Classification is based on definitions of taxable services under various sub-clauses of section 65(105). When for any reason a taxable service is prima facie classifiable under two or more sub-clauses, classification shall be based on following principles:

1) Most specific description to be preferred to a general description.

2) For composite service — the service category that gives essential character.

3) When both the above test fails-the service category under sub- clause that occurs first, among sub-clauses which equally merit consideration.

• Where any taxable service is:

(i) provided or to be provided by a person who has established a business or has a fixed establishment from where the service is provided or to be provided or has his permanent address or usual place of residence outside India; and

(ii) received by a person who has his place of business, fixed establishment, permanent address or usual place of residence, in India

such service shall be liable to service tax and shall be treated as if the recipient has himself provided the service in India except where the recipient of service is an individual and has received the said services otherwise for use in business or commerce.

• In cases where service provider has business establishment both in that country and elsewhere, the country, where the establishment is directly concerned with the provision of service is located, to be treated as country from which the service is provided or to be provided.

• A person carrying on business through permanent establishment in India and through another permanent establishment outside India, all such permanent establishments to be treated as separate persons.

Import Of Service Rules

• Governed by Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 introduced from 19th April, 2006113.

• For the purpose of these rules, the meaning of terms "input", "input service" and "output service" shall be that as defined in The CENVAT Credit Rules, 2004.

• The taxable service provided from outside India and received in India ("India" includes the installation, structures and vessels in the Continental Shelf & Exclusive Economic Zones of India) are classified on fulfilling various conditions listed here below:

Category of Service	Sub-clause of Section 65(105)	Conditions for service to be treated as import of service, if service is
• General Insurance	• (d)	provided in relation to an immovable property situated outside India
• Architect	• (p)
• Interior Decorator	• (q)
• Real Estate Agent	• (v)
• Commercial or Industrial Construction	• (zzq)
• Site Formation & Clearance, Excavation & Earthmoving & Demolition Services	• (zzza)
• Dredging services	• (zzzb)
• Survey & Map Making Services	• (zzzc)
• Construction of Complex	• (zzzh)
• Auction of Property	• (zzzr)
• Mining of mineral, oil or gas	• (zzzy)
• Renting of immovable property	• (zzzz)
• Works contract services	• (zzzza)
• Stock Broker	• (a)	• Performed partly or wholly outside India • Where taxable service is of 1) Management, Maintenance or Repairs 2) Technical Testing & Analysis 3) Technical Inspection & Certification Provided in relation to goods, material or immovable property situated outside India at the time of provision of service through internet, electronic or computer network or other means, such taxable services to be treated as performed outside India.
• Courier	• (f)
• Custom House Agent	• (h)
• Steamer Agent	• (i)
• Clearing & Forwarding Agent	• (j)
• Air Travel Agent	• (l)
• Mandap Keeper	• (m)
• Tour Operator	• (n)
• Rent-a-cab Operator	• (o)
• Practising Chartered Accountant	• (s)
• Practising Cost Accountan	• (t)
• Practising Company Secretary	• (u)
• Security Agency	• (w)
• Credit Rating Agency	• (x)
• Market Research Agency	• (y)
• Underwriter	• (z)
• Photography	• (zb)
• Convention	• (zc)
• Videotape Production	• (zi)
• Sound Recording	• (zj)
• Port Services	• (zn)
• Authorised Service Station	• (zo)
• Beauty Parlour	• (zq)
• Cargo Handling	• (zr)
• Dry Cleaning	• (zt)
• Event Management	• (zu)
• Fashion Designing	• (zv)
• Health & Fitness	• (zw)
• Storage & Warehousing	• (zza)
• Commercial Training or Coachhing	• (zzc)
• Erection, Commissioning & Installation	• (zzd)
• Internet Cafe	• (zzf)
• Management, Maintenance or Repairs	• (zzg)
• Technical Testing & Analysis	• (zzh)
• Technical Inspection & Certification	• (zzi)
• Other Port	• (zzl)
• Airport Service	• (zzm)
• Transport of goods by air	• (zzn)
• Business Exhibition	• (zzo)
• Transport of Goods by Road	• (zzp)
• Opinion Poll	• (zzs)
• Outdoor Caterer	• (zzt)
• Survey & Exploration of Mineral	• (zzv)
• Pandal or Shamiana	• (zzw)
• Travel Agent	• (zzx)
• Forward Contract	• (zzy)
• Cleaning Activity	• (zzzd)
• Membership of Club or Association	• (zzze)
• Packaging Services	• (zzzf)
• Transport of goods in container by rail	• (zzzp)
• Stock Exchange, Commodity Exchange & Process/ Clearing House Services	• (zzzzg,  zzzzh & zzzzi)
• General Insurance other than in relation to immovable property	• (d)	• Received by a recipient located in India for use in relation to business or commerce. • Where taxable service is of “supply of tangible goods for use” provided to recipient located in India, the tangible goods so supplied should also be located in India during the period of its use by recipient of service.
• Advertising	• (e)
• Consulting Engineer	• (g)
• Manpower Recruitment or supply	• (k)
• Management Consultant	• (r)
• Scientific or Technical Consultancy	• (za)
• Online Information & Database Access	• (zh)
• Broadcasting	• (zk)
• Insurance Auxiliary-General Insurance	• (zl)
• Banking or Financial	• (zm)
• Cable	• (zs)
• Life Insurance	• (zx)
• Insurance Auxiliary-Life Insurance	• (zy)
• Rail Travel Agent	• (zz)
• Business Auxiliary	• (zzb)
• Franchise	• (zze)
• Forex Broker	• (zzk)
• Intellectual Property	• (zzr)
• Programme Producer	• (zzu)
• Transport of goods, other than water, through pipeline or other conduit	• (zzz)
• Survey & Map Making other than in relation to immovable property	• (zzzc)
• Mailing list compilation & mailing	• (zzzg)
• Registrar to an issue	• (zzzi)
• Share Transfer Agent	• (zzzj)
• Automated Teller Machine Operation, Maintenance or Management Services	• (zzzk)
• Recovery Agents	• (zzzl)
• Sale of space or time for advertisement	• (zzzm)
• Sponsorship Services	• (zzzn)
• Business Support Services	• (zzzq)
• Auction of Property other than in relation to immovable property	• (zzzr)
• Public Relation Services	• (zzzs)
• Ship Management Services	• (zzzt)
• Internet Telephony Services	• (zzzu)
• Credit card, debit card, charge card or other card services	• (zzzw)
• Telecommunication Services	• (zzzx)
• Development & supply of content	• (zzzzb)
• Asset management services	• (zzzzc)
• Designing services	• (zzzzd)
• Information Technology Software Services	• (zzzze)
• Management of Investments under ULIP	• (zzzzf)
• Supply for Tangible Goods for use	• (zzzzj)
The following three services will be effective from 1st September, 2009. Hence for the purpose of classification of these services in above categories, the reader may refer to the relevant notification which might be introduced on or after 1st September, 2009.
• Legal Consultancy Services	• (zzzzm)
• Cosmetic & Plastic Surgery Services	• (zzzzk)
• Transport of coastal goods through national waterways or inland water	• (zzzzl)

