3. BACKGROUND
• In a step towards GST, a Concept Paper on the
“Taxation of Services Based on a Negative List”
was circulated on August 31, 2011 to seek
feedback from all stakeholders.
• The term ‘service’ was defined to “mean
anything which does not constitute supply of
goods, money or immovable property”.
4. What is negative list
• A negative list of services implies two things:
(1) a list of services which will not be subject to
service tax;
(2) other than the services mentioned in the
negative list, all services will be taxable which fall
within the definition of ‘services’.
• This is in contrast to earlier method of taxation
which has list of taxable services. (Selective
Taxation or Positive list).
5. Background
• Finance Act, 2012 introduced the concept of
‘Negative List Taxation Scheme’.
• Central Government has notified 1.7.2012 as the
effective date for ‘Negative List Taxation’.
• The term ‘Service’ is defined. New Scheme levies
service tax all services except those in the
negative list.
• Negative List comprises 17 heads and has been
carefully drawn up, keeping in view the federal
nature of India, the best international practices
and socio-economic requirements.
8. Section 65B(44) of Finance Act, 1994
• "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) a transfer of title in goods or immovable property, by
way of sale, gift or in any other manner; or
• (ii) such transfer, delivery or supply of any goods which is
deemed to be sale within the meaning of clause (29A) of
article 366 of the Constitution; or
• (iii) a transaction in money or actionable claim;
9. Definition of service
(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.
10. Definition of service
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 or
State Governments or local authority and who is not deemed as
an employee before the commencement of this section.
11. Definition of service
Explanation 2.- For the purposes of this clause, transaction in
money shall not include any activity relating to the 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.
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 non-taxable territory
shall be treated as establishments of distinct persons.
12. Definition of service
• 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;
13. NEGATIVE LIST – SECTION 66D
(a) services by Government or a local authority excluding the
following services to the extent they are not covered
elsewhere-
• (i) services 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 services, other than services covered under
clauses (i) to (iii) above, provided to business entities;
14. NEGATIVE LIST
(b) services by the Reserve Bank of India;
(c) services by a foreign diplomatic mission located in India;
(d) services relating to agriculture or agricultural produce by
way of-
• (i) agricultural operations directly related to production
of any agricultural produce including cultivation,
harvesting, threshing, plant protection or testing;
• (ii) supply of farm labour;
15. Negative list - Agriculture
• (iii) processes carried out at an agricultural farm including
tending, pruning, cutting, harvesting, drying, cleaning,
trimming, sun drying, fumigating, curing, sorting, grading,
cooling or bulk packaging and such like operations which
do not alter the essential characteristics of agricultural
produce but make it only marketable for the primary
market;
• (iv) renting or leasing of agro machinery or vacant land
with or without a structure incidental to its use;
• (v) loading, unloading, packing, storage or warehousing of
agricultural produce;
16. Negative list - agriculture
• (vi) agricultural extension services;
• (vii) services by any Agricultural Produce Marketing
Committee or Board or services provided by a
commission agent for sale or purchase of agricultural
produce;
• (3) "agriculture" means the cultivation of plants and
rearing of all life-forms of animals, except the rearing of
horses, for food, fibre, fuel, raw material or other similar
products;
• (4) "agricultural extension" means application of
scientific research and knowledge to agricultural
practices through farmer education or training;
17. Negative list - agriculture
• (5) "agricultural produce" means any produce of
agriculture on which either no further processing is done
or such processing is done as is usually done by a
cultivator or producer which does not alter its essential
characteristics but makes it marketable for primary
market;
• (6) "Agriculture Produce Marketing Committee or Board"
means any committee or board constituted under a State
law for the time being in force for the purpose of
regulating the marketing of agricultural produce;
18. Negative list
(e) trading of goods;
(f) any process amounting to manufacture or production
of goods;
(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 any process amounting to manufacture of alcoholic
liquors for human consumption, opium, 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; (1 of 1944.)
