Duty on ipad2 is 14.71%

Duty on ipad2 is 14.71%. Apple has not launched ipad2 in India.

Change in definition of Service in Export of Services Rules, 2005,

Classification of  Service  as Export of Services has been changed from "as are performed outside India"
to “as are performed outside India”

Relevant notification is reproduced here :

Notification    No. 12/2011 – Service Tax             New Delhi, the 1st March, 2011

G.S.R. (E).-    In exercise of the powers conferred by sections 93 and 94 of the Finance Act,
1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the
Export of Services Rules, 2005, namely :-
1. (1) These rules may be called the Export of Services (Amendment) Rules, 2011.
(2)  They shall come into force on the 1st day of April, 2011.

2.  In the Export of Services Rules, 2005, in rule 3, in sub-rule (1),-
(i) in clause (i), for the brackets, letters and word “(zzzza), and (zzzzm)”, the brackets, letters
and word  “(zzzza), (zzzzm) and (zzzzu)” shall be substituted;
(ii) in clause (ii), for the portion beginning with the brackets, figures and words “specified”
and ending with the words “as are performed outside India”, the following shall be
substituted,namely:-
“(ii) specified in sub-clauses (a), (f), (h), (i), (j), (l), (n), (o), (w), (z), (zb), (zc), (zi), (zj),
(zn), (zo), (zq), (zr), (zt), (zu),  (zv),  (zw), (zz), (zza), (zzc), (zzd), (zzf), (zzg), (zzi), (zzl),
(zzm), (zzo), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf), (zzzzg), (zzzzh), (zzzzi),
(zzzzk), (zzzzl) and (zzzzo) of clause (105) of section 65 of the Act, be provision of such
services as are performed outside India:”
Note.-    The principal rules were notified vide notification no. 9/2005-Service Tax, dated the 3rd
March, 2005, published in the Gazette of India, Extraordinary vide number G.S.R. 151(E), dated the
3rd March 2005 and last amended vide notification No.06/2010-Service Tax, dated the 27thFebruary,
2010, vide number G.S.R.150 (E), dated the 27thFebruary, 2010.

No Service Tax on services provided in relation to execution of Work Contract when wholly provided within an airport

No  Service Tax for  work contract executed wholly within  an  airport.

  Definitions of taxable service and classification and relevant notification is reproduced here :

Notification  No. 10/2011 – Service Tax    New Delhi, the 1st March, 2011

G.S.R. (E).-    In exercise of the powers conferred by sub-section (1) of section 93 of the 

Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, 

on being satisfied that it is necessary in the public interest so to do, hereby exempts services provided 

in relation to the execution of works contract, referred to in sub-clause (zzzza) of clause (105) of 

section 65 of the Finance Act, when provided wholly within an airport and classified under sub-clause 

(zzm) of clause (105) of section 65 of the Finance Act, 1994, from the whole of service tax leviable 

thereon under section 66 of the Finance Act.

If  Service is classified  under  sub-clause (zzm) and is taxable . Definition is :" to any person, by airports authority or any person authorised by it, in an airport  or a civil enclave; "

                    '

Taxable service of work contract is defined as  :"(zzzza)  to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways,   transport terminals, bridges, tunnels and dams.

Explanation.—For the purposes of this sub-clause, “works contract” means a contract wherein,—

(i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and

(ii) such contract is for the purposes of carrying out,—

(a)    erection, commissioning or installation of plant, machinery, equipment or  structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or

(b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or

(c) construction of a new residential complex or a part thereof; or

(d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or

(e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;"

No service tax ,on value equal to air freight amount , to be paid by Air craft operator

No  Service tax on value equal to   ,Air freight Amount determined as decided under Customs valuation Rules( Import Rules 2007)  read with  Section 14 of the Customs  Act , 1962 ,to be paid by Air Craft Operator.

Relevant notification is reproduced here :

Notification  No. 9/2011 – Service Tax          New Delhi, the 1st March, 2011

G.S.R. (E).-    In exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act (hereinafter referred to as the Finance Act), 1994 (32 of 1994), the Central Government,
on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable
services as referred to in sub-clause (zzn) of clause (105) of section 65 of the Finance Act, from
service tax leviable under section 66 of the Finance Act to the extent so much of the  value as is equal
to the amount of air freight included in the value determined under section 14 of the Customs Act,
1962 (52 of 1962) or the rules made thereunder for the purpose of charging customs duties.

2.            This notification shall come shall come into force on the 1st day of April, 2011.

No service tax if goods are transported form a location out side India to another location outside India

Relevant notification is reproduced here :

Notification    No.8/2011 – Service Tax       New Delhi, the 1st March, 2011

G.S.R. (E).-    In exercise of the powers conferred by  sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government,
on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable
services as referred to in sub-clauses (zzn), (zzp) and (zzzp) of clause (105) of section 65 of the
Finance Act, provided to any person located in India, when the goods are transported from a place
located outside India to a final destination which is also outside India, from the whole of service tax
leviable thereon under section 66 of the Finance Act.
2.            This notification shall come into force on the 1st day of April, 2011.

No Service Tax if insurance is taken under Rashtriya Swasthya Bima Yojana

No  Service Tax  on Service provided by an insurer carrying on General Insurance Business to any person for providing insurance under the Rashtriya Swasthya Bima Yojana.

Relevant notification is reproduced here:

Notification    No. 7/2011 – Service Tax           New Delhi, the 1stMarch, 2011

G.S.R. (E) - In exercise of the power conferred by sub-section (1) of section 93 of the Finance
Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being
satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service
specified in sub-clause (d) of clause (105) of section 65 of the Finance Act, provided by an insurer
carrying on General Insurance Business to any person for providing insurance under the Rashtriya
Swasthya Bima Yojana from the whole of the service tax leviable thereon under section 66 of the
Finance Act.

