After these notification in brief following main changes will be applicable in service tax wef 01.07.2012
The following sections will become ineffective from 01.07.2012 .
- Section 65 – Definition of Taxable Service
- Section 65A – Classification of Taxable service
- Section 66 -Charge of Section Tax
- Section 66A – Charge of Service Tax on Services received from outside India
- Section 65B - Definitions
- Section 66B – Charge of Service Tax
- Section 66C – Determination of Place of Provision of Service
- Section 66D-Negative list of Services
- Section 66E – Declared services
- Section 66F – Principles of interpretation of specified description of Services or bundled Services
Gist of Provisions
Relevant Notification/ Provision
Negative List Approach
Service Tax would apply on all Services except those mentioned in Negative List.
Section 66B of Finance Act, 1994
Reverse Charge Mechanism
In existing reverse charge mechanism some additional services has been added in respect of which instead of service provider service receiver or both service provider as well as service receiver is/are liable to pay tax e.g. in respect of Services provided by individual lawyer to any business entity, business entity is liable to pay service tax.
Notification No. 15/2012-ST
Mega Exemption Notification
Exemption would be applicable in respect of services mentioned in Mega Exemption Notification e.g. Services by way of motor vehicle parking to general public, Services provided to the Government or local authority by way of erection, construction, maintenance, repair, alteration, renovation or restoration of a civil structure
Notification No. 12/2012-ST
New Abatement Scheme
New Abatement scheme will provide benefit of abatement as well as CENVAT Credit e.g. in respect of Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, CENVAT Credit of input services will be available.
Notification No. 13/2012-ST
Changes in Service Tax (Determination of Value) Rules, 2006
Amended provisions will interalia provide new valuation provisions for Work Contract Service, Restaurant Service and Outdoor Caterer Service.
Notification No. 11/2012-ST
However, above sections will become effective from 01.07.2012
Notification in these regard is given here under for your ready reference.19-23/2012 dated 05/06/2012
Notification No. 19 /2012-Service Tax