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. Chapter shall apply for refund under this section retrospectively as if the said chapter had been in force at all material times. Section 66b of the finance act, 1994 prescribes the service tax rate. Provided that swachh bharat cess shall not be leviable on services which are exempt from service tax by a notification issued under subsection 1 of section 93 of the finance act, 1994 or otherwise not leviable to service tax under section 66b of the finance act, 1994. All images are property of and belong to their respective owners. It used to levied on the total value of services provided. Finance act, 1994 or any other act for the time being in force, shall be construed as reference to section 66b thereof. Amendment of section 34 exemption from tax of income derived from patent royalties of finance act, 1973. 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. It is levied and collected under finance act, 1994. Tag service tax under section 66b of the finance act 1994. Subject amendments in service tax laws through finance act, 2012.
Collection of fines, penalties and liquidated damages by a company from their customers for any deficiency of. Section 66b of finance act, 1994 charge of service tax. Restriction on capital allowances for certain leased machinery or plant. 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. From time to time, finance act is amended from time to time and changes are made under. 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. As per section 66b of the act, there shall be tax levied on the value of service if provided or agreed to be provided in a taxable territory. This section was introduced by finance act, 2006 w. Activity by way of erection of pandal or shamiana is a declared service, under section 66e 8f. 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 chapter v of the finance act, 1994 section 64. Charge of service tax on services received from outside india.
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. Jun 28, 2015 declared services section 66e of finance act, 1994 1. 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. Section 66a of finance act, 1994 the reverse charge. Penalty for contravention of rules and provisions of act for which no penalty is specified elsewhere. Section 66ba of finance act, 1994 section 66 to be. It is an exhaustive definition and covers all the activities except the one excluded from the purview of service. This chapter extends to the whole of india except the state of jammu and kashmir. In business laws, from nujs, kolkata, discusses service tax in india on overseas online services being accessed from india introduction. It has been amended by section 108 of the finance act, 2015. 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.
Penalty for contravention of rules and provisions of act for which. A2z taxcorp llp is a professionally managed firm and having team. Section 65b 44 of the finance act, 1994 tax on service. Section 67a subsection 2 the time or the point in time with respect to the rate of service tax shall be such as may be prescribed section 942a. Service tax chapterv of the finance act 1994 as amended chapter v of the finance act, 1994 as amended service tax. In order to determine the place of provision of services, the place of provision of services rules, 2012 has been notified. A2z taxcorp llp is a professionally managed firm and having team of distinguished chartered accountants, company secretary, lawyer. Section 66ba of finance act, 1994 section 66 to be construed.
Service tax act chapter v of the finance act, 1994 section. The taxability of services or the charge of service tax has been specified in section 66b of the act. The word taxable territory has been defined in section 65b52 as territory to which the provisions of chapter v of finance act, 1994 as amended apply, i. 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. Service tax rules, 1994 in exercise of the powers conferred by sub section 1 read with sub section 2 of section 94 of the 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. Jan 24, 2019 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. 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. Changes in the finance act, 1994 and rules except mega. 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. Section56 amendment of section 3 of act 45 of 1974. 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. This notification shall come into force from the 15th day of november, 2015.
In the negative list approach of taxation of services, the definition of service gains paramount importance. Further, in case of continuous service, the exemption shall be applicable where the gross amount charged for such service does not exceed rs. The words amount due may be, in the context of finance act, 1994, as service tax due. Insertion of explanation to section 66b of the finance act. B in section 66b, the explanation shall be omitted.
