Service Tax Amendments
CA Arun Setia Classes
Amendment 1
W.e.f. 1-June-2015 Rate of service has been increased to flat 14%. The education Cess & Secondary
Higher Education Cess have been Subsumed in new service tax rate.
Amendment 2
65B(40) "Process amounting to manufacture or production of goods" means a process on which duties
of excise are leviable under section 3 of the Central Excise Act, 1944 [or the Medicinal and Toilet
Preparations (Excise Duties) Act,1955” or any process amounting to manufacture of opium, alcoholic
liquor (Deleted FA, 2015) Indian hemp and other narcotic drugs and narcotics on which duties of excise
are leviable under any State Act for the time being in force;
Amendment 3
Section 66F (1) prescribes that unless otherwise specified, reference to a service shall not include
reference to any input service used for providing such service. Following illustration has been
incorporated in this section vide section 110 of Finance Act, 2015 to exemplify the scope of this
provision: The services by the Reserve Bank of India, being the main service within the meaning of
clause (b) of section 66D, does not include any agency service provided or agreed to be provided by any
bank to the Reserve Bank of India. Such agency service, being input service, used by the Reserve Bank of
India for providing the main service, for which the consideration by way of fee or commission or any
other amount is received by the agent bank, does not get excluded from the levy of service tax by virtue
of inclusion of the main service in clause (b) of the negative list in section 66D and hence, such service is
leviable to service tax.
Amendment 4
Section 67 prescribes for the valuation of taxable services. It is being prescribed specifically in this
section that consideration for service shall include:
(i)
any amount that is payable for the taxable services provided or to be provided;
(ii)
any reimbursable expenditure or cost incurred by the service provider and charged, in the
course of providing or agreeing to provide a taxable service, except in such circumstances,
and subject to such conditions, as may be prescribed;
(iii)
any amount retained by the lottery distributor or selling agent from gross sale amount of
lottery ticket in addition to the fee or commission, if any, or, as the case may be, the
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discount received, that is to say, the difference in the face value of lottery ticket and the
price at which the distributor or selling agent gets such ticket.
Amendment 5
Section 65B - Interpretations. - Chapter V of Finance Act, 1994
(44) "Service" means any activity carried out by a person for another for consideration, and includes a
declared service, but shall not include(a) an activity which constitutes merely,-(i)
(ii)
(iii)
a transfer of title in goods or immovable property, by way of sale, gift or in any other
manner; or
such transfer, delivery or supply of any goods which is deemed to be a sale within the
meaning of clause (29A) of Article 366 of the Constitution; or
a transaction in money or actionable claim;
(b) a provision of service by an employee to the employer in the course of or in relation to his
employment;
(c) Fees taken in any Court or tribunal established under any law for the time being 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 clause, the expression “transaction in money or actionable
claim” shall not include-(i)
(ii)
any activity relating to use of money or its conversion by cash or by any other mode, from one
form, currency or denomination, to another form, currency or denomination for which a
separate consideration is charged;
any activity carried out, for a consideration, in relation to, or for facilitation of, a transaction
in money or actionable claim, including the activity carried out--
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(a) by a LOTTERY distributor or selling agent in relation to promotion, marketing, organizing, selling of
lottery or facilitating in organising lottery of any kind, in any other manner;
(b) by a foreman of chit fund for conducting or organising a chit in any manner.]
(FA, 2015)
Explanation 3.-- 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 nontaxable territory shall be treated as establishments of distinct persons.
Explanation 4.- A person carrying on a business through a branch or agency or representational office in
any territory shall be treated as having an establishment in that territory;
Amendment 6
AMENDMENTS IN NEGATIVE LIST
(1) 66-D (a) Services by Government or a local authority excluding the following services to the
extent they are not covered elsewhere.
(i)
Service by the department of Posts by way of speed post, express parcel post, life insurance,
and agency services provided to a person other than Government;
(ii)
Services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an
airport;
(iii)
Transport of goods or passengers; or
(iv)
Support (Deleted FA, 2015 )any services other than covered under clauses (i) to (iii) above
provided to business entities
(2) 66-D (f) has been amended to exclude ―process amounting to manufacture or production of
alcoholic liquor for human consumption‖; Thus, it shall now be read as: ―services by way of
carrying out any process amounting to manufacture or production of goods excluding alcoholic
liquor for human consumption;"
(3) 66-D(j) Admission to entertainment events or access to amusement facilities; (Deleted by
FA,2015)
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Amendment 7 (Mega Exemptions)
Entry -2 . (i) Health care services by a clinical establishment, an authorised medical practitioner or paramedics;
(ii) Services provided by way of transportation of a patient in an ambulance, other than those specified
in (i) above;]
Entry -5A RELIGIOUS PILGRIMAGE BY A SPECIFIED ORGANISATION
Service by a specified organization in respect of a religious pilgrimage (facilitated by the Ministry of
External affairs of the Government of India, under bilateral arrangement)
“Specified organization” shall meana) Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand undertaking; or
‘Committee’ or ‘Sate Committee’ as defined in section 2 of the Haj Committee Act, 2002
Entry -12 SERVICE TO GOVT / LOCAL AUTH0RITY / GOVERNMENT AUTH0RITY + SPECIFIED WORKS
Services provided to Government, Local Authority or Governmental Authority'*
by way of construction, erection, commissioning, installation, completion, fitting out, repair,
maintenance, renovation, or alteration of
a) A Civil Structure or Any Other Original Works meant predominantly for use other than for
commerce, industry, or any other business o, profession (e.g. Parliament construction of building of parliament)
(omitted by 1/04/2015)
B.G. SHIRKE CONSTRUCTIAN TECHNOLOCY PVT. LTD, - 2O14 – TRI
b) A Historical Monument,
archaeological site or remains of national importance,
archaeological excavation, or Antiquity specified under the Ancient Monuments (structure more than 100 years
old)
& Archaeological Sites and Remains Act, 1958;
c) A structure meant predominantly for use as
(i) An educational, (e.g. Army School)
establishment
(ii) A Clinic, (e.g. Army Hospital) (iii) An art
(omitted w.e.f. 1/04/2015)
or
culture
d) Canal, Dam or Other Irrigation Works;
e) Pipeline, Conduit or Plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or
disposal; or
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Service Tax Amendments
f)
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A RESIDENTIAL COMPLEX predominantly meant for
Self-use or
the use of their Employees or OTHER PERSONS Specified in the Explanation 1 to sec 658 (44) (MP,
MLA, Judges etc.)
(omitted w.e.f. 1/04/2015)
Entry No.14
SERVICES RELATING TO SPECIFIED ORIGINAL WORKS
Services
by way of construction, erection, commissioning, installation, of ORIGINAL WORKS pertaining to
(a) Airport, port Railways (including Monorail Or Metro);
(Omitted w.e.f. 1/04/2015)
(b) A single Residential Unit** otherwise then as a part of a Residential Complex;
Single Residential Unit
[E/N 25/2012]
Residential Complex
[E/N 25/2012]
Single Residential Unit means a self-contained residential unit which
is designed for use, wholly or principally, for residential purposes for
one family.
