Vrinda Aghi
Service Tax Amendment 2011
Sub section 65(zzzzm), the following
has been substituted namely:
(i)
to any person, by a business
entity in relation to advice, consultancy or assistance in any branch of law
(ii)
to any business entity, by any
person, in relation to representational services before any court, tribunal or authority.
(iii)
To any business entity, by any
tribunal in respect of arbitration.
Services provided
by individuals to other individual will remain outside the levy.
(This has been clarified by the
D.O.F.No.334/3/2011-TRU)
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The earlier section of the Finance
Act 2010 read as follows:
Section 65(zzzzm)
Taxable service means any service
provided or to be provided to a business entity, by any other business entity, in
relation to advice, consultancy or assistance in any branch of law, in any manner:
Provided that any service provided
by way of appearance before any court, Tribunal or authority shall not amount to
taxable service.
Also, the amendments states that
the Service will be payable on accrual basis
unlike erstwhile receipt basis, this would imply that as soon as the invoices are
raised the service tax will be payable. (Under notification - 18/2011) (Point of
Taxation Rules, 2011)
The rules will be applicable
from the date that will be notified
after the bill is enacted.
I have attached the relevant documents
CAclubindia