No service tax if BUSINESS EXHIBITION SERVICE is provided outside India

No service tax on Business exhibition Service if provided out side India.

Relevant notification  is reproduced.

Notification    No. 5/2011 – Service Tax   New Delhi, the 1stMarch, 2011

G.S.R. (E) - In exercise of the power conferred by sub-section (1) of section 93 of the Finance
Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, being
satisfied that it is necessary in the public interest, so to do hereby exempts the taxable service
specified in sub-clause (zzo) of clause (105) of section 65 of the said Finance Act, when provided by
an organiser of business exhibition for holding a business exhibition outside India, from the whole of
the service tax leviable thereon under section 66 of the said Finance Act.

No Service Tax if residential construction activity are under Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana,

No Service Tax for construction and finishing activity  taken under  work contract of  Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana.

Relevant notification is placed below:

Notification     No. 6/2011 – Service Tax    New Delhi, the 1stMarch, 2011

G.S.R. (E)  - In exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government,
on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service
of execution of a works contract referred to in sub-clause (zzzza) of clause (105) of section 65 of the
Finance Act, when provided for the purpose of carrying out,-
(a) construction of new residential complex or part thereof; or
(b) completion and finishing services of new residential complex or part thereof ,
under Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana, from the whole
of the service tax leviable thereon under section 66 of the Finance Act.

Amendments in Taxation of Services (Provided from Outside India and Received in India) Rules, 2006. Definition of service are changed .

Now scope of service is changed from  “as are performed in India” to  " be such services 

as are performed in India:”

Notification is re-produced for easy reference.

Notification     No. 13/2011 – Service Tax    New Delhi, the 1 st March, 2011

G.S.R. (E).-  In exercise of the powers conferred by sections 93 and 94 read with section 66A
of the Finance Act, 1994 (32 of  1994), the Central Government, hereby makes the following rules
further to amend the Taxation of Services (Provided from Outside India and Received in India) Rules,
2006, namely :-
1. (1) These rules may be called the Taxation of Services (Provided from  Outside India and
Received in India) Amendment Rules, 2011.
(2)  They shall come into force on the 1 st day of April, 2011.
2. In the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006,
in rule 3,-
(i) in clause (i), for the brackets, letters and word “(zzzza) and (zzzzm)”, the brackets, letters
and word “(zzzza), (zzzzm) and (zzzzu)” shall be substituted;
(ii) in clause (ii), for the portion beginning with the brackets, figures and words “specified”
and ending with the words  “as are performed in India”, the following shall be substituted,
namely:-
“(ii) specified in sub-clauses  (a), (f), (h), (i), (j), (l), (n), (o), (w), (z), (zb), (zc), (zi), (zj),
(zn), (zo), (zq), (zr), (zt), (zu), (zv),  (zw), (zz), (zza), (zzc), (zzd),  (zzf), (zzg), (zzi), (zzl),
(zzm), (zzo), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd),  (zzze), (zzzf), (zzzzg), (zzzzh),
(zzzzi), (zzzzk), (zzzzl) and (zzzzo) of clause (105) of section 65 of the Act, be such services 
as are performed in India:”
Note.-   The principal rules were notified vide notification no. 11/2006-Service Tax, dated the 19th
April, 2006, published in the Gazette of India, Extraordinary vide number G.S.R. 227(E), dated the
19th April, 2006 and last amended vide notification No.16/2010-Service Tax, dated the 27
th
February,
2010, published on the Gazette of India vide number G.S.R.160 (E), dated the 27
th
February, 2010.

Interest rate have been increased form 13 % to 18% in Service Tax

 Notification is reproduced for easy reference and more clarity:

Notification    No. 15/2011 – Service Tax    New Delhi, the 1st March, 2011

G.S.R. (E).-  In exercise of the powers conferred by section 73B of the Finance Act, 1994 (32
of 1994), the Central Government, hereby makes the following amendment in the notification of the
Government of India in the Ministry of Finance (Department of Revenue) No. 8/2006-Service Tax,
dated the 19 th April, 2006, published in the Gazette of India, Extraordinary, vide number G.S.R.224
(E), dated the 19th April, 2006, namely:-
In the said notification, for the words “thirteen per cent.”, the words “eighteen per cent.” shall be substituted.
2. This notification shall come into force on the 1st day of April, 2011.
Note.-  The principal notification No.8/2006-Service Tax, dated the 19 th April, 2006 was published in
the Gazette of India, Extraordinary, vide number G.S.R.224 (E), dated the 19th April, 2006.

Service tax is to be paid on value which is equal to 75 % of Gross Amount Charged for transport of goods through inland water or National waterway. Same for coastal goods.

There is abatement of  25% on Gross amount charged for transportation  in case of coastal goods , inland water and national waterways goods. It means that service tax liability for such goods is against 75% of gross amount charged. 


Notification is reproduced for easy reference and more clarity:



Notification    No. 16/2011 – Service Tax New Delhi, the 1st March, 2011


G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to  do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 1/2006-Service Tax, 
dated the 1st March, 2006, published in the Gazette of India, vide Number G.S.R.115(E), dated the 1st March, 2006, namely:-
2. In the said notification, in the Table, after S.No.11 and the entries relating thereto, the 
following S.No. and the entries shall be inserted, namely:-
                                                                                  TABLE
(1)            (2)        (3)                  (4)                                                (5)
“12.      (zzzzl)        Services provided or to be provided, to any person, by any other person, in relation to transport of
i) Coastal goods;
ii) Goods through national waterway; or
iii) Goods through inland water.
-                                                                                                      75”
Note.-    The principal rules were notified vide notification no. 1/2006-Service Tax, dated the 1st March, 2006, published in the Gazette of India, Extraordinary vide Number G.S.R. 115(E), dated the 1st March, 2006 and last amended vide notification No.40/2010-Service Tax, dated the 28th June, 2010, published on the Gazette of India vide Number G.S.R.561 (E), dated the 28 th June, 2010.