• Following taxable services specified in sub-clauses of Section 65(105) not to be considered for these rules:

— (zzzo) — to any passenger by an aircraft operator in relation to scheduled or non scheduled air transport of such passenger embarking in India for international journey, in any class other than economy class.

— (zzzv) — to any person, by any other person, in relation to transport of such person embarking from any port or other port in India by a cruise ship.

• The recipient of taxable service provided from outside India and received in India to make application of registration u/s. 69 of The Finance Act, 1994.

• The taxable service provided from outside India and received in India shall not be treated as output service for the purpose of availing CENVAT credit.

• The value of taxable service provided from outside India as per provisions of Section 66A shall be the actual consideration charged.

• The value of taxable service specified in Rule 3(ii) of Taxation of Service (Provided from Outside India and Received in India) Rules, 2006 (i.e., partly performed in India) shall be the total consideration paid by the recipient of such service including value of taxable service partly performed outside India.

• The value of taxable service is:

(i) in cases where consideration is in money; the gross amount charged by the service provider for such services provided or to be provided;

(ii) in cases where consideration is not wholly or partly consisting of money, such amount in money as, with the addition of service tax charged, is equivalent to the consideration;

(iii) in cases where the consideration is not ascertainable, the amount as determined in accordance with The Service Tax (Determination of Value) Rules, 2006.

• The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.

• W.e.f. 10th May,2008, the value of taxable service shall be deemed to have been received by service provider for the transaction of taxable services with associated enterprise, at the point of time when the amount credited or debited to any account including suspense account in books of accounts of the person liable to pay tax.

• When charges for services are inclusive of service tax, the value of taxable service shall be arrived at as follows:

• From 1st April, 2008, exemption21 granted to service provider from levy of service tax on taxable service of "aggregate value not exceeding ten lakhs rupees"22 in any financial year. The above exemption not available to:

1) taxable services provided by a person under a brand name or trade name23 of another person; or

2) such value of taxable service for which service tax is payable by person specified in section 68(2) (i.e., other than service provider).

The above exemption is available subject to following conditions:

1) exemption is optional, which once exercised in a financial year, cannot be withdrawn during remaining part of such financial year;

2) service provider not to avail CENVAT credit (under Rule 3 or Rule 13 of CENVAT Credit Rules, 2004) of service tax on any input service used for providing such taxable service for which exemption is opted for;

3) service provider not to avail CENVAT credit (under Rule 3 of CENVAT Credit Rules, 2004) of duty on capital goods received in his premises during period of availment of this exemption;

4) service provider to avail CENVAT credit on inputs or input services (used for providing taxable service) received on or after the day he starts paying tax;

5) service provider to pay an amount of CENVAT credit taken by him for inputs lying in stock or in process on the day on which he starts availing exemption;

6) balance unutilized CENVAT credit on account of inputs and input services (used in providing service for which exemption is availed) to lapse on the date on which he starts availing exemption;

7) for arriving at aggregate value of taxable service, services provided under all the categories from one or more premises to be included;

8) aggregate value of taxable service rendered by service provider from one or more premises not to exceed rupees ten lakhs in preceding financial year.

