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TMI BlogUnion Budget 2017 - Changes in Service Tax - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... the Service Tax (Determination of Value) Rules, 2006; Other changes are being given effect to by inserting new entries, and amending/omitting existing entries in notification No. 25/2012-ST dated 20.6.2012 and by amending the CENVAT Credit Rules, 2004. 2. It may be noted that changes being made in the Budget are coming into effect on various dates, as indicated in the following paragraphs. These changes are categorized below based on the above criterion: (i) Changes coming into effect immediately w.e.f. the 2nd day of February, 2017; (ii) The amendments which will get incorporated in the Finance Act, 1994 on enactment of the Finance Bill, 2017 [paras 3.1, 3.2, 3.3 and 4]; (iii) Certain fresh entries and amendments to existing entries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o substitute the definition of "Authority" to mean the Authority for Advance Ruling as constituted under section 245-O of the Income-tax Act, 1961. (Clause 122 of the Bill refers) (b) Section 245P of the Income-tax Act, 1961 provides that no proceeding before, or pronouncement of advance ruling by the Authority for Advance Ruling would be invalidated on the ground merely due to any vacancy or defect in the constitution of the Authority. In view of the same, Section 96B relating to vacancies not to invalidate proceedings is being omitted. (Clause 123 of the Bill refers) (c) Sub-section (3) of section 96C is being amended so as to increase the application fee for seeking advance ruling from rupees two thousand five hundred to rupees ten t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax along with cesses (Swachh Bharat Cess and Krishi Kalyan Cess) would be applicable to such taxable service. 4. Other Legislative provisions: (a) Service tax exemption to taxable services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force under the Group Insurance Schemes of the Central Government, is being made effective from 10th day of September, 2004, the date from when the services of life insurance became taxable. (Clause 127 of the Bill refers) (b) Benefit of the exemption notification No. 41/2016-ST dated 22.09.2016 is being extended with effect from 1.6.2007, the date when the services of renting of immovable property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Post Graduate Programmes (PGP) in Management for the Post Graduate Diploma in Management (PGDM), to which admissions are made on the basis of the Common Admission Test (CAT), conducted by IIM. (S. No. 9B of notification No. 25/2012-ST refers) (c) Under the Regional Connectivity Scheme (RCS), exemption from service tax is being provided in respect of the amount of viability gap funding (VGF) payable to the selected airline operator for the services of transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme (RCS) airport, for a period of one year from the date of commencement of operations of the Regional Connectivity Scheme (RCS) as notified by Ministry of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... major changes. The text of the statutory provisions and the wordings of the notifications should be read carefully for interpreting the law. 7.2 Field formations are requested to go through the changes made in the Budget carefully. Any issues or doubts which may arise or any omission/error observed may kindly be brought to the notice of the undersigned, Dr. Somesh Chander, Director at [email protected] or Shri Pramod Kumar, OSD (TRU) at [email protected] as soon as possible. 7.3 I shall be grateful if you could either inform me or my colleagues of any inadvertent error as soon as possible. You may also inform about any operational, administrative or any other difficulty faced or anticipated in the implementation of the new proposals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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