No service Tax on service received by units located inside SEZ or Developer of SEZ for authorised operations.

 No  Service tax  for Units located inside SEZ ,or,Developer of SEZ for authorised operations. It is for specified services and consumed wholly inside SEZ. It is by way of  way of refund of service tax paid on the specified services received for the authorised operations in a SEZ.Further , it is optional that this notification can also availed by reverse charge method by not paying Service Tax.

Notifications is re-produced for easy reference and for more clarity:

Notification    No. 17/2011 – Service Tax      New Delhi, the 1st March, 2011

G.S.R.         (E). – In exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act) read with sub-section 3 of
section 95 of Finance (No.2), Act, 2004 (23 of 2004) and sub-section 3 of section 140 of the Finance
Act, 2007(22 of 2007) and in supersession of the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No. 9/2009-Service Tax, dated the 3rd March, 2009,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R.146(E),
dated the 3rd   March, 2009, except as respects things done or omitted to be done before such
supersession, the Central Government, on being satisfied that it is necessary in the public interest so to
do, hereby exempts the taxable services specified in clause (105) of section 65 of the  Finance Act,
chargeable to tax under section 66 or section 66A of the Finance Act , received by a Unit located in a
Special Economic Zone (hereinafter referred to as  SEZ) or Developer of SEZ for   the authorised
operations,  from the whole of the service tax,  education cess and secondary and higher education
cess leviable thereon.
2.  The exemption contained in this notification shall be subject  to the following conditions,
namely:-
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received for the authorised operations in a SEZ:
Provided that where the specified services received and used for authorised operations are wholly
consumed within the SEZ, the provider of such services or the receiver of such services on reverse
charge basis, as the case may be, has the option not to pay the service tax ab initio instead of the Unit
or Developer claiming exemption by way of refund in terms of this notification.
Explanation.- For the purposes of this notification, the expression ―wholly consumed‖ refer to
following taxable services, received by a Developer or Unit of a SEZ, for  the authorised operations,
namely:-
(i) services listed in clause(i) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005
in relation to an immovable property situated within the SEZ; or
(ii) services listed in clause (ii) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005,
as are wholly performed within the SEZ; or
(iii) services other than those falling under (i) and (ii) above, provided to a Developer or Unit
of SEZ, who does not own or carry on any business other than the operations in the SEZ;
(b)  for the purpose of claiming exemption, the Developer or Unit of SEZ shall obtain a list of
taxable services as are required for the authorised operations approved by the Approval Committee
(hereinafter referred to as the specified services) of the concerned SEZ;
(c)   the Developer or Unit of SEZ who does not own or carry out any business other than SEZ
operations, shall furnish a declaration to that effect in Form A-1, verified by the Specified Officer of
the SEZ, in addition to obtaining  list under condition (b) above,  for the purpose of claiming
exemption;20
(d) where the specified services received by Unit or Developer, are not wholly consumed within
SEZ, i.e.,  shared between authorised operations in SEZ Unit and Domestic Tariff Area(DTA) Unit,
refund shall be restricted to the extent of the ratio of export turnover to the total turnover for the given
period to which the claim relates, i.e.,
                                service tax paid on specified services
used for SEZ Authorised Operations      X      Export turnover of SEZ Unit                                                            
shared with DTA Unit for the  period                for the period
Maximum refund =    ----------------------------------------------------------------------------------------
                                                                                     Total turnover for the period
                          