Residential Complex means any complex comprising of a building or
buildings, having more than one residential unit.
(c) LOW- COST HOUSES up to a carpet area of 60 square meters per house in a HOUSING PROJECT
approved by competent authority empowered under the 'Scheme of Affordable Housing in
Partnership' framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;
(d) Post-Harvest Storage infrastructure for agricultural produce including a cold storages for such
purposes; or
(e) MECHANIZED FOOD GRAIN HANDLING SYSTEM, machinery or equipment for units processing
Agricultural Produce as food stuff excluding Alcoholic Beverages;
Entry No.16
PERFORMING ARTIST SERVICES
Services by a PERFORMING ARTIST in classical art forms of
(i)
(ii)
(iii)
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Music;
Dance; or
Theatre,
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If the consideration charged for such performance is not more than Rs 1 lakhs
Excluding services provided by such artist as a BRAND AMBASSDOR
Note: Other activities by an artist in other forms eg. Western music or dance, modern theaters etc. are
taxable
Entry No.20
Service by way of TRANSPORTATION BY RAIL OR A VESSEL FROM ONE PORT IN INDIA
to another of the following goods.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
Petroleum and petroleum product
Relief materials meant for victims of natural of man-made disasters, calamities,
accidents or mishap;
Defence or military equipments;
Postal mail bags
Household effect;
newspaper or magazines registered with Registrar of Newspapers;
railway equipments or materials
agricultural produce;
milk, salt and food grain including flours, pulses and rice
chemical fertilizer organic manure and oil cakes'
cotton, ginned or baled
Entry No.21
Services provided by a goods transport agency, by way of transport in a goods carriage
of(a) Agricultural produce
(b) Goods, where gross amount charged for the transportation of goods on a
consignment transported in a single carriage does not exceed Rs'1,500
(c) Goods, where gross amount charged for transportation of all such goods for a single
consignee does not exceed Rs.750'
(d) milk, salt and food grain including flours, pulses and rice
(e) Chemical fertilizer, organic manure and oilcakes;
(f) Newspaper or magazines registered with the Registrar of Newspapers
(g) Relief materials meant for victims of natural or man-made disasters, calamities,
accidents or mishap; or
(h) Defence or military equipments.
(i) cotton, ginned or baled
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Entry No 26. Services of general insurance business provided under following schemes (a) Hut Insurance Scheme;
(b) Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as
Integrated Rural Development Programme);
(c) Scheme for Insurance of Tribals;
(d) Janata Personal Accident Policy and Gramin Accident Policy;
(e) Group Personal Accident Policy for Self-Employed Women;
(f) Agricultural Pumpset and Failed Well Insurance;
(g) premia collected on export credit insurance;
(h) Weather Based Crop Insurance Scheme or the Modified National Agricultural
Insurance Scheme, approved by the Government of India and implemented by the
Ministry of Agriculture;
(i) Jan Arogya Bima Policy;
(j) National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);
(k) Pilot Scheme on Seed Crop Insurance;
(l) Central Sector Scheme on Cattle Insurance;
(m) Universal Health Insurance Scheme;
(n) Rashtriya Swasthya Bima Yojana; or
(o) Coconut Palm Insurance Scheme;
(p) Pradhan Mantri Suraksha Bima Yojna;] (Add by FA, 2015 )
Entry No-26A. Services of life insurance business provided under following schemes (a) Janashree Bima Yojana (JBY); or
(b) Aam Aadmi Bima Yojana (AABY);.
(c) life micro-insurance product as approved by the Insurance Regulatory and Development
Authority, having maximum amount of cover of fifty thousand rupees.]
(d) Varishtha Pension Bima Yojana;]
(e) Pradhan Mantri Jeevan Jyoti Bima Yojana;
Applicable from 30-April-2015
(f) Pradhan Mantri Jan Dhan Yogana;]
Entry no 26B: Services by way of collection of contribution under Atal Pension Yojana (APY).
Entry No.29
Intermediate service
Services by following persons in respective capacities
(a) A sub-broker/ an authorized person
(b) Authorized person
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To a stock broker
To a member of a commodity exchange
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Service Tax Amendments
(c) Mutual fund agent
(d) Mutual fund distributor
(e) Selling or marketing agent of lottery tickets
(f) Sub- contractor providing services by way
of works contract
CA Arun Setia Classes
To a mutual fund or asset management company
To a mutual fund or asset management company
Deleted w.e.f. 1/04/15
To a distributer or a selling agent
To another contractor providing works contract
services which are exempt
Entry No.30
Service of job work
Carrying out intermediate production process as job-work in relation to
(Exemption not linked to value of services)
a) Agriculture*, Printing or Textile Processing;
b) Cut And Polished Diamonds and gemstones; or plain and studded jewellery of gold and
other precious metals, falling under Chapter 71 of CETA;
c) "any goods excluding alcoholic liquors for human consumption, “ on which appropriate
duty is payable by the principal manufacturer; [Bold portion amended with effect from 106-2015] or
d) Appropriate Duty [Para 2(b) of Notification No. 25/2012-ST]; Appropriate duty means duty
payable on manufacture or production under a Central Act or a state Act, but shall not
include ‘Nil’ rate of duty or duty wholly exempt.
e) Principal manufacturer [Para 2(z) of Notification No.25/2012-ST]: Principal manufacturer
means any person who gets goods manufactured or processed on his account from another
person.
Entry No.32
Telephone service Deleted w.e.f 1/04/2015
Services by way of making TELEPHONE CALLS from
(a) Departmentally run public Telephone;
(b) Guaranteed Public telephone operating only for local calls ; or
(c) Free telephone at airport and hospital where no bills are being issued.
Entry No.43 . Services by operator of Common Effluent Treatment Plant by way of treatment of effluent;
Entry No. 44 SERVICES IN RELATION TO FRUITS AND VEGETABLES [Entry 44 of Notification
No.25/2012-ST] [inserted w.e.f. 01-04-2015] : Services by way of pre-conditioning pre-cooling, ripening,
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waxing, retail packing, labeling of fruits and vegetables which do not change or alter the essential
characteristics of the said fruits or vegetables.
Entry No.45 . SERVICES BY WAY OF ADMISSION TO MUSEUM NATIONAL PARK ETC. [Entry 45 of
Notification No. 25/2012- ST] [inserted w.e.f. 01-04-2015]: Services by way of admission to a museum
national park wildlife sanctuary, tiger reserve to zoo.
National Park [Para 2(xxa) of Notification No. 25/2012-ST]: ”National Park” has the meaning assigned
to it in Section 2(21) of The Wild Life (protection) Act, 1972.
