Blog 7 : Negative List of Services (As Amended) :

It shall comprises following, viz..

(a)   Service provided by Government or local body, excluding following.

-       By Department of post by way of

i)        Speed Post

ii)       Express Parcel Post

iii)      Life insurance & Agency service provided to a person other than Government.

-       Service in relation to an aircraft or vessel inside or outside of port or airport.

-       Transport of Goods or Passengers

-       Support services, other than covered above, provided to business entity.

(b)   Service provided BY Reserve bank of India.

(c)   Service by foreign diplomatic mission located in India.

(d)   Service relating to Agriculture or agricultural produce by way of –

-       Operations directly related to production including, cultivation, harvesting, testing etc..

-       Supply of Farm labour

-       Process including, tending, cutting, harvesting, dyeing, cleaning, cooling, bulk packaging & such other operations, which do not alter the essential character of the agriculture produce but is make it marketable.

-       Renting or Leasing of agro machinery or vacant land

-       Loading, unloading, packing, storage or warehousing of agricultural produce.

-       Agriculture extension services such as scientific research, farmer education & training.

-       Service by Agricultural produce marketing committee or board, or service provided by a commission agent for sale or purchase of agricultural produce.

(e)   Trading of goods (i.e. movable)

(f)    Process amounting to manufacture or production of goods.

(g)   Sale of space or time for advertisements on print media (excludes business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes.)

(h)   Access to road or bridge by way of Toll Charges.

(i)     Betting, gambling, lottery.

(j)     Entry to entertainment events or access to amusement facilities.

(k)   Transmission or distribution of electricity

(l)     Service by way of

-       Pre-school & up to higher secondary school or equivalent education.

-       Qualification education as recognized by any law.

-       Education as a part of vocational education course.

(m)  Renting of residential dwelling for residential use,

(n)   Banking, financial & insurance services.

-       Deposits, loans & advances (consideration is represented as interest of discount). (Service provided by way of sale of foreign exchange to general public is not covered in negative list).

(o)   Transportation of Passengers with or without accompanied belongings by,

-       A stage Carrier

-       Railways in class other than First Class or AC Coach

-       Metro, monorail or tramway

-       Inland waterways

-       Public transport other than predominantly for tourism purpose in a vessel, between places located in India.

-       Metered Cabs    or auto rikshwas

(p)   services by way of transportation of goods

-       by road except service of

i)        a goods transportation agency

ii)       a courier agency

-       by an aircraft or a vessel from a place outside India up to the customs station of clearance or

-       by inland water ways.

(q)   Funeral, burial, crematorium or mortuary services including transportation of the deceased.

# Print Media means : Sec 65B (39a) :

(i) ―book - as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867, but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes;

(ii) ―newspaper - as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867

Blog 7 : Negative List of Services :

It shall comprises following, viz..

(a)   Service provided by Government or local body, excluding following.

-       By Department of post by way of

i)        Speed Post

ii)       Express Parcel Post

iii)      Life insurance & Agency service provided to a person other than Government.

-       Service in relation to an aircraft or vessel inside or outside of port or airport.

-       Transport of Goods or Passengers

-       Support services, other than covered above, provided to business entity.

(b)   Service provided BY Reserve bank of India.

(c)   Service by foreign diplomatic mission located in India.

(d)   Service relating to Agriculture or agricultural produce by way of –

-       Operations directly related to production including, cultivation, harvesting, testing etc..

-       Supply of Farm labour

-       Process including, tending, cutting, harvesting, dyeing, cleaning, cooling, bulk packaging & such other operations, which do not alter the essential character of the agriculture produce but is make it marketable.

-       Renting or Leasing of agro machinery or vacant land

-       Loading, unloading, packing, storage or warehousing of agricultural produce.

-       Agriculture extension services such as scientific research, farmer education & training.

-       Service by Agricultural produce marketing committee or board, or service provided by a commission agent for sale or purchase of agricultural produce.

(e)   Trading of goods (i.e. movable)

(f)    Process amounting to manufacture or production of goods.

(g)   Selling of Space or time slot for advertisement, other than by Radio or Television.

(h)   Access to road or bridge by way of Toll Charges.

(i)     Betting, gambling, lottery.

(j)     Entry to entertainment events or access to amusement facilities.

(k)   Transmission or distribution of electricity

(l)     Service by way of

-       Pre-school & up to higher secondary school or equivalent education.

-       Qualification education as recognized by any law.

-       Education as a part of vocational education course.

(m)  Renting of residential dwelling for residential use,

(n)   Banking, financial & insurance services.

-       Deposits, loans & advances (consideration is represented as interest of discount). (Service provided by way of sale of foreign exchange to general public is not covered in negative list).

(o)   Transportation of Passengers with or without accompanied belongings by,

-       A stage Carrier

-       Railways in class other than First Class or AC Coach

-       Metro, monorail or tramway

-       Inland waterways

-       Public transport other than predominantly for tourism purpose in a vessel, between places located in India.

-       Metered Cabs, Radio Taxis or auto rikshwas

(p)   services by way of transportation of goods

-       by road except service of

i)        a goods transportation agency

ii)       a courier agency

-       by an aircraft or a vessel from a place outside India up to the customs station of clearance or

-       by inland water ways.

(q)   Funeral, burial, crematorium or mortuary services including transportation of the deceased.

