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TMI BlogAmendment of Act 32 of 1994.X X X X Extracts X X X X X X X X Extracts X X X X ..... 882; (2) "advertisement" means any form of presentation for promotion of, or bringing awareness about, any event, idea, immovable property, person, service, goods or actionable claim through newspaper, television, radio or any other means but does not include any presentation made in person; (3) "agriculture" means the cultivation of plants and rearing of all life-forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products; (4) "agricultural extension" means application of scientific research and knowledge to agricultural practices through farmer education or training; (5) "agricultural produce" means any produce of agriculture on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market; (6) "Agricultural Produce Marketing Committee or Board" means any committee or board constituted under a State law for the time being in force for the purpose of regulating the marketing of agricultural produce; (7) "aircraft" has the meaning assigned to it in clause (1) of section 2 of the Aircraf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2003; (36 of 2003.) (20) "courier agency" means any person 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; (21) "customs station" shall have the meaning assigned to it in clause (13) of section 2 of the Customs Act, 1962. (52 of 1962.) (22) "declared service" means any activity carried out by a person for another person for consideration and declared as such under section 66E; (23) "electricity transmission or distribution utility" means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003; (36 of 2003.) or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government; (24) "entertainment event" means an event or a performance which is intended to provide recreation, pastime, fun or enjoyment, by way of exhibition of cinematographic film, circus, concerts, sporting event, pageants, awa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 3 of the Cantonments Act, 2006; (41 of 2006.) (e) a regional council or a district council constituted under the Sixth Schedule to the Constitution; (f) a development board constituted under article 371 of the Constitution; or (g) a regional council constituted under article 371A of the Constitution; (32) "metered cab" means any contract carriage on which an automatic device, of the type and make approved under the relevant rules by the State Transport Authority, is fitted which indicates reading of the fare chargeable at any moment and that is charged accordingly under the conditions of its permit issued under the Motor Vehicles Act, 1988 (59 of 1988) and the rules made thereunder; (33) "money" means Indian legal tender, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any such similar instrument when used as consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value; (34) "negative list" means the services which are listed in section 66D; (35) "non-taxable territory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in force. Explanation 1. For the removal of doubts, it is hereby declared that nothing contained in this clause shall apply to, (A) the functions performed by the Members of Parliament, Members of State Legislative, Members of Panchayats, Members of Municipalities and Members of other local authorities who receive any consideration in performing the functions of that office as such member; or (B) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (C) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or State Governments or local authority and who is not deemed as an employee before the commencement of this section. Explanation 2. For the purposes of this Chapter, (a) an unincorporated association or a body of persons, as the case may be, and a member thereof shall be treated as distinct persons; (b) an establishment of a person in the taxable territory and any of his other establishment in a non-taxable territory shall be treated as establishments of distinct persons. Explanation 3. A person carrying on a business through a branch or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of this section shall not apply with effect from such date as the Central Government may, by notification, appoint."; (E) in section 66A, after Explanation 2 occurring at the end of sub-section (2), the following subsection shall be inserted with effect from such date as the Central Government may, by notification, appoint, namely: "(3) The provisions of this section shall not apply with effect from such date as the Central Government may, by notification, appoint."; (F) after section 66A, the following sections shall be inserted with effect from such date as the Central Government may, by notification, appoint, namely: Charge of service tax on and after Finance Act, 2012. '66B. There shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve per cent. on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. Determination of place of provision of service. 66C. (1) The Central Government may, having regard to the nature and description of various services, by rules made in this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) betting, gambling or lottery; (j) admission to entertainment events or access to amusement facilities; (k) transmission or distribution of electricity by an electricity transmission or distribution utility; (l) services by way of (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; (m) services by way of renting of residential dwelling for use as residence; (n) services by way of (i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount; (ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers; (o) service of transportation of passengers, with or without accompanied belongings, by (i) a stage carriage; (ii) railways in a class other than (A) first class; or (B) an airconditioned coach; (iii) metro, monorail or tramway; (iv) inland waterways; (v) public transport, other than predominantly for tourism purpose, in a vesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g) is supplied in any manner as a part of the activity. Principles of interpretation of specified descriptions of services or bundled services. 