of wood Nil

66

4407

Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end jointed, of a thickness exceeding 6 mm Nil

67

4408

Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm 0.12

68

4409

Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, v-jointed, beaded, moulded, rounded or the like) along any of its edges or faces, whether or not planed, sanded or end-jointed 0.12

69

4410

Particle board, oriented strand board (OSB) and similar board (for example wafer board) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances 0.12

70

4411

Fiberboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances 0.12

71

4412

Plywood, veneered panels and similar laminated wood 0.12

72

4413

Densified wood, in blocks, plates, strips or profile shapes 0.12

73

4414

Wooden frames for paintings, photographs, mirrors or similar objects 0.12

74

4415

Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, Box pallets and other load boards, of wood; pallet collars of wood 0.12

75

4416

Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves 0.12

76

4417

Tools, tool bodies, tool handles, broom or brush bodies and handles, of wood; boot or shoe lasts and trees, of wood 0.12

77

4418

Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, Shingles and shakes 0.12

78

4419

Tableware and kitchenware, of wood 0.12

79

4420

Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood; statuettes and other ornaments, of wood; wooden articles of furniture not falling in chapter 94 0.12

80

4421

Other articles of wood 0.12

81

45

Cork and articles of cork Nil

82

46

Manufactures of straw, of esparto or of other plaiting materials; basket-ware and wickerwork. 0.12

83

47

Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard Nil

84

4801

Newsprint, in rolls or sheets 0.12

85

4802

Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non perforated punch card and punch tape paper , in rolls or rectangular (including square)sheets of any size, other than paper of heading 4801 or 4803; hand-made paper and paperboard 0.12

86

4803

Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibres, whether or not creped, crinkled, embossed, perforated, surface-coloured, surface-decorated or printed, in rolls or sheets 0.12

87

4804

Uncoated craft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803 0.12

88

4805

Other uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specified in Note 3 to this Chapter 0.12

89

4806

Vegetable parchment, greaseproof papers, tracing papers and glassine and other glazed transparent or translucent papers, in rolls or sheets 0.12

90

4807

Composite paper and paperboard (made by sticking flat layers of paper or paperboard together with an adhesive), not surface-coated or impregnated, whether or not internally reinforced, in rolls or sheets 0.12

91

4808

Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803 0.12

92

4809

Carbon paper, self-copy paper and other copying or transfer papers (including coated or impregnated paper for duplicator stencils or offset plates), whether or not printed, in rolls or sheets 0.12

93

4810

Paper and paperboard, coated on one or both sides with kaolin (China clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface – coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size 0.12

94

4811

Paper, paperboard, cellulose wadding and webs of cellulose fibres, coated, impregnated, covered, surface coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810 0.12

95

4812

Filter blocks, slabs and plates, of paper pulp 0.12

96

4813

Cigarette paper, whether or not cut to size or in the form of booklets or tubes 0.12

97

4814

Wallpaper and similar wall coverings; window transparencies of paper 0.12

98

4815

Omitted

99

4816

Carbon-paper, self-copy paper and other copying or transfer papers (other than those of heading 4809), duplicator stencils and offset plates, of paper, whether or not put up in boxes 0.12

100

4817

Envelopes, letter cards, plain postcards and correspondence cards, of paper or paperboard; boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery 0.18

101

4818

Toilet paper and similar paper, cellulose wadding or webs of cellulose fibres, of a kind used for household or sanitary purposes, in rolls of a width not exceeding 36 cm, or cut to size or shape; handkerchiefs, cleansing tissues, towels, table cloths, serviettes, napkins for babies, tampons, bed sheets and similar household, sanitary or hospital articles, articles of apparel and clothing accessories, of paper pulp, paper, cellulose wadding or webs of cellulose fibres 0.18

102

4819

Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres; box files, letter trays, and similar articles, of paper or paperboard of a kind used in offices, shops or the like 0.18

103

4820

Registers, account books, note books, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, excise books, blotting-pads, binders (loose-leaf or other), folders, file covers, manifold business forms, interleaved carbon sets and other articles of stationery, of paper or paperboard; albums for samples or for collections and book covers, of paper or paperboard 0.18

