Blog 10 : General & Mega Exemption :

Exempted Services :

Classified in to ..

1)     General Exemption

2)     Mega Exemption under Notification 25/2012 dated 20^th June 2012.

General Exemption :

1)     Small Service Provider (S.S.P.)

A service provider, whose taxable service in previous year are less than or equal to Rs. 10 Lakhs. Such limit is called as threshold limit. Also registration is not required when taxable service provided by them is valued up to Rs. 9 Lakhs. Capital Goods purchased during the period of exemption not qualify for CENVAT credit. The limit of Rs. 10 lakhs is computed on the basis of the value of invoices in a financial year & not on the basis of payment received.

Exceptions (Exemption is not available) :

i)              Taxable Turnover exceeds Rs. 10 Lakhs

ii)             Service recipient has to pay service tax

iii)            Provider of service under the brand name of others.

2)     Exemption on services to Special Economic Zone (SEZ)

3)     Exemption to extent of Research & Development cess paid on import of technology.

4)     Exemption of services to foreign diplomatic mission.

5)     Exemption on services by Technology Business Incubatee (TBI) & Science & Technology Entrepreneurship park (STEP)

6)     Exemption from education cess & secondary & higher education cess, where service tax is exempted.

7)     Exemption to specified export promotion schemes – Focus Market scheme, Focus Product Scheme & Vishesh Krishi & Gram Udyog Yojana.

Blog 9 : Invoice under Rule 4A :

Invoice under Rule 4A :

Service Provider has to issue invoice / challan / bill within 30 days from the date of completion of service of from the date of payment, whichever is earlier.

Invoice contain,

      I.        Name, Address, Registration Number & Category of Service of said person.

     II.        It should be serially numbered.

    III.        Name & address of a person who is receiving the service.

   IV.        Description, classification of taxable value of service provided

    V.        Service tax payable thereon

   VI.        If invoice is in Reverse charge, the same has also to be mentioned in invoice for the share of service provider & the receiver to discharge the liability respectively.

  VII.        It should be signed either physically or digitally, i.e. signature is must on the invoice.

 VIII.        Tax payment is to be round up.

Specimen under reverse charge ..

Particulars		Amount
Taxable service		1,000.00
Service Tax.
Service Tax thereon	124.00
Less : Payable by service Recipient (Assume 50%)	62.00	62.00
Invoice Value		1,062.00

Blog 8 : Manner of Payment of Service Tax :

Manner of Payment of Service Tax :

1)     Calculate the amount payable after CENVAT credit

2)     Pay by remittance in GAR 7 challan

3)     Service tax is payable on the amount net of VAT or ST.

4)     Service tax payable as service recipient is only through remittance by challan GAR 7. This cannot be paid by adjusting CENVAT credit.

Payment of Service Tax :

The Tax has to be paid through GAR 7 challan. If in previous year, tax paid is more than or equal to Rs, 1 Lakhs (including the amount paid by utilisation of CENVAT credit) the payment should be made electronically i.e. through internet banking.

Due Dates for paying to the credit of Central Government are :

Other than body Corporate (Individual / Firm / LLP) :

Payable on amounts received during the quarter	Due Date
	Manual	e-Payment
1st April to 30th June	5th July	6th July
1st July to 30th September	5th October	6th October
1st October to 31st December	5th January	6th January
1st January to 31st March	31st March	31st March

Body corporate (HUF / Companies / AOP / BOI/ Society etc.) :

Payable on amounts received during the month	Due Date
	Manual	e-Payment
April	5th May	6th May
May	5th June	6th June
June	5th July	6th July
July	5th August	6th August
August	5th September	6th September
September	5th October	6th October
October	5th November	6th November
November	5th December	6th December
December	5th January	6th January
January	5th February	6th February
February	5th March	6th March
March	31st March	31st March

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