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TMI BlogAssignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before the 1st April, 2016X X X X Extracts X X X X X X X X Extracts X X X X ..... l authority before the 1st April, 2016 Provided that the exemption shall apply only to service tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource; Meanings and Definitions: (s) "governmental authority" means an authority or a board or any other body; (i) set up by an Act of Parliament or a State Legislature; or (ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution] 65B (26A) "Government" means the Departments of the Central Government, a State Government and its Departments and a Union territory and its Departments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on one time charge, payable in full upfront or in installments, for assignment of right to use any natural resource and not to any periodic payment required to be made by the assignee, such as Spectrum User Charges, license fee in respect of spectrum, or monthly payments with respect to the coal extracted from the coal mine or royalty payable on extracted coal which shall be taxable. Point of Taxation Rule 7 of the Point of Taxation Rules, 2011 has been amended vide Notification No. 24/2016 -ST dated 13.4.2016 to provide that in case of services provided by Government or a local authority to any business entity, the point of taxation shall be the earlier of the dates on which: (a) any payment, part or full, in respect of such service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by Department of Telecommunications to successful bidders of spectrum indicate the dates on which the payments in respect thereof become due. These may be accessed at http://www.dot.gov.in/sites/default/files/u 8/NIA_January_2015.pdf and http://www.dot.gov.in/sites/default/files/u 8/Payment Methodology And Payment Details.pdf respectively. Valuation: Whether Service Tax is payable on the interest charged by Government or a local authority where the payment for assignment of natural resources is allowed to be made under deferred payment option. Rule 6(2)(iv) of the Service Tax (Determination of Value) Rules, 2006 has been amended vide Notification No. 23/2016 -ST dated 13.4.2016 so as to provide that interest chargeable on deferred p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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