9911796707
TMI BlogAmendment of Act 32 of 1994- Penalty for suppressing, etc, of value of taxable service- Liability under Act to be first charge- Offences and penalties- Special exemption from service tax in certain casesX X X X Extracts X X X X X X X X Extracts X X X X ..... y system of medicine; or (ii) an entity owned, established, administered or managed by any person or body of persons, whether incorporated or not, either as an independent entity or as a part of any clinical establishment referred to in sub-clause (i), which carries out diagnosis of diseases through pathological, bacteriological, genetic, radiological, chemical, biological investigations or other diagnostic or investigative services with the aid of laboratory or other medical equipment, but does not include an establishment, owned or controlled by- (a) the Government; or (b) a local authority; (25aa) "club or association" means any person or body of persons providing services, facilities or advantages, primarily to its members, for a subscription or any other amount, but does not include- (i) any body established or constituted by or under any law for the time being in force; or (ii) any person or body of persons engaged in the activities of trade unions, promotion of agriculture, horticulture or animal husbandry; or (iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in its premises; (zzzzvi to any person by a hotel, inn, guest house, club or campsite, by whatever name called, for providing of accommodation for a continuous period of less than three months;"; (B) in section 66, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for the word, brackets and letters "and (zzzzu)", the brackets, letters and word", (zzzzu), (zzzzv) and (zzzzw)" shall be substituted; (C) in section 70, in sub-section (1), for the words two thousand rupees", the words "twenty thousand rupees" shall be substituted; (D) in section 73,- (I) sub-section (1A) shall be omitted; (ii) the provisos to sub-section (2) shall be omitted; (iii) after sub-section (4), the following sub-section shall be inserted, namely:- (4A) Notwithstanding anything contained in sub-sections (3) and (4), where during the course of any audit, investigation or verification, it is found that any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, but the true and complete details of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undred rupees" shall be substituted; (ii) for the words "two per cent.", the words "one per cent." shall be substituted; (iii) in the proviso, after the words "shall not exceed", the words 'fifty per cent. of" shall be inserted; (iv) for the Illustration, the following Illustration shall be substituted, namely:- "Illustration X, an assessee, fails to pay service tax of ten lakh rupees payable by the 5th March. X pays the amount on the 15th March. The default has continued for ten days. The penalty payable by X is computed as follows:- 1% of the amount of default for 10 days - x 10,00,000 x - ₹ 3,225.80 Penalty calculated @ ₹ 100 per day for 10 days = ₹ 1 000 Penalty liable to be paid is ₹ 3226.00."; (H) in section 77, for the words "five thousand rupees" wherever they occur, the words "ten thousand rupees" shall be substituted; (for section 78, the following section shall be substituted, namely:- Penalty for suppressing, etc, of value of taxable service "78(1) Where any service tax has not been levied or paid or has been short-levied or short- paid or erroneously refunded, by reason of- (a) fraud; or (b) collusion; or (c) wilful mis-state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order by which such increase in service tax takes effect: Provided further that if the penalty is payable under this section, the provisions of section 76 shall not apply. Explanation.-For the removal of doubts, it is hereby declared that any amount paid to the credit of the Central Government prior to the date of communication of the order referred to in the second proviso to sub-section (1) or the first proviso to sub-section (2 shall be adjusted against the total amount due from such person."; (J) in section 80, for the word and figures "section 78", the words and figures 'first proviso to sub-section (1) of section 78" shall be substituted; (K) in section 82, in sub-section (1),- (i) for the words "Commissioner of Central Excise", the words "Joint Commissioner of Central Excise" shall be substituted; (ii) for the words "Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise", the words "Superintendent of Central Excise" shall be substituted; (L) in section 83,- (i) for the figures and letters 9C,9D, 11B, 11BB, 11C, 12, 12A, 12B, 12C, 12D, 12E, 14, 14AA, 15, 33A, 35F", the figures and letters "9A, 9AA, 9B, 9C, 9D, 9E, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be for a term of less than six months; (ii) in any other case, with imprisonment for a term, which may extend to one year. (2) If any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to three years: Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the court, such imprisonment shall not be for a term less than six months. (3) For the purposes of sub-sections (1) and (the following shall not be considered as special and adequate reasons for awarding a sentence of imprisonment for a term of less than six months, namely:- (i) the fact that the accused has been convicted for the first time for an offence under this Chapter; (ii) the fact that in any proceeding under this Act, other than prosecution, the accused has been ordered to pay a penalty or any other action has been taken against him for the same act which constitutes the offence; (iii) the fact that the accused was not the principal offender and was acting merely as a secondar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , of motor vehicle; (ii) life insurance service; (iii) service provided by clubs or associations; (iv) (a) services provided by a business entity to individuals in relation to advice, consultancy or assistance in any branch of law; (b) representational service before a judicial or quasi-judicial authority provided by any person to a business entity; (c) include arbitration service provided to any business entity by a arbitral tribunal; (v) services provided by clinical establishments and doctors of such establishments; (vi) services provided by air-conditioned restaurants also having licence to serve alcoholic beverages; (vii) service relating to providing of short-term accommodation by hotels and similar establishments; Sub-clause (B) seeks to amend section 66 of the said Act, inter alia, to specify the following services as taxable services, namely:- (a) representational services excluding the services provided to an individual by way of appearance before any court, tribunal or authority; (b) services provided by an arbitral tribunal; (c) services provided by an air-conditioned restaurant in relation to serving of food or beverages; (d) services provided by hotel, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or offences and penalties to enable prosecution of certain specified offences involving service tax evasion. The power to prosecute offenders rests with the Chief Commissioner of Central Excise and the prosecution would be done only with the previous sanction of the Chief Commissioner of Central Excise; Sub-clause (N) seeks to amend section 93A of the Finance Act, 1994 so as to empower the Central Government to make rules to provide for the circumstances or conditions under which the amount of rebate granted in respect of service tax paid on taxable services which are used as input services for manufacturing the exported goods or for providing the exported services shall not be recovered, even if the sale proceeds are not realised by the exporter. Sub-clause (O) seeks to amend section 95 of the said Act so as to empower the Central Government to issue orders for removal of difficulty in case of implementing, classifying or assessing the value of any taxable service incorporated by the proposed legislation in this Chapter, up to one year from the date of enactment of the Finance Bill, 2011. Sub-clause (P) seeks to insert a new section 96J in the Finance Act, 1994. Under the exist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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