Notes-06 - Notes on clauses-Service Tax - Finance Bill, 2016

Service Tax Clause 145 of the Bill seeks to amend section 65B of the Finance Act, 1994 (hereinafter referred to as the 1994 Act) so as to (a) omit clause (11); (b) amend clause (44) to clarify the scope of services of lottery distributor and selling agent. Clause 146 of the Bill seeks to amend section 66D of the 1994 Act so as to (a) omit clause (l); (b) omit sub-clause (i) of clause (o) and sub-clause (ii) of clause (p) with effect from the 1st day of June, 2016. Clause 147 of the Bill seeks to amend section 66E of the 1994 Act so as to insert clause (j) therein to include assignment by the Government of the right of use the radio-frequency spectrum and its subsequent transfers as a declared service. Clause 148 of the Bill seeks to amend section 67A of the 1994 Act so as to insert a new sub-section (2) therein to empower the Central Government to prescribe the time or the point in time with respect to the rate of service tax. Clause 149 seeks to amend section 73 of the 1994 Act to substitute the words thirty months for the words eighteen months wherever they occur, so as to increase the period of limitation in cases not involving fraud, suppression, etc. Clause 150 of the Bill seeks to amend section 75 of the 1994 Act to insert a proviso therein, so as to empower the Central Government to specify, by notification, separate rate of interest in the case of person who collects service tax but fails to pay such amount so collected to the credit of the Central Government on or before the due date of payment. Clause 151 of the Bill seeks to insert an Explanation in section 78A of the 1994 Act so as to provide for deemed conclusion of proceedings against any person liable under that section subject to the conclusion of proceedings as provided therein. Clause 152 of the Bill seeks to amend sub-section (1) of section 89 of the 1994 Act so as to increase the monetary limit of rupees fifty lakh to rupees two hundred lakh. Clause 153 of the Bill seeks to omit sub-section (2) of section 90 of the 1994 Act as the power of arrest in respect of offences under clauses (a), (b) and (c) of sub-section (1) of section 89 is proposed to be withdrawn. Clause 154 of the Bill seeks to amend sub-section (1) and omit sub-section (3) of section 91 of the 1994 Act as the power of arrest in respect of offences under clauses (a), (b) and (c) of sub-section (1) of section 89 is proposed to be withdrawn. Clause 155 of the Bill seeks to amend section 93A of the 1994 Act so as to empower the Central Government to grant rebate by way of notification as well. Clause 156 of the Bill seeks to insert new sections 101, 102 and 103 in the 1994 Act with a view to extend service tax exemption retrospectively for the services specified in the respective sections. Clause 157 of the Bill seeks to amend the notification specified in column (1) of the Tenth Schedule in the manner specified in column (2) of that Schedule, retrospectively, for the period specified in column (3) thereof.