Tiger Reserve [Para 2(zi) of Notification No. 25/2012-ST]: ”Tiger Reserve” has the meaning assigned to
it in Section 38K(e) of The Wild Life (protection) Act, 1972.
Wild life sanctuary [Para 2(zk) of Notification No. 25/2012-ST]: ”Wild life sanctuary” has the means
sanctuary as defined in the Section 2(26) of The Wild Life (protection) Act, 1972.
Zoo [Para 2(zl) of Notification No. 25/2012-ST]: ”Zoo” has the meaning assigned to it in Section 2(39) of
The Wild Life (protection) Act, 1972.
MOVIE EXHIBITION
Entry No.46 MOVIE EXHIBITION [Entry 46 of Notification No.2512012-ST] [Inserted w.e.f.07-04-2015] :
Service provided by way of exhibition of movie by an exhibitor to the distributor or an association of
persons consisting of the exhibitor as one of its members.
ADMISSION TO ENTERTAINMENT EVENT OR AMUSEMENT FACILITY
Entry No.47 ADMISSION TO ENTERTAINMENT EVENT OR AMUSEMENT FACILITY [Entry 47 of
Notification No. 25/2012-ST] [Inserted w.e.f.07-04-2015] : Services by way of right to admission to:exhibition of cinematographic film, circus, dance, or theatrical performance including drama or
ballet;
(ii)
recognised sporting event;
(iii)
award function, concert, Pageant, musical performance or any sporting event other than a
recognized sporting event, where the consideration for admission is not more than Rs. 500 per
person.
 “Recognized sporting event” [Para 2(zab) of Notification No. 25/2012-ST]: “Recognized sporting
event” means any sporting event –
(i)
(i)
(ii)
organized by a recognized sports body where the participating team or individual represent
any district, state, zone or country;
covered under entry 11.
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Author's Note: With effect from 01-06-2011 the Negative List entry that covers "admission to
entertainment event or access to amusement facility" is being omitted [Section 66D (j)]. Consequently,
the definitions of “amusement facility” [Section 65 B (9)] and "entertainment event" [Section 658(24)]
are also being omitted. Hence, the aforesaid exemption has been provided w.e.f . 01-06- 2015.
Amendment 8 (COMPOSITION SCHEME )
(A) Payment of service tax by an air travel agent for booking of tickets for travel by air [Rules 6(7) of
Service Tax Rules, 1994]
Service tax in relation to booking of ticket for travel by air can be paid in any of the following
alternatives:
a) At the rate of 14% of the commission and other charges recovered from the customer or
received from the air line;
b) (i) At the rate of .7% of Basic Fare in case of Domestic Booking.
Explanation:- (ii) At the rate of 1.4% of Basic Fare in case of International Booking.
“Basic fare” means that part of the air fare on which commission in normally paid to the air travel agent
by the airline.
And the option, once exercised
 Shall apply uniformly in respect of all the bookings of passage for travel by air made by him and

Shall not be changed during a Financial Year under any circumstance
(B) Payment of service tax by the insurer carrying on life insurance business [Rules 6(7A) of Service
Tax Rules, 1994]
The insurer can pay service tax in any of the following alternatives:
I) Where the entire premium paid by the policy holder is only towards risk cover in life
insurance.
II)
Where the gross premium paid is inclusive of investment amount and the policy holder has
been intimated such amount at the time of providing service.
III) Where the investment amount in the gross premium has not been separately intimated.
(i)
Where the entire premium paid by the policy holder is only toward risk cover in life insurance
In this case service tax shall be payable @ 14% on the entire premium amount.
(ii)
Where the gross premium paid is inclusive of investment amount and the policy holder has
been intimated such amount at the time of providing service
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The insurer shall have the option to pay tax @ 14% on the gross premium charged from a policy
holder reduced by the amount allocated for investment, or savings on behalf of policy holder, if
such amount is intimated to the policy holder at the time of providing of service
(iii)
Where the investment amount in the gross premium has not been separately intimated
The insurer shall have the option to pay tax at the following rates:
3.5% of the gross premium charged from the policy holder in the first year;
And 1.75% of the gross premium charged in the subsequent years
(C) Payment of service tax by the authorized agent in case of purchase or sale foreign
currency including money changing
Service tax in relation to currency exchanged can be paid in any of the following alternatives:
Option I :- It can be paid @ 14% on the value of service determined as per rule 2B of Service Tax
(Determination of Value) Rules 2006; or
Option II:- It can be paid at the rate provided in rule of 6(7B) of Service Tax Rule, 1994.
Option I :- Where service tax is to be paid @ 14% on the value of service
In this case, the value of service shall be determined as per rule 2B of Service Tax (Determination of
Value) Rules 2006 in the following manner:
a) Where one of the currency exchanged is Indian Rupees
The value of service which pertains to purchase or sale of foreign currency, including money
changing shall be determined by the service provider in the following manner:
(i)
Where Reserve Bank of India reference rate for a currency in available: For a currency, when
exchanged from, or to, Indian Rupees (INR), the value shall be equal to the difference in the
buying rate or the selling rate, as the case may be, and the Reserve Bank of India (RBI) reference
rate for the that currency at that time, multiple by the total units of currency.
Example 1: R converted US$1000 from the authorized money changer @ Rs 45 per US$ and
received Rs. 45,000. RBI reference rate for US$ is Rs. 45.50 for that day. As per RBI reference
rate
the
amount
should
have
been
1000

45.50
=
Rs.
45,500.
Thus, the difference due to the selling rate Rs. 45,500 – 45,000 = 500 will be treated as taxable
value of the service in relation to exchange of money and the service tax shall be payable by the
authorized money changer @ 14% on Rs. 500 amounting to Rs. 70.
Example 2: R converted INR70000 into Great Britain Pound (GBP) from the authorized money
changer and the exchange rate offered was Rs. 70, and therefore he received GBP 1000. RBI
reference rate for that day for GBP is Rs. 69. Thus as per RBI reference rate, he should have paid
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(ii)
CA Arun Setia Classes
Rs. 69,000 (GBP1000 69).The taxable value of service in this case shall be Rs 70,000 – 69,000 =
Rs 1000 and service tax shall be payable @ 14 % on Rs. 1,000 amounting to Rs. 140.
Where Reserve Bank of India reference rate for a currency is not available: where the RBI
reference rate for a currency in not available, the value shall be 1% of the gross amount of
Indian Rupees Provision or received, by the person changing the money.
Example: R has converted Rs. 1, 50,000 GPB and received 2000. The RBI reference rate is not
available on that day. In this case the value of service shall be taken as 1% of Rs. 1, 50,000
amounting to Rs. 1, 500 and service tax shall be payable by the authorized agent @ 14% on Rs.