                                                                                                
Explanation.- For the purposes of condition (d),-
(1) ―total turnover‖ means the sum total of the value of,-
(i) all output services and exempted services provided, including the value of services
exported;
(ii) all excisable and non-excisable goods cleared, including the value of the goods exported;
(iii) bought out goods sold,
during the period to which the invoices pertain and the exporter claims the facility of refund under
this notification.
(2) ―turnover of SEZ Unit‘‘ shall mean the sum total of the value of final products and output
services exported during the period of which the invoices pertain and the exporter claims the
facility of refund under this notification;
(e) any Developer or Unit of SEZ claiming the exemption shall declare that the specified services
on which exemption and/ or refund is claimed to have been actually used for the authorised
operations;
(f)  the Developer or unit of SEZ claiming the exemption, by way of refund has actually paid the
amount indicated in the invoice, bill or as the case may be, challan, including the service tax payable,
to the person liable to pay the said tax or the amount of service tax payable under reverse charge, as
the case may be, under the provisions of the Finance Act;
(g) no CENVAT credit of service tax paid on the specified services used for the authorised
operations in a SEZ has been taken under the CENVAT Credit Rules, 2004;
(h) exemption or refund of service tax paid on the specified services other than  ‗wholly
consumed‘ services used for the authorised operations in a SEZ shall not be claimed except under this
notification;
(i) the developer or unit of a SEZ, who intends to avail exemption and or refund under this
notification, shall maintain proper account of receipt and use of the specified services on which
exemption is claimed,  for authorised operations in the SEZ.
3. The following procedure should be adopted for claiming the benefit of the exemption
contained in this notification, namely:-21
(a) the Developer or Unit of a SEZ, who has paid the service tax under sections 66 of the Finance
Act, shall avail the exemption by filling a claim for refund of service tax paid on specified services
used for the authorised operations;
(b)  the Developer or Unit of a SEZ who is registered as an assessee under the Central Excise Act,
1944 (1 of 1944) or the rules made there under, or the said Finance Act or the rules made there under,
shall file the claim for refund to the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, having jurisdiction over the SEZ or registered
office or the head office of the Developer or Unit, as the case may be, in Form A-2;
(c) the Developer or Unit of a SEZ who is not so registered under the provisions referred to in
clause (b), shall, before filing a claim for refund under this notification, file a declaration with the
Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case
may be, having jurisdiction over the SEZ or registered office or the head office of the Developer or
Unit, as the case may be, in Form A-3;
(d) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise,
as the case may be, shall, after due verification, allot a service tax code number to the Developer or
Unit of SEZ, referred to in clause (c), within seven days from the date of receipt of the said
declaration, in Form A-3;
(e) claim for refund shall be filed, within one year from the end of  the month in which actual
payment of service tax was made by such developer or unit to the registered service provider or such
extended period as the Assistant Commissioner of Central Excise or the Deputy Commissioner of
Central Excise, as the case may be, shall permit;
(f) the refund claim shall be accompanied by the following documents, namely:-
(i) a copy of the list of specified services as are required for the authorized operations in the
SEZ, as approved by the Approval Committee; wherever applicable, document specified in 2(c),
i.e. , declaration in Form A-1;
(ii) invoice or a bill or as the case may be, a challan, issued in accordance with the provisions of
Finance Act or rules made thereunder, in the name of the Developer or Unit of a SEZ, by the
registered service provider, along with proof of payment for such specified services used for the
authorised operations and service tax paid, in original;
(iii) a declaration by the Developer or Unit of SEZ, claiming such exemption, to the effect that—
(A) the specified services on which refund of service tax claimed, has been actually used for
the authorized operations in the SEZ ;
(B) proper account of the specified services received and used for the authorised operations
are maintained by the developer  or  unit of the SEZ and the same shall be produced to the officer
sanctioning refund, on demand;
(C) accounts or documents furnished  by the Developer or Unit as  proof of payment of
service tax claimed as refund,  based on the invoice, or bill , or as the case may be challan issued by
the registered service provider indicating the service tax paid on such specified services, are true and
correct in all respects;22
(g) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise,
as the case may be, after verifying that,-
(i)  the refund claim is complete in all respects;
(ii) the information furnished in Form A-2 and in supporting documents  correctly indicate  the
service tax involved in the specified services used for the authorised operations in the SEZ,
which is  claimed as refund, and has been actually paid to the service provider,
shall refund the service tax paid on the specified services;
(h) a service provider, shall provide the specified services falling under ‗wholly consumed‘
category, under exemption granted by this notification, to a Developer or Unit of SEZ, for authorised
operations, subject to the production of  documents specified in sub-para (b) of para 2 and in addition
wherever applicable, documents specified in sub-para (c ) para 2, i.e., declaration in Form A-1;
(i) where any refund of service tax paid on specified services is erroneously refunded for any
reasons whatsoever, such service tax refunded shall be recoverable under the provisions of the said
Finance Act and the rules made there under, as if it is recovery of service tax erroneously refunded;
4. Words and expressions used in this notification and defined in the Special Economic Zones
Act, 2005 (28 of 2005) or the rules made thereunder, shall apply,  so far as may be, in relation to
refund of service tax under this notification as they apply in relation to a SEZ.
Explanation.- For the purposes of this notification, ―statutory auditor‖ refers to a  Chartered
Accountant who audits the annual accounts of  the  Developer or Unit of a SEZ  for the
purposes of the Companies Act, 1956 (1 of 1956) or the Income Tax Act, 1961(43 of 1961).
FORM A-1
DECLARATION BY DEVELOPER OR UNIT OF SEZ WHO DOES NOT OWN OR CARY ON
ANY BUSINESS OTHER THAN OPERATIONS IN THE SEZ, FOR AVAILING  EXEMPTION
UNDER NOTIFICATION No._____ DATED ____ [Refer   paragraph 2(c)]
1. Name of the SEZ Unit/Developer:
2. Address of the SEZ Unit/Developer with Telephone and Email:
3. Permanent Account Number(PAN) of the SEZ Unit/Developer:
4. Import and Export Code Number:
5. Jurisdictional Central Excise/Service Tax Division:
6. Service Tax Registration Number/Service Tax Code:
7. Declaration: I/We hereby declare that-
(i) The information given in this application form is true, correct and complete in every
respect and I am authorised to sign on behalf of the SEZ Unit/Developer;23
(ii) I/We maintain proper account of specified services, as approved by the Approval
Committee of SEZ,  received and used for authorised operations in SEZ; I/we shall make
available such accounts and related records, at all reasonable times, to the jurisdictional
Central Excise Officers for inspection or scrutiny.
(iii) I/We shall use/have used specified services for authorised operations in the SEZ.
(iv) I/We declare that we do not own or carry out any other business of providing taxable
service or manufacture, in the domestic tariff area; I/We are aware that the Declaration is