104

4821

Paper or paperboard labels of all kinds, whether or not printed 0.18

105

4822

Bobbins, spools, cops and similar supports of paper pulp, paper or paperboard (whether or not perforated or hardened) 0.18

106

4823

Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres 0.18

107

49

Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans 0.12

108

50

Silk 0.12

109

51

Wool, fine or coarse animal hair, horsehair yarn and woven fabrics 0.12

110

5201

Cotton, not carded or combed 0.04

111

5202

Cotton waste (including yarn waste and garnetted stock) 0.04

112

5203

Cotton, carded or combed 0.04

113

5204

Cotton sewing thread, whether or not put up for retail sale 0.04

114

5205

Cotton yarn (other than sewing thread), containing 85% or more by weight of cotton, not put up for retail sale 0.06

115

5206

Cotton yarn (other than sewing thread), containing less than 85% by weight of cotton, not put up for retail sale 0.06

116

5207

Cotton yarn (other than sewing thread) put up for retail sale 0.06

117

5208

Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200 g/m2 0.12

118

5209

Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200 g/m2 0.12

119

5210

Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200 g/m2 0.12

120

5211

Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200 g/m2 0.12

121

5212

Other woven fabrics of cotton 0.12

122

53

Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn 0.12

123

5401

Sewing thread of man-made filaments, whether or not put up for retail sale 0.06

124

5402

Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex 0.06

125

5403

Artificial filament yarn (other than sewing thread), not put for retail sale, including artificial mono filament of less than 67 decitex 0.06

126

5404

Synthetic monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of synthetic textile materials of an apparent width not exceeding 5 mm 0.06

127

5405

Artificial monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of artificial textile materials of an apparent width not exceeding 5 mm 0.06

128

5406

Man-made filament yarn (other than sewing thread), put up for retail sale 0.06

129

5407

Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404 0.12

130

5408

Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of heading 5405 0.12

131

5501

Synthetic filament tow 0.06

132

5502

Artificial filament tow 0.06

133

5503

Synthetic staple fibres, not carded, combed or otherwise processed for spinning 0.06

134

5504

Artificial staple fibres, not carded, combed or otherwise processed for spinning 0.06

135

5505

Waste (including noils, yarn waste and garneted stock) of man-made fibres 0.06

136

5506

Synthetic staple fibres, carded, combed or otherwise processed for spinning 0.06

137

5507

Artificial staple fibres, carded, combed or otherwise processed for spinning 0.06

138

5508

Sewing thread of man-made staple fibres, whether or not put up for retail sale 0.06

139

5509

Yarn (other than sewing thread) of synthetic staple fibres, not put up for retail sale 0.06

140

5510

Yarn (other than sewing thread) of artificial staple fibres, not put up for retail sale 0.06

141

5511

Yarn (other than sewing thread) of man-made staple fibres, put up for retail sale 0.06

142

5512

Woven fabrics of synthetic staple fibres, containing 85% or more by weight of synthetic staple fibres 0.12

143

5513

Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight not exceeding 170g/m2 0.12

144

5514

Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight exceeding 170 g/m2 0.12

145

5515

Other woven fabrics of synthetic staple fibres 0.12

146

5516

Woven fabrics of artificial staple fibres 0.12

147

56

Wadding, felt and non-woven; special yarns; twine, cordage, ropes and cables and articles thereof 0.12

148

57

Carpets and other textile floor coverings 0.12

149

58

Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery 0.12

150

59

Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use 0.12

151

60

Knitted or crocheted fabrics 0.12

152

61

Articles of apparel and clothing accessories, knitted or crocheted 0.18

153

62

Articles of apparel and clothing accessories, not knitted or crocheted 0.18

154

63

Other made up textiles articles; sets; worn clothing and worn textile articles; rags 0.18

155

64

Footwear, gaiters and the like; parts of such articles 0.12

156

65

Headgear and parts thereof 0.06

157

66

Umbrellas, sun umbrellas, walking-sticks, whips, riding-crops and parts thereof 0.04

158

67

Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair 0.12

159

68

Articles of stone, plaster, cement, asbestos, mica or similar materials 0.18

160

69

Ceramic products 0.18

161

70

Glass and glassware 0.18

162

71

Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metals, and articles thereof; imitation jewellery; coin 0.06