1, 500.
b) Where neither of the currencies exchanged is Indian Rupees
Where neither of the currencies exchanged is Indian Rupees, the value shall be equal to 1% of the
lesser of the two amount the person changing the money would have receive by converting any
of the two currencies into Indian Rupees on that day at reference rate provided by RBI.
Option II:- Where the service tax is to
1994
(i) For currency upto Rs. 1,00,000
exchanged
(ii) For amount exceeding Rs. 1,00,000
and upto Rs. 10,00,000
(iii) For an amount exceeding Rs.
10,00,000
be paid at the rate providing in rule 6(7B) of Service Tax Rule,
0.14 % of the gross amount of currency exchanged or Rs 35
Whichever is higher
Rs 140 + .07% of the gross amount of currency exchanged
over 1 Lakh
Rs 770 + .014% of the gross amount of currency exchange Or
Rs 7,000 Whichever is lower
However, the person providing the service shall exercise option (2) above for a financial year and such
option shall not be withdrawn during the remaining part of that financial year.
Illustration: compute the amount of service tax payable by the authorized money changer in the
following case:
1. Exchanged US$ 1000 and paid Rs 53,600
2. Exchanged US$ 3000 and paid Rs 1,60,500
3. Exchanged British £ 15000 and paid Rs 12,60,000
Solution:
The amount of service tax payable shall be:
Case I: Rs. 53,600 × 0.14/100 or Rs. 35 whichever is higher
Rs.
75.04
75.04
Service tax rounded
Case II: Rs. 1, 60,500
On Rs. 1, 00,000
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75
140
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Balance Rs. 60,500 × .07/100
42.35
182.35
Service tax rounded
Case III: Rs 12, 60,000
Upto Rs 10, 00,000
Balance 2, 60,000 × .014/100
182
770
36.4
806.4
806.4
806
Service tax rounded
(D) Payment of service tax by the distributors or selling agent for taxable service or
promotion, marketing, organizing or in any other manner assisting lottery [Rules 6(7C) of
Service Tax Rules, 1994]
Service tax in the case is payable @ 14% of the value of such taxable services. However, he
has a option to pay the service tax at rate specified as under:
Situation
Rate of service tax
Where the guaranteed lottery prize payment is
80% or more
Rs 8,200 on every Rs 10 lakh (or part of Rs 10 lakh)
of aggregate face value of lottery tickets printed by
the organizing State for a draw.
Where the guaranteed lottery prize payout is less
than 80%
Rs 12,800 on every Rs 10 lakh (or part of Rs. 10
lakh) of aggregate face value of lottery tickets
printed by the organizing State for a draw.
In case of online lottery, the aggressive face value of lottery tickets will be the aggregate value of tickets
sold and service tax shall be calculated in the manner specified above.
Illustration: An organizer of lottery got lottery tickets printed for Rs 10,84,60,000. Compute the service
tax payable the organizer under the composition scheme in the following cases:
(a) Guaranteed prizes payout is 85%
(b) Guaranteed prizes payout is 75%
Solution:
Case (a) Guaranteed prizes payout is 85%
Total value of tickets printed Rs 10,84,60,000. Part less than Rs 10 lakh i.e. Rs. 4,60,000 shall be rounded
off to rupees ten lakhs. Hence, total value shall be Rs 10,90,00,000.
Rate of service tax on every rupees ten lakh or part thereof = Rs 8200
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Total amount of service tax Rs 82,00 × 10,90,00,000/10,00,00
Rs.
893800
Total
893800
Case (b) guaranteed prizes payout is 75%
Rate of service tax Rs 12,800 per ten lakhs or part of ten lakh = 12,800 × 109
13,95,200
13,95,200
Amendment 9
Section 75. Interest on delayed payment of service tax
Even, person, liab1e to pay the tax in accordance with the provisions of section 68 or rules made
thereunder,
 Who fails to credit the tax or an), part thereof to the account of the Central Government within the
period prescribed,
 Shall pay simple interest at such rate (100% to 36%) as is for the time being fixed by the Central
Government, by, notification in the Official Gazette
 for the period by which such crediting of the tax or any part thereof is delayed.
S.No.
Period of delay
Rate of simple interest
1.
Up to six months
18%
2.
More than six months
18% for the first six months of delay and
and up to one year
24% for the delay beyond six months.
More than one year
18% for the first six months of delay;
3.
24% for the period beyond six months up to one year and
30% for any delay beyond one year.
Provided that in the case of a service provider, whose value of taxable services provided in a financial
year does not exceed 60 lakh rupees

During any of the financial years covered by the notice or
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
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During the last preceding financial year, (as the case may be)
Such rate of interest, shall be reduced by 3% per annum.
Amendment 10
Question: Explain the conditions, safeguards and procedure as specified by CBEC subject to which
registration is granted.
Answer: The conditions, safeguards and procedure as specified vide order No. 1/2015-ST, dated 28-22015 and Circular No. 997/4/2015-CX, dated 28-02-2015 issued by the CBEC subject to which
registration is granted is as under:
General procedure:
(a) Online Application: Applicants seeking registration for single premises in service tax shall file the
application online in the Automation of Central Excise and Service Tax (ACES) website in Form ST-1.
(1)
(b)
PAN mandatory except in case of Government department: Registration shall mandatorily require
that the PAN of the proprietor or the legal entity being registered be- quoted in the application with
the exception of Government Departments for whom this requirement shall be non-mandatory.
Applicants, who are not Government Departments, shall not be granted registration in the absence
of PAN.
Existing registrants, except Government departments not having PAN shall obtain PAN and apply
online for conversion of temporary registration to PAN based registration within 3 months of this
order coming into effect failing which the temporary registration shall be cancelled after giving the
assessee an opportunity to represent against the proposed cancellation and taking into
consideration the reply received, if any.
(c)
E-mail and mobile number mandatory: The applicant shall quote the email address and mobile
number in the requisite column of the application form for communication with the department.
Existing registrants who have not submitted this information are required to file an amendment
application by 30-4-2015.
(d)
Online Registration to be granted within 2 working days: Once the completed application form is
filed in ACES, registration would be granted online within 2 days. On grant of registration, the
applicant would also be enabled to electronically pay service tax.
(e)
Registration Certificate not to be signed: Further, the applicant would not need a signed copy of-the
Registration Certificate as proof of registration. Registration Certificate downloaded from the ACES
web site would be accepted as Proof of registration dispensing with the need for a signed copy.
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(2)
CA Arun Setia Classes
Documentation required: The applicant is required to submit a self attested copy of the following
documents by registered post/ Speed Post to the concerned Division, within 7 days of filling the
Form ST-1 online, for the purposes of verification:(a)
(b)
(c)
(d)
(e)
(f)
(g)
Copy of the PAN card of the proprietor or the Iegal entity registered.
Photograph and proof of identity of the person filing the application namely PAN card, passport,
voter Identity card, Aadhar voter Identity Card, Driving license, or any other Photo-identity card
issued by the central Government, State Government or Public Sector Undertaking.