valid only for the purpose specified in Notification _______ dated ______ and is subject
to conditions.
(v) This declaration is intended for submission to the following DTA service provider(s):
Sl.No. Description of Specified
Service(s) to be received
from the DTA service
provider(s)
DTA Service provider(s) who provide(s) the
specified service(s), for SEZ authorised
operations
Name and address Service Tax
Registration No.
(1) (2) (3) (4)
Signature and Name of Authorised Person with stamp
Date:
Place:
I have verified the above Declaration; it is correct
Signature, date and stamp of the Specified Officer of the SEZ (Specified Officer shall retain a
copy of the verified Declaration, for the purpose of record)
FORM A-2
APPLICATION FOR CLAIMING REFUND OF SERVICE TAX PAID ON SPECIFIED SERVICES
USED FOR AUTHORISED OPERATIONS IN SEZ
To
The Assistant/Deputy Commissioner of Central Excise/Service Tax
___________ Division, _______ Commissionerate
Sir,
       I /We claim refund of Rs.................. (Rupees in words)
(a) in respect of service tax paid on   ‗wholly consumed‘ specified services used for  the
authorized operations in SEZ, as approved by the Unit Approval Committee of the
_________ SEZ [ Rupees ____________]
(b) in respect of service tax paid on specified services, other than those that are wholly consumed,
used for the authorized operations of SEZ Unit/Developer, as approved by the Unit Approval
Committee of the _________ SEZ [ Rupees ____________].
1. Name of the SEZ Unit/Developer:
2. Address of the SEZ Unit/Developer with Telephone and Email:
3. Address of the Registered/Head Office with Telephone and Email:
4. Permanent Account Number(PAN) of the SEZ Unit/Developer:
5. Import and Export Code Number:24
6. Jurisdictional Central Excise/Service Tax Division:
7. Service Tax Registration Number/Service Tax Code:
8. Information regarding Bank Account ( Bank, Address of Branch, Account Number) in which
refund amount should be credited/to be deposited:
9. Details regarding Service Tax refund claimed:
9.1.Refund arising out of ‗wholly consumed‘ specified services:
Table-A
9.2.Refunds arising out of specified services, other than those are ‗wholly consumed‘:
I/We request refund of service tax paid on specified services, other than those that are ‗wholly
consumed‘,-
       (a)    used in the manufacture of final products exported from SEZ
(b) used in providing output services exported from SEZ
    I/We furnish following true and correct particulars, in Tables ‗B‘ and ‗C‘, for the purpose of above
refund:
Table – B
No. Details regarding specified  services used in the authorized operations of
SEZ, as approved by the Unit Approval Committee
Amou
nt of
servic
e tax
claime
d as
Refun
d(
includ
ing
educat
ion
cess)
(Rupe
es)
Document
enclosed as
proof of
payment of
service tax
by the SEZ
Unit/Devel
oper, ( sl.no
and date of
invoice/ bill
/ challan)
Descripti
on of
taxable
service
used in
the
authorize
d
operation
s of SEZ
Classifica
tion under
section
65(105)
of the
Finance
Act, 1994
Name
and
addre
ss of
Servic
e
Provi
der
Service
Tax
Registrat
ion
Number
of
Service
Provider
Invoice/Bill/Challan
(original enclosed)
Amount
of
Service
tax paid
(includi
ng
educatio
n  cess)
(Rupees
(
Num
ber
Da
te
Value
of
taxabl
e
servic
e
(Rupe
es)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
1.
2.
TOTAL         --
No. Specified services used for authorised operations in SEZ Unit shared with
Domestic Tariff Area Unit during the period for which refund is claimed[para
2(d)of the notification]
Document
enclosed as
proof of
payment of
service tax (
sl.no and date
of invoice/ bill
/ challan)
Descripti
on of
taxable
service
used in
the
authorize
d
Classifica
tion
under
section
65(105)
of the
Finance
Act, 1994
Name
and
address
of
Service
Provid
er
Service
Tax
Registr
ation
Numbe
r of
Service
Provide
Invoice/Bill/Challan
(original enclosed)
Amount
of Service
tax paid
(including
education
cess)
(Rupees)
Num
ber
Date Value
of
taxabl
e
servic25
(Table - C)
Details
Details for the period to which the invoices pertain and
refund is claimed
Export turnover of
SEZ Unit(s)
Turnover of DTA
unit(s)
Total
turnover
(1) (2) (3) = (1) +
(2)
Final products (a)
Output services (b)
Others(Bought out
goods sold)
(c )
----
Total  (a)+(b)+(c)=(d)
Instructions for compilation of the above statistical table:
(i) To calculate the export turnover of SEZ, in the case of export of goods, FOB value   provided in
Shipping Bills or Bills of Export, should be taken into account, which have been duly certified
by the officer of customs to the effect that the goods have in fact been exported;
(ii) To calculate the export turnover of SEZ, in the case of export of services, value of output
services exported shall be on the basis of certificates issued by the bank certifying realization of
export proceeds.                                                                  
(iii)   Amount of service tax claimed as refund, under Table B read with Table C:
Rupees__________________
(iv)   Particulars filled in the Table C should be verified and certified as true by the statutory auditor
of the SEZ Unit
                                         ------------------------------------------------------------------------------------------------------------------
10. I/We Declare that-
(i) information given in this application for refund is true, correct and complete in every
respect and that I am authorised to sign this application for refund of service tax;
(ii) the specified services, as approved by the Approval Committee of SEZ, on which
exemption/refund is claimed are actually used for the authorised operations in a SEZ;
(iii) refund is being claimed only on the service tax actually paid on the specified services
used for the authorised operations in a SEZ; we have not claimed nor received any
refund of service tax earlier, on the basis of above documents/information.
(iv) We have not taken any CENVAT credit of service tax paid on the specified services
under the CENVAT Credit Rules, 2004;
(v) accounts or documents furnished as proof of  payment of service tax being claimed as
refund, as per the invoice, bill or challan of the service provider indicating the service
tax paid on such specified services, are true and correct in all respects;
(vi) proper account of receipt and use of the specified services on which
exemption/refund is claimed, for the authorised operations in the SEZ, is maintained
and the same shall be produced to the Officer sanctioning refund, on demand.
Signature and name
(of   proprietor/managing partner/
operation
s of SEZ
r e
(Rupe
es)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
1.
2.
TOTAL         --26
person authorised by managing director of SEZ Unit/Developer)
with complete address, telephone and e-mail
Date:
Place:
FORM A-3
DECLARATION FOR OBTAINING SERVICE TAX CODE
[Refer   paragraph 3(c)]
1. Name of the SEZ Unit/Developer:
2. Address of the SEZ Unit/Developer with Telephone and Email:
3. Address of the Registered/Head Office:
4. Permanent Account Number(PAN) of the SEZ Unit/Developer:
5. Import and Export Code Number:
6. Jurisdictional Central Excise/Service Tax Division:
7. Service Tax Registration Number/Service tax Code:
8. Details of Bank Account ( Bank, Address of Branch, Account Number)
9. (a) Constitution of SEZ Unit/Developer [ proprietorship/partnership/Registered Private
Limited Company/Registered Public Limited Company/Others(specify)]
(b) Name, Address, Telephone number of Proprietor/partner/director(s)
10. Name, designation and address of the authorised signatory/signatories
11. I/We hereby declare that-
(i) The information given in this application form is true, correct and complete in every
respect and that I am authorised to sign on behalf of the SEZ Unit/Developer;
(ii) I/We shall maintain proper account of specified services as approved by the Approval
Committee of SEZ, received and used for authorised operations in SEZ; and shall
make available such accounts and related records, at all reasonable times, to  the
Department for inspection or scrutiny.
(iii) I/We shall use/have used specified services for authorised operations in the SEZ.
Signature and Name of Authorised Person with stamp
Date:
Place:

