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Annexure A, Annexure B, Annexure B- Old vs. New

Dayal 
Updated on 05 July 2016

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Annexure A

Service tax amendments,

Service receiver is liable to pay the service tax at the rate mentioned below:

(Notification No. 15/2012 dated 17-03-2012 - effective from 01-07.2012 [section 68 of the Finance Act ]

Sr

No

Description of a service

%  of  service tax payable by the person providing service

% of service tax payable by the person receiving the service

Abatement     %

For the

receiver

Condition

1

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

Nil

100%

Nil

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%

75% @

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

3

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

Nil

100% *

Nil

4

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

Nil

100% *

Nil

5

in respect of  services  provided or agreed to be provided  by individual advocate

Nil

100% *

Nil

6

in respect of  services  provided or agreed to be provided  by way of support service by Government or local authority

Nil

100% *

Nil

7

in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on abated value.

Nil

100% *

60%

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

in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on non abated value.

60%

40% *

Nil

Without availing Cenvat

8

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

25%

75% *

Nil

9

in respect of  services  provided or agreed to be provided  by way of works contract

50%

50%

See work contract below

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%

Import of services and services received from Nepal

@Earlier the condition of obtaining declaration was done away with but in the new proposal it has again been brought back. This means now we need to obtain a certificate from transporters to this effect. [Draft declaration provided at the end]

Annexure B

EXEMPTION OR ABATEMENT ALLOWED with condition.

(Notification No.13/2012 dated 17-3-2012 effective from 01-07-2012)

Sl.No.

Description of taxable service

Tax Payable on value -  %

Exemption/
Abatement on value - %

Conditions

(1)

(2)

(3)

(4)

1

Financial leasing services including equipment leasing and hire purchase

10

90

Nil.

2

Transport of goods by rail

30

70

Nil.

3

Transport of passengers, with  or without accompanied belongings by rail

30

70

Nil.

4

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 place specially arranged for organizing a function

70

30

CENVAT credit on any goods classifiable under chapter 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

60

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

40

Same as above.

7

Transport of goods by road by Goods Transport Agency

25

75

CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under CCR 2004

8

Services provided in relation to chit

70

30

Same as above.

9

Renting of any motor vehicle designed to carry passengers

40

60

Same as above.

10

Transport of goods in a vessel from one port in India to another

50

50

Same as above.

11

(i)Services provided or to be provided to any person, by a tour operator in relation to a package tour

25

75

(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of CCR, 2004. (ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.

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

10

90

(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 CCR, 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) Services, other than services specified in (i) and (ii) above, provided or to be provided to any person, by a tour operator in relation to a tour

40

60

(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 CCR, 2004.

(ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.

               

Annexure B - Old vs. New

Service Tax (Determination of Value) Rules, 2006

[Notification no 11/2012 ST dated 17-3-12 now effective from 01-07-12]

Sr.No.

Particulars

Old Provisions

New Provisions

1.

Composition scheme in Works Contract

Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007

Merged into Rule 2A of Valuation Rules

Rate of Composition Tax on all works contract

4% upto 31-3-2012

4.8% w.e.f. 1-4-2012

Original work

Rate of tax 12% of 40%

Effective rate = 4.8%

Works contract where value of land is included

Rate of Tax = 12% of 25%

Effective rate = 3.0%

Other works contracts including completion and finishing services –

Rate of Tax = 12% of 60%

Effective rate = 7.2%

2

Valuation method in works Contract

Rule 2A – Gross value minus of value of goods sold

No change

Sr.No.

Particulars

Old Provisions

New Provisions

3

Supply of food and drinks in a restaurant or as outdoor catering

Determination of value of taxable - new Rule 2C

Not existing

However, exemption was granted through Exemption Notification no. 1/2006 ST dated 1.3.2006

Effective Rate w.e.f. 1.4.2012

New Valuation rule to determine the value of services involved.

Value of Service involved in the supply of food or any other article of human consumption or any drink:

Restaurant

12% of 30% = 3.6%

Restaurant

12% of 40% = 4.8%

Outdoor catering

12% of 50% = 6%

Outdoor catering

12% of 60% = 7.2%

4.

Manner of determination of Value – Rule 3- where value is not ascertainable

“where the consideration received is not wholly or partly consisting of money”- substituted

“where such value is not ascertainable” .

5.

Inclusion in or exclusion from value of certain expenditure or costs Rule 5- explanation to sub rule(1)

“services specified in sub-clause (zzzx) of clause (105) of section 65 of the Finance Act, 1994”,- substituted

“telecommunication service”

Sr.No.

Particulars

Old Provisions

New Provisions

6.

Inclusion in Value - .Rule 6(1)

Not existing

new clause(x) inserted in Sub rule(1)

amount realized as demurrage or by any other name whatever called for the provision of a service beyond the period originally contracted or in any other manner relatable to the provision of service- included

7

Exclusion from value – Rule 6(2)

“interest on loans” -

interest on,-

(a) deposits; and

(b) delayed payment of any consideration for the provision of services or sale of goods;

Not existing

Accidental damages due to unforeseen actions not relatable to the provision of service.

8

Actual consideration to be the value of taxable service provided from outside India -Rule 7 omitted

 

Omitted- this means reimbursement of expenses made outside India to the service provider, to be included in taxable value.




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