• For determining aggregate value not exceeding rupees ten lakh in relation to taxable service provided by GTA, the payment received towards such services, on which service tax is payable by person other than GTA, shall not be taken into account.

• Application for registration to be made by every person liable for paying the service tax in Form ST-1 within 30 days from the date on which service tax is levied or within 30 days from the date of commencement of business of providing taxable service, whichever is later.

• Application for registration in Form ST-1 to be made by Input Service Distributor within 30 days from the date of commencement of business or 16th June, 2005 whichever is later24.

• Application for registration in Form ST-1 to be made within 30 days by service provider whose aggregate value of taxable service in a financial year exceeds rupees nine lacs25.

• Normally, the service provider is liable to register & pay tax, except in case of:

— insurance auxiliary services provided by insurance agents related to general insurance or life insurance business, where, General Insurance Co. or Life Insurance Co. (who has appointed such agents) is liable to register and pay tax;

— taxable service provided or to be provided by any person from a country other than India and received by any person in India u/s. 66A of the Act, it is the person receiving the taxable service in India who is liable to register and pay tax26.

— taxable service provided by GTA in relation to transport of goods by road in goods carriage, where either consignor or consignee of goods is;

1. any factory registered under or governed by The Factories Act, 1948;

2. any company formed or registered under The Companies Act, 1956;

3. any corporation established by or under any law;

4. any society registered under The Societies Registration Act, 1860 or any law corresponding to that act in force in any part of India;

5. any co-operative society established by or under any law;

6. any dealer of excisable goods, who is registered under The Central Excise Act, 1944 or rules made there under; or

7. any body corporate established, or a partnership firm registered, by or under any law

it is the person making payment of freight who is liable to register and pay tax.

— business auxiliary service of distribution of mutual fund provided by distributor or agent of mutual fund, where, Mutual Fund (who has appointed such distributor or agents) is liable to register and pay tax27.

— sponsorship services provided to any body corporate or firm, where, the body corporate or firm located in India28, who receives such sponsorship service is liable to register and pay tax29.

• Separate registration to be obtained in respect of each premises from where taxable services are rendered/received.

• In case assessee liable to pay service tax on taxable service provided/received from more than one premise or office and has centralized billing or accounting system, he may register such premise or office where centralized billing or accounting system is located. In such cases, application for registration to be made to CCE in whose jurisdiction the premise or office, from where centralized billing or accounting is done, is located30.

• Assessee to obtain single registration for all the taxable services provided by him31.

• Every assessee to intimate in writing to AC/DC of any change in information or detail furnished in Form No.ST-1 at the time of registration or any additional information or detail which he intends to furnish within 30 days of such change32.

• Registration certificate in Form ST-2 shall be granted within 7 days from date of application/intimation, failing which the registration applied for shall be deemed to have been granted.

• In case of transfer of business, transferee to obtain a fresh certificate of registration.

• Registration certificate to be surrendered immediately to the Superintendent of Central Excise by an assessee who ceases to provide taxable service33.

• Superintendent to cancel the registration certificate after ensuring that the assessee has paid all monies due to the Central Government34.

• While charge of service tax is on provision of service, tax is payable only when the value of taxable service is received.

• W.e.f. 10th May,2008, in case of transaction of taxable service with any associated enterprise, service tax is payable on value of taxable services debited or credited in the books of person liable to pay service tax or payment received against the value of taxable service, whichever is earlier.

• Service tax is not payable on services provided free of charge35.

• For due dates for payment of tax refer table given in clause no. 5 hereinabove.

• W.e.f. 1st April, 2007, service tax to be paid in Form GAR-736 into the designated bank.

• W.e.f. 1st October, 2006, the assessee who has paid service tax of Rs. 50 lakhs or more in preceding financial year or has already paid service tax of Rs. 50 lakhs or more in current financial year is required to deposit service tax electronically through internet banking37.

• The date of presentation of cheque to the designated bank shall be the date of payment, provided the cheque is not dishonoured.

• Option to assessee to pay service tax in advance and adjust the tax so paid against his liability of service tax for subsequent period subject to following conditions:

(i) the amount of service tax paid in advance to be intimated to the Superintendent within 15 days from the date of such payment

(ii) indicate the details of advance payment and its adjustment in subsequent service tax returns.

• Excess tax paid for service which is not rendered fully, is allowed to be adjusted against subsequent period’s liability, provided the service charges & service tax thereon is refunded to the service recipient.

• Excess service tax paid is permitted to be adjusted against liability for succeeding month/quarter subject to following conditions:

(i) excess payment is not on account of reasons involving interpretation of law, taxability, clarification, valuation or any exemption notification;

(ii) assessees holding centralised registration may adjust excess payment without any monetary limit if it is on account of delay in receipt of details of payment from branches;

(iii) in case of other assessees, adjustment is restricted upto Rs. 1,00,000/-38;

(iv) the details and reasons of such adjustment to be intimated to the Superintendent within 15 days from the date of making such adjustment.

