The Central Government has issued notifications relating to advance receipts and exemptions in respect of Port, Other Port and Airport Services.
1. No service tax on advances received before July 1, 2010 in respect of new services and amendments made in existing services by the Finance Act, 2010
Advances received before July 1, 2010 in respect of new taxable services and existing services that have been amended as per Section 76(A) of the Finance Act, 2010 shall be exempted from service tax. However, the exemption shall not be available in respect of Commercial Training or Coaching Centre services and Renting of Immovable Property services.
2. Exemption! Abatement to services provided within Port, Other Port or Airport
The Central Government has notified exemptions and abatements to certain services provided in a Port, Other Port or an Airport with effect from July 1, 2010 as under:
- Commercial or Industrial Construction services provided wholly within the:
-Airport;
– Port or Other Port for construction, repair, alteration and renovation of wharves, quays, docks, stages, jetties, piers and railways;
shall be exempted from service tax.
- Amendments have been made in Notification no. 1/2006- ST dated March 1, 2006 so as to provide for abatement on certain services provided in a Port, Other Port and Airport.
- The following taxable services when provided wholly within the Port, Other Port or Airport shall be exempted from service tax:
– Services by a cargo handling agency in relation to agricultural produce or goods intended to be stored in a cold storage;
-Services by storage or warehouse keeper in relation to storage and warehousing of agricultural produce or any services provided by a cold storage;
-Services in relation to transport of export goods in an aircraft by an aircraft operator;
– Services of site formation and clearance, excavation and earthmoving and demolition and such other similar activities.
3. Refund of service tax paid on Airport services
Notification no. 17/2009- ST dated July 7, 2009 provides for refund of service tax paid on specified services used in export of goods subject to fulfillment of certain conditions. The said Notification has been amended to include Airport services provided in any airport and used in export of said goods.
4. Air ticket to be a valid document under Rule 4A(1) of the Service Tax Rules, 1994
Rule 4A(1) of the Service Tax Rules, 1994 has been amended to provide that a ticket issued by an aircraft operator in any form, by whatever name called and whether or not containing the registration number of the service provider, classification of the service received and address of the service receiver but containing other information in such document as required under this Rule shall be a valid invoice, bill or challan.
Source
1. Notification No. 36/2010-Service Tax dated June 28, 2010 read with Corrigendum dated June 29, 2010 and Notification No. 37/2010-Service Tax to Notification No. 42/2010-Service Tax dated June 28, 2010