163

7201

Pig iron and spiegeleisen in pigs, blocks or other primary forms 0.08

164

7202

Ferro alloys 0.08

165

7203

Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having minimum purity by weight of 99.94%, in lumps, pellets or similar forms 0.08

166

7204

Ferrous waste and scrap; remelting scrap ingots of iron or steel 0.08

167

7205

Granules and powders, of pig iron, spiegeleisen, iron or steel 0.08

168

7206

Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203) 0.08

169

7207

Semi-finished products of iron or non-alloy steel 0.08

170

7208

Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated 0.08

171

7209

Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated 0.08

172

7210

Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated 0.08

173

7211

Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated 0.08

174

7212

Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated 0.08

175

7213

Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel 0.08

176

7214

Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling 0.08

177

7215

Other bars and rods of iron or non-alloy steel 0.08

178

7216

Angles, shapes and sections of iron or non-alloy steel 0.08

179

7217

Wire of iron or non-alloy steel 0.08

180

7218

Stainless steel in ingots or other primary forms; semi-finished products of stainless steel 0.08

181

7219

Flat-rolled products of stainless steel, of a width of 600 mm or more 0.08

182

7220

Flat-rolled products of stainless steel, of a width of less than 600 mm 0.08

183

7221

Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel 0.08

184

7222

Other bars and rods of stainless steel; angles, shapes and sections of stainless steel 0.08

185

7223

Wire of stainless steel 0.08

186

7224

Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel 0.08

187

7225

Flat-rolled products of other alloy steel, of a width of 600 mm or more 0.08

188

7226

Flat-rolled products of other alloy steel, of a width of less than 600 mm 0.08

189

7227

Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel 0.08

190

7228

Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel 0.08

191

7229

Wire of other alloy steel 0.08

192

7301

Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel 0.08

193

7302

Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish-plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialized for jointing or fixing rails 0.08

194

7303

Tubes, pipes and hollow profiles, of cast iron 0.08

195

7304

Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel 0.08

196

7305

Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406.4 mm, of iron or steel 0.08

197

7306

Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel 0.08

198

7307

Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel 0.08

199

7308

Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel 0.08

200

7309

Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 0.08

201

7310

Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 0.08

202

7311

 Containers for compressed or liquefied gas, of iron or steel 0.08

203

7312

Stranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated 0.08

204

7313

Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or not, and loosely twisted double wire, of a kind used for fencing of iron or steel 0.08

205

7314

Cloth (including endless bands), Grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel 0.08

206

 7315

Chain and parts thereof, of iron or steel 0.08

207

7316

Anchors, grapnels and parts thereof, of iron or steel 0.08

208

 7317

Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper 0.08

209

 7318

Screws, bolts, nuts, coach-screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel 0.08

210

 7319

Sewing needles, knitting needles, bodkins, crochet hooks, embroidery stilettos and similar articles, for use in the hand, of iron or steel; safety pins and other pins, of iron or steel, not elsewhere specified or included 0.08

211

 7320

Springs and leaves for springs, of iron or steel 0.08

212

7321

Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, and parts thereof, of iron or steel 0.08

213

7322

Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel 0.08

214

7323

Table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel 0.08

215

7324

Sanitary ware and parts thereof, of iron or steel 0.08

216

7325

Other cast articles of iron or steel 0.08

217

7326

Other articles of iron and steel 0.08

218

7401

Copper mattes; cement copper (precipitated copper) 0.08

219

7402

Unrefined copper; copper anodes for electrolytic refining 0.08

220

7403

Refined copper and copper alloys, unwrought 0.08

221

7404

 Copper waste and scrap 0.08

222

7405

 Master alloys of copper 0.08

223

7406

 Copper powders and flakes 0.08

224

7407

 Copper bars, rods and profiles 0.08

225

7408

 Copper wire 0.08

226

7409

 Copper plates, sheets and strip, of a thickness exceeding 0.15 mm 0.08

227

 7410

Copper foil (whether or not printed or backed with paper, per board, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.15 mm 0.08

228

7411

 Copper tubes and pipes 0.08

229

 7412

Copper tube or pipe fittings (for example, couplings, elbows, sleeves) 0.08

230

 7413

Stranded wire, cables, plated bands and the like, of copper, not electrically insulated 0.08

