The Finance Act, 2012 seeks to insert provisos in sections 65, 65A, 66 and 66A of the Finance Act, 1994 from a date to be notified by the Central Government. Notification No. 18/2012 ST dated 01 .06.2012 has notified June 1, 2012 as the date when the provisos would be inserted in the sections mentioned above. The provisos lay down that the provisions of the said sections will cease to apply with effect from a date to be notified by the Central Government.
Subsequently, Notifications 20-23/2012 ST dated 05.06.2012 have been issued to notify July 1, 2012 as the date when the provisions of sections 65 (definitions), 65A (classification of services), 66 (charging section) and 66A (import of services) will cease to apply.
Simultaneously, Notification No. 19/2012 ST dated 05.06.2012 has also been issued to specify that following would be effective from July 1, 2012:
|Clause of the FA, 2012||Sections of the Finance Act, 1994 covered in the Clause of the FA, 2012||Description|
|Charge of service tax on and after Finance Act, 2012 Determination of place of provision of service Negative list of services Declared services Principles of interpretation of specified descriptions of services or bundled services|
Further, the following amendments will also be effective from July 1, 2012:
(i) Omission of definition of money from the explanation to section 67;
(ii) Amendment in section 68 seeking to put onus of payment of service tax under the reverse charge basis partly on service provider and partly on service receiver.
The following sections will become ineffective from 1st day of June, 2012 as notified by Notification No. 18/2012-Service Tax, dated 1-6-2012
1. Section 65 – Definition of Taxable Service
2. Section 65A – Classification of Taxable service
3. Section 66 -Charge of Section Tax
4. Section 66A – Charge of Service Tax on Services received from outside India
Notification No. 18/2012-Service Tax, dated 1-6-2012
In exercise of the powers conferred by clauses (A), (B), (D) and (E) of section 143 of the Finance Act, 2012 (23 of 2012), the Central Government hereby appoints the 1st day of June, 2012 as the date from which the provisions of clauses (A), (B), (D) and (E) of the said section of the said Act shall come into force.
[F. No. 334 /1 /2012-TRU]
Under Secretary to the Government of India