Increase in rate of Service Tax from 10% to 12%: 1.1. Rate of service tax is increased from 10% to 12%. Increase in rate of service tax is effective from 01.04.2012. 1.2. The present rate of 10% is governed by Notification No.8/2009-ST Dt.24.02.2009 which exempts all taxable services from levy of service tax under Section 66 of the Finance Act in excess of 10%. 1.3. The Notification No.8/2009 is rescinded by issue of Notification No.2/2012 – Service Tax Dt.17.03.2012.

In order to prevent double taxation or non-taxation of the provision of a service, or for the uniform application of rules, the Central Government shall have the power to notify any description of service or circumstances in which the place of provision shall be the place of effective use and enjoyment of a service.

Any service provided on board a conveyance (aircraft, vessel, rail, or roadways bus) will be covered here. Some examples are on-board service of movies/music/video/ software games on demand, beauty treatment etc, albeit only when provided against a specific charge, and not supplied as part of the fare.

What is the place of provision of passenger transportation services? The place of provision of a passenger transportation service is the place where the passenger embarks on the conveyance for a continuous journey.

What are the services covered under this Rule? Any service of transportation of goods, by any mode of transport (air, vessel, rail or by a goods transportation agency), is covered here. However, transportation of goods by courier or mail is not covered here.

What are the specified services where the place of provision is the location of the service provider? Following are the specified services where the place of provision is the location of the service provider:- i) Services provided by a banking company, or a financial company, or a non-banking financial company to account holders; ii) Telecommunication services provided to subscribers; iii) Online information and database access or retrieval services;

Rule 8- Services where the Provider as well as Receiver is located in Taxable Territory 1 What is the place of provision of a service where the location of the service provider and that of the service receiver is in the taxable territory? The place of provision of a service, which is provided by a [...]

This Rule covers situations where the actual performance of a service is at more than one location, and occasionally one (or more) such locations may be outside the taxable territory.

Place of provision of services provided by way of admission to, or organization of, a cultural, artistic, sporting, scientific, educational, entertainment event, or a celebration, conference, fair, exhibition, or any other similar event, and of services ancillary to such admission, shall be the place where the event is held.

Rule 5- Location of Immovable Property In the case of a service that is ‘directly in relation to immovable property’, the place of provision is where the immovable property (land or building) is located, irrespective of where the provider or receiver is located.