66F. (1) Unless otherwise specified, reference to a service (herein referred to as main service) shall not include reference to a service which is used for providing main service. (2) Where a service is capable of differential treatment for any purpose based on its description, the most specific description shall be preferred over a more general description. (3) Subject to the provisions of sub-section (2), the taxability of a bundled service shall be determined in the following manner, namely: (a) if various elements of such service are naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which gives such bundle its essential character; (b) if various elements of such service are not naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which results in highest liability of service tax. Explanation . For the purposes of sub-section (3), the expression "bundled service" means a bundle of provision of various services wherein an ele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... falling under the jurisdiction of the said Commissioner, he may direct such person to get his accounts audited by a chartered accountant or cost accountant nominated by him, to the extent and for the period as may be specified by the Commissioner. (2) The chartered accountant or cost accountant referred to in sub-section (1) shall, within the period specified by the said Commissioner, submit a report duly signed and certified by him to the said Commissioner mentioning therein such other particulars as may be specified by him. (3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of such person have been audited under any other law for the time being in force. (4) The person liable to pay tax shall be given an opportunity of being heard in respect of any material gathered on the basis of the audit under sub-section (1) and proposed to be utilised in any proceeding under the provisions of this Chapter or rules made thereunder. Explanation . For the purposes of this section, (i) "chartered accountant" shall have the meaning assigned to it in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949; (38 of 1949.) (ii) "cost a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority, made on and after the Finance Bill, 2012 receives the assent of the President, relating to service tax, interest or penalty under this Chapter: Provided that the Commissioner of Central Excise (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of two months, allow it to be presented within a further period of one month."; (O) in section 86, (i) in sub-section (1), after the words "against such order", the words "within three months of the date of receipt of the order" shall be inserted; (ii) for sub-section (3), the following sub-section shall be substituted, namely: "(3) Every appeal under sub-section (2) or sub-section (2A) shall be filed within four months from the date on which the order sought to be appealed against is received by the Committee of Chief Commissioners or, as the case may be, the Committee of Commissioners."; (P) in section 88, for the word "duty", the word "tax" shall be substituted; (Q) in section 89, in sub-section (1), for clause (a), the following clause shall be substituted with effect from the date on which the Finance Bill, 2012 receives the assent of the Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly: "(e) admissibility of credit of duty or tax in terms of the rules made in this regard;"; (W) after section 96J, the following sections shall be inserted, namely: Insertion of new sections 97 and 98. Special provision for exemption in certain cases relating to management, etc., of roads. "97. (1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of roads, during the period on and from the 16th day of June, 2005 to the 26th day of July, 2009 (both days inclusive). (2) Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times. (3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2012 receives the assent of the President. Special provision for exemption in certain cases relating to management, etc., of noncommercial Government buildings. 98. (1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, service, Special Economic Zone, stage carriage, State Electricity Board, State Transmission Utility, support services, tax, taxable service, taxable territory, vessel, works contract. This amendment shall have effect from such date as the Central Government may, by notification in the Official Gazette, appoint. Sub-clause (D) seeks to insert a proviso in section 66 so as to provide that the provisions of that section shall not apply with effect from such date as the Central Government may, by notification, appoint. Sub-clause (E) seeks to insert a new sub-section (3) in section 66A so as to provide that the provisions of that section shall not apply with effect from such date as the Central Government may, by notification, appoint. Sub-clause (F) seeks to insert new sections 66B, 66C, 66D, 66E and 66F with effect from such date as the Central Government may, by notification, appoint. Proposed section 66B seeks to levy service tax at the rate of twelve per cent. on the value of services, other than services specified in the negative list, provided or agreed to be provided in the taxable territory by a person to another. Proposed section 66C seeks to empower the Central Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognised by law; (iii) education as a part of an approved vocational education course; (m) services by way of renting of residential dwelling for use as residence; (n) services by way of:- (i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount; (ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange to deal in foreign exchange or foreign securities or amongst banks and such dealers; (o) service of transportation of passengers, with or without accompanied belongings, by- This amendment will take effect from the date on which this Bill receives the assent of the President. Sub-clause (I) seeks to amend section 68 with a view to insert a proviso in sub-section (2), for the purpose of empowering the Central Government to notify the services and the extent of service tax payable. This amendment will take effect from the date on which this Bill receives the assent of the President. Sub-clause (J) seeks to insert new section 72A with a view to pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide for the period of limitation for filing appeal before the Commissioner (Appeals) as two months extendable by one month from the date of receipt of decision or order of the adjudicating authority. The period of limitation extended by this sub-clause shall be applicable for all decisions or orders passed by the adjudicating authority on or after the date on which the Finance Bill, 2 012 receives the assent of the President. This amendment will take effect from the date on which this Bill receives the assent of the President. Sub-clause (O) seeks to amend section 86 with a view to provide for the period of limitation for filing appeal before the Tribunal as four months from the date of receipt of order by the Committee of Chief Commissioners or Committee of Commissioners. The period of limitation extended by this sub-clause shall be applicable for all decisions or orders passed after the date on which the Finance Bill, 2012 receives the assent of the President. This amendment will take effect from the date on which this Bill receives the assent of the President. Sub-clause (P) seeks to amend section 88 to substitute the word duty with the word tax . This amendment will take effect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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