There is new rule for paying Service Tax on service provided in continuous manner and it is called the Point of Taxation Rules, 2011.

This new Point of Taxation Rules, 2011  has  taken care of problem faced in situations where service are provided on continuous basis ,issue of when to raise Invoice and  when to claim   refund of service tax paid on  input service.

The detail notification is reproduced below for reference:

Notification    No. 18/2011 – Service Tax           New Delhi, the 1stMarch, 2011

G.S.R. (E).- In exercise of the powers conferred under clause (a) and clause (hhh) of  subsection (2) of section 94 of the Finance Act, 1994, the Central Government hereby makes the
following rules for the purpose of collection of service tax and determination of rate of service tax,
namely,-
1. Short title and commencement.-(1) These rules shall be called the Point of Taxation Rules, 2011.
(2)  They shall come into force on the 1st  day of April, 2011.
2. Definitions.- In these rules, unless the context otherwise requires,-
(a) “Act” means the Finance Act, 1994 (32 of 1994);
(b) “associated enterprises” shall have the meaning assigned to it in section 92A of the Income
Tax Act, 1961 (43 of 1961);
(c) “continuous supply of service” means any service which is provided, or to be provided
continuously, under a contract, for a period exceeding three months, or where the Central
Government, by a notification in the Official Gazette, prescribes provision of a particular
service to be a continuous supply of service, whether or not subject to any condition;
(d) “invoice” means the invoice referred to in rule 4A of the Service Tax Rules, 1994 and shall
include any document as referred to in the said rule;
(e) “point of taxation” means the point in time when a service shall  be deemed to have been
provided;
(f) “taxable service” means a service which is subjected to service tax, whether or not the same
is fully exempt by the Central Government under Section 93 of the Act;
3. Determination of point of taxation.- For the purposes of these rules, unless otherwise stated,
„point of taxation‟ shall be determined in the following manner, namely:-
(a) a provision of service shall be treated as having taken place at the time when service is
provided or to be provided; and
(b) if, before the time specified in clause (a), the person providing the service issues an invoice
or receives a payment, the service shall, to the extent covered by the invoice or the payment
made thereof, be deemed to have been provided at the time the invoice was issued or the
payment was received, as the case may be, whichever is earlier.
Explanation.- For the purposes of this rule, wherever any advance, by whatever name known,
is received by the service provider towards the provision of taxable service, the point of
taxation shall be the date of receipt of each such advance.
Explanation 2.- For the purposes of this rule, in respect of services taxable under section 66A
of the  Act, the point of taxation under clause (b) shall be the date on which the invoice is
received, or the  payment is made, as the case may be, whichever is earlier.28
4. Determination of point of taxation in case of change of rate of tax.- Notwithstanding anything
contained in rule 3, the point of taxation in cases where there is a change of rate of tax in respect of
a service, shall be determined in the following manner, namely:-
(a) in case a taxable service has been provided before the change of rate,-
(i) where the invoice for the same has been issued and the payment received after the
change of rate, the point of taxation shall be date of payment or issuing of invoice,
whichever is earlier; or
(ii) where the invoice has also been issued prior to change in tax rate but the payment is
received after the change of rate, the point of taxation shall be the date of issuing of
invoice; or
(iii) where the payment is also received before the change of rate, but the invoice for the
same has been issued after the change of rate, the point of taxation shall be the date
of payment;
(b) in case a taxable service has been provided after the change of rate,-
(i) where the payment for the invoice is also made after the change in tax rate but the
invoice has been issued prior to the change of tax rate, the point of taxation shall be
the date of payment; or
(ii) where the invoice has been issued and the payment for the invoice received before
the change of tax rate, the point of taxation shall be the date of receipt of payment or
date of issuance of invoice, whichever is earlier; or
(iii) where the invoice has also been raised after the change of rate but the payment has
been received before the change of rate, the point of taxation shall be date of
issuing of invoice.
5. Payment of tax in cases of new services.- Where a service, not being a service covered by rule 6,
is taxed for the first time, then, –
(a) no tax shall be payable to the extent the invoice has been issued and the payment received
against such invoice before such service became taxable;
(b) no tax shall be payable if the payment has been received before the service becomes taxable
and invoice has been issued within the period referred to in rule 4A of the Service Tax Rules,
1994.
6. Determination of point of taxation in case of continuous supply of service.- (1) In case of
continuous supply of service, the whole or part of which is determined or payable periodically or from
time to time, shall be treated as separately provided at the date on which the payment is liable to be
made by the service receiver, if such date is specified in the contract.
       (2) If, before the time specified in sub-rule (1), the person providing the service issues an invoice
or receives a payment, the service shall, to the extent covered by the invoice or the payment made 29
thereof, be deemed to have been provided at the time the invoice was issued or the payment was
received, as the case may be, whichever is earlier.
Explanation.- For the purposes of this rule, wherever any advance, by whatever name known,
is received by the service provider towards the provision of taxable service, the point of
taxation shall be the date of receipt of each such advance.
Explanation 2.- For the purposes of this rule, in respect of services taxable under section 66A
of the Act, the point of taxation under sub-rule (2) shall be the date on which the invoice is
received, or the payment is made, as the case may be, whichever is earlier.
7. Determination of point of taxation in case of associated enterprises.- The point of taxation in
respect of associated enterprises shall be the date on which the payment has been made, or invoice
under rule 4A of the Service Tax Rules, 1994 has been issued, or the date of debit or credit in books
of accounts of the person liable to pay service tax, whichever is earlier.
8. Determination of point of taxation in case of copyrights, etc. .- In respect of royalties and
payments pertaining to copyrights, trademarks, designs or patents, where the whole amount of the
consideration for the provision of service is not ascertainable at the time when service was performed,
and subsequently the use or the benefit of these services by a person other than the provider gives rise
to any payment of consideration, the service shall be treated as having been provided each time when
a payment in respect of such use or the benefit is received by the provider in respect thereof, or an
invoice is issued by the provider, whichever is earlier.
9. Savings.- Nothing contained in these rules shall be applicable in case of invoices issued prior to the
date from which these rules become effective.

