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TMI BlogMemorandum Part-III (Service Tax)X X X X Extracts X X X X X X X X Extracts X X X X ..... ls or medical establishments for the employees of business entities; and (b) health services provided under health insurance schemes offered by insurance companies. (The tax on these health services would be payable only if the payment for such health check up or preventive care or treatment etc. is made directly by the business entity or the insurance company to the hospital or medical establishment). 4) Service provided for maintenance of medical records of employees of a business entity. 5) Service provided by Electricity Exchanges. 6) Certain additional services provided by a builder to the prospective buyers such as providing preferential location or external or internal development of complexes on extra charges. However, service of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the entire consideration for the property is paid after the completion of construction (i.e. after receipt of completion certificate from the competent authority), the activity of construction would be deemed to be a taxable service provided by the builder/promoter/developer to the prospective buyer and the service tax would be charged accordingly. 6) Amendments are being made in the definition of the 'Renting of immovable property service' to,- (i) provide explicitly that the activity of 'renting' itself is a taxable service. The change has been given retrospective effect from 01.06.2007; and (ii) levy service tax on rent of vacant land where there is an agreement or contract between the lessor and lessee for undertaking construction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . b) provide definition of the term 'business entity' to include an association of persons, body of individuals, company or firm but not an individual. The above changes at (a) will come into effect from a date of enactment of the Finance Bill, 2010 and (b) from a date to be notified after the enactment of Finance Bill, 2010. IV. EXEMPTIONS: 1) Statutory taxes charged by the foreign governments are being excluded from taxable value for levy of service tax under the Air passenger transport service. 2) Exemption from service tax is being provided to services relating to 'Erection, Commissioning or Installation' of,- (a) Mechanized Food Grain Handling Systems etc.; (b) Equipment for setting up or substantial expansion of cold storage; and (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice is being withdrawn. 3) The exemption from service tax on 'Commercial training or coaching service' is being restricted to vocational training courses in the designated Trades notified under the Apprentices Act, 1961. The above changes, except at S. No.1, will come into effect immediately. VI. AMENDMENTS IN RULES AND NOTIFICATIONS: 1) Export of Services Rules, 2005 and Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 are being amended so as to move some of the specified taxable services from one category to another. 2) In the Export of Services Rules, 2005, the condition prescribed i.e. 'such service is provided from India and used outside India' is being deleted. 3) Notification No. 1/2002-ST dated 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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