Blog 6 : Small Service Provider Exemption :

Service tax provides for an exemption to small service providers who provide taxable services of a value not exceeding the specified limit. The specified limit is now Rs. 10 lakhs. In other words where the value of taxable services provided do not exceed Rs. 10 lakhs in the previous financial year, the concerned service provider would not be required to pay service tax up to receipts of Rs. 10 lakhs in the current financial year. The exemption is through notification 33/2012ST as amended from time to time. The service provider should however satisfy certain conditions which are as follows –

·         Taxable services provided by a person under a brand name or a trade name (whether registered or not) of another person would NOT be eligible for this exemption

·         A receiver of services who is liable to pay service tax on the services he has received. Eg. Import of Service & recipient of Goods Transport Agency service.

·         Once an option is exercised in regard to this exemption during a financial year, it cannot be changed in the same financial year. [This however does not mean that the claiming of the exemption makes it compulsory to claim for the whole year. In between even without reaching Rs.10 lakhs the option to pay can be made.]

·         No cenvat credit can be availed on inputs or input services used in providing such output service for which exemption is being claimed.

·         Cenvat credit cannot be availed on capital goods received in the premises of provider of such service during the exemption period.

·         On the date of availment of exemption option, the service provider who has taken cenvat credit, shall pay an amount equivalent to the cenvat credit taken by him in respect of inputs lying in stock or in process on the date of availment of exemption. After paying such an amount, if there is any balance of cenvat credit remaining unutilized, such balance would lapse.

·         The exemption shall apply in respect of the aggregate value of ALL taxable services provided by the service provider (even if from more than one premises) and not individually.

·         Exempted services shall be outside the purview of the exemption of this notification. In other words, the value for ascertaining the limit of Rs. 10 Lakhs would be that of taxable services alone on which service tax is payable.

·         The aggregate value of such services provided in the preceding financial year should not exceed the aforesaid exemption limit.

Blog 5 : Input Service Distributor :

Where the service provider is providing the output service from the multiple locations can receive input services invoices at one location and distribute the credit on input services to various locations of the service provider subject to the following conditions.

·         Credit distributed shall not exceed the amount of service tax paid on input service

·         Credit shall not be distributed on input service which is used exclusively in providing the exempted service

·         Where an input service which is used exclusively in one unit entire credit on such input service shall be distributed to that unit only.

·         Where an input service is used for more than one location credit on such input shall be distributed to all such units on the basis of turnover of each unit to the total turnover of all the units.

This facility could be used where the manufacturer or service provider has a system of receiving the bills for input services at the Head Office or at branch offices but the credits are to be distributed to the registered service units providing taxable services or the factories engaged in manufacturing. Where the assessee has independent registration for the various service units/factories, this scheme would be particularly useful. The scheme requires the Head Office/branch office seeking to distribute the cenvat credits to the individual units, to register under service tax as an ISD (Input Service Distributor).

Once registered, the Head Office/branch office would issue an invoice, bill or a challan to each of the recipient to whom the credit is sought to be distributed. The invoice, bill or challan is to be serially numbered and shall contain –

·         Details as to name, address and registration number of the provider of input services.

·         Details of the document/bill given by such input service provider.

·         Name and address of the input service distributor.

·         Name and address of the recipient of the distributed credit.

·         The amount of the credit that is sought to be distributed.

Blog 4 : Procedures of Registration & Service Tax Forms :

1)     Apply for registration in Form ST-1 to Superintendent of Central Excise.

2)     Submit all the proofs viz. PAN, residential proof, address proof, partnership deed in case of firm, Memorandum or Articles of Association in case of Company.

3)     The superintendent of Central Excise will grant certificate in ST-2.

The service provider can subsequently Add or delete the category of services from time to time as require.

Amendment or addition of service is require if assesse is require to remit the service tax as input service recipient. The same has also to be reported while filing the return in ST-3.

 Service Tax Forms :

Sr. no.	Liability	When and by whom	Time period	Form
1	Service Tax Registration	At the time of starting of business by the assessee	Within 30 days from the date of starting the business or reaching INR 9 lakhs taxable turnover or commencement of new levy	ST-1
	Amendment in the Service Tax registration certificate		Within 30 days of any change
2	Service Tax Registration Certificate	To be issued by Service Tax Department	Within 7 days from the date of receipt of application	ST-2
3	Service Tax return	Half Yearly / Assessee	Within 25 days after completion of half year	ST-3
			25th October 25th April
4	Appeal to Commissioner of Central Excise (Appeals)	Assessee	Within 2 months from the date of receipt of order	ST-4
5	Appeal to CESTAT	Assessee	Within 3 months from the date of receipt of order	ST-5
6	Cross objections	Assessee / Department	Within 45 days from the date of receipt of notice	ST-6
7	Appeal to CESTAT	Department	Within 4 months from the date of receipt of order	ST-7
8	Payment of Service Tax	Corporate Assessee	Within 5 days from the end of month	GAR-7 challan
			Within 6 days from end of month in case of e-payment
			For March, Tax payment shall be made on or before 31st March.
9	Payment of Service Tax	Non Corporate Assessee	Within 5 days from the end of quarter	GAR-7 challan
			Within 6 days from end of quarter in case of e-payment
			For quarter ending March, Tax payment shall be made on or before 31st March.