This Article is Exhaustive analysis of Amendment in Service Tax related provisions proposed by Finance Act 2017 or Union Budget 2017 in a Tabular Format. Article explain in simple Language Relevant Clause of Finance Bill 2017 as Presented in Lok Sabha, Nature of Amendment, Date of Applicability of Amendment and a Brief on amendment in Simple Language for easy understanding of Our Readers.
| Particulars of Amendment | Clause(S) Of F. Bill, 2017 | Section | Amended / Newly Inserted | Applicable
W.E.F. |
Brief Of Amendment |
| Change in Negative List – Just document change – no impact of tax | 120 & 121 | 65B & 66D | Amendment | Date enactment | The definition of ‘process amounting to manufacture’ [clause (40) section 65B] is also proposed to be omitted from of the Finance Act (Clause 120 of the Bill refers) and is being incorporated in the general exemption notification (Notification No. 25/2012-ST as amended by notification No 07/2017-ST, dated 2nd February, 2017 refers) |
| Change in Advance Ruling Authority | 122 | 96A | Amendment | Date of enactment | Clause (d) of section 96A is being amended so as to substitute the definition of “Authority” to mean the Authority for Advance Ruling as constituted under section 28E of the Customs Act, 1962.
Change to appoint Advance Ruling Authority constituted under 245O of Income Tax Act, as Advance Ruling Authority for Service tax. |
| Consequential change due to change in Advance Ruling Authority | 123 | 96B | Omission | Date of enactment | Section 96B relating to vacancies not to invalidate proceedings is being omitted. |
| Increase in fees for Advance Ruling | 124 | 96C | Amendment | Date of enactment | Section 96C is being amended so as to increase the application fee for seeking advance ruling from Rs. 2500/- to Rs. 10,000/- on the lines of the Central Excise Act. |
| Time limit for pronouncing order by Authority | 125 | 96D | Amendment | Date of Enactment | Sub-section (6) of section 96D is being amended so as to provide time limit of six months by which Authority shall pronounce its ruling on the lines of the Central Excise Act. |
| Transfer of pending cases | 126 | 96HA | Insertion | Date of enactment | A new section 96HA is being inserted so as to provide for transferring the pending applications before the Authority for Advance Rulings (Central Excise, Customs and Service Tax) to the Authority constituted under section 245-O of the Income-tax Act from the stage at which such proceedings stood as on the date on which the Finance Bill, 2017 receives the assent of the President. |
| Exemption to services of Army, Naval and Air Force | No. 7/2017 | New Exemption | 02/02/2017 | Services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force under the Group Insurance Schemes of the Central Government is being exempted from service tax from 2nd February, 2017. | |
| Retrospective exemption to services of Army, Naval and Air Force | 127 | Retrospective | 02/02/2017 | Service tax exemption to taxable services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force under the Group Insurance Schemes of the Central Government, is being made effective from 10th day of September, 2004, the date when services of life insurance became taxable | |
| Exemption to Viability Gap Funding | 127 | New Exemption | 02/02/2017 | Under the Regional Connectivity Scheme (RCS), exemption from service tax payable on services provided to the Government by way of transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme (RCS) airport, against the consideration of viability gap funding (VGF) payable to the selected airline operator for the services of, for a period of one year from the date of commencement of operations of the Regional Connectivity Scheme (RCS) airport as notified by Ministry of Civil Aviation. | |
| Transfer of CENVAT Credit in case of shifting, sale, merger of factory | No. 4/2017 | Amendment | Date of publication in official Gazette | A new sub-rule 4 is being inserted in Rule 10 of CENVAT Credit Rules, so as to provide that transfer of CENVAT Credit by the jurisdictional Dy./Assistant Commissioner of Central Excise, shall be allowed within 3 months (further extendable by another 3 months by principal commissioner) from the date of receipt of application from the manufacturer or service provider in this regard, subject to the fulfillment of the conditions prescribed under Rule 10 (3). | |
| Reversal of Cenvat Credit | No. 4/2017 | Amendment | Date of publication in official Gazette | Explanation-I (e) applicable to sub-rule 3 and 3A of Rule 6 of CENVAT Credit Rules, 2004 is being amended so as to exclude banks and financial institutions including NBFCs engaged in providing services by way of extending deposits, loans or advances from its ambit.
