Budget 2014- Changes in the Service Tax (Determination of Value) Rules, 2006 Vide Notification No. 11/2014-ST Dated 11-7-2014 to amend Service Portion in Works Contract (Effective From 1-10-2014):-

Notification No. 11/2014-Service Tax (N.T.), Dated: July 11, 2014 amends Service Tax (Determination of Value) Rules,  2006.
With effect from 01.10.2014, in rule 2A of the Service Tax (Determination of Value) Rules, 2006, category ‘B’ and ‘C’ of  works contracts to be merged into one single category, with service portion as 70%. This rationalization by way of merger  of categories has been made to avoid disputes of classification between these two categories

Notification No. 11/2014 – Service Tax,

Dated- 11th July, 2014

G.S.R. 480(E).- In exercise of the powers conferred by clause (aa) of sub-section (2) of section 94 of the Finance Act,1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax (Determination of Value) Rules, 2006, namely:–

1. (1) These rules may be called the Service Tax (Determination of Value) Amendment Rules, 2014.

(2) They shall come into force on the 1st day of October 2014.

2. In the Service Tax (Determination of Value) Rules, 2006, in rule 2A, in clause (ii), for sub-clauses (B) and (C), the following sub-clause shall be substituted, namely:–

“(B) in case of works contract, not covered under sub-clause (A), including works contract entered into for,-

     (i) maintenance or repair or reconditioning or restoration or servicing of any goods; or

     (ii) maintenance or repair or completion and finishing services such as glazing or plastering or floor and wall tiling or installation of electrical fittings of immovable property,

service tax shall be payable on seventy per cent. of the total amount charged for the works contract”.

[F. No. 334 /15 /2014 -TRU]

(Akshay Joshi)

Under Secretary to the Government of India

Note:- The principal rules were notified vide notification No.12/2006-Service Tax, dated the 19th April, 2006, published in the Gazette of India, Extraordinary, vide number G.S.R.228 (E), dated the 19th April, 2006 and last amended by notification No.24/2012-Service Tax, dated the 6th June, 2012, vide number G.S.R.431(E),dated the 6th June, 2012.

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Tags : Budget (1956) Budget 2014 (172) service tax notifications (1086)

One response to “Changes in Service Tax (Determination of Value) Rules, 2006”

  1. Sanjay Joshi says:

    Dear sir, we are one of the exporter which we get the purchase orders from the customers for selective markets like Korea, Turkey , Thailand , we need to pay the commission for them based on FOB value as per the declared percentage, so I want to know how the service tax been calculated while making the commission to agents

  2. rajesh rajurohit says:

    for the pupose of service tax can we include cess/ duty in value of service (which are levid under any govt rules

  3. manucreations says:

    plese send the exact service tax rate for work contract of water treatment plants.

  4. manucreations says:

    please give the exact service tax rate for environmental products in work contract.
    any deduction less than 20.lakhs turn over.
    any deduction for environmental products/water treatment/Defense work contract.

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