Notes-06 - Notes on clauses-Service Tax - Finance Bill, 2017

Service Tax Clause 120 of the Bill seeks to amend section 65B of the 1994 Act so as to omit clause (40) thereof. Clause 121 of the Bill seeks to amend section 66 D of the 1994 Act so as to omit clause (f) thereof. Clause 122 of the Bill seeks to amend section 96A of the 1994 Act so as to substitute the definition of Authority in clause (e) of the said section. Clause 123 of the Bill seeks to omit section 96B of the 1994 Act. Clause 124 of the Bill seeks to amend sub-section (3) of section 96C of the 1994 Act so as to enhance the application fee to rupees ten thousand. Clause 125 of the Bill seeks to amend sub-section (6) of section 96D of the 1994 Act so as to extend the time-limit to six months for the Authority to pronounce its rulings. Clause 126 of the Bill seeks to insert a new section 96HA in the 1994 Act so as to provide for transferring the pending applications and proceedings before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) to the Authority constituted under section 245-O of the Income-tax Act, from the stage at which such application or proceeding stood as on the date on which the Finance Bill, 2017 receives the assent of the President. Clause 127 of the Bill seeks to insert new sections 104 and 105 in the 1994 Act so as to (a) exempt service tax leviable on one-time upfront amount (premium, salami, cost, price, development charge or by whatever name called) in respect of taxable service provided or agreed to be provided by a State Government industrial development corporation or undertaking to industrial units by way of grant of long-term lease of thirty years or more of industrial plots, during the period commencing from the 1st day of June, 2007 and ending with the 21st day of September, 2016 (both days inclusive); (b) extend service tax exemption on taxable services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force under the Group Insurance Schemes of the Central Government during the period commencing from the 10th day of September, 2004 and ending with the 1st day of February, 2016 (both days inclusive). Clause 128 of the Bill seeks to retrospectively amend rule 2A of the Service Tax (Determination of Value) Rules, 2006 in the manner specified in column (3) of the Sixth Schedule with retrospective effect, on and from and up to the date specified in column (4) thereof, so as to make it clear that value of service portion in execution of a works contract, which involves transfer of land or undivided share of land, as the case may be, shall not include value of property in land or undivided share of land so transferred.