CBEC extends the due date of filing of the half yearly Service Tax Return (ST-3) for the period Apr, 2014- Sep, 2014 from 25-Oct-2014 to 14-Nov-2014.

The relevant order is reproduced here for ready reference:

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 Finance (No. 2) Act 2014 had proposed certain changes in Negative List which were to be applicable from a future date to be notified. These changes have now been effected from 1st October, 2014 vide Notification No. 18/2014-ST dated 25th August, 2014.

Consequent to this  notification, following shall be the impact.

Service Tax will be applicable on:

  • Radio Taxi 

( The abatement of 60% presently available in terms of Notification No. 26/2012-ST Dated 20-6-2012, duly amended by Notification No. 8/2014-ST Dated 11-7-2014, to rent-a-cab service would also be made available to radio taxi service, to bring them on par.)

  • Sale of space or time slot for advertisement  other than print media

Advertisements in internet websites, out-of-home media, on film screen in theaters, bill boards, conveyances, buildings, cell phones, Automated Teller Machines, tickets, commercial publications, aerial advertising, etc. (sale of space for advertisements in newspapers, book other than business directories/yellow pages/trade catalogs would continue to be non-taxable)

The relevant notification is reproduced here for ready reference:

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Service Tax Return (ST-3) excel utility for the period of October 2013 to March 2014( second half of the financial year 2013-14 ) is now available in ACES for e-filing by the assesses in both offline and online versions. The last date of filing the ST-3 return for the above mentioned period is 25th April, 2014.

The utility is attached here :

ACES E FILING-ST-3

 

Doubts have been raised regarding the scope and applicability of various exemptions available to various activities in relation to rice, under the negative list approach.

These doubts have been examined and clarifications are given in the circular, reproduced here for ready reference:

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To give effect to amendments made by the Interim Budget, 2014, CBEC  has amended the Mega Exemption Notification as given here under:

(i) after entry 2, the following entry shall be inserted, namely:–
“2A. Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation;”;
(ii) after entry 39, the following entry shall be inserted, namely:-
“40. Services by way of loading, unloading, packing, storage or warehousing of rice.”.

The relevant notification is reproduced here for ready reference:

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No Service Tax Required to be Paid on Services Provided by An Authorized Person or Sub-Brokers to the Member of a Commodity Exchange in Respect of Such Taxable Service on which the Service Tax was not Being Levied During the Period Commencing from The 10th Day of September 2004 and Ending with the 30th Day of June 2012 in Accordance with the Prevalent Practice.

The Central Government is satisfied that a practice was generally prevalent regarding levy of service tax (including non-levy thereof), under section 66 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as ‘the Finance Act’), on services provided by an authorised person or sub-broker to the member  of a recognised association or a registered association, in relation to a forward contract,  and that such services were liable to service tax under the Finance Act, which was not being levied according to the said practice during the period commencing from the 10th  day of September 2004 and ending with the 30th  day of June 2012.

Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, the Central Government hereby directs that the service tax payable on the services provided by an authorised person or sub-broker to the member  of a recognised association or a registered association, in relation to a forward contract, shall not be required to be paid in respect of such taxable service on which the service tax was not being levied during the aforesaid period in accordance with the said practice.

The relevant notification is reproduced here for ready reference:

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New Definition of Governmental Authority :

“governmental authority”

means an authority or a board or any other body;

(i)  set up by an Act of Parliament or a State Legislature; or

(ii) established by Government,

with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution;’.

The effect of this notification is that; earlier organizations established by Government to carry out any function entrusted to municipality under article 243W of the constitution were covered under the definition of ‘governmental authority’ only if  these organizations were set up by an Act of the Parliament or a State Legislature.

Now after this amendment, these organizations fall under the definition of ‘governmental authority’ even if these are not set up by an Act of the Parliament or a State Legislature.

The relevant notification is reproduced here for ready reference :

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CBDT vide circular no. 01/2014 dated 13.01.2014 clarified that TDS under Section 194J (chapter XVII-B of the Income Tax Act, 1961) shall be deducted on the amount paid/payable pursuant to the agreement/contract, without considering the Service tax portion.

As a result of the same, if Service tax payable has been shown separately in the invoice, TDS on professionals under Section 194 J shall be deducted only on the amount as agreed in agreement/contract.

Earlier CBDT vide circular no. 04/2008 dated 28.04.2008 had clarified that TDS under Section 194I (chapter XVII-B of the Income Tax Act, 1961) shall be deducted on the amount of the rent paid/payable without considering the Service Tax portion.

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CBEC has issued a new Circular No 174/9/2013 – ST dtd 25th November 2013 , regarding the new Voluntary Compliance Encouragement Scheme 2013 (VCES 2013).

This circular aims to remove certain issues raised by assessees, regarding  the Service Tax Voluntary Compliance Encouragement Scheme.

The relevant Circular is reproduced here for ready refernce:

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Taking another step towards widening its ambit on its assessees, Central Board of Excise & Customs has reduced the threshold limit for mandatory e payment of Service Tax &  Central Excise Duty from Rs 10 Lakh to Rs 1 Lakh.

Under the extant rules an assessee who has paid a total service tax/excise duty of rupees ten lakh or more including the amount paid by utilization of CENVAT credit, in the preceding financial year, is required to deposit the service tax/excise duty liable to be paid by him electronically, through internet banking.

This threshold of Rs 1o lakh has been reduced to Rs 1 lakh.

Hence, now as evinced by the relevant notifications, the  modified rules stand substituted as under:

 “an assessee who has paid a total service tax/excise duty of rupees one lakh or more including the amount paid by utilization of CENVAT credit, in the preceding financial year, is required to deposit the service tax/excise duty liable to be paid by him electronically, through internet banking.

The relevant notifications are reproduced here for ready reference:

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