Document to establish possession of the premises to be registered such as proof of ownership,
lease or rent agreement, allotment letter from Government, No Objection Certificate from tire
legal owner.
Details of the main Bank Account.
Memorandum/Articles of Association/List of Directors.
Authorization by the Board of Directors/ Partners/ Proprietor for the person filling the
application.
Business transaction numbers obtained from other Government departments or agencies such
as Customs Registration No. (BIN No), import Export Code (IEC) number, State Sales Tax Number
(VAT) Central sales Tax Number, company Index Number (CIN) which have been issued prior to
the filing of the service tax registration application
Where the need for the verification of premises arises, the same will have to be authorised by an officer
not below the rank of Additional /Joint Commissioner. The registration certificate may be revoked by
the Deputy/Assistant Commissioner in any of the following situations, after giving the assessee an
opportunity to represent against the proposed revocation and taking into consideration the reply
received, if any: (i) the premises are found to be nonexistent or not in possession of the assessee. (ii) no
documents are received within 15 days of the date of filing the registration application. (iii) the
documents are found to be incomplete or incorrect in any respect. The provisions of sub-rules (5A) and
(6) of rule 4 of the Service Tax Rules, 1994 may be referred to regarding change in any information or
details furnished by an assessee and transfer of business to another person, respectively. Similarly, sub
rule (7) of the Service Tax Rules, 1994 may be referred to in case a registered person ceases to provide
the service for which he has been granted registration.
Amendment 11
LIABILITY TO PAY SERVICE TAX
Sec 68(1) :_-Every person, who provide taxable shall be liable to pay service tax by following the
procedure laid down in Rule 6 of STR 1994
Sec 68(2) :- In following cases service tax shall be paid by person who is receiving services i.e. service
recipient.
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No. Service provided by –
[Alphabetically]
CA Arun Setia Classes
Recipient of service
% of service
payable by
Service
provider
1.
1A.
2
3.
4.
5.
6.
tax
service
receiver
Arbitral Tribunal: an arbitral tribunal
Any business entity located in the Nil
100%
taxable territory
In respect of services provided or agreed to To a banking company or a financial Nil
100%
be provided by a Recovery Agent
institution or a non-banking financial
(FA 2014)
company;
In respect of services provided or agreed to To the said company or the body Nil
100%
be provided by a director of a company or corporate
a body corporate (FA 2014)
Government
or
Local
Authority: Any business entity located in the Nil
100%
Government or local authority by way of taxable territory
support services excluding –
(a) renting of immovable property, and
(b) services specified u/s 66d(a)(i), (ii) and
(iii)
GTA: goods transport agency by way of Where person liable to pay freight is Nil
100%
transport of goods by road in a goods –
carriage
(a) any registered factory;
(b) any registered society;
(c)
any
co-operative
society
established by or under any law;
(d) any registered dealer of excisable
goods;
(e) anybody corporate established by
or under any law; or
(f) any partnership firm whether
registered or not under any law
including AOP;
and such person is located in
taxable territory
Reverse charge – Partnership Firm includes LLP [Rule 2(1)(cd) of ST Rules, 1994]: ‘Partnership firm’ includes
a limited liability partnership. Hence, for the purpose of rule 2(1)(d) of the Service Tax Rules, 1994 specifying
person liable to pay service tax, the word ‘partnership’ shall include ‘LLP’.
Author’s Note: The definition of ‘partnership firm’ as including LLP is limited only to Service Tax Rule, 1994
and same is used only for reverse charge and payment of service tax. Therefore, for other purpose, the
partnership firm shall not include LLP.
Insurance Agent: an insurance agent
any person carrying on insurance Nil
100%
business
Legal services: individual advocate or a firm any business entity located in the Nil
100%
of advocates by way of legal services
taxable territory
Legal Service [Rule 2(1) (cca) of ST Rules, 1994]: Legal Service means –
 any service provided in relation to advice, consultancy or assistant in any branch of law, in any
manner and
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7.
8.
9.
10.
CA Arun Setia Classes
 includes representational services before any court, tribunal or authority.
Person located outside taxable territory: any person located in the taxable
any person who is located in a non-taxable territory
territory
Sponsorship: any person by way of anybody corporate or partnership
sponsorship
firm (including LLP, as per Rule
2(1)(cd) located in taxable territory
A mutual fund agent or distributer
to a mutual fund or asset
management company,
A selling or marketing agent of lottery to a lottery distributer or. Selling
tickets
agent
Nil
100%
Nil
100%
NIL
100%
NIL
100%
NIL
100%
located in the taxable territory by way of –
(a) security services
Nil
100%
(b) Supply of manpower for any purpose
Nil%
100%
11.
in respect of any service provided or agreed
to be provided by a person involving an
aggregator in any manner
12.
Partial Reverse Charge – Manpower, a business entity –
Security, Renting of motor vehicle and  Registered as a body corporate,
Works Contract Services: any –
and
 individual,
 Located in the taxable territory
 HUF or
 Partnership firm (including LLP),
whether registered or not,
 Including AOP,
(c) service portion in execution of works
50%
50%
contract
(d) renting of a motor vehicle designed to (service receiver must not be
carry passengers –
engaged in the similar line of
(i) on abated value
business
Nil
100%
(ii) on non-abated value
60% 50% 40% 50%
(FA 2014)
Terms Defined:
(a) Supply of Manpower [Rule 2(1)(g) of ST Rules, 1994]: Supply of Manpower means supply of
manpower, temporarily or otherwise, to another person to work under his superintendence or
control.
Analysis:



It must be noted that the word “his” means the person to whom manpower is provided.
For example, if a software developer firm employs its staff at clients premises and the staff works
under superintendence and control of the software firm, then, it would not amount to “supply of
manpower” to client and, thus, reverse charge is not attracted.
However, ‘campus recruitment fees’ is consideration for supply of manpower (such manpower
works under superintendence and control of client and is, therefore, governed by reverse charge
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provisions.
Employees sent on deputation basis: In case employees of a concern are sent on deputation basis
to another concern against consideration, then, such service would also amount to ‘supply of
manpower’.]
(b) Security Service [Rule 2(1)(fa) of ST Rules, 1994]: Security Services means –
 service relating to the security of any property, whether movable or immovable, or of any person, in
any manner and
 includes the service of investigation, detection or verification, of any fact or activity.

Analysis: Thus, it would cover detective agencies, security agencies, etc.]
(c) Body Corporate – Society/Co-op. Society not covered [Rule 2(1)(be) of ST Rules, 1994]: As per
Section 2(7) of the Companies Act, 1956 [corresponding section 2(11) of the Companies. Act, 2013],
the word ‘body corporate’ –
 includes company incorporated outside India
 but doesn’t include: (i) co-operative society, and (ii) any other notified body corporate (not being a
company).
