Bimal Jain, FCA, ACS, LLB
The Central Government vide Notification No. 19/2012-ST dated 05.06.2012 has announced Date of Introduction of new regime of most awaited Negative List approach in Service Tax, which will apply w.e.f. 01.07.2012 i.e. service tax would be applicable on all services except those mentioned either in the Negative List or in the Mega Exemption vide Notification No. 12/2012-ST dated 17.03.2012.
Further, the Following new Sections have been inserted for governing the Service Tax Legislature:-
1. Section 65B – Definitions/ Interpretation of various Terms.
2. Section 66B – Charge of Service Tax – – This is the new charging section of service tax. This section seeks to levy service tax at the rate of 12% on the value of all services, except services specified in the negative list (in section 66D). These services would be chargeable to tax if these are provided by any person to any person.
3. Section 66C – Determination of Place of Provision of Service – This seeks to empower the Central Government to make rules which will contain principles on the basis of which taxing jurisdiction of a service can be determined. These rules would be known as Place of Provision of Services Rules, 2012. From 01.07.2012, these rules come into effect, existing ‘Export of Services Rules, 2005’ and ‘Taxation of Services (Provided from outside India and received in India) Rules, 2006’ will be rescinded.
4. Section 66D- Negative list of Services – This seeks to specify the list of such services which will be outside the ambit of service tax.
5. Section 66E – Declared services to charge service tax on service portion of 9 specified Deemed Sale.
6. Section 66F – Principles of interpretation of specified description of Services or bundled Services
7. Changes in reverse charge mechanism vide Notification No.15/2012-Service Tax dated 17.03.2012 & Changes in abatement rates vide Notification no. 13/2012-ST dated 17.03.2012 à effective from 1st July 2012.
8. Mega Exemption Notification vide Notification No. 12/2012-ST dated 17.03.2012 effective from 1st July 2012.
9. Valuation for works Contract Services vide Notification no. 11/2012-ST dated 17.03.2012 effective from 1st July 2012.
Certain provisions under the old Sections will cease to operate from 01.07.2012 vide Notification no. 20/2012-ST, 21/2012-ST, 22/2012-ST and 23/2012-ST dated 05.06.2012:-
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
Bimal Jain
FCA, ACS, LLB, B.Com (Hons)
Mobile: +91 9810604563
email: bimaljain@hotmail.com
Author Bio
In the year 2015-16 ,a turnover of 67 lakhs towards a contract of constn of seeds godown at university of agricultural sciences was traced out from IT dept by service tax authorities and issued notice for suppressing fact. Asking ST at 14.5% with penal interest, penalties etc. please guide me sir.
Asst. Commissioner exemted 55 lakhs towards contract of seeds godown vide notification no.25/2012ST, but Principal Commissioner rejected the exemption and reffered to Commissioner appeals.
please guide me sir.
Dear Sir,
We are an SEZ unit and we are planning for a function at our factory and thinking to order the food from restaurant, here my doubt is weather we are exempted from the service tax charged by the supplier or we have to apply it in refund procedure..?
please help me in this concern
can anybody tell me wheather service tax applicable to oversease tour opretors.?
Dear Sir,
Can anybody tell me whether service tax is applicable on servicing of Heavy Motor Vehicle is applicable from which date..
reverse charge under service tax for defence services may please be explained as defence is not a profit generating organisation
i think Primeminister has postponed the implimentation of same regime and please provide negative list of services.
please forward definition of both government and local authority