19. Negative list
• (g) selling of space for advertisements in PRINT MEDIA;
Note: Amended w.e.f., 1.10.2014 by Finance Act, 2014
(2) "advertisement" means any form of presentation for
promotion of, or bringing awareness about, any event,
idea, immovable property, person, service, goods or
actionable claim through newspaper, television, radio or
any other means but does not include any presentation
made in person;
20. Negative list
• (h) service by way of access to a road or a bridge
on payment of toll charges;
• (i) betting, gambling or lottery;
(15) "betting or gambling" means putting on stake
something of value, particularly money, with
consciousness of risk and hope of gain on the
outcome of a game or a contest, whose result
may be determined by chance or accident, or on
the likelihood of anything occurring or not
occurring;
21. Negative list
• (j) admission to entertainment events or access
to amusement facilities;
(9) "amusement facility" means a facility where fun or recreation
is provided by means of rides, gaming devices or bowling alleys in
amusement parks, amusement arcades, water parks, theme parks
or such other places but does not include a place within such
facility where other services are provided;
(24) "entertainment event" means an event or a performance
which is intended to provide; recreation, pastime, fun or
enjoyment, by way of exhibition of cinematographic film, circus,
concerts, sporting event, pageants, award functions, dance,
musical or theatrical performances including drama, ballets or
any such event or programme;
22. Negative list
• (k) transmission or distribution of electricity by an
electricity transmission or distribution utility;
(23) "electricity transmission or distribution utility" means the Central
Electricity Authority; a State Electricity Board; the Central
Transmission Utility or a State Transmission Utility notified under
the Electricity Act, 2003; or a distribution or transmission licensee
under the said Act, or any other entity entrusted with such
function by the Central Government or, as the case may be, the
State Government;
(19) "Central Transmission Utility" shall have the meaning assigned to
it in section 2 (10) of the Electricity Act, 2003;
(48) "State Transmission Utility" shall have the meaning assigned to it
in section 2 (67) of the Electricity Act, 2003;
23. Negative list - education
(l) services by way of-
(i) pre-school education and education up to higher
secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a
qualification recognised by any law for the time being in
force;
(iii) education as a part of an approved vocational
education course;
24. Negative list
• (m) services by way of renting of residential
dwelling for use as residence;
(41) "renting" means allowing, permitting or
granting access, entry, occupation, use or any
such facility, wholly or partly, in an immovable
property, with or without the transfer of
possession or control of the said immovable
property and includes letting, leasing, licensing
or other similar arrangements in respect of
immovable property;
25. Negative list
(n) services by way of-
(i) extending deposits, loans or advances in so far as the
consideration is represented by way of interest or discount;
(ii) inter se sale or purchase of foreign currency amongst
banks or authorised dealers of foreign exchange or
amongst banks and such dealers;
• (30) "interest" means interest payable in any manner in
respect of any moneys borrowed or debt incurred
(including a deposit, claim or other similar right or
obligation) but does not include any service fee or other
charge in respect of the moneys borrowed or debt
incurred or in respect of any credit facility which has not
been utilised;
26. Negative list
(o) service of transportation of passengers, with or without
accompanied belongings, by-
(i) a stage carriage;
(ii) railways in a class other than-
– (A) first class; or
– (B) an airconditioned coach;
(iii) metro, monorail or tramway;
(iv) inland waterways;
(v) public transport, other than predominantly for tourism
purpose, in a vessel between places located in India; and
(vi) metered cabs or auto rickshaws;
Note: The word ‘radio taxis‘ omitted w.e.f., 1.10.2014
27. Negative list
(p) services by way of transportation of goods-
(i) by road except the services of-
• (A) a goods transportation agency; or
• (B) a courier agency;
(ii) by an aircraft or a vessel from a place outside
India to the first customs station of landing in India;
or
(iii) by inland waterways;
28. Negative list
• (q) funeral, burial, crematorium or mortuary
services including transportation of the
deceased.
29. SERVICE TAX
AMENDMENTS MADE BY FINANCE (NO.2) ACT, 2014
EFFECTIVE FROM 6TH AUGUST 2014
SECTION 114(A), (B) & (C) EFFECTIVE FROM 1.10.2014
31. Amendment to Act
CLAUSE No. PROPOSED
Section 114(A)(i)
& (B) (ii)
services of radio taxies to include
under tax.
Definition of metered cab to exclude
‘radio taxi’ from the domain of
metered cab.
Section 114(B)(i) Excluding Print Media all other types
of sale of space or time for
advertisement into tax.