Deeming provision have been inserted in Service Tax Rules, 1994 to determine date for rate of service tax

There is change in   Service tax liability date. Now ,it is "deemed to be provided " rather than  completion of service. Amendment through this Budget( 2011-2012) are reproduced below:




Notification   No. 3/2011 – Service Tax       New Delhi, the 1st March, 2011 
G.S.R.  (E).- In exercise of the powers conferred by sub-section (1) readwith sub-section (2)
of section 94 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the
Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994,
namely :-

1. (1)  These rules may be called the Service Tax (Amendment) Rules, 2011.
(2)  They shall come into force on the 1st  day of April, 2011.
2. In the Service Tax Rules, 1994 (hereinafter referred to as the said rules) in rule 4A, in subrule (1),-
(i) for the word “completion of”, the word “provision of” shall be substituted;
(ii) the third proviso shall be omitted;
(iii) in the fourth proviso, for the words “provided that”, the words “provided also that”
shall be substituted.
3. In the said rules, after rule 5A, the following shall be inserted, namely:-
“5B. Date for determination of rate.- The rate of tax in case of services provided, or to be
provided, shall be the rate prevailing at the time when the services are deemed to have been provided
under the rules made in this regard.”.
4. In the said rules, in rule 6,
(i) in sub-rule (1),-
(a) for the words, “payments are received, towards the value of taxable services”, the
words “service is deemed to be provided as per the rules framed in this regard” shall be substituted;
(b) in the first proviso, for the words, “payments are received, towards the value of
taxable services”, the words “service is deemed to be provided as per the rules framed in this regard”
shall be substituted;
(c) the second proviso shall be omitted;
(d) for the third proviso, the following shall be substituted, namely:-
“Provided also that the service tax on the service deemed to be provided in the month of
March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central
Government by the 31
st
day of March of the calendar year.”;
(e) after the third proviso, the Explanation shall be omitted;
(ii) for sub-rule (3), the following shall be substituted, namely:-5
“(3) Where an assessee has issued an invoice, or received any payment, against a service to be
provided which is not so provided by him either wholly or partially for any reason, the assessee may
take the credit of such excess service tax paid by him, if the assessee.-
(a) has refunded the payment or part thereof, so received alongwith the service
tax payable thereon for the service to be provided by him to the person from whom it was received; or
(b) has issued a credit note for the value of the service not so provided to the
person to whom such an invoice had been issued.”;
(iii) in sub-rule (4B), in clause (iii), for the words, “one lakh rupees”, the words “two lakh
rupees” shall be substituted;
(iv) after sub-rule (6), the following shall be inserted, namely:-
“(6A) Where an amount of service tax payable has been self-assessed under sub-section (1) of
section 70 of the Act, but not paid, either in full or part, the same, shall be recoverable alongwith
interest in the manner prescribed under section 87 of the Act.”.
(v) in sub-rule (7B),-
a) for the figures and words “0.25 per cent. of the gross amount”, the figures
and words “0.1 per cent. of the gross amount” shall be substituted;
b) the Proviso and the Illustration shall be omitted.
Note.-  The principal rules were notified vide notification no. 2/1994-Service Tax, dated the 28
th
June,
1994, published in the Gazette of India, Extraordinary vide number G.S.R. 546(E), dated the 28
th
June, 1994 and last amended vide notification No.49/2010-Service Tax, dated the 8
th
October, 2010,
vide number G.S.R. 822(E), dated the 8
th
October, 2010.