231

7414

 Omitted

232

7415

Nails, tacks, drawing pins, staples (other than those of heading 8305) and similar articles, of copper or of iron or steel with heads of copper; screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of copper 0.08

233

 7416

Omitted

234

 7417

Omitted

235

 7418

Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper; sanitary ware and parts thereof, of copper 0.08

236

7419

Other articles of copper 0.08

237

75

Nickel and articles thereof 0.08

238

 7601

Unwrought aluminium 0.08

239

 7602

Aluminium waste and scrap 0.08

240

 7603

Aluminium powders and flakes 0.08

241

 7604

Aluminium bars, rods and profiles 0.08

242

7605

Aluminium wire 0.08

243

7606

Aluminium plates, sheets and strip, of a thickness exceeding 0.2 mm 0.08

244

7607

Aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2mm 0.08

245

7608

Aluminium tubes and pipes 0.08

246

7609

Aluminium tube or pipe fittings (for example, couplings, elbows, sleeves) 0.08

247

7610

Aluminium structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures 0.08

248

7611

Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 0.08

249

7612

Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300l, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment 0.08

250

7613

Aluminium containers for compressed or liquefied gas 0.08

251

7614

Stranded wire, cables, plaited bands and the like, of aluminium, not electrically insulated 0.08

252

7615

Table, kitchen or other household articles and parts thereof, of aluminium; pot scourers and scouring or polishing pads, gloves and the like, of aluminium; sanitary ware and parts thereof, of aluminium 0.08

253

7616

Other articles of aluminium 0.08

254

78

Lead and articles thereof 0.06

255

79

Zinc and articles thereof 0.06

256

80

Tin and articles thereof 0.06

257

81

Other base metals; cermets, articles thereof 0.06

258

82

Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal 0.12

259

83

Miscellaneous articles of base metal 0.12

260

84

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 0.08

261

85

Electrical machinery and equipment and parts thereof ; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 0.08

262

86

Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds 0.06

263

8701

Tractors (other than tractors of heading 8709) 0.06

264

8702

Motor vehicles for the transport of ten or more persons, including the driver 0.06

265

8703

Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars 0.06

266

8704

Motor vehicles for the transport of goods 0.06

267

8705

Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixers lorries, spraying lorries, mobile workshops, mobile radiological units) 0.06

268

8706

Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705 0.06

269

8707

Bodies (including cabs), for the motor vehicles of headings 8701 to 8705 0.06

270

8708

Parts and accessories of the motor vehicles of headings 8701 to 8705 0.06

271

8709

Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles 0.06

272

8710

Tanks and other armoured fighting vehicles, motorized, whether or not fitted with weapons, and parts of such vehicles 0.06

273

8711

Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; 0.06

274

8712

Bicycles and other cycles (including delivery tricycles), not motorised 0.12

275

8713

Carriages for disabled persons, whether or not motorised or otherwise mechanically propelled 0.06

276

8714

Parts and accessories of vehicles of headings 8711 to 8713 0.12

277

8715

Baby carriages and parts thereof 0.06

278

8716

Trailers and semi-trailers; other vehicles, not mechanically propelled; parts thereof 0.06

279

88

Aircraft , spacecraft, and parts thereof 0.06

280

89

Ships, boats and floating structures 0.06

281

90

Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof 0.12

282

91

Clocks and watches and parts thereof 0.06

283

92

Musical instruments; parts and accessories of such articles 0.20

284

93

Arms and ammunition; parts and accessories thereof Nil

285

94

Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings 0.06

286

95

Toys, games and sports requisites; parts and accessories thereof 0.20

287

96

Miscellaneous manufactured articles 0.06

288

97

Works of art, collector’s’ pieces and antiques Nil

■■

Exemption to taxable services received by an exporter of goods and used for export of goods to the extent specified

Notification No 42/2012 – ST, dated 29-6-2012

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 said Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service received by an exporter of goods (hereinafter referred to as the exporter) and used for export of goods (hereinafter referred to as the said goods), of the description specified in column (2) of the Table below (hereinafter referred to as the specified service), from so much of the service tax leviable thereon under section 66B of the said Act, as is in excess of the service tax calculated on a value up to ten per cent of the free on board value of export goods for which the said specified service has been used, subject to the conditions specified in column (3) of the said Table, namely:-

TABLE

Sr. No.