• Application to be made to the Central Excise Officer (CEO) to make provisional assessment of tax, when assessee is unable to correctly estimate actual tax payable.

• Half yearly returns to be filed by 25th April and 25th October in every financial year.

• Returns to be filed in Form ST-3 in triplicate, indicating inter alia, month/quarter wise details for each of the taxable service rendered along with copies of relevant challans.

• Input service distributor to file half yearly return in Form ST-3 by 30th April and 31st October in every financial year [Rule 9(10) of The CENVAT Credit Rules, 2004].

• Option to file returns electronically (E-returns) available for all categories39.

• Every assessee, at the time of filing first return or 31st January,2008, whichever is later, is required to furnish list of records maintained for accounting of transactions related to:

(i) providing of any service;

(ii) receipt or procurement of input services and payment for the same;

(iii) receipt, purchase, manufacture, storage, sale or delivery related to input & capital goods;

(iv) other activities such as manufacture/sale of goods;

(v) all other financial records maintained under normal course of business.

• Assessee may revise return within 90 days from the date of submission of original return.40

• A NIL return is also required to be filed.

• Assessee who has obtained service tax registration in view of Rule 3(2) of Service Tax (Registration of Special Category of Persons) Rules, 2005 is not required to file half yearly service tax return till he is not liable to pay service tax41.

• In case of provisional assessment for any month/quarter, assessee to submit a memorandum in Form ST-3A, giving details of difference between the provisional amount of service tax deposited and the actual amount of service tax payable for each month along with the half-yearly return in Form ST-3.

• CEO empowered to call accounts, documents or other necessary evidence in case person liable to pay service tax:

a) fails to furnish the return u/s. 70;

b) having filed return, fails to assess tax correctly

• After giving an opportunity of being heard to assessee, CEO to make assessment of value of taxable service and determine sum payable by/refundable to assessee on the basis of assessment.

• Opportunity of being heard to be given to the assessee if he so desires in any proceedings under this Act.

• Maximum three adjournments can be granted to assessee on his showing sufficient and reasonable cause.

• CEO may serve show cause notice on a person chargeable with service tax within one year from the ‘relevant date’, where any service tax:

(a) has not been levied or paid; or

(b) has been short levied or short paid; or

(c) has been erroneously refunded

and thereafter determine the amount of service tax due and payable.

• The period for issuing such show cause notice shall be five years from the ‘relevant date’, where any service tax has not been levied or paid or has been short levied or short paid or erroneously refunded (hereinafter collectively referred to as ‘specified events’) by reason of —

(a) fraud; or

(b) collusion; or

(c) wilful misstatement; or

(d) suppression of facts; or

(e) contravention of any of the provisions of Chapter V of the Act or of the rules made there under with an intent to evade payment of service tax.

The "relevant date" to be determined as under:

Circumstance	Relevant date
In the case of taxable service for which service tax has not been levied or paid or has been short levied or short paid: if the assessee is liable to file the return, and return is filed return is not filed	Date on which return filed   Last date on which the return is to be filed
in other cases	Date on which tax is to be paid
Where service tax is provisionally assessed	Date of adjustment of service tax after final assessment
Where any sum has been erroneously refunded	Date of refund

• Section 73(3) provides that for ‘specified events’, the person chargeable with the service tax or the person to whom such tax refund has erroneously been made, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment or on the basis of tax ascertained by CEO before service of notice on him u/s.73(1) in respect of service tax and inform CEO of such payment in writing, who on receipt of such information shall not serve notice u/s. 73(1). The provisions of section 73(3) shall not apply to specified events occurring by reason of:

a) fraud; or

b) collusion; or

c) willful misstatement; or

d) suppression of facts; or

e) contravention of any of the provisions of this chapter or of the rules made there under with intent to evade payment of service tax and cases where service tax had become payable or ought to have been paid before 14th May, 2003.

• Section 73(1A) provides that where any service tax has not been levied or paid or short levied or short paid or erroneously refunded by reasons of fraud, collusion or any willful misstatement or suppression of facts or contravention of any provisions of this chapter or rules made there under, with intent to evade payment of service tax by such person or his agent to whom notice is served u/s. 73(1), such person may pay service tax in full with interest u/s. 75 and penalty equal to 25% of service tax specified in the notice or accepted by him within 30 days of receipt of notice, the proceedings in respect of such person shall be deemed to be concluded. Where such person has paid service tax in part along with interest & penalty u/s. 73(1A), the CEO shall determine amount of service tax and interest not being in excess of the amount partly due from such person.

• Service provider to pay forthwith any amount collected as representing service tax, from recipient of taxable service, in excess of service tax assessed or determined.

• Any person to pay forthwith any amount collected towards service tax, which is not so required to be collected.

• Delay in payment of such tax liable for interest @13% p.a. [Section 73B].

• Such amount of tax to be credited to Consumer Welfare Fund as referred in Section 12C of The Central Excise Act, 1944 and be refunded to person who has borne the incidence of tax.

