GIST OF RECENT CHANGES IN SERVICE TAX

[Dr. Sanjiv Agarwal]

 Ministry of Finance (Department of Revenue), Government of India has issued seven new notifications, viz Notification Nos 24 to 35 on 22.6.2010 and Notification Nos 36 to 42 - all dated 28.6.2010 and effective from 1 July 2010. These pertain to the date of applicability of service tax on new services introduced by Finance Act, 2010 and certain exemptions to various taxable services.

 The gist of these notifications is as follows-

Service Tax Notification No.	Subject
24/2010-ST dated 22.6.2010	D Date of enforcement of 2010 provisions and new taxable services (1.7.2010)
25/2010-ST dated 22.6.2010	E Exemption to persons in air transport of passenger services - transit    passengers, employees (zzzo) w.e.f. 1.7.2010
26/2010-ST dated 22.6.2010	E Exemption from service tax in excess of 10 percent in air transport of passengers (zzzo) w.e.f. 1.7.2010
27/2010-ST dated 22.6.2010	Exemption to travel from / to airports in north eastern states - air transport of passenger services (zzzo) w.e.f. 1.7.2010
28/2010-ST dated 22.6.2010	Exemption to construction of complex services provided to JLNNUR Mission / Rajiv Awaas Yojna (zzzh) w.e.f. 1.7.2010
29/2010-ST dated 22.6.2010	Amendment in exemption Notification No 1/2006 C Commercial construction (zzq) - 75 % abatement  where value includes land. C  Construction of complex  (zzzh) - 75 % abatement where value includes land
30/2010-ST dated 22.6.2010	Exemption to sponsorship of sports/ games to specified bodies / federation (zzzn) w.e.f. 1.7.2010
31/2010-ST dated 22.6.2010	Exemption to specified services provided in airport / port w.e.f. 1.7.2010
32/2010-ST dated 22.6.2010	Exemption to electricity distribution (BAS, Franchise) w.e.f. 1.7.2010
33/2010-ST dated 22.6.2010	Notification No 7/2010 (Rail transport services ) to be effective from date 1.1.2011
34/2010-ST dated 22.6.2010	Notification No 8/2010 (Rail transport services ) to be effective from date 1.1.2011
35/2010-ST dated 22.6.2010	Notification No 9/2010 (Rail transport services ) to be effective from date 1.1.2011
36 / 2010-ST dated 28.6.2010	Exemption to service tax leviable on advance payment received before appointed dated (ie,1.7.2010) in respect of taxable services as mentioned in section 76 (A) of Finance Act, 2010 except the services of commercial coaching and training (zzc) and renting of property (zzzz). ,ie, exemption would be available to services- (zn)       Port services (zzl)      Minor ports (zzm)    Air port services (zzq)      Commercial & industrial construction (zzzh)     Construction of complex services (zzzn)     Sponsorship (zzzo)     Air transport of passengers (zzzr)     Auctioneer's services  (zzzze)    Information technology services (zzzzf)     ULIP management services (zzzzm)   Legal consultancy services (zzzzn  to zzzzu) New services introduced by Finance Act, 2010 w.e.f. 1.7.2010
37 / 2010-ST dated 28.6.2010	Amendment to Notification No 17/ 2009-ST dated 7.7.2009 - Airport services (zzm) in respect of export of goods eligible for refund of tax vide Notification No 17/2009 - w.e.f. 1.7.2010
38 / 2010-ST dated 28.6.2010	Exemption to commercial or industrial construction services (zzq) provided within port or other port for construction, repair, alteration and renovation of wharves, quays, docks, stages, jetties, piers and railways. - w.e.f. 1.7.2010
39 / 2010-ST dated 28.6.2010	Amendment in Service Tax Rules 1994- proviso added to Rule 4A to state that in case of air transport of passengers, invoice / bill/ challan will include ticket issued in any form and with or without containing details of registration number, classification of service & address of service receiver. w.e.f. 1.7.2010
40 / 2010-ST dated 28.6.2010	Amendment in Notification No 1/2010 -ST dated 1.3.2006 providing abatements/ exemptions to following services if provided within ports (zn), other ports (zzl) and airports (zzm) -  S.No of              Taxable Service  Notification  3                     Rent a cab service (o)  5                     erection, commissioning & Installation service (zzd)  6                      Goods transport agency service (zzp)  7                      Commercial or industrial construction services (zzq)  7(a)                 Commercial or industrial construction services (including land (zzq)  10                   Construction of complex service(zzzh)  10 (a)              Construction of complex service(including land) (zzzh)  11                   Transport og goods by rail service(zzzp)- w.e.f. 1.7.2010
41 / 2010-ST dated 28.6.2010	Full exemption to following services if provided in port / air port- Cargo & warehousing service for agricultural produce / cold storage. Storage & warehousing service for agricultural produce / cold storage. Transport of export goods in aircraft by aircraft operator. Site formation and clearance, excavation and earth moving and demolition service - w.e.f. 1.7.2010
42 / 2010-ST dated 28.6.2010	Full exemption to commercial and industrial services provided within airport.- w.e.f. 1.7.2010