Homes and flats with a carpet area of 2,000 sq.ft. or more or of a value of Rs. 1 crore or more are high-end constructions where the component of ‘service’ is greater. Hence, I propose to reduce the rate of abatement for this class of buildings from 75 percent to 70 percent. Existing exemptions from service tax for low cost housing and single residential units will continue

The revised Form ST-3 is expected to be available on ACES by the first week of March. However in the event of any delay, the last date will be suitably extended and adequate time given so that no inconvenience is caused to the assessees.

We are a practicing CA firm. We are operating from one rented premises, which belongs to Wife of one of the partner? The Partner’s wife recently raised the bill for rent of 9 months i.e. from 1st April 2012 to 31st December 2012 as one bill on 31.12.2012. No Payment towards the rent been made till 31st December 2012. Now the firm wants to take the credit of Service tax on Rent against its service tax liability for the quarter ending on 31.12.2012. Please suggest.

For those assesses who are liable to pay service tax on their income from renting on immovable property, the Central Government vide Notification No. 29/2012-ST, dated 20th June, 2012 and w.e.f. 1st day of July, 2012 has exempted the taxable service of renting of an immovable property, from so much of the service tax leviable thereon under section 66B of the said Finance Act, as is in excess of the service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely property tax levied and collected by local bodies:

If you have put your immovable property on rent for use in furtherance of business or commerce and annual rent amount, alone or with the amount of other taxable services, exceeds Rs. 10 lacs and further, you have any service tax amount related to such renting due since 1st June, 2007, you have an opportunity to pay such due with interest before 27th November, 2012 and department would not ask for penalty.

With the ultimate aim of maximising service tax revenue collection, the government tried to minimise the opportunity of taking CENVAT Credit and for this noble cause, definition of ‘Input Service’ in CENVAT Credit Rules, 2004 (all rules mentioned herebelow refers to rules of CENVAT Credit Rules, 2004) was amended vide Notification No. 3/2011-CE(NT) and after this amendment the some exclusion were made vide Rule 2(l) (C).

Dispelling the confusion about the applicability of Negative list based service tax regime to an extent, a number of Service Tax related notifications have been issued on 20th June, 2012. Vide Notification No. 27/2012 – Service Tax dated:- 20th June, 2012 the Central Government, hereby exempts taxable services provided by any person, for the official use of a foreign diplomatic mission or consular post in India, or for personal use or for the use of the family members of diplomatic agents or career consular officers posted therein from whole of the service tax leviable under section 66B of the said Act w.e.f. 1st July, 2012, subject to the following conditions, namely:-

With the issuance of Notification No. 18-ST dated- 1st June, 2012, it had been decided by the Central Government that Section 65 (containing definitions including that of taxable Services) of the Finance Act, 1994 will not be in effect from 1st June, 2012.