• During the pendency of any proceedings u/s. 73 or 73A, for protecting the interests of revenue, CEO may provisionally attach any property belonging to the person on whom notice u/s. 73(1) or 73A(3) is served.

• Every provisional attachment shall cease to have effect after the expiry of six months from the date of the order. However, the CCE may extend the period as he thinks fit which in any case not to exceed two years.

• The Service Tax (Provisional Attachment of Property) Rules, 2008 prescribes procedures and provisions regarding provisional attachment of the property42.

• The Central Government may publish in official gazette, print media, electronic media or any other means, the names and other particulars of:

i) person adjudged to have contravened any provisions with intent to evade service tax

ii) person adjudged to pay but not paid any amount payable u/s. 73A.

• No publication to be made in relation to any person until;

(a) in case no appeal is presented, the time for presenting an appeal to the Commissioner (Appeals) or Appellate Tribunal has expired; or

(b) in case appeal is presented, the same has been disposed off.

• In case of firm, company or other association of persons, the names of partners/directors/managing agents/ secretaries/treasurers/managers/members of the association shall also be published if circumstances of case justify.

Mistake apparent from records can be rectified by CEO within 2 years by passing rectification order after giving assessee reasonable opportunity of being heard, if the rectification results in increasing the liability or reducing a refund to the assessee.

• For the purpose of satisfying as to legality or propriety of any order/decision passed by subordinated adjudicating authority, the CCE may call for and examine the records of any proceedings.

• Within 3 months from the date of communication of such order, CCE may direct such subordinated adjudicating authority to apply to CCE (Appeals) for determination of any point arising out of decision/order as may be specified.

• The adjudicating authority or other authorised officer to make an application to CCE (Appeals) within 1 month from the date of communication of order by CCE. Such application by adjudicating authority or authorised officer shall deemed to be as appeal made against order of adjudicating authority.

18.1 First Appeal to Commissioner of Central Excise (Appeals) (Section 85)

• Assessee may file appeal against any decision or order passed by adjudicating authority subordinate to CCE.

• Appeal to be filed in Form ST-4 in duplicate within 3 months from receipt of order of such adjudicating authority along with copy of decision or order.

18.2 Second Appeal to Appellate Tribunal (Section 86)

• Assessee may file appeal against an order passed by Commissioner of Central Excise u/s. 73, 83A or an order passed by Commissioner of Central Excise (Appeals) u/s.85.

• Appeal to be filed in Form ST-5 in quadruplicate within 3 months of receipt of order.

• Filing fees for appeal to Appellate Tribunal:

Service tax, interest and penalty involved	Filing Fees (Rs.)
Rs. 5,00,000 or less	1,000
Above Rs. 5,00,000 up to Rs. 50,00,000	5,000
In excess of Rs. 50,00,000	10,000

• Filing fees of Rs.500/- to be paid along with every application made before Appellate Tribunal, in an appeal for grant of stay or for rectification of mistake or for any other purpose or for restoration of an appeal or an application.

• Refund claim to be made to concerned AC/DC in Form R, which should be filed before the expiry of one year from the date of payment of tax43 and should be attached with proof that the incidence of tax has not been passed on to any person.

• In case the refund is not given within 3 months from the date of receipt of refund application, interest should be paid for the period commencing from the date immediately after the expiry of the said 3 months till the date of refund at such rate, not below 5% and not exceeding 30% per annum as is fixed by the Central Government. The rate of interest currently fixed by the Central Government is 6% per annum.44

Exemption granted to following taxable services received by an exporter and used for export of goods45

1. General insurance including re-insurance (Section 65(105)(d))

2. Port Services (Section 65(105)(zn)) & other Port Services (Section 65(105)(zzl))

3. Technical Testing & Analysis Services (Section 65(105)(zzh))

4. Technical Inspection & Certification Services (Section 65(105)(zzi))

5. Transport of Goods by Road from place of removal to Inland Container Depot/Airport/Port of Export (Section 65(105)(zzp))

6. Transport of Goods in container by Rail from Inland Container Depot to Port of Export (Section 65(105)(zzzp))

7. Cleaning Services (Section 65(105)(zzzd))

8. Storage warehousing Services (Section 65(105)(zzza))

9. Courier Services (Section 65(105)(f))

10. Custom House agent Services (Section 65(105)(h))

11. Banking & Other Financial Services (Section 65(105)(zm)) & (Section 65(105)(zzk))

12. Supply of Tangible Goods for use (Section 65(105)(zzzzj))

13. Clearing & Forwarding Agent’s Services (Section 65(105)(j)

14. Charges for Terminal Handling Services

Above exemption is subject to specific conditions notified qua services besides following general conditions, namely:-

a) the exemption shall be claimed by the exporter only for specified services;

b) the exemption shall be provided by way of refund of service tax paid on the specified services;

c) the exporter has actually paid the service tax on the specified services;

d) no CENVAT credit of service tax paid on the specified services has been taken;

e) the refund of service tax paid on the specified services shall not be claimed except under this notification;

Procedure for claiming refund

• Manufacturer exporter registered under Central Excise Act, 1944 to file claim for refund in Form A-1 to the concerned AC/DC of Central Excise having jurisdiction over the factory.

