It is an exhaustive definition and covers all the activities except the one excluded from the purview of service. Superintendent of central excise section 70 of the finance act, 1994. Section 66b specifies the charge of service tax which is. There are changes that may be brought into force at a future date. As per section 66b of the finance act, 1994, there shall be levied a tax hereinafter referred to as the service tax at the rate of fourteen per cent on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one. Service tax act and rules as amended by finance act 2016. Classification of taxable services upto 3062012 section 65b. Section 65a of finance act 1994 taxindiaupdates in. The taxability of services or the charge of service tax has been specified in section 66b of the act. When such activities are carried out by one person for another in the taxable territory for a consideration then such activities are taxable services. Service tax is to be paid to the credit of the central government by the 6th day of the month, if the duty is deposited electronically and by the 5th day of the month, in any other case, immediately following the calendar month in which the service is deemed to be provided. This section is also popularly known as reverse charge mechanism. Insertion of explanation to section 66b of the finance act, 1994. Service tax was a tax levied by the central government of india on services provided or agreed.
Section 67 of the finance act, 1994 the fa, 1994 deals with the valuation of taxable services for the purpose of levy of service tax. Amendment of section 49 tax treatment of foreign trusts of finance act, 1993. The negative list shall comprise of the following services, namely. Finance act, 1994 service tax service tax rules, 1994.
Charge of service tax on services received from outside india. Section 66b of finance act, 1994 charge of service tax. Service tax act chapter v of the finance act, 1994. Section 65b 44 of the finance act, 1994 tax on service. Statutory provisions, 1994 chapter v of the finance act, 1994. Section 67, 67a, 68, 69 and 70 service tax has been subsumed in gst 1 67.
Finance act 1994 section 67 judgments legalcrystal. Valuation of taxable services for charging service tax. All images are property of and belong to their respective owners. Article on applicability of tax on services provided. Agreed to be provided means it also covers the cases where services are provided on credit. You have chosen to open the whole act as a pdf the whole. Recent amendments in service tax act rules issues opgc. Section77 penalty for contravention of rules and provisions of act for which no penalty is specified elsewhere section78 penalty for suppressing value of taxable service section79 penalty for failure to comply with notice. There shall be levied a service tax at the rate of twelve per cent on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected.
Section 66b charge of service tax on and after finance act, 2012 there shall be levied a tax hereinafter referred to as the service tax at the rate of fourteen per cent. Reduced rate of capital gains tax on certain disposals of shares by individuals. As such there is no requirement to pay gst once the liability of service tax was levied on the services under the finance act, 1994. Section 93 of the finance act also confers power to the central government to grant exemption from service tax for any service, which may not be on the. Provided that swachh bharat cess shall not be leviable on services which are exempt from service tax by a notification issued under sub section 1 of section 93 of the finance act, 1994 or otherwise not leviable to service tax under section 66b of the finance act, 1994.
To do an act, has been specified as declared service. Presentation has been prepared from a speakers point of view for purpose of a seminar and thus it has not been described in detail. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. Service tax in india a handbook deloitte united states. Service tax act chapter v of the finance act, 1994 cbic. By the authority of this section, references to section 66 charging section under the positive list approach in chapter v of the finance act, 1994 or any other act, will be construed as reference to section 66b charging section under the negative list approach, with effect from the. Recovery of service tax under section 87 of finance act. Jun 28, 2015 declared services section 66e of finance act, 1994 1. To be a taxable a service should be provided or agreed to be provided by a person to another. Section 66b is the charging section and holds a vital importance in understanding the service tax act. Declared service as per section 66e e of the finance act, 1994, agreeing to the obligation.
Activity by way of erection of pandal or shamiana is a declared service, under section 66e 8f. Chapter v of finance act, 1994 section 65 definitions clause 105 taxable services 105 taxable service means any 1 service provided or to be provided, a 2 to any person, by a stockbroker in connection with the sale or purchase of securities listed on a recognised stock exchange. It is levied and collected under finance act, 1994. Finance act 1994 is up to date with all changes known to be in force on or. However, as per s 158 of the finance act, 2003, during the period commencing on and from the 16th day of july, 1997 and ending with the 16th day of october, 1998 the provisions of s 68 of the finance act, 1994 as modified by section 116 of the finance act, 2000, shall have effect and be deemed always to have had effect subject to the following. The words amount due may be, in the context of finance act, 1994, as service tax due. Important sections inserted in finance act, 1994 applicable. Section 66a of finance act, 1994 the reverse charge mechanism. Sc holds that no service tax is payable on reimbursable. Service tax, 1994 bare acts law library advocatekhoj.
The law has expanded its reach to cover most transactions of services and now pervades all sectors of the economy. Taxable territory is defined in section 65b of the finance act 1994. Scope of service in terms of this entry, the following activities, if carried out by a person for another for. Service tax amendments proposed in chapter v of the. Service tax has assumed significance in recent years as one of the major contributors to the. Service tax act chapter v of the finance act, 1994 as on 142017 section 64. Service tax chapterv of the finance act 1994 as amended. Finance act, 1994 or any other act for the time being in force, shall be construed as reference to section 66b thereof. There shall be levied a tax hereinafter referred to as the service tax at the rate of fourteen per cent on the value of.