Note: A society registered under the Societies Act is also not a body corporate.
(d) Aggregator : As per Rule 2(1)(aa) of the Service Tax Rules, 1994 “Aggregator” means a person
who(a)
Owns and manages a web based software application, and
(b)
By means the application and a communication device, enable a potential customer to connect
with persons providing service of a particular kind under the brand name or trade name of the
aggregator.
Business entity [Section 65B(17)]: Business Entity means any person ordinarily carrying out any activity relating to
industry, commerce or any other business or profession
Amendment 12 (ABATEMENT)
Table
Sl.
No.
Description of taxable
service
Taxable
Percent-
Conditions
age
(1)
(2)
(3)
(4)
1 Services in relation to FINANCIAL leasing
including hire purchase
10
Nil.
2 Transport of goods by rail
30
[CENVAT credit on inputs, capital goods and
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input services, used for providing the
taxable service, has not been taken under
the provisions of the CENVAT Credit Rules,
2004.]
3 Transport of passengers, with or without
accompanied belongings by rail
30
[Same as above]
4 Bundled service by way of supply of food or
any other article of human consumption or
any drink, in a premises ( including hotel,
convention center, club, pandal, shamiana or
any other place, specially arranged for
organizing a function) together with renting
of such premises
70
(i) CENVAT credit on any goods classifiable
under Chapters 1 to 22 of the Central Excise
Tariff Act, 1985 used for providing the
taxable service, has not been taken under
the provisions of the CENVAT Credit Rules,
2004.
5 Transport of passengers by air, with or
without accompanied belongings in
40
60
(i) economy class
40%
(ii) other than economy class 60%
CENVAT credit on inputs and capital goods,
used for providing the taxable
Service, has not been taken under the
provisions of the CENVAT Credit Rules,
2004.]
6 Renting of hotels, inns, guest houses, clubs,
campsites or other commercial places meant
for residential or lodging purposes.
60
7 Services of goods transport agency in relation
to transportation of goods.
[30]
Same as above.
CENVAT credit on inputs, capital goods and
input services, used for providing the
taxable service, has not been taken [by the
service provider] under the provisions of
the CENVAT Credit Rules, 2004.
8 Omitted]
9 Renting of [motor cab]
40
[(i) CENVAT credit on inputs and capital
goods, used for providing the taxable
service, has not been taken under the
provisions of the CENVAT Credit Rules,
2004;
(ii) CENVAT credit on input service of
renting of motorcab has been taken under
the provisions of the CENVAT Credit Rules,
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2004, in the following manner:
(a) Full CENVAT credit of such input service
received from a person who is paying
service tax on forty percent of the value; or
(b) Up to forty percent CENVAT
credit of such input service received from a
person who is paying service tax on full
value;
(iii) CENVAT credit on input services
other than those specified in (ii) above, has
not been taken under the provisions of
the CENVAT Credit Rules, 2004]
9A [Transport of passengers, with or without
accompanied belongings, by-
40
a. a contract carriage other than motorcab.
CENVAT credit on inputs, capital goods and
input services, used for providing the
taxable service, has not been taken under
the provisions of theCENVAT Credit Rules,
2004]
b. a radio taxi.]
10 Transport of goods in a vessel
11 Services by a tour operator in relation to,-
[30]
25
(i) a package tour
Same as above.
(i) CENVAT credit on inputs, capital goods
and [input services other than the input
service of a tour operator], used for
providing the taxable service, has not been
taken under the provisions of the CENVAT
Credit Rules, 2004.
(ii) The bill issued for this purpose indicates
that it is inclusive of charges for such a tour.
(ii) a tour, if the tour operator is providing
services solely of arranging or booking
accommodation for any person in relation to
a tour
10
(i) CENVAT credit on inputs, capital goods
and [input services other than the input
service of a tour operator], used for
providing the taxable service, has not been
taken under the provisions of the CENVAT
Credit Rules, 2004.
(ii) The invoice, bill or challan issued
indicates that it is towards the charges for
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such accommodation.
(iii) This exemption shall not apply in such
cases where the invoice, bill or challan
issued by the tour operator, in relation to a
tour, only includes the service charges for
arranging or booking accommodation for
any person and does not include the cost of
such accommodation.
(iii) any services other than specified at (i)
and (ii) above.
40
(i) CENVAT credit on inputs, capital goods
and 9[input services other than the input
service of a tour operator], used for
providing the taxable service, has not been
taken under the provisions of the CENVAT
Credit Rules, 2004.
(ii)The bill issued indicates that the amount
charged in the bill is the gross amount
charged for such a tour.
12. Construction of a complex, building, civil
structure or a part thereof, intended for a
sale to a buyer, wholly or partly, except
where entire consideration is received after
issuance of completion certificate by the
competent authority,-
25
(i) CENVAT credit on inputs used for
providing the taxable service has not been
taken under the provisions of theCENVAT
Credit Rules, 2004;
(ii) The value of land is included in the
amount charged from the service receiver.]
(a) for a residential unit satisfying both the
following conditions, namely:(i) the carpet area of the unit is less than
2000 square feet; and
(ii) the amount charged for the unit is less
than rupees one crore;
(b) for other than the (a) above.
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Amendment 13
Section 73.Recovery of service tax not levied or paid or short-levied or short-paid or erroneously
refunded
(1) Where any service tax has not been levied or paid or has been short-levied or short-paid or
erroneously refunded, the 2[Central Excise Officer] may, within 11[eighteen months] from the relevant
date, serve notice on the person chargeable with the service tax which has not been levied or paid or
which has been short-levied or short-paid or the person to whom such tax refund has erroneously been
made, requiring him to show cause why he should not pay the amount specified in the notice:
PROVIDED that where any service tax has not been levied or paid or has been short-levied or short-paid
or erroneously refunded by reason of(a) fraud; or
(b) collusion; or
(c) wilful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or of the rules made thereunder with
intent to evade payment of service tax, by the person chargeable with the service tax or his
agent, the provisions of this sub-section shall have effect, as if, for the words [eighteen months] ,
the words "five years" had been substituted.
Explanation: Where the service of the notice is stayed by an order of a court, the period of such stay
shall be excluded in computing the aforesaid period of 11[eighteen months] or five years, as the case
may be.
[(1A) Notwithstanding anything contained in sub-section (1), (except the period of eighteen months of
serving the notice for recovery of service tax) the Central Excise Officer may serve, subsequent to any
notice or notices served under that sub-section, a statement, containing the details of service tax not
levied or paid or short levied or short paid or erroneously refunded for the subsequent period, on the
person chargeable to service tax, then, service of such statement shall be deemed to be service of notice
on such person, subject to the condition that the grounds relied upon for the subsequent period are
same as are mentioned in the earlier notices. ]
[(1B) Notwithstanding anything contained in sub-section (1), in a case where the amount of service tax
payable has been self-assessed in the return furnished under sub-section (1) of section 70, but not paid
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either in full or in part, the same shall be recovered along with interest thereon in any of the modes
specified in section 87, without service of notice under sub-section (1).]