• Exporter who is not registered to file a declaration in Form A-2 with concerned AC/DC having jurisdiction over registered/head office of the exporters.

• Concerned AC/DC to allot Service Tax Code to the exporter within 7 days from date of filing declaration in Form A-2.

• The claim for refund to be filed within 1 year from the date of export of goods. The date of export shall be the date on which the proper office of customs makes an order permitting clearance and loading of said goods for exportation u/s. 51 of the Customs Act, 1962.

• Exporter to enclose all the relevant documents along with claim for refund.

• No claim for refund is allowed if the same is for less than Rs. 500/-.

• Where the amount of refund claimed is upto 0.25% of declared FOB value of export and the exporter is registered with Exports Promotion Council sponsored by Ministry of Commerce or Ministry of Textiles, each relevant document specified in Notification No. 17/2009-ST along with original invoice/bill/challan or other document issued in the name of exporter shall be submitted after being certified in a specified manner. The draft of certificate is specified in Para 6.3.3 (vii) of Letter D.O.F.No.334/13/2009-TRU dated 6th July,2009 issued by Tax Research Unit of Ministry of Finance, Government of India.

• Where the amount of refund claimed is more than 0.25% of declared FOB value of export, the refund claim should be submitted along with certificate from Chartered Accountant who audits the annual account of the exporter under Companies Act, 1956 or the Income Tax Act, 1961.

• The concerned AC/DC to issue refund within one month from receipt of the claim without pre audit irrespective of amount of refund claimed.

• The refund so granted shall be recovered in case the exporter fails to receive the sale proceeds in respect of goods exported within the period allowed under Foreign Exchange Management Act, 1999.

• CEO to recover any amount due to Central Government by one or more of following modes:

(a) by deducting from the dues payable to defaulter under Central Excise or Customs; or

(b) by collecting dues from debtors of defaulter or such other persons from whom the money is due to the defaulter; or

(c) by collecting from bank account, post office account, deposit receipts or amount due against insurance policy or such other document; or

(d) by distraining (seizing) any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid, or

(e) by preparing certificate regarding arrears to be collected as land revenue and forwarding the same to the Collector of the district.

• Governed by CENVAT Credit Rules, 2004 introduced from 10th September, 200446.

• Available only in relation to services proposed to be provided.

• Can be sought for following specified purposes:

(a) classification of services;

(b) valuation of taxable services;

(c) principles to be adopted for determination of value of taxable service;

(d) applicability of notification;

(e) admissibility of service tax credit;

(f) determination of service tax liability on taxable service

• Only following service providers can seek AR:

(1) (a) Non-resident setting up joint venture in India in collaboration with non-resident/resident; or

(b) Resident setting up joint venture in India in collaboration with a non-resident; or

(c) Wholly owned Indian subsidiary company, of foreign company;

who or which, proposes to undertake any business activity in India;

(2) a joint venture in India; or

(3) a resident falling within any such class or category of person notified by Central Government.

(4) any public sector company.47

on payment of filing fees of Rs. 2,500/- along with application in Form AAR(ST-I) in quadruplicate.

"Joint venture in India" means a contractual arrangement whereby two or more persons undertake an economic activity which is subject to joint control and one or more of the participants or partners or equity holders is a non resident having substantial interest in such arrangement.

"public sector company" means any corporation established by or under any Central, State or provincial Act or a Government company as defined in section 617 of the Companies Act, 1956.

• The authority shall pronounce its advance ruling in writing within 90 days of receipt of application & the same shall be binding on the applicant as well Commissioner of Central Excise & subordinates, in respect of applicant and in relation to question on which AR is sought.

• Application shall not be allowed where the question raised is:

a) already pending in applicant’s case before any CEO, Appellate Tribunal or any court;

b) the matter already decided by Appellate Tribunal or any court.

• Governed by Export of Service Rules, 2005 introduced from 15th March, 200548.

• For the purpose of these rules, the meaning of terms "input" and "input service" shall be that as defined in The CENVAT Credit Rules, 2004.

• The taxable service to be treated as export of service on fulfilling various conditions listed here below:

