Section 85 - Amendment of Act 32 of 1994 - Finance (No. 2) Act, 1996

CHAPTER V SERVICE TAX 85. Amendment of Act 32 of 1994 In the Finance Act, 1994, with effect from such date* as the Central Government may, by notification in the Official Gazette, appoint,- (1) in section 65,- (a) clause (1) shall be renumbered as clause (1B) and before the clause as so renumbered, the following clauses shall be inserted, namely:- (1) advertisement includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas; (1A) advertising agency means any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant; ; (b) after clause (4), the following clause shall be inserted, namely:- (4A) courier agency means a commercial concern engaged in the door-to-door transportation of time-sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles. ; (c) after clause (6), the following clause shall be inserted, namely:- (6A) pager means an instrument, apparatus or appliance which is a non-speech, one way personal calling system with alert and has the capability of receiving, storing and displaying numeric or alpha-numeric messages. ; (d) in clause (15), for the words telephone connection , the words telephone connection or pager shall be substituted; (e) in clause (16),- (i) after sub-clause (b), the following sub-clause shall be inserted, namely:- (ba) to a subscriber, by the telegraph authority, in relation to a pager; ; (ii) after sub-clause (c), the following sub-clauses shall be inserted, namely:- (d) to a client, by an advertising agency, in relation to advertisements in any manner; (e) to a customer, by a courier agency, in relation to door-to-door transportation of time-sensitive documents, goods or articles; ; (2) for section 66, the following section shall be substituted, namely:- 66. Charge of service tax (1) On and from the commencement of this Chapter, there shall be charged a tax (hereinafter referred to as the service tax), at the rate of five per cent. of the value of the taxable services referred to in sub-clauses (a), (b) and (c) of clause (16) of section 65 which are provided to any person by the person responsible for collecting the service tax. (2) With effect from the date notified under section 85 of the Finance (No. 2) Act, 1996, there shall be charged a service tax at the rate of five per cent. of the value of the taxable services referred to in sub-clauses (ba), (d) and (e) of clause (16) of section 65 which are provided to any person by the person responsible for collecting the service tax. ; (3) in section 67,- (i) in clause (b), for the words telephone connections , at both the places where they occur, the words telephone connections or pagers shall be substituted; (ii) after clause (c), the following clauses shall be inserted, namely:- (d) in relation to service provided by an advertising agency to a client shall be the gross amount charged by such agency from the client for services in relation to advertisements; (e) in relation to service provided by a courier agency to a customer shall be the gross amount charged by such agency from the customer for services in relation to door-to-door transportation of time sensitive documents, goods and articles; ; (4) in section 68, in sub-section (1), for the words or the insurer , the words, the insurer, the advertising agency or the courier agency shall be substituted.