CBEC issues service tax Notifications 29 to 37 on 25 April 2011 which includes Notification bringing into force certain provisions of the Finance Act, 2011 with effect from 1 May 2011. All these notifications will be effective from 1 May 2011.
Finance Act, 2011 brought into force with effect from 1 May 2011 :- The new taxable services and amendments to existing taxable services defined under section 65 of Finance Act, 1994 (the Act) will be brought into effect from 1 May 2011.
(Notification 29/2011-ST dated 25 April 2011)
Services provided by clinical establishments or doctors exempt from whole of service tax: – The services provided by a clinical establishment or by a doctor providing services from any clinical establishment would be exempt from the whole of service tax.
(Notification 30/2011-ST dated 25 April 2011)
Accommodation services provided by hotel, inn, guest house etc. below tariff of INR 1000 exempt from service tax
1. Taxable service provided by a hotel, inn, guest house, etc where the declared tariff is less than INR 1000 has been exempt from the whole of service tax.
2. Declared tariff has been defined to include charges for all amenities in the accommodation unit, like furniture, air-conditioner, refrigerators etc but does not include discounts offered on published charges.
(Notification 31/2011-ST dated 25 April 2011)
Representation by CA, CS or CWA before statutory authority liable to service tax
1. Hitherto, services of representation before any statutory authority by a practising Chartered Accountant or Cost Accountant or Company Secretary were exempt from the payment of service tax.
2. This exemption has been withdrawn and such representation services by a practising Chartered Accountant or Cost Accountant or Company Secretary would be liable to service tax with effect from 1 May 2011.
(Notification 32/2011-ST dated 25 April 2011)
Pre-school coaching and training exempt from service tax: – The services of pre-school training or coaching or any coaching or training leading to a grant of certificate or diploma or degree or any educational qualification which is recognised by law for the time being in force when provided by a commercial coaching or training centre has been exempt from whole of service tax.
(Notification 33/2011-ST dated 25 April 2011)
Abatement from service tax to services of restaurant and hotel
1. Service tax would be payable on 30% of the gross amount charged for the taxable service provided by a restaurant, having air-conditioning and which has license to serve alcoholic beverages
2. Service tax would be payable on 50% of the gross amount charged for the taxable service provided by a hotel, inn, guest house etc in relation to provision of accommodation for a continuous period of less than three months
(Notification 34/2011-ST dated 25 April 2011)
Composition scheme for Life insurance Companies
1. An option has been given to a life insurance company to pay service tax either
(i) on the gross premium charged to a policy holder after deducting the amount allocated for investment or savings on behalf of the policy holder, if such amount has been intimated to the policy holder; or
(ii) 1.5 % of the gross premium charged by the life insurance company to the policy holder
2. The two options will not be available where the entire premium paid by the policy holder to the life insurance company is towards only risk cover in life insurance.
(Notification 35/2011-ST dated 25 April 2011)
Amendments to Export Rules :- The taxable service provided by a restaurant having facility of air-conditioning and has license to serve alcoholic beverages and accommodation services provided by a hotel, inn, guest house etc, shall be treated as export in case such restaurant or hotel is situated outside India.
(Notification 36/2011-ST dated 25 April 2011)
Amendment to Import Rules :- The taxable service provided by a restaurant having facility of air-conditioning and has license to serve alcoholic beverages and accommodation services provided by a hotel, inn, guest house etc, shall be treated as received in India in case the restaurant or hotel is situated in India
(Notification 37/2011-ST dated 25 April 2011)