Description of the taxable service

Conditions

(1)

 (2)

(3)

1.

Service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the exporter, to cause sale of goods exported by him. (1) The exporter shall declare the amount of commission paid or payable to the commission agent in the shipping bill or bill of export, as the case may be.

(2) The exemption shall be limited to the service tax calculated on a value of ten per cent of the free on board value of export goods for which the said service has been used.

(3) The exemption shall not be available on the export of canalised item, project export, or export financed under lines of credit extended by the Government of India or EXIM Bank, or export made by Indian partner in a company with equity participation in an overseas joint venture or wholly owned subsidiary.

(4) The exporter shall submit with the half-yearly return after certification of the same as specified in clause (g) of the proviso—

(i) the original documents showing actual payment of commission to the commission agent; and

(ii) a copy of the agreement or contract entered into between the commission agent located outside India and the exporter in relation to sale of export goods outside India:

Provided that-

(a)  the exemption shall be available to an exporter who,-

(i)  informs the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the factory or the regional office or the head office, as the case may be, in Form EXP3 appended to this notification, before availing the said exemption;

(ii)  is registered with an export promotion council sponsored by the Ministry of Commerce or the Ministry of Textiles, as the case may be;

(iii)  is a holder of Import-Export Code Number;

(iv)  is registered under section 69 of the said Act;

(v)  is liable to pay service tax under sub-section (2) of section 68 of said Act, read with item (G) of sub-clause (i) of clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules,1994, for the specified service;

(b)  the invoice, bill or challan, or any other document by whatever name called issued by the service provider to the exporter, on which the exporter intends to avail exemption, shall be issued in the name of the exporter.

(c)  the exporter availing the exemption shall file the return in Form EXP4, every six months of the financial year, within fifteen days of the completion of the said six months;

(d)  the exporter shall submit with the half yearly return, after certification, the documents in original specified in clause (b) and the certified copies of the documents specified in column (3) of the said Table;

(e)  the documents enclosed with the return shall contain a certification from the exporter or the authorised person, to the effect that specified service to which the document pertains, has been received and used for export of goods by mentioning the specific shipping bill number on the said document.

(f)  where the exporter is an individual or a proprietorship concern or an HUF or a partnership firm, the documents enclosed with the return shall be certified by the exporter himself and where the exporter is any other person, the documents enclosed with the return shall be certified by the person authorised by the Board of Directors or any other competent person;

(g)  where the amount of commission charged in respect of the specified service exceeds ten per cent. of the free on board value of the export then, the service tax shall be paid within the period specified under rule 6 of the Service Tax Rules, 1994, on such amount, which is in excess of the said ten per cent;

2. This notification shall come into force on the 1st day of July, 2012.

Form EXP3

[See item (i) of clause (a) of proviso ]

S.No———————-

(to be filled in by the office of jurisdictional Assistant / Deputy Commissioner)

To,

The Deputy Commissioner /Assistant Commissioner of Central Excise

Sir,

I/We intend to avail of the exemption from service tax under Notification No. …/2012-ST, dated ….June, 2012 in respect of services provided by a commission agent located outside India, which have been used for export of goods and the relevant particulars are as follows :

1.  Name of the exporter………

2.  Service Tax Registration No……….

3.  Division ……… Commissionerate ……………

4  Membership No. the Export Council………….

5  Name of the Export Council…………

6.  Address of the registered / head office of exporter:……..

7.  Tel. No. and e-mail ID of the exporter……..:

8.  Import -Export Code No…………..

9.  Details of Bank Account (Name of Bank, branch address and account number)……..

I/we undertake that I/we shall comply with the conditions laid down in the said notification and in case of any change in aforementioned particulars; I/We shall intimate the same.

Date:…..

Place:……..

