Major Amendments in Rules relating to Service Tax

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..... Major Amendments in Rules relating to Service Tax
News and Press Release
Dated:- 8-7-2009

Three notifications has been issued to amend provisions of "Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007" and "Taxation of Services (Provided from outside India and Received in India) Rules, 2006" These amendments are being summarized as under: Works Contract - Co .....

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..... mposition Scheme After the amendment, in the works contract composition scheme, now the composition scheme would become unpopular among various civil contractors. Explanation provided in the Rule 3(1) of the Works Contract Rules, 2007 modified, so as to allow the benefit of optional composition scheme, only for such works contracts, where the taxpayer declares the entire value of goods (whethe .....

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..... r supplied under any other contract for a consideration or otherwise) and services used in the execution of the works contract, as the `gross value' charged for the works contract. This restriction would not apply to the current works contracts where either the execution has commenced or any payment been made on or before 07.07.2009 [refer notification No.23/2009-ST dated 07.07.2009]. Further, su .....

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..... b-rule (4) to rule 3 has been inserted as: The option under sub-rule (3) shall be permissible only where the declared value of the works contract is not less than the gross amount charged for such works contract. Import of Services The scope of notification No.1/2002-ST dated 01.03.2002 is being enlarged, by extending the applicability of service tax provisions to installations, structures and .....

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..... vessels in the entire Continental Shelf of India and Exclusive Economic Zone of India[refer notification No. 21/2009-ST dated 07.07.2009]. To give effect to the above amendment, rule 2(e) of the Taxation of Services (Provided from outside India and Received in India) Rules, 2006 has also been amended. For amended provisions, visit the following links: Works Contract (Composition Scheme for Paym .....

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..... ent of Service Tax) Rules, 2007 Taxation of Services (Provided from outside India and Received in India) Rules, 2006
News - Press release - PIB .....

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