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Service tax at a Glance

Budget -2012 : Applicability dates of certain provisions under Service Tax

Effective Date

Relevant Provision

Particulars

01-04-12

Rate

Effective rate increased from 10.30% to 12.36%

Works Contract effective rate increased from 4.12% to 4.944%

Rule 4A of STR

Invoicing period increased from 14 days to 30 days, Banking service 45 days

Rule 6 of STR

Adjustment of excess tax paid : Unlimited in subsequent month/ quarter

Rule 6(3) of CCR

Cenvat Reversal for exempt services increased from 5 % to 6%

Point of Taxation Rules

Individual / Partnersip Service Provider eligible to pay tax on first 50 lac on receipt basis s.t. previous year billing < 50 L

28-05-12

Sec 67A

Rate of service tax, value of taxable service and rate of exchange be the date when service is provided

Sec 68

Central Government to notify the services and the extent of service tax payable.

Sec 72A

Special audit to be carried out by a CA/ICWA nominated by a Commissioner.

Sec 73

Period of issuing show caue notice (SCN) increased from one year to 18 months

Sec 73(1A)

Furnishing statement of tax demand on same grounds of an SCN issued earlier to be treated as SCN

Sec 80

Penalty waived in case of Renting of Immovable Property service if tax payable as on 6-03-12 is paid alongwith interest within 6 months.

 Sec 83-

To make certain provisions of the Central Excise Act applicable to the service tax

 Sec 85

Appeal to be filed before Comm(A) within 2 months extendable by one month from the date of receipt of decision or order of the adjudicating authority.

 Sec 86-

Apeal before CESTAT by Department is within 4 months of receipt of order by Committee of Commissioner or CC.

 Sec 88-

Word ‘duty’ substituted with the word ‘tax’.

 Sec 89

Knowingly evasion of payment of service tax is a punishable offence.

Sec 93(A)

Provision for rebate of service tax on taxable services used for export of goods after the stage of manufacture, processing or removal.

Sec 97 and 98

Retrospective Exemption to Management, maintenance and repair of Roads and Non-commercial government buildings w.e. 16-6-05

Applicable w.e.f.
 01-07-2012

Sec 65B

Definitions/ Interpretation of various Terms.

Sec 66B

New Charging Section - provides for levy of tax @ 12%

Sec 66C

Determination of Place of Provision of Service – empowering Central Government to make Rules . W.e.f. 01.07.2012, existing ‘Export of Services Rules, 2005’ and ‘Taxation of Services (Provided from outside India and received in India) Rules, 2006’ rescinded.

Sec 66D

Negative list of Services

Sec 66E

Declared services : Charging service tax on service portion of nine specified transactions

Sec 66F

Principles of interpretation of specified description of Services or bundled Services

Notification 11/2012

Valuation Rules w.r.t. Works Contract

Notification 12/2012

Mega Exemption Notification

Notification 13/2012

New Abatement Rates

Notification 15/2012

New Reverse Charege Mechanism

Cease w.e.f.
 01-07-12

Sec 65

Definition of Taxable Service

Sec 65A

Classification of Taxable service

Sec 66

Charge of Section Tax

Sec 66A

Charge of Service Tax on Services received from outside India