32. SALE OF SPACE FOR ADVERTISEMENTS
Section 114 (a)(ii)
SECTION DEFINITION
65B (39a)
PRINT MEDIA
As defined in sub-section (1) of section 1 of the
Press and Registration of Books Act, 1867, and
“newspaper” as defined in sub-section (1) of
section 1 of the Press and Registration of Books
Act, 1867.
Explanation
Print Media
The business directories, yellow pages and trade
catalogues which are primarily meant for
commercial purposes are excluded from the
purview of print media and therefore sale of
space therein would become taxable.
33. OTHER AMENDMENTS
SECTION NATURE OF AMENDMENTS
Section
114 (C)
Amends Section 67A by substituting ‘Explanation’:
Presently, the rate of exchange for the purpose of service
tax is determined based on the notification issued under
section 14 of the Customs Act, 1962.
It is proposed to issue rules under service tax for this
purpose.
Notification No.19/2014-ST issued – exchange rate based
on generally accepted accounting principles.
Section 73 Time Limit for Adjudication
show cause notice invoking
normal period of limitation.
18 months as per Section 73(1).
Within six months from the date
of notice (where it is possible)
show cause notice extended
period of limitation
Within one year from the date of
notice (where it is possible)
34. Waiver of Penalty u/s 80 –
not applicable for s.78
• section 80 provides for waiver of penalties
imposed under section 76,77 and 78(1) on a
reasonable cause.
• It is proposed to restrict this power of waiver
only to penalties imposed under section 76
and 77:
• No waiver could be made on the allegation of
fraud, mis-representation etc. – where penalty
is imposed u/s 78
35. OTHER AMENDMENTS
SECTION NATURE OF AMENDMENTS
SECTION 114 (F) Section 82 is amended to provide that Joint
commissioner or Additional Commissioner
or any other central excise officer
authorized by board to conduct search
SECTION 114 (G) Section 83 is amended to make Section 15A
& 15B of Central Excise Act, applicable
Service Tax. The said provisions provide for
collection of information from various
agencies and Government authorities.
36. Section 97 - NEW SECTIONS 15A & 15B
♪ Section 15A: To authorize Central Government to collect
information from an agency or a Government authority. Such
authority shall have to file information return on periodical basis
♪ The persons specified includes income tax authorities, banks,
registration offices, state VAT authorities, Registrar of companies,
stock exchanges, etc
♪ The time periods, format and manner of providing information
return shall be set.
♪ Non filing or not giving correct information attracts penalty –
Section 15B
37. Section 102 & 104– amendment of SeC. 35B &
35E
Section Nature of amendment
35B Monetary limit towards discretion of CESTAT to admit appeal has
been enhance from Rs. 50,000 to Rs. 2,00,000
Presently Notification in official gazette is required to constitutes
Committee of commissioners.
Amendments to constitute committee by way of order by CBEC.
35B(7) The words ‘for grant of stay’ has been omitted.
35E Grants the Board, power to extend the time by 30 days if the
Committee of Chief Commissioners do not take the decision for
revision within 3 months of receipt of adjudication order
38. Section 103 &105 – Amends seC. 35C & 35F
Section Nature of amendment
35C(2A) Omits three provisos to Section 35C(2A), which provides that the
stay orders passed by the Tribunal would expire if the appeals are
not disposed off within 180 days or 365 days of stay order
35F Stay proceeding
Pre-deposit amounts fixed under each stage of appeal is as below:
(Maximumpre-deposit of Rs. 10 crores)
Impugned order Appeal before Pre-deposit amount
Order of the Asst.
Commissioner /
Commissioner
Commissioner
(Appeals) or
CESTAT
7.5% of duty - where duty or duty &
penalty is in dispute;
7.5 % penalty – If penalty is disputed
Order of
Commissioner
(Appeals)
CESTAT 10% of duty - where duty or duty &
penalty is in dispute;
10% penalty – if penalty is disputed
39. Section 105 - Section 35F
♪ Explanation to Section 35F: Duty demanded has been defined
to include:
(i) amount determined under section 11D;
(ii) amount of erroneous Cenvat credit taken;
(iii) amount payable under rule 6 of the Cenvat Credit Rules,
2001 or the Cenvat Credit Rules, 2002 or the Cenvat Credit
Rules, 2004.
♪ In case of second appeal, whether pre-deposit will be 10% or
17.5% envisaged as per TRU circular?
♪ The doctrine of merger will operate.
