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TMI BlogTaxability of servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... section 65 of the Act. The implications of this phrase are- Services which have only been agreed to be provided but are yet to be provided are taxable Receipt of advances for services agreed to be provided become taxable before the actual provision of service Advances that are retained by the service provider in the event of cancellation of contract of service by the service receiver become taxable as these represent consideration for a service that was agreed to be provided. 3.1.2 Does the liability to pay the service tax on a taxable service arise the moment it is agreed to be provided without actual provision of service? No. The point of taxation is determined in terms of the Point of Taxation Rules, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctures and vessels located in the continental shelf of India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof. Detailed rules called the Place of Provision of Service Rules, 2012 have been made which determine the place of provision of service depending on the nature and description of service. Please refer to Guidance Note 5 relating to the Place of Provision of Service Rules, 2012. 3.3 Service should not be specified in the negative list As per section 66B , to be taxable a service should not be specified in the negative list. The negative list of services has been specified in section 66D of the Act. For the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Does this activity consist only of a transaction in money or actionable claim? No 6. Is the consideration for the activity in the nature of court fees for a court or a tribunal? No 7. Is such an activity in the nature of a service provided by an employee of such person in the course of employment? No 8. Is the activity covered in any of the categories specified in Explanation 1 or Explanation 2 to clause (44) of section 65B of the Act No [*if you are a person doing business through an establishment located in the taxable territory and another establis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us financial year the aggregate value of taxable services provided by you was less than Rs. 10 lakh and in the present financial year the aggregate value of taxable services provided by you is also less than Rs.10 lakh, (you start paying service tax after crossing the threshold of Rs 10 lakh) If the taxable service provided by you is covered under any one of the exemptions issued under section 93 of the Act. 3.4.3 How do I know that the service provided by me is an exempt service? There are certain exemption notifications that have been issued under section 93 of the Act of which the main exemption no. 25/2012-ST dated 20/6/12 has 39 heads (mega notification). If the service provided by you fits into the nature and descriptio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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