Budget 2014- Changes in Place of Provision of Services Rules, 2012 Vide Notification No. 14/2014-ST Dated 11-7-2014 (Effective From 1-10-2014).
Rule 4: Place of provision of performance based services – Provision for prescribing conditions for determination of place of provision of repair service carried out on temporarily imported goods is being omitted. The second proviso to rule 4(a) is being amended to prescribe that it would suffice for the purpose of exclusion of repair service from applicability of rule 4(a) that the goods imported for repair are exported after repair without being put to any use other than that which is required for such repair. It may be noted that this exclusion does not apply to goods that arrive in the taxable territory in the usual course of business and are subject to repair while such goods remain in the taxable territory, e.g., any repair provided in the taxable territory to containers arriving in India in the course of international trade in goods will be governed by rule 4.
Rule 9: Place of provision of specified services
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Relevant clause |
Description of Services | Relevant Changes |
| Intermediary Services | The definition of intermediary is being amended to include the intermediary of goods in its scope.
Accordingly, with effect from 1.10.2014, an intermediary of goods, such as a commission agent or consignment agent shall be covered under rule 9(c) of the Place of Supply of Services Rules. |
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| Service consisting of hiring of means of transport, upto a period of one month | Service consisting of hiring of Vessels (excluding yachts) and Aircraft is being excluded from rule 9(d). Accordingly, hiring of vessels, or aircraft, irrespective of whether short term or long term, will be covered by the general rule, that is, the place of location of the service receiver. Hiring of yachts would however continue to be covered by rule 9 (d). |
Notification No. 14/2014 – Service Tax
New Delhi, the 11th July, 2014
G.S.R. 483(E).- In exercise of the powers conferred by sub-section (1) of section 66C and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules to amend the Place of Provision of Services Rules, 2012, namely:—
(1) (1) These rules may be called the Place of Provision of Services (Amendment) Rules, 2014.
(2) They shall come into force on the 1st day of October, 2014.
(1) In the Place of Provision of Services Rules, 2012,–
(a) in rule 2 for clause (f), the following clause shall be substituted, namely:-
‘(f) “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the ‘main’ service) or a supply of goods, between two or more persons, but does not include a person who provides the main service or supplies the goods on his account;‘;
(b) in rule 4, in clause (a), for the second proviso, the following proviso shall be substituted, namely:-
“Provided further that this clause shall not apply in the case of a service provided in respect of goods that are temporarily imported into India for repairs and are exported after the repairs without being put to any use in the taxable territory, other than that which is required for such repair;‖;
(c) in rule 9, for clause (d), the following clause shall be substituted, namely:-
“(d) Service consisting of hiring of all means of transport other than,-
(i) aircrafts, and
(ii) vessels except yachts, upto a period of one month.
[F.No. 334 /15/ 2014-TRU]
(Akshay Joshi)
Under Secretary to the Government of India
Note: The principal notification was published in the Gazette of India, Extraordinary, by notification No. 28/2012 – Service Tax, dated the 20th June, 2012 vide number G.S.R. 470 (E), dated the 20th June, 2012.