40. OTHER AMENDMENTS
SECTION NATURE OF AMENDMENTS
Section 114 (H) Section 86 amended - similar to Section 35B.
Consequent to proposal for amendment to Section
35F of Central Excise Act, 1944 relating to pre-deposit
and stay proceedings – Section 86 is amended to
delete references to fee payable for application for
stay.
Section 114 (I) Section 87 amended to provide power to recover dues
of a predecessor from the assets of a successor
purchased from the predecessor. Recovery from the
successor is restricted to the assets which he has
purchased or obtained from the predecessor whose
amounts are due to the Central Government.
42. DEFINITIONS
Services of recovery agent: (AA) in relation to
service provided or agreed to be provided by a
recovery agent to a banking company or a financial
institution or a non-banking financial company, the
recipient of the service.
Director of a company or body corporate: ―(EE) in
relation to service provided or agreed to be provided
by a director of a company or a body corporate to
the said company or the body corporate, the
recipient of such service
Effective from 1.10.2014
43. PAYMENT OF SERVICE TAX –
only electronic mode
• All assesses would be required to remit duty
through online mode through internet banking
only and the earlier limit of Rs.1 lakh stands
withdrawn
• Assistant Commissioner or the Deputy
Commissioner of Central Excise , for reasons to
be recorded in writing, may allow an assessee
for payment of tax by any mode other than
internet banking
• Effective from 1.10.2014
45. WORKS CONTRACT
Nature of works contract Value as % of amount
charged
A. original works 40%
B. Other than Original works including the following
70%
works
(i) maintenance or repair or reconditioning or
restoration or servicing of any goods;
(ii) maintenance or repair or completion and
finishing services such as glazing or plastering or
floor and wall tiling or installation of electrical
fittings of immovable property,
Effective from 1.10.2014
46. POINT OF TAXATION RULES,
2011
NotificatioN No. 13/2014- ST DT 11.07.2014
47. REVERSE CHARGE AND JOINT CHARGE
NATURE OF ACTIVITY POINT OF TAXTION
For invoices/bills
issued on or after
1.10.2014
Date of payment of invoice or three
months from the date of invoice
whichever is earlier
For invoices/bills
issued prior to
1.10.2014
if payment of invoice amount is made
within six months from the date of
invoice, then such date of payment, in any
other case, the date immediately
following the completion of six months.
Applicable to services covered under reverse charge or joint
charge, other than import of services from associated
enterprises
Effective from 1.10.2014
48. PLACE FO PROVISION OF SERVICE
RULES, 2012
NotificatioN No. 14/2014- ST DT 11.07.2014
49. IntermedIary ServIceS
• Agent for purchase or sale of goods is also
considered to be intermediary.
• W.e.f 1.10.2014 commission agents for sale of
goods of foreign principal would also get
covered under tax as the location of provider
would be place of provision of service – Rule 9
• Presently they are out tax net on account of
place of provision being the location of
recipient – up to 30.09.2014 under Rule 3
50. Goods imported for
repairs
• Presently goods imported for repairs
reconditioning or reengineering for re-export
were excluded from the ambit of Rule 4(which
provides that the place of provision shall be
the location of goods).
• Amendment to restrict such exclusion only to
goods which are imported temporarily for the
purpose of repairs and such goods are
exported after the repairs without being put
to any use in the taxable territory, other than
that which is required for such repair.
51. Hiring of Vessels and
AircrAft
• Presently place of provision for services of
hiring of means of transport upto a period of
one month, is based on the location of the
provider of services.
• Amendment provides to exclude hiring of
Vessels (excluding yachts) and aircraft, from
the above provisions.
• As a result, place of provision of service for the
services of hiring Vessels (excluding yachts) and
aircraft would be the location of the recipient
of service
53. Notification No. 6/2014-ST amends Mega Exemption
Notification
♪ A new entry ‘2B’ is inserted after the entry ‘2A’ to provide
exemption as follows:
♪ “2B. Services provided by operators of the Common Bio-medical
Waste Treatment Facility to a clinical establishment by way of
treatment or disposal of bio-medical waste or the processes
incidental thereto;”;
♪ Note: Entry ‘2A’ was inserted during Interim Budget provides for
exemption to “Services provided by cord blood banks by way of
preservation of stem cells or any other service in relation to such
preservation;”
54. Notification No. 6/2014-ST amends Mega Exemption
Notification
♪ Entry No. 7 has been omitted.