It has been provided in the said explanation that value for the purpose of reversal of common input tax credit taken on inputs and input services used in providing taxable and exempted services, shall not include the value of service by way of extending deposits, loans or advances against consideration in the form of interest or discount. |
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| Exemption to IIMs | No. 25/2017 | Amendment | 02/02/2017 | The exemption vide S. No. 9B of notification No. 25/2012-ST dated 20.06.2012, is being amended so as to omit the word “residential” appearing in the notification. The exemption remains the same in all other respects. S. No. 9B of notification No. 25/2012- ST exempts services provided by Indian Institutes of Management (IIMs) by way of two year full time residential Post Graduate Programmes (PGP) in Management for the Post Graduate Diploma in Management (PGDM), to which admissions are made on the basis of the Common Admission Test (CAT), conducted by IIM. |
I. [ Contribution by CA. Sanjay Kumar Agarwal, Central Council Member, Mem No. 085252, author is available at eMail-id: agarwal.s.ca@gmail.com]
II [ Contribution by CA. Anil Kumar Jain, Former Chairman – NIRC, Mem No. 084559, author is available at eMail-id: anil@asap.net.in]
III. [Contribution by CA. Vijay Kumar Gupta, Mem No. 088169, author is available at eMail-id: vijayguptaca104@yahoo.com]
IV. [Contribution by CA. Sidharth Jain, Mem No. 099165, author is available at eMail-id: sidhjasso@yahoo.com]
V. [Contribution by CA. Ajesh Aggarwal, Mem No. 087781, author is available at eMail-id: Aggarwalajesh@yahoo.co.in]
VI. [Contribution by CA. Sunil Kumar Gupta, Mem No. 403420, author is available at eMail-id: skgkeshav@gmail.com]
VII. [Contribution by CA. Amar Pal, Mem No. 510630, author is available at eMail-id: amar.p.ca1@gmail.com]
VIII. [Contribution by CA. Monika Aggarwal, Mem No. 510695, author is available at eMail-id: aca.monika@yahoo.in]
IX. [Contribution by CA. Apoorva Bhardwaj, Mem No. 519147, author is available at eMail-id: bhardwajapoorva@yahoo.co.in]
X. [Contribution by CA. Sonia Rani, Mem No. 536697, author is available at eMail-id: ca.soniamkhj@gmail.com]
XI. [Contribution by CA. Mohit Mittal, Mem No. 527202, author is available at eMail-id: mohitmittal583@gmail.com]
XII. [Contribution by CA. Gautam Paliwal, Mem No. 528460, author is available at eMail-id: Gautam.paliwal@gmail.com]
XIII. [Contribution by CA. Sanjay Garg, Mem No. 078032, author is available at eMail-id: ca.skgarg@gmail.com]
XIV. [Contribution by CA. Amit Kumar Aggarwal, Mem No. 531640, author is available at eMail-id: Amit@aklrca.com]
XV. [Contribution by CA. Ankit Karnani, Mem No. 528113, author is available at eMail-id: ankit@aklrca.com]
XVI. [Contribution by CA. Puneet goyal, Mem No. 538304, author is available at eMail-id: capuneetgoyal128@gmail.com]
XVII. [Contribution by CA. Anand kumar Sharma, Mem No. 412911, author is available at eMail-id: contactanand1@gmail.com]
XVIII. [Contribution by CA. Gaurav Goyal, Mem No. 518698, author is available at eMail-id: Cagauravgoyal@yahoo.in]
XIX. [Contribution by CA. Sanjay Aggarwal, Mem No. 099763, author is available at eMail-id: Sanjayca_25@yahoo.co.in]
XX. [Contribution by CA. Shantanu Aggarwalla, Mem No. 538538, author is available at eMail-id: Shantanuaggarwalla@yahoo.co.in