Category of Service	Sub -clause of Section 65(105)	Conditions for service to be treated as export of service, if service is
• General Insurance	• (d)	provided in relation to an immovable property situated outside India
• Architect	• (p)
• Interior Decorator	• (q)
• Real Estate Agent	• (v)
• Commercial or Industrial Construction	• (zzq)
• Site Formation & Clearance, Excavation & Earthmoving & Demolition Services	• (zzza)
• Dredging services	• (zzzb)
• Survey & Map Making Services	• (zzzc)
• Construction of Complex	• (zzzh)
• Auction of Property	• (zzzr)
• Mining of mineral, oil or gas	• (zzzy)
• Renting of immovable property	• (zzzz)
• Works contract services	• (zzzza)
• Stock Broker	• (a)	• Performed partly or wholly outside India • Where taxable service is of 1) Management, Maintenance or Repairs 2) Technical Testing & Analysis 3) Technical Inspection & Certification Provided in relation to goods, material or immovable property situated outside India at the time of provision of service through internet, electronic or computer network or other means, such taxable services to be treated as performed outside India.
• Courier	• (f)
• Custom House Agent	• (h)
• Steamer Agent	• (i)
• Clearing & Forwarding Agent	• (j)
• Air Travel Agent	• (l)
• Mandap Keeper	• (m)
• Tour Operator	• (n)
• Rent-a-cab Operator	• (o)
• Practising Chartered Accountant	• (s)
• Practising Cost Accountant	• (t)
• Practising Company Secretary	• (u)
• Security Agency	• (w)
• Credit Rating Agency	• (x)
• Market Research Agency	• (y)
• Underwriter	• (z)
• Photography	• (zb)
• Convention	• (zc)
• Videotape Production	• (zi)
• Sound Recording	• (zj)
• Port Services	• (zn)
• Authorised Service Station	• (zo)
• Beauty Parlour	• (zq)
• Cargo Handling	• (zr)
• Dry Cleaning	• (zt)
• Event Management	• (zu)
• Fashion Designing	• (zv)
• Health & Fitness	• (zw)
• Storage & Warehousing	• (zza)
• Commercial Training or Coaching	• (zzc)
• Erection, Commissioning & Installation	• (zzd)
• Internet Cafe	• (zzf)
• Management, Maintenance or Repairs	• (zzg)
• Technical Testing & Analysis	• (zzh)
• Technical Inspection & Certification	• (zzi)
• Other Port	• (zzl)
• Airport Service	• (zzm)
• Transport of goods by air	• (zzn)
• Business Exhibition	• (zzo)
• Transport of Goods by Road	• (zzp)
• Opinion Poll	• (zzs)
• Outdoor Caterer	• (zzt)
• Survey & Exploration of Mineral	• (zzv)
• Pandal or Shamiana	• (zzw)
• Travel Agent	• (zzx)
• Forward Contract	• (zzy)
• Cleaning Activity	• (zzzd)
• Membership of Club or Association	• (zzze)
• Packaging Services	• (zzzf)
• Transport of goods in container by rail	• (zzzp)
• Stock Exchange, Commodity Exchange & Process/Clearing House Services	• (zzzzg, zzzzh & zzzzi)
• General Insurance other than in relation to immovable property	• (d)	(i) Where the taxable service provided is used in or in relation to commerce or industry: • The recipient of such service is located outside India, • In case the recipient of service has any commercial or industrial establishment or office relating thereto in India, order for provision of such service is made from a commercial or industrial establishment or any office located outside India; (ii) Where the taxable service provided is used other than in or in relation to commerce or industry, the recipient of service is located outside India at the time of receipt of service. (iii) Where taxable service is of “supply of tangible goods for use” provided to recipient located outside India, the tangible goods so supplied should also be located outside India during the period of its use by recipient of service.
• Advertising	• (e)
• Consulting Engineer	• (g)
• Manpower Recruitment or supply	• (k)
• Management Consultant	• (r)
• Scientific or Technical Consultancy	• (za)
• Online Information & Database Access	• (zh)
• Broadcasting	• (zk)
• Insurance Auxiliary-General Insurance	• (zl)
• Banking or Financial	• (zm)
• Cable	• (zs)
• Life Insurance	• (zx)
• Insurance Auxiliary-Life Insurance	• (zy)
• Rail Travel Agent	• (zz)
• Business Auxiliary	• (zzb)
• Franchise	• (zze)
• Forex Broker	• (zzk)
• Intellectual Property	• (zzr)
• Programme Producer	• (zzu)
• Transport of goods, other than water, through pipeline or other conduit	• (zzz)
• Survey & Map Making other than in relation to immovable property	• (zzzc)
• Mailing list compilation & mailing	• (zzzg)
• Registrar to an issue	• (zzzi)
• Share Transfer Agent	• (zzzj)
• Automated Teller Machine Operation, Maintenance or Management Services	• (zzzk)
• Recovery Agents	• (zzzl)
• Sale of spare or time for advertisement	• (zzzm)
• Sponsorship Services	• (zzzn)
• Business Support Services	• (zzzq)
• Auction of Property other than in relation to immovable property	• (zzzr)
• Public Relation Services	• (zzzs)
• Ship Management Services	• (zzzt)
• Internet Telephony Services	• (zzzu)
• Credit card, debit card, charge card or other card services	• (zzzw)
• Telecommunication Services	• (zzzx)
• Development & supply of content	• (zzzzb)
• Asset management services	• (zzzzc)
• Designing services	• (zzzzd)
• Information Technology Software Services	• (zzzze)
• Management of Investments under ULIP	• (zzzzf)
• Supply for Tangible Goods for use	• (zzzzj)
The following three services will be effective from 1st September, 2009. Hence for the purpose of classification of these services in above categories, the reader may refer to the relevant notification which might be introduced on or after 1st September, 2009. • Legal Consultancy Services                                                                       • (zzzzm) • Cosmetic & Plastic Surgery Services                                                           • (zzzzk) • Transport of coastal goods through national waterways or inland water            • (zzzzl)

1. Notification No.1/2002-ST dated 1st March, 2002 as amended by Notification No.21/2009-ST dated 7th July,2009.

2. Notification No.21/2003-ST dated 20th November 2003 read with Notification No. 10/2005-ST dated 3rd March, 2005.

3. Notification No.16/2002-ST dated 2nd August, 2002.

4. Notification No.4/2004-ST dated 31st March, 2004 superceded by Notification No.9/2009-ST dated 3rd March,2009 & Notification No.15/2009-ST dated 20th May,2009.