♪ Consequently, the exemption is withdrawn for
the services by way of technical testing or
analysis of newly developed drugs, including
vaccines and herbal remedies on human
participants by a clinical research organization
approved to conduct clinical trials by the Drug
Controller General of India.
♪ This will be with immediate effect.
55. Notification No. 6/2014-ST amends Mega Exemption
Notification
♪ Entry 9 substituted – scope of exemption reduced and clarified:
9. Services provided,-
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by
the Government;
(iii) security or cleaning or house-keeping services performed in
such educational institution;
(iv) services relating to admission to, or conduct of examination
by, such institution;
56. Exemption to Education Sector - substituted
♪ Earlier exemption was being operated through the concept of
“auxiliary educational services‟. This is being omitted and
exemption is confined to specified services received by
‘educational institution’
♪ New definition of “educational institution‟ is inserted vide clause
(oa) to mean an institution providing services specified in clause
(l) of section 66D of the Finance Act,1994 (32 of 1994);(All
institutions providing educational services specified in the
negative list get covered).
♪ Further, renting to immovable property to educational
institutions would now become taxable.
57. Exemption for Hotels & Lodges - amended
♪ Entry ‘18’ relating to exemption to hotels and lodging sector has
been substituted as follows:
18. Services by a hotel, inn, guest house, club or campsite, by
whatever name called, for residential or lodging purposes, having
declared tariff of a unit of accommodation below one thousand
rupees per day or equivalent;
♪ The substituted entry has omitted the terms ‘renting of’ as well
as the reference to ‘other commercial places’ so as to clarify that
dharmashalas, ashram or any such entity which offer
accommodation would be entitled for exemption under this
entry or conversely be taxed now following removal of the word
"commercial".
58. Transportation of goods by Rail, Vessel & Road (GTA)
amended
♪ Entry 20 exempts transportation service
provided by rail or vessel for specified goods.
♪ Entry 21 exempts transportation service
provided by GTA for specified goods.
♪ Both Entries are amended to cover ‘Organic
Manure’ along with Chemical Fertilizer and Oil
Cakes.
♪ New entry for “cotton, ginned or baled” is
inserted in both Entry 20 & 21.
59. Transportation of passengers – Exemption amended
♪ Entry 23 grants exemption to certain transportation of passenger
services which are specified therein.
♪ Under this entry, item (b) provided exemption to ‘contract carriage’
for transportation of passenger excluding tourism.
♪ This entry is amended to withdraw the exemption to ‘air-conditioned
contract carriages’. Only non-air condition contract
carriages other than radio taxi are exempted.
♪ Hence, services provided by air-conditioned contract carriages
including those for point to point travel (BMTC Volvo Buses taken on
contract by Business Entities) will attract service tax, with
immediate effect.
♪ However, as the abatement of 40% is available, the effective tax will
be 4.944%.
60. Transportation of passengers – Radio Taxi
♪ As the exemption is available only to ‘non-air condition contract
carriages other than radio taxi’, all services provided by radio taxi
will not be entitled for exemption.
♪ Radio Tax is defined in clause (za) to mean a taxi including a radio
cab, by whatever name called, which is in two-way radio
communication with a central control office and is enabled for
tracking using Global Positioning System (GPS) or General Packet
Radio Service (GPRS);
♪ However, in view of the omission of ‘radio taxis’ from Negative List
in the Finance (No.2) Act, 2014, service tax would be imposed on
radio taxis from 1st October 2014.
61. Services received by RBI from abroad
are exempted
♪ New entry 41 is being inserted to grant
exemption to the services received by RBI
from outside India.
♪ Entry reads as follows:
41. Services received by the Reserve Bank of
India, from outside India in relation to
management of foreign exchange reserves;
62. Tour operator services to foreign
national – outside India is exempted
♪ New entry 42 is being inserted to grant
exemption to services provided by tour
operator to a foreign national in relation to
the tour conducted wholly outside India.
♪ Entry reads as follows:
42. Services provided by a tour operator to a
foreign tourist in relation to a tour conducted
wholly outside India.
