Prescribes effective rate of service tax on various services - 001/2006 - Service Tax

S..No..

Sub- clause of clause  (105) of   Section 65

Description of taxable service

Conditions

Percentage

(1)

(2)

(3)

(4)

(5)

1

(m)

(1)  The use of mandap, including the facilities provided ⁶[to any person] in relation to such use and also for the catering charges.

This exemption shall apply only in such cases where the mandap keeper also provides catering services, that is, supply of food and the invoice, bill or challan  issued indicates that it is inclusive of the charges for catering service.

60

(2) Taxable service provided by a hotel as mandap keeper in such cases where services provided include catering services, that is, supply of food alongwith any service in   relation to use of a mandap.

The invoice, bill or challan issued indicates that it is inclusive of charges for catering services.

Explanation.- The expression hotel means a place that provides boarding and lodging facilities to public on commercial basis.

60

⁴[2

(n)

(i) Services provided or to be provided to any person, by a tour operator in relation to a package tour.

Explanation.- The expression "package tour" means a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour.

The bill issued for this purpose indicates that it is inclusive of charges for such a tour.

25

(ii) Services provided or to be provided to any person, by a tour operator in relation to a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour.

(a) The invoice, bill or challan issued indicates that it is towards charges for such accommodation, and

(b) this exemption shall not apply in such cases where the invoice, bill or challan issued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.

10

(iii) Services, other than services specified in (i) and (ii) above, provided or to be provided to any person, by a tour operator in relation to a tour

The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.

40]

3

¹¹[(o) or (zn) or (zzl) or (zzm)]

Rent a Cab

40

4

(zc)

Holding of a convention, where service provided includes catering service.

The gross amount charged from ⁶[recipient of service] is inclusive of the charges for the catering service.

60

⁷[4A.

(zm)

Services provided in relation to chit. 

Explanation.- "Chit" means a transaction whether called chit, chit fund, chitty, kuri, or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.

-

70]

³[4A.

(zzb)

Business auxiliary service in relation to production or processing of parts and accessories used in the manufacture of cycles, cycle rickshaws and hand-operated sewing machines, for, or on behalf of, the client.

The gross amount charged from the client is inclusive of the cost of inputs and input services, whether or not supplied by the client.

70 ]

5

¹¹[(zzd) or (zn) or (zzl) or (zzm)]

Erection, commissioning or installation, under a contract for supplying a ²[plant, machinery, equipment or structures] and erection, commissioning or installation of such ²[plant, machinery, equipment or structures].

This exemption is optional to the commissioning and installation agency.

Explanation.-  The gross amount charged  from the ⁶[recipient of service] shall include the value of the ²[plant, machinery,  equipment, structures] or parts and any other material sold by   the commissioning and installation agency, during the course of providing erection, commissioning or installation service.

33

⁵[6

***]

7

¹¹[(zzq) or (zn) or (zzl) or (zzm)]

Commercial or industrial construction service.

This exemption shall not apply in such cases where the    taxable services provided are only completion and finishing services in relation to building or civil structure, referred to in sub-clause (c) of clause (25b) of section 65 of the Finance Act.

 Explanation.-  The gross amount charged shall include the value of goods and materials supplied  or provided or used by the provider of  the construction  service for providing such service.

33

⁹[7a

¹¹[(zzq) or (zn) or (zzl) or (zzm)]

Commercial or Industrial Construction

This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to building or civil structure, referred to in sub-clause (c) of clause (25b) of section 65 of the Finance Act.

Explanation.- The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.

This exemption shall not apply in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.]

25]

8

(zzt)

Catering

This exemption shall apply in cases where,-

 (i) the outdoor caterer also provides food; and

 (ii) the invoice, bill or challan issued indicates that it is inclusive of charges for supply of food. 

50

9

(zzw)

Services    in    relation    to pandal or shamiana in any manner, including services rendered as a caterer.

This exemption shall apply only in cases where,- 

(i) the pandal or shamiana contractor also provides catering services, that is, supply of food; and

(ii) the invoice, bill or challan issued indicates that it is inclusive of charges for catering service.

70

10

¹¹[(zzzh) or (zn) or (zzl) or (zzm)]

Construction of complex.

This exemption shall not apply in      

cases  where  the taxable services provided  are  only  completion and finishing services in relation to residential complex, referred to in sub-clause  (b)  of  clause  (30a)  of section 65 of the Finance Act.

 Explanation.-  The gross amount charged shall include the value of goods  and materials supplied or provided or used for providing the taxable service by the service provider.

33

¹⁰[10a

¹¹[(zzzh) or (zn) or (zzl) or (zzm)]

Construction of Complex

This exemption shall not apply in cases where the taxable services provided are only completion and finishing services in relation to residential complex, referred to in sub-clause (b) of clause (30a) of section 65 of the Finance Act.

Explanation.- The gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.

This exemption shall not apply in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.

25]

¹[11.

¹¹[(zzzp) or (zn) or (zzl) or (zzm)]

⁸[Transport of goods by rail.]

-

30]

¹²[12

(zzzzl)

Services provided or to be provided, to any person, by any other person, in relation to transport of-

i) Coastal goods;

ii) Goods through national waterway; or

iii) Goods through inland water.

-

75]

¹³[13.

(zzzzv)

Services provided or to be provided, to any person, by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has licence to serve alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in its premises;

-

30]

¹⁴[14.

(zzzzw)

Services provided or to be provided, to any person, by a hotel, inn, guest house, club or campsite, by whatever name called, in relation to providing of accommodation for a continuous period of less than three months;

-

50]