5. Notification No.9/2007-ST dated 1st March, 2007 w.e.f. 1st April, 2007.

6. Notification No.10/2007-ST dated 1st March, 2007 w.e.f. 1st April, 2007.

7. Notification No.12/2003-ST dated 20th June, 2003.

8. Notification No.12/2004-ST dated 10th September, 2004.

9. Notification No.7/2006-ST dated 1st March, 2006.

10. Notification No.22/2006-ST dated 31st May, 2006.

11. Notification No.33/2007-ST dated 23rd May, 2007.

12. Notification No.34/2007-ST dated 23rd May, 2007.

13. Notification No.11/2006-ST dated 19th April, 2006.

14. Notification No.12/2006-ST dated 19th April, 2006.

15. Defined in Explanation 1 to Rule 5 of Service Tax (Determination of Value) Rules, 2006.

16. For inclusions & exclusions, refer Notification No. 29/2007-ST dated 22nd May, 2007 & Table of Services at a glance of this section.

17. Notification No.32/2007-ST dated 22nd May,2007 as amended by Notification No.7/2008-ST dated 1st March,2008.

18. Notification No.23/2009-ST dated 7th July,2009.

19. Letter No. F.No. 341/18/2004-TRU dated 17th December, 2004.

20. This term is defined in Rule 2(m) of CENVAT Credit Rules, 2004.

21. Notification No. 6/2005-ST dated 1st March, 2005 amended by Notification No. 8/2008-ST dated 1st March, 2008.

22. For definition, refer explanation to Notification No. 6/2005-ST dated 1st March, 2005.

23. For definition, refer explanation to Notification No. 6/2005-ST dated 1st March, 2005.

24. Notification No. 26/2005-ST dated 7th June, 2005.

25. Notification No. 26/2005-ST dated 7th June, 2005 amended by Notification No. 9/2008-ST dated 1st March, 2008.

26. Notification No. 9/2006-ST & 10/2006-ST both dated 19th April, 2006.

27. Notification No. 5/2005-ST & 7/2005-ST both dated 1st March, 2005.

28. Notification No. 1/2007-ST dated 1st March, 2007.

29. Notification No. 16/2006-ST & 17/2006-ST both dated 25th April, 2006

30. Notification No. 29/2006-ST dated 2nd November, 2006.

31. Circular No. 72/2004-ST dated 2nd January, 2004.

32. Notification No. 5/2006-ST dated 1st March, 2006.

33. Procedure for surrendering registration certificate prescribed in Trade Notice No. 3/2007-ST dt. 30th March, 2007 issued by Commissioner of Service Tax, Mumbai.

34. Notification No. 5/2006-ST dated 1st March, 2006.

35. Circular No. 62/11/2003-ST dated 21st August, 2003

36. As per Electronic Accounting System In Excise & Service Tax (EASIEST) Scheme notified by CBEC & Trade Notice No. 04/2007-ST dated 11th April, 2007 issued by Commissioner of Service Tax, Mumbai.

37. Notification No. 27/2006-ST dated 21st September, 2006 & Circular No. 88/06/2006-ST dated 6th November,2006.

38. Notification No.4/2008-ST dated 1st March,2008

39. Circular No. 71/1/2004-ST dated 2nd January, 2004

40. Notification No. 4/2008-ST dated 1st March, 2008

41. Letter F.No.137/58/2007-CX.4 dated 29th March,2007

42. Notified vide Notification No.30/2008-ST dated 1st July,2008

43. As per section 11B of the Central Excise Act, 1944 which is made applicable to the Act

44. Notification No. 67/2003 -C.E.(N.T.), dated 12th September, 2003.

45. Notification No.41/2007-ST dated 6th October,2007 superceded by Notification No.17/2009-ST dated 7th July,2009

46. Refer Central Excise Duty Reference Section for these Rules.

47. Notification No. 27/2009-ST, dated 20th August, 2009.

48. Notification No. 9/2005-ST dated 3rd March, 2005.

49. Substituted for words "service is delivered outside India and used outside India" vide Notification No. 2/2007-ST dated 1st March, 2007. Also refer Circular No.111/5/2009-ST dated 24th February,2009 for interpretation of "used outside India"

50. Notification No. 25/2009-ST, dated 19th August, 2009.

51. Notification No. 11/2005-ST dated 19th April, 2005.

52. Notification No. 12/2005-ST dated 19th April, 2005.