64. Amendment to GTA Services
♪ Entry No.7 – 75% abatement to GTA services, the
condition regarding non availment of cenvat
credit on inputs, capital goods and input services
is amended as follows:
♪ After the words “has not been taken”, the words
“by the service provider” shall be inserted;
♪ This clarifies that the condition for non-availment
of credit is to be satisfied by service
providers only and not by Service recipient.
♪ This had led to considerable litigation and
therefore is a welcome amendment.
65. Amendment in relation to Chit
♪ Entry No. 8 – grants abatement of 30% to
services in relation to Chits, the condition in
Column (4) is being substituted as follows:
“CENVAT credit on inputs, capital goods and
input services, used for providing the taxable
service, has not been taken under the
provisions of the CENVAT Credit Rules, 2004.”;
♪ This is consequential amendment in view of
the amendment made to Entry 7 above.
66. Renting of Motorcab
♪ Entry 9 – which grants abatement of 60% to
“Renting of any motor vehicle designed to carry
passengers”.
♪ In the above entry, for the words “any motor
vehicle designed to carry passengers”, the
words “motorcab” shall be substituted with
effect from the 1st day of October, 2014;
♪ This restricts the scope of the abatement only
to ‘Motorcab’ w.e.f., 1.10.2014 onwards as
contract carriages now carry a new entry.
67. New abatement entry for Contract
Carriages other than Motorcab
♪ Entry 9A is inserted with 60% abatement (effective rate @
40%) for the service of “transport of passengers, with or
without accompanied belongings, by a contract carriage
other than motorcab”.(without cenvat)
♪ Entry 9A to be substituted with effect from the date to be
notified by Central Government after enactment of
Finance (No.2) Bill, 2014:
♪ “Transport of passengers, with or without accompanied
belongings, by-
♪ a. a contract carriage other than motorcab.
♪ b. a radio taxi.”;
68. Reverse charge and joint charge
New entry under reverse charge:
1A. in respect of services provided or agreed to be provided
by a recovery agent to a banking company or a financial
institution or a non-banking financial company
100% by recipient
Other amendments
Services provided by a director of body corporate would
also get covered under reverse charge
100% by recipient
(i.e. company/ body
corporate)
Change in proportionate of tax to be paid in case of rent
a cab services
50% each by recipient and
provider
69. Interest on delayed payment
Sl
No.
Period of delay Rate of simple interest
1. Up to six months 18 %
2. More than six months
and up to one year
For the first 6 months of delay -18 %
For the delay beyond six months- 24 %
3. More than one year For the first six months of delay -18 %
For the delay beyond 6months upto 1 year -
24 %
For any delay beyond one year – 30%
Notification no. 12/2014- ST Dt 11.07.2014 effective from 1.10.2014
70. Advance Ruling
Resident private limited company could also
make application for advance ruling for its new
business ventures
Notification No.15/2014-ST dated 11.07.2014
72. DEFINITIONS
Definition for “place of removal” has been added which is as
below:
(qa) “place of removal” means:-
(i) a factory or any other place or premises of production or
manufacture of the excisable goods;
(ii) a warehouse or any other place or premises wherein the
excisable goods have been permitted to be deposited without
payment of duty;
(iii) a depot, premises of a consignment agent or any other place or
premises from where the excisable goods are to be sold after their
clearance from the factory, from where such goods are removed;‟
73. RULE 4-AVAILMENT OF CREDIT
♪ Rule 4 :
♪ Restriction of 6 months from date of the invoice / bill to avail
credit has been re -introduced for inputs and input services
effective from 1.9.2014. This is a retrograde step.
♪ Availment of credit of service tax paid by the recipient under
reverse charge:
Where whole of service tax is
paid by recipient
To avail credit after of payment of
service tax
Service tax is partly paid by
recipient and partly by the
provider
To avail credit on or after the day on
which payment is made of the value of
input service and the service tax paid or
payable as indicated in invoice, bill
74. RULE 4-AVAILMENT OF CREDIT
Where the value of service and service tax is not paid to the service
provider(other than those services covered under reverse charge or
joint charge), within 3 months from the date of invoice or bill, then
amount equal to the credit availed shall be reversed.
By fifth proviso to Rule 4(7), time limit for availing input services
credit stands at 6 months from date of issue of documents.
Whether this will apply to re availment where payment is not made
within 3 months and therefore reversed, is a moot point.
