Trade Notice No. 14/2009 Prior to 01.04.2008 [before the amendment in Rule 6(3)] the option available to the taxpayer, under Rule 6(3), was that, he was allowed to utilize credit only to the extent of an amount not exceeding 20% of the amount of service tax payable on taxable output service. However, there was no restriction in taking CENVAT credit and also there was no provision about the periodic lapse of balance credit. This resulted in accumulation of credit in many cases.
Trade Notice No. 13/2009 Issues relating to taxable services provided during the course of production of alcoholic beverages (such as Indian Made Foreign Liquors, Branded Country liquors and similar products) are matters of dispute for a considerable period. In this regard, a draft circular of Central Board of Excise & Customs in F.No.249/1/2006-CX.9 dated November, 2006 (on applicability of service tax on taxable services provided in certain cases during the course of production of alcoholic beverages) was placed on the official website for eliciting responses from the stakeholders. The responses received from various stakeholders were carefully examined.
The issue whether service tax is payable by Central Board of Film Certification under the category of ‘Technical Testing and Analysis Service’ and / or ‘Technical Inspection and Certification Service’, on the services provided by Central Board of Film Certification by way of certification of films has been examined by Board.
It was already clarified vide Board’s letter F.No.137/70/2007-CX.4 dated 26.04.2008 that Schools running transport services for their students are not liable to pay service tax under the category of tour operator. There has been no change in the stand taken by the Board.
The ship broker ensures that the conditions of the contracts are adhered to. They also follow up the movement of goods and freight payment till the cargo reaches its destination. Hence, the activities undertaken by ship brokers are nothing but provision of services on behalf of client for a consideration akin to that of a commission agent.
The matter regarding levy of service tax under the head ‘Business Auxiliary Service’ on the ‘Commission’ received by the Directors of the company has been examined. The Board is of the view that some companies make payment to their officials, such as Managing Directors / Directors, terming the same as ‘Commissions’.
Supply of tangible goods including machinery, equipments and appliance for use, without transferring right of possession and effective control of such tangible goods is a taxable service in terms of provision of Section 65 (105) (zzzzj) of the Finance Act, 1994. In some case, vehicles, aircrafts, vessels etc., are also supplied in the above manner and such activities also fall under the said taxable service.
It has been informed by European Commission, Directorate General for Trade that the Regulation (EC) 1013/ 2006 came into force on 17th July 2006, but will not apply until 12 July 2007, when it will replace the Shipment of Waste Regulation 259/93, and Regulations (EC) 1547/93 and (EC) 1490/93.
Attention is invited to and various Notifications/Public Notices/Circulars issued by this office on the subject mentioned above. This is to inform that an Inter-Ministerial Committee (under DGFT) is in the process of reviewing the present import Policy of marble and other building stones.
The Trade is hereby informed that in exercise of the powers conferred by Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided by a tour operator from so much of the service tax leviable on such operator, as is in excess of the amount of service tax calculated on forty per cent. Of the gross amount charged from any person by such operator for the services provided in relation to a tour, where the tour operator provides a package tour to any person and the bill issued for this purpose indicates that it is inclusive of charges for such a tour.