Jun 03, 2016 this section is applicable from the 1 st july 2012. From time to time, finance act is amended from time to time and changes are made under. Amendment of section 34 exemption from tax of income derived from patent royalties of finance act, 1973. Section 66a of finance act, 1994 the reverse charge. The following nine activities have been specified in section 66e. Restriction on capital allowances for certain leased machinery or plant. Insertion of explanation to section 66b of the finance act. Service tax negative list amended by finance bill 2017. In this chapter, unless the context otherwise requires, 1 actuary has the meaning assigned to it in clause 1 of section 2 of the insurance act. Dec 17, 2012 the taxability of services or the charge of service tax has been specified in section 66b of the act. Finance act, 1994 32 of 1994, the central government hereby makes the following rules for the purpose of the assessment and collection of service tax, namely. In the negative list approach of taxation of services, the definition of service gains paramount importance. Whereas difficulties have arisen in giving effect to the provisions of section 143 of the finance act, 2012 23 of 2012, in so far as it relates to insertion of section 66b in chapter v of the finance act, 1994 32 of 1994. Service tax negative list amended by finance act 2017.
In terms of section 66b of the finance act, 1994 service tax act as amended by the finance act 201 7 service tax will be leviable on all services provided in the taxable territory by a person to another for a consideration other than the services specified in the service tax negative list. Section 93 of the finance act also confers power to the central government to grant exemption from service tax. As per the finance act, 1994, service tax has to be paid by the service provider while for providing any service at the rate mentioned under section 66b, which shall be collected from service recipient. The bare text of section 66b is available in the annexure, and the same can also be downloaded in the pdf version. May 21, 2012 proposed section 66b of finance act, 1994 shall be the new charging section of service tax. However, the said exemption does not cover services specified in subclauses i, ii and iii of clause a of section 66d of the finance act, 1994. Recovery of service tax under section 87 of finance act,1994. The section 66d introduced in the finance act, 1994 states that the negative list would be comprising of the following. Chapter v of finance act, 1994 tax management india. Finance act 1994 complete act citation 50783 bare act. Further, in case of continuous service, the exemption shall be applicable where the gross amount charged for such service does not exceed rs. Chapter v of the finance act, 1994 as amended service tax.
Section 66a creates a charge on service recipient in some cases, basically in the cases of import. Disclaimer all images are for representational purposes only. Service tax on construction activities caclubindia. 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 said finance act. Service tax negative list as amended by finance act 2017. In terms of section 66b of the finance act, 1994 service tax act as amended by the finance act. Jun 03, 2016 so to level the field for both resident and nonresident and also to increase the tax revenue, government introduced section 66a through finance act, 2006. An act to grant certain duties, to alter other duties, and to amend the law relating to the national debt and the public revenue, and to make further provision in connection with finance.
Service tax act chapter v of the finance act, 1994 section. Section 66ba of finance act, 1994 section 66 to be construed as section 66b by ca paras mehra background finance act, 1994 governs the service tax in india. Service tax chapter v of the finance act, 1994 section 64. Section 66ba of finance act, 1994 section 66 to be. Amendment of section 46 limited partnerships of finance act, 1986.
The words agreed to be provided are off prime importance. Section 87 prescribes the procedure for the recovery of amount due to the central government. Section56 amendment of section 3 of act 45 of 1974. In this chapter, unless the context otherwise requires. Person liable to pay service tax is governed by service tax rules, 1994 he may be. Section 66b of finance act 1994 plays a vital role in understanding the term service tax levy on services other than services enumerated in the negative list. Important sections inserted in finance act, 1994 applicable from 01. This section was introduced by finance act, 2006 w. In the service tax determination of value rules, 2006 hereinafter referred to as the said rules, for rule 2a, the following rule shall be substituted, namely. Service tax in india on overseas online services being. Cgst act igst act utgst act gst compensation to the states act addendum to the gst rate schedule 03. Section 87 was inserted by the finance act, 2006 with effect from 18.
Taxable territory means the territory to which the provisions of this chapter apply, or in other words, taxable territory means india excluding the state of jammu and kashmir. The cbec has clarified that education cess and secondary and higher education cess on service tax would continue to be applicable even post introduction of taxation of services based on negative list. Service tax act chapter v of the finance act, 1994 section 64. This section is applicable from the 1st july, 2012. Section 3, sub section i government of india ministry of finance department of revenue notification no. Penal action under section 77 of the finance act, 1994. The provision of this section shall not apply on or after 1st july, 2012.
Earlier, under the selective approach of taxation of services, the word service was nowhere defined in the finance act, 1994. Finance act 1994 is up to date with all changes known to be in force on or before 14 may 2020. Bare text of section 66b the bare text of section 66b is available in the annexure and the same can also be downloaded in the pdf version. Tag service tax under section 66b of the finance act 1994. What is not service explanation to section 65b44 the word service has been defined for the first time in finance act,2012 under section 65b 44. Further, the service tax determination of value rules, 2006 the rules were also issued, to specify inclusion or exclusion of various amounts in the value of taxable services. Section 65b, finance act, 1994 2016 interpretations. Service defined in section 65b 44 of the finance act, 1994, includes a declared service. The provisions of section 2 of, and the first schedule to, the finance act, 1995 22 of 1995 shall apply in relation to income tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of april, 1996, as they apply in relation to income tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of. Short title and commencement 1 these rules may be called the service tax rules, 1994. For the removal of doubts, it is hereby clarified that the references to the provisions of section 66 in chapter v of the finance act, 1994 32 of 1994 or any other act, for the purpose of levy and collection of service tax, shall be construed as references to the provisions of section 66b. Succession act, 1925 including any other testamentary.
The process of erection of pandal or shamiana is a reasonably specialized job and is carried out by the supplier with the help of his own labour. The sections relevant for our analysis are section 66b and section 67a of the act which are reproduced below. Section 65a of finance act 1994 classification of taxable services. In this chapter, unless the context otherwise requires, 1 actionable claim shall have the meaning assigned to it in section 3 of the transfer of property act, 1882 4 of 1882. Analysis section 66b is the charging section and holds a vital importance in understanding the service tax act. Sunset clause of this section the provision of this section shall not apply on or after 1st july, 2012.
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