CA Rajkumar S. Adukia

Taxation of services in India has been a learning experience for not only the tax payers but also the tax administrators. The gradual expansion of the list of taxable services from an initial three to more than one hundred has posed its own challenges. The Finance Act, 2012 has started to change this all and usher in a new system of taxation of services; popularly known as the Negative List. No more will the most often-asked question “which taxable service is being provided?” be relevant. The switch-over to a negative list-based approach is aimed at aligning the indirect taxation system to the proposed Goods and Services Tax (GST) regime, which is sought to be introduced to unify the levies of the Centre and the States into a composite system.

The new system of taxation of services is made applicable from 1st July 2012.

Negative list of services, declared services, new reverse charge mechanism, new Place of Provision of Services Rules, 2012 are some of the highlights of the new scheme of taxation.

Henceforth, service tax is levied on all services provided in the taxable territory by a person to another for a consideration other than the services specified in the negative list. Therefore the services specified in the negative list are out of the ambit of chargeability of service tax. Except the activities mentioned in the negative list and mega exemption notification, all other services come under the tax at the increased rate of 12.36 percent.

The Place of Provision of Services Rules contains the principles on the basis of which taxing jurisdiction of a service can be determined.

So,if you are wading through reams of paperwork, trying to make sense of all the mumbo jumbo surrounding the new service tax regime, it’s time to take a break as an informative handbook giving adequate information on the new system of taxation of services has been attached for your reference.

Book Covers the following Topics

  1. Introduction

1.1. What is Service Tax?

1.2. New Scheme of Taxation

  1. What is the meaning of service?
  2. History of service tax in India 3.1. Constitutional provisions behind levy of Service Tax

  3. Legislations governing service tax

  4. Overview of the new system of taxation of services

  5. Negative list

6.1. Mega exemption

  1. Taxability of services
  • Taxability of bundled services

  • Declared Services

  • Point of Taxation

  • Place of provision of services

  • Reverse charge mechanism

  • Abatement

  • Other important amendments

  • List of Notifications issued in 2012

  • Important websites

  • Download Free Free Book on New System of Taxation of Services

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