No Service Tax on service provided in relation to Work contract executed wholly within Port

Relevant notification is reproduced here

Notification    No. 11/2011 – Service Tax      New Delhi, the 1st March, 2011

G.S.R. (E).-    In exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government,
on being satisfied that it is necessary in the public interest so to do, hereby exempts services provided
in relation to the execution of works contract, referred to in sub-clause (zzzza) of clause (105) of
section 65 of the Finance Act, when provided wholly within the port or other port, for construction,
repair, alteration and renovation of wharves, quays, docks, stages, jetties, piers and railways from the
whole of service tax leviable thereon under section 66 of the Finance Act.

Determination of value of service in relation to money changing for Charging Service Tax

 How to determine value for service  to levy service tax on Money changing  service  is been clarified by this
Notification     No. 2/2011 – Service Tax       New Delhi, the 1st March, 2011.( text is reproduced)

G.S.R. (E) - In exercise of the powers conferred by clause (aa) of sub-section (2) of section 94
of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the  following rules
further to amend the Service Tax (Determination of Value) Rules, 2006, namely :-
1. (1) These rules may be called the Service Tax (Determination of Value) Amendment Rules, 2011.

(2) Save as otherwise provided under these rules, they shall come into force on the 1st day of April, 2011

2. In the Service Tax (Determination of Value) Rules, 2006(hereinafter referred to as the said
rules),- after rule 2A, the following shall be inserted, namely :-
“2B. Determination of value of service in  relation to money changing.- Subject to the provisions of
section 67, the value of taxable service provided for the services referred to in sub-clause (zm) and
(zzk) of clause (105) of section 65 of the Act, so far as it pertains to purchase or sale of foreign
currency, including money changing, shall be determined by the service provider in the following
manner:-  
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 that currency for that day, multiplied by the total units of currency.
Example I: US$100 are sold by a customer at the rate of Rupees 45 per US$.
RBI reference rate for US$ is Rupees 45.50 for that day.
The taxable value shall be Rupees 500.
Example II: INR70000 is changed into Great Britain Pound (GBP) and the exchange rate offered
is Rupees 70, thereby giving GBP 1000.
RBI reference rate for that day for GBP is Rupees 69.
The taxable value shall be Rupees 1000.
Provided that in case where the RBI reference rate for a currency is not available, the value
shall be 1% of the gross amount of Indian Rupees provided or received, by the person changing the
money:
Provided further that in case where neither of the currencies exchanged is Indian Rupee, the
value shall be equal to 1% of the lesser of the two amounts the person changing the money would
have received by converting any of the two currencies into Indian Rupee on that day at the reference
rate provided by RBI;”3
3. In the said rules, in rule 5, after sub-rule (1), the following „Explanation‟ shall be inserted,
with effect from the 1
st
day of March, 2011namely:-
“Explanation.- For the removal of doubts, it is hereby clarified that for the services specified in subclause (zzzx) of clause (105) of section 65 of the Finance Act, 1994, the value of the taxable service
shall be the gross amount paid by the person to whom telecom service is provided by the telegraph
authority.”
Note.-    The principal rules were notified vide notification no. 12/2006-Service Tax, dated the 19
th
April, 2006, published in the Gazette of India, Extraordinary vide number G.S.R. 228(E), dated the
19
th
April, 2006 and last amended vide notification No.15/2010-Service Tax, dated the 27
th
February,
2010, vide number G.S.R. 159(E), dated the 27
th
February, 2010.

CENVAT credit shall be available only 40 % of tax paid and Works Contract (Composition Scheme for Payment of Service Tax) Amendment Rules, 2011.

1
[TO BE PUBLISED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB SECTION (i)]
Government of India
Ministry of Finance
Department of Revenue
********
                                                          
Notification No.1/2011 – Service Tax
New Delhi, the 1
st
March, 2011
G.S.R.    (E).- In exercise of the powers conferred by sections 93 and 94 of the Finance Act,
1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest
so to do, hereby makes the following rules further to amend the  Works Contract (Composition
Scheme for Payment of Service Tax) Rules, 2007, namely :-

1. (1) These rules may be called the Works Contract (Composition Scheme for Payment of
Service Tax) Amendment Rules, 2011.

(2) They shall come into force on the date of publication in the official gazette.
2. In the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007, in
rule 3, after sub-rule (2), the following sub-rule (2A) shall be inserted, namely:-
“(2A) The CENVAT credit of tax paid on taxable services as referred to under sub-clauses
(zzd), (zzq) and (zzzh) of clause (105) of section 65 of the Finance Act, 1994, shall be available
only to the extent of 40% of the service tax paid when such tax has been paid on the full value
of the service after availing CENVAT credit on inputs.”.


Note.-    The principal rules were notified vide notification no. 32/2007-Service Tax, dated the 22nd
May, 2007, published in the Gazette of India, Extraordinary vide number G.S.R. 378(E), dated the
22nd May, 2007 and last amended vide notification No.23/2009-Service Tax, dated the 7thJuly, 2009, vide number G.S.R. 495 (E), dated the 7thJuly, 2009.

Proprietary firm exempted form Audit

Now Proprietary firm are  exempted form Tax  Audit  ,whose turn over is less than Rs 16 lakhs.
Exemption form Service tax audit to proprietary firm

New Services have been brought into Service Tax net

Service tax in this budget


New services on Hotel accommodations , Air Travel , Legal Service provided by Individual to Business entities, and investment by insurance company, Hospital above 25 beds and air-conditioned Restaurant. Details will be known only after notifications and  circulars issued by CBEC. 

No change in Service tax rate

No change in Service Tax


In this budget , no change in  Service tax rate of 10 % has been made by FM.