Service Tax — Official amendments to the Finance Bill, 2001 - Service Tax - 35/2001

Service Tax Official amendments to the Finance Bill, 2001 Trade Notice No. 35/2001, dated 24-5-2001 of the Madurai Commissionerate Subject : Service Tax Official amendments to the Finance Bill, 2001. Certain official amendments carried out in the Finance Bill, 2001 vide Ministry's reference F. No. B-11/1/2001-TRU, dated 3-5-2001 are communicated for information and necessary action. The Finance Bill, 2001 with these amendments has been passed by the Parliament. ANNEXURE F. No. B-11/1/2001-TRU, dated 3-5-2001 Amendments made in the Finance Bill, 2001 S. No. Reference of Finance Bill Prior to amendment Subsequent to amendment * Remarks 1. Clause 130, Sub-clause (a) Section 65(8); Definition of "Authorised Service Station" Any service station or centre, authorised by any automobile manufacturer, to carry out any service or repair of any automobile manufactured by such manufacturer. Any service station, or centre, authorised by any motor vehicle manufacturer, to carry out any service or repair of any motor car or two wheeled motor vehicle manufactured by such manufacturer. To clarify that services provided in relation to 'motor car and two wheeled vehicle' only is covered under the ambit of service tax. 2. Clause 130, sub-clause (a), section 65(50); definition of "Port Services" Any service rendered by a port, in any manner, in relation to a vessel or goods. Any service rendered by a port or any person authorised by the port, in any manner, in relation to a vessel or goods. To bring in the services rendered by any person authorised by the port under the scope of tax net. 3. Clause 130, sub-clause (a) section 65(83); definition of "Video-tape production" The process of any recording of any programme, event, or function on a magnetic tape and editing thereof, in any manner The process of any recording of any programme, event, or function on a magnetic tape and includes editing thereof, in any manner To clarify that both the processes of recording and editing, jointly and severally, are covered under the tax net. 4. Clause 130, sub-clause (a) section 65(72) (zl) definition Any service provided, to a policy holder by an actuary, Any services provided, to a policy holder or insurer by an actuary, or To bring in the services rendered to insurer also of "taxable service" in relation to insurance auxiliary services or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services. intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services. under the scope of taxable services 5. Clause 130, sub-clause (a) section 65(72) (zn); definition of "taxable service" in relation to port services Any service provided, to any person by a port, in relation to port services in any manner. Any service provided, to any person by a port or any person authorised by the port, in relation to port services, in, any manner. To bring in the services rendered by any person authorised by the port under the scope of tax net. 6. Clause 130, sub-clause (a), section 65(72) (zo); definition of "taxable service" in relation to service or of repair or automobiles. Any service provided, to a customer, by an authorised service station, in relation to any service or repair of automobiles, in any manner. Any service provided, to a customer, by an authorised service station in relation to any service or repair of motor cars or two wheeled motor vehicles, in any manner. To provide specific reference to 'motor cars and two wheeled vehicle' instead of 'automobiles' in respect of services provided by authorised service station 7. Clause 130, sub-clause (c), section 67, item (e) of inclusion in Explanation The commission received by an actuary, or intermediary or insurance intermediary or insurance agent from the insurer. The commission, fee or any other sum received by an actuary, or intermediary or insurance intermediary or insurance agent from the insurer. To bring in the value of taxable service, the fee or any other sum received by the service provider in relation to insurance auxiliary service. 8. Clause 130, sub-clause (c), section 67, item (f) of inclusion in Explanation The reimbursement received by the authorised service station from the manufacturer for carrying out any service of any automobile manufactured by such manufacturer. The reimbursement received by the authorised service station from the manufacturer for carrying out any service of any motor car or two wheeled motor vehicle manufactured by such manufacturer. To provide specific reference to 'motor car and two wheeled vehicle' instead of 'automobile' in the taxable value of services provided by authorised service station. 9. Clause 130, sub-clause (c), section 67, item (f) of exclusion in Explanation The cost of part and accessories, if any, sold to the customer during the course of service or repair of automobiles The cost of part and accessories, if any, sold to the customer during the course of service or repair of motor cars or two wheeled motor vehicles To provide specific reference to 'motor cars and two wheeled vehicles' instead of 'automobiles' in the taxable value of services provided by authorised service station. 10. Clause 130, sub-clause (g), item (iii) (iii) the following Explanation shall be inserted at the end namely :- "Explanation :- Where the service of notice is stayed by an order of a court, the period of such stay shall be excluded in computing the period of five years or six months, as the case may be, under this section." Entire item (iii) of sub-clause (g) to clause 130 omitted This explanation has already been inserted by section 138 of the Finance Act, 1999. The present insertion of explanation was redundant. 11. Clause 130, sub-clause (k) section 77 (k) in section 77, for the words "a sum which shall not be less than one hundred rupees but which may extend to two hundred rupees for every week or part thereof during which such failure continues", the words "a sum which may extend to one thousand rupees" shall be substituted (k) in section 77, for the words "two thousand rupees", the words "one thousand rupees" shall be substituted; To make correct reference in view of the amendment already carried out by the section 138 of the Finance Act, 1999 in regard to the amount of penalty. The amendment portion is highlighted for each reference.