(2) The [Central Excise Officer] shall, after considering the representation, if any, made by the person on
whom notice is served under sub-section (1), determine the amount of service tax due from, or
erroneously refunded to, such person (not being in excess of the amount specified in the notice) and
thereupon such person shall pay the amount so determined.
[(2A) Where any appellate authority or tribunal or court concludes that the notice issued under the
proviso to sub-section (1) is not sustainable for the reason that the charge of,(a) fraud; or
(b) collusion; or
(c) wilful misstatement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or the rules made thereunder with intent
to evade payment of service tax has not been established against the person chargeable with
the service tax, to whom the notice was issued, the Central Excise Officer shall determine the
service tax payable by such person for the period of eighteen months, as if the notice was issued
for the offences for which limitation of eighteen months applies under sub-section (1).]
(3) Where any service tax has not been levied or paid or has been short-levied or short-paid or
erroneously refunded, the person chargeable with the service tax, or the person to whom such tax
refund has erroneously been made, may pay the amount of such service tax, chargeable or erroneously
refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central
Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and
inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall
not serve any notice under sub-section (1) in respect of the amount so paid:
Provided that the 6[Central Excise Officer] may determine the amount of short payment of service tax
or erroneously refunded service tax, if any, which in his opinion has not been paid by such person and,
then, the [Central Excise Officer] shall proceed to recover such amount in the manner specified in this
section, and the period of "11[eighteen months]" referred to in sub-section (1) shall be counted from the
date of receipt of such information of payment.
Explanation 1: For the removal of doubts, it is hereby declared that the interest under section 75 shall
be payable on the amount paid by the person under this sub-section and also on the amount of short
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payment of service tax or erroneously refunded service tax, if any, as may be determined by
the 8[Central Excise Officer], but for this sub-section.
[Explanation 2: For the removal of doubts, it is hereby declared that no penalty under any of the
provisions of this Act or the rules made thereunder shall be imposed in respect of payment of servicetax under this sub-section and interest thereon.]
(4) Nothing contained in sub-section (3) shall apply to a case where any service tax has not been levied
or paid or has been short-levied or short-paid or erroneously refunded by reason ofa. fraud; or
b. collusion; or
c. wilful mis-statement; or
d. suppression of facts; or
e. contravention of any of the provisions of this Chapter or of the rules made thereunder with
intent to evade payment of service tax.
[4A] Omitted
[(4B) The Central Excise Officer shall determine the amount of service tax due under sub-section (2)a. within six months from the date of notice where it is possible to do so, in respect of cases
whose limitation is specified as eighteen months in sub-section (1);
b. within one year from the date of notice, where it is possible to do so, in respect of cases falling
under the proviso to sub-section (1) or the proviso to sub-section (4A).]
(5) The provisions of sub-section (3) shall not apply to any case where the service tax had become
payable or ought to have been paid before the 14th day of May, 2003.
(6) For the purposes of this section, "relevant date" means,I.
in the case of taxable service in respect of which service tax has not been levied or paid or has
been short-levied or short-paid-
a. where under the rules made under this Chapter, a periodical return, showing particulars of
service tax paid during the period to which the said return relates, is to be filed by an assessee,
the date on which such return is so filed;
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b. where no periodical return as aforesaid is filed, the last date on which such return is to be filed
under the said rules;
c. in any other case, the date on which the service tax is to be paid under this Chapter or the rules
made thereunder;
II.
in a case where the service tax is provisionally assessed under this Chapter or the rules made
thereunder, the date of adjustment of the service tax after the final assessment thereof;
III.
in a case where any sum, relating to service tax, has erroneously been refunded, the date of
such refund.
Amendment 14
Penalty for failure to pay service tax
Section 76. (1) Where service tax has not been levied or paid, or has been short-levied or short-paid, or
erroneously refunded, for any reason, other than the reason of fraud or collusion or wilful misstatement or suppression of facts or contravention of any of the provisions of this Chapter or of the
rules made thereunder with the intent to evade payment of service tax, the person who has been
served notice under sub-section (1) of section 73 shall, in addition to the service tax and interest
specified in the notice, be also liable to pay a penalty not exceeding ten per cent. of the amount of such
service tax:
Provided that where service tax and interest is paid within a period of thirty days of-(i)
the date of service of notice under sub-section (1) of section 73, no penalty shall be payable
and proceedings in respect of such service tax and interest shall be deemed to have been
concluded;
Amendment 15
[Penalty for failure to pay service tax for reasons of fraud, etc.
Section 78. (1) Where any service tax has not been levied or paid, or has been shortlevied or short-paid,
or erroneously refunded, by reason of fraud or collusion or wilful mis-statement or suppression of facts
or contravention of any of the provisions of this Chapter or of the rules made thereunder with the intent
to evade payment of service tax, the person who has been served notice under the proviso to sub9899259817, 9811059817
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section (1) of section 73 shall, in addition to the service tax and interest specified in the notice, be also
liable to pay a penalty which shall be equal to hundred per cent. of the amount of such service tax:
“Provided that in respect of the cases where the details relating to such transactions are recorded in the
specified record for the period beginning with the 8th April, 2011 upto the date on which the Finance
Bill, 2015 receives the assent of the President (both Days inclusive), the penalty shall be fifty per cent of
the service tax so determined.”.
Provided further that where service tax and interest is paid within a period of thirty days of -I.
the date of service of notice under the proviso to sub-section (1) of section 73, the penalty
payable shall be fifteen per cent. of such service tax and proceedings in respect of such service
tax, interest and penalty shall be deemed to be concluded;
II.
the date of receipt of the order of the Central Excise Officer determining the amount of service
tax under sub-section (2) of section 73, the penalty payable shall be twenty-five per cent. of the
service tax so determined:
Provided also that the benefit of reduced penalty under the second proviso shall be available. only if the
amount of such reduced penalty is also paid within such period.
“Explanation.-For the purposes of this sub-section, “specified records” means records including
computerised date as are required to be maintained by an assesse in accordance with any law for the
time being in force or where there is no such requirement, the invoices recorded by the assessee in the
books of accounts shall be considered as the specified records.”.
“(2) Where the Commissioner (Appeals), the Appellate Tribunal or the court, as the case may be,
modifies the amount of service tax determined under sub-section (2) to section 73, then the amount of
penalty payable under sub-section (1) and the interest payable thereon under section 75 shall stand
modified accordingly, and after taking into account the amount of service tax so modified, the person
who is liable to pay such amount of service tax, shall also be liable to pay the amount of penalty and
interest so modified.