Signature and full address of Exporter

(Affix stamp)

Receipt (to be given by office of Assistant Commissioner/ Deputy Commissioner having jurisdiction) Received Form EXP1 dated –/–/– submitted by __________( name of the exporter). The said intimation is accepted and given acknowledgment No. _____( S. No. Above)

For Assistant, / Deputy Commissioner

(Stamp)

Form EXP4

[See clause (c) of proviso]

To,

The Deputy Commissioner /Assistant Commissioner of Central Excise

Sir,

I/We have availed of exemption of service tax under Notification No. …/2012-ST, dated ……, 2012 in respect of services provided by a commission agent, located outside India and have used the same for export of goods and the relevant particulars are as follows:

1.  Name of the exporter………..

2.  Address of the registered / head office of exporter…………

3.  Tel. No. and e-mail ID of the exporter……..:

4.  Service Tax Registration No…….

5.  Division ……… Commissionerate ……………

6.  Membership No. Of the Export Council………

7.  Import Export Code No…………..

8.  Name of the Export Council………..

9.  Details of Bank Account (Name of Bank, branch address and account number)……..

TABLE-A

Sr. No.

 Details of goods exported (on which exemption of service tax availed) during the six months ending on…………………………..

Details of Shipping Bill/ Bill of export (Please enclose self attested copy of Shipping Bill or Bill of Export) and Details of goods exported (in case of exports of more than one commodity, please fill in the proforma, commodity-wise)

No.

Date

Date of Let export order

Export invoice no

Date

Description of goods exported

Quantity (please mention the unit)

FOB value (in rupees in lakh)

               

               

TABLE- B

Details of specified service used for export of goods, covered under the Shipping Bill or Bill of Export mentioned in Table A in respect of which the exemption has been availed during the six months ending on………………………….. Details of documents attached showing the use of such service for export, the details of which are mentioned in Table A (self attested) Total amount of service tax claimed as exemption (rupees in lakhs)

Name of service provider

Address of service provider

Invoice No.

Date

   
           
           

9. Declaration:-

I / We hereby declare that-

(i)  I have complied with all the conditions mentioned in Notification No. …/2012-ST, dated …. June, 2012;

(ii)  the information given in this application form is true, correct and complete in every respect and that I am authorised to sign on behalf of the exporter;

(iii)  no CENVAT credit of service tax paid on the specified service used for export of said goods taken under the CENVAT Credit Rules, 2004;

(iv)  I / we, am/ are enclosing all the required documents. Further, I understand that failure to file the return within stipulated time or non-enclosure of the required document, duly certified, would debar me/us for the refund claimed aforesaid.

Date:……..

Place:………

Signature and full address of Exporter

(Affix stamp)

Enclosures: as above

■■

 

 

section 66B of the finance act, 1994 – CHARGE OF service tax ON AND AFTER FINANCE ACT, 2012 – EXEMPTION to specified services RECEIVED BY EXPORTER OF GOODS – CORRIGENDUM

notification [F. NO.334/1/2012 -TRU], DATED 29-6-2012

In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 31/2012-Service Tax, dated the 20th June, 2012 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 473 (E), dated the 20th June, 2012, in the proviso, in clause (d),-

for “column (4)”, read “column (3)”.

■■

Section 68 of the Finance Act, 1994 – payment of service tax – service tax payable on specified services – CORRIGENDUM

Notification [F. No.334/1/2012 -TRU], dated 29-6-2012

In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 30/2012- Service Tax, dated the 20th June, 2012 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 472 (E), dated the 20th June, 2012, in para I, in clause (A), in sub-clause (iv), in item (B),-

for “support”, read “legal”.

■■

Section 66b of the finance act, 1994 – charge of service tax on and after finance act, 2012 – exemption to railways

Notification No. 43/2012-St, dated 2-7-2012

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 said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services of the description mentioned in the Table below, provided by the Indian Railways from the whole of service tax leviable thereon under section 66B of the said Act, with effect from the date of publication of this notification in the Official Gazette, upto and including the 30th day of September, 2012.

TABLE

Sl. No.

Description of taxable services

1.

Service of transportation of passengers, with or without accompanied belongings, by railways in —

(A) first class; or

(B) an air conditioned coach

2.

Services by way of transportation of goods by railways

■■

Service Tax (Second Amendment) Rules, 2012 – Corrigendum

Notification [F. No. 334/01/2012- TRU], dated 2-7-2012

In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2012-Service Tax, dated the 20th June, 2012 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 478 (E), dated the 20th June 2012, in rule 6A, in sub-rule (1), in clause (f),-

for “Explanation 2”, read “Explanation 3”.

■■

 

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