(3) Where the amount of service tax or penalty is increased by the Commissioner (Appeals), the
Appellate Tribunal or the court, as the case may be, over and above the amount as determined under
sub-section (2) of section 73, the time within which the interest and the reduced penalty is payable
under clause (ii) of the second provisio to sub-section (1) in relation to such increased amount of service
tax shall be counted from the date of the order of the Commissioner (Appeals), the Appellate Tribunal or
the court, as the case may be.]
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Amendment 16
Section [78A. Penalty for offences by director, etc., of company. Where a company has committed any
of the following contraventions, namely:—
(a) evasion of service tax; or
(b) issuance of invoice, bill or, as the case may be, a challan without provision of taxable service in
violation of the rules made under the provisions of this Chapter; or
(c) availment and utilisation of credit of taxes or duty without actual receipt of taxable service or
excisable goods either fully or partially in violation of the rules made under the provisions of this
Chapter; or
(d) failure to pay any amount collected as service tax to the credit of the Central Government beyond
a period of six months from the date on which such payment becomes due,
then any director, manager, secretary or other officer of such company, who at the time of such
contravention was in charge of, and was responsible to, the company for the conduct of business of
such company and was knowingly concerned with such contravention, shall be liable to a penalty which
may extend to one lakh rupees.]
Amendment 17 (Amendment in STR)
After Rule 4BRule 4C has been Inserted:- ―4C. Authentication by digital signature- (1) Any invoice, bill or challan
issued under rule 4A or consignment note issued under rule 4B may be authenticated by means of a
digital signature. (2)The Board may, by notification, specify the conditions, safeguards and procedure to
be followed by any person issuing digitally signed invoices.‖;
In Rule 5after Sub-Rule (3), following Sub-Rules has been inserted:- ―(4) Records under this rule may be
preserved in electronic form and every page of the record so preserved shall be authenticated by means
of a digital signature. (5) The Board may, by notification, specify the conditions, safeguards and
procedure to be followed by an assessee preserving digitally signed records. Explanation – For the
purposes of rule 4C and sub-rule (4) and (5) of this rule,- (i) The expression ―authenticate‖ shall have
the same meaning as assigned in the Information Technology Act, 2000 (21 of 2000). (ii) The expression
―digital signature‖ shall have the meaning as defined in the Information Technology Act, 2000 (21 of
2000) and the expression ―digitally signed‖ shall be construed accordingly.‖
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Amendment 18
RULE 5A. ACCESS TO A REGISTERED PREMISES.
(1) An officer authorised by the Commissioner in this behalf shall have access to any premises registered
under these rules for the purpose of carrying out any scrutiny, verification and checks as may be
necessary to safeguard the interest of revenue.
(2) Every assessee, shall, on demand make available to the officer empowered under sub-rule (1) or the
audit party deputed by the Commissioner or the Comptroller and Auditor General of India, or a cost
accountant or chartered accountant nominated under section 72A of the Finance Act, 1994,I.
II.
III.
the records maintained or prepared by him in terms of sub-rule (2) of rule 5;
the cost audit reports, if any, under section 148 of the Companies Act, 2013 (18 of 2013); and
the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 (43 of
1961),
for the scrutiny of the officer or the audit party, or the cost accountant or chartered accountant, within
the time limit specified by the said officer or the audit party or the cost accountant or chartered
accountant, as the case may be.
Amendment 19
Notification No -4/2015
The Central Government, being satisfied that it is necessary in the public interest so to do, hereby
exempts the taxable service received by an exporter of goods (hereinafter referred to as the exporter)
and used for export of goods (hereinafter referred to as the said goods), of the description specified in
column (2) of the Table below (hereinafter referred to as the specified service), from the whole of the
service tax leviable thereon under section 66B of the said Act, subject to the conditions specified in
column (3) of the said Table, namely:Table
Sr.No.
Description of the taxable service
(1)
(2)
1. Service provided to an exporter for transport of the said goods by
goods transport agency in a goods carriage from any container
freight station or inland container depot to the 2[port, airport or
land customs station], as the case may be, from where the goods
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Conditions
(3)
The exporter shall have to
produce the consignment
note, by whatever name
called, issued in his name.
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are exported; or
Service provided to an exporter in relation to transport of the said
goods by goods transport agency in a goods carriage directly from
their place of removal, to an inland container depot, a container
freight station, a3[port, airport or land customs station], as the
case may be, from where the goods are exported.
Amendment 20
APPEALS TO APPELLATE TRIBUNAL
Section 86. (1) [Save as otherwise provided herein, an assessee] aggrieved by an order passed by a
Principal Commissioner of Central Excise or] Commissioner of Central Excise under [section 73 or section
83A or] or an order passed by a Commissioner of Central Excise (Appeals) under section 85, may appeal
to the Appellate Tribunal against such order [within three months of the date of receipt of the order].
[Provided that where an order, relating to a service which is exported, has been passed under section 85
and the matter relates to grant of rebate of service tax on input services, or rebate of duty paid on
inputs, used in providing such service, such order shall be dealt with in accordance with the provisions of
section 35EE of the Central Excise Act, 1944 (1 of 1944):
Provided further that all appeals filed before the Appellate Tribunal in respect of matters covered under
the first proviso, after the coming into force of the Finance Act, 2012 (23 of 2012), and pending before it
up to the date on which the Finance Bill, 2015 receives the assent of the President, shall be transferred
and dealt with in accordance with the provisions of section 35EE of the Central Excise Act, 1944.]
Amendment 21
Notification No. 9/2015 - Service Tax, dated 1st March, 2015
In exercise of the powers conferred by sub-clause (iii) of clause (b) of section 96A of the Finance Act,
1994 (32 of 1994), the Central Government specified ―resident firm‖ as class of persons for the
purposes of the said sub-clause. Explanation - For the purposes of this notification,
firm‖ shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 (9 of
1932) , and includes-
I.
the limited liability partnership as defined in clause (n) of sub-section (1) of the section 2 of the
Limited Liability Partnership Act, 2008 (6 of 2009); or
II.
limited liability partnership which has no company as its partner; or
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Service Tax Amendments
III.
CA Arun Setia Classes
the sole proprietorship; or (iv) One Person Company.

Sole proprietorship‖ means an individual who engages himself in an activity as defined in subclause (a) of section 96A of the Finance Act, 1994.

One Person Company‖ means as defined in clause (62) of section 2 of the Companies Act, 2013
(18 of 2013).

Resident‖ shall have the meaning assigned to it in clause (42) of section 2 of the Income-tax Act,
1961 (43 of 1961) in so far as it applies to a resident firm.
COMPOSITION OF THE GST COUNCIL
The GST Council is to consist of the following three members: (i) the Union Finance Minister (as
Chairman), (ii) the Union Minister of State in charge of Revenue or Finance, and (iii) the Minister in
charge of Finance or Taxation or any other, nominated by each state government
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