Service tax act chapter v of the finance act, 1994 cbic. Service tax act chapter v of the finance act, 1994 section 64. In exercise of the powers conferred by subsection 1 of section 93 of the finance act, 1994 32 of 1994 hereinafter referred to as the said act, and in supersession of notification number 2012 service tax, dated the 17 th march, 2012, published in the gazette of india, extraordinary, part ii, section 3, subsection i vide number g. Bare text of section 66b of finance act, 1994 popularly known as service tax act charge of service tax on and after finance act, 2012. It was collected by the provider of services from the consumer and deposit with the government. Section 66b is the charging section and holds a vital importance in. In this article, anupam pillai who is currently pursuing m. Since then it was amended time to time by government of india keeping in mind the practical problems and the need for tax revenue. Service tax in india on overseas online services being. 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. There are currently no known outstanding effects for the finance act 1994, section 66b.
In terms of section 70 read with rule 73 of str, 1994 every assessee shall submit the return electronically. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial. Analysis section 66b is the charging section and holds a vital importance in understanding the service tax 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. Service tax chapterv of the finance act 1994 as amended. Earlier, under the selective approach of taxation of services, the word service was nowhere defined in the finance act, 1994. Service tax is levied under section 66b of the finance act 1994 on service other than services enumerated in the negative list. This section is applicable from the 1st july, 2012.
Negative list means the services which are listed in section 66d. As a result of insertion of section 731b, rule 66a service tax rules 1994 shall be omitted. However, in the year 2012, service tax took a big turnaround. Section 66e e of finance act, 1994 stipulates that agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act is a declared service and the same is taxable unless specifically exempted. Section 66d of finance act, 1994 specifies the negative list of services i. Jun 18, 2015 section 87 was inserted by the finance act, 2006 with effect from 18. There shall be levied a tax hereinafter referred to as the service tax at the rate of fourteen per cent on the value of. 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 act, and in supersession of notification number 2012 service tax, dated the 17 th march, 2012, published in the gazette of india, extraordinary, part ii, section 3, sub section i vide number g. 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. Section 67 valuation of taxable services of charging service tax. This section is also popularly known as reverse charge mechanism. Service tax rules, 1994 in exercise of the powers conferred by subsection 1 read with subsection 2 of section 94 of the 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 case of reverse charge under section 682 of the finance act, 1994, the liability has been. Publication of information in respect of persons in certain cases.
Amendment of section 49 tax treatment of foreign trusts of finance act, 1993. Service tax act chapter v of the finance act, 1994 as on 142017 section 64. Service tax negative list as amended by finance act 2017. Chapter v of the finance act, 1994 as amended service tax.
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. Service tax collected from any person to be deposited with central government. Ever imagined how easy it is to get a million results in just one click. Section 66d is been inserted in finance act, 1994 by finance act, 2012 and been notified to be effective from 1st july 2012 vide notification no. Insertion of explanation to section 66b of the finance act, 1994. Section 66b of finance act, 1994 charge of service tax by ca paras mehra background service tax was first introduced in the year 1994.
Also, by the power given to the central government by section 93 of the act, any service, which is not on the negative list, may be exempted by. Service tax act chapter v of the finance act, 1994. Section 67 valuation of taxable services of charging. Finance act 1994 complete act citation 50783 bare act. 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. Revised legislation carried on this site may not be fully up to date. C after section 66b, the following section shall be inserted, namely. Recovery of service tax not levied or paid or shortlevied or shortpaid or erroneously refunded. This is possible with advent of internet and how beautifully it has been proved to be the best source of information. A2z taxcorp llp is a boutique indirect tax firm having professionals from multi disciplines which includes goods and services tax gst, central excise, custom, service tax, vat, dgft, foreign trade policy, sez, eou, export import laws, free trade policy etc.
Section 87 prescribes the procedure for the recovery of amount due to the central government. The negative list shall comprise of the following services, namely. Service tax negative list amended by finance act 2017. Hire purchase is a system agreement where goods are let out on hire and under which hirer has option to purchase them. In this chapter, unless the context otherwise requires, 1 actuary has the meaning assigned to it in clause 1 of section 2 of. Amendment of section 46 limited partnerships of finance act, 1986. 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. This section is applicable from the 1 st july 2012. Service tax rate was specified under section 66b chapter v of the finance act 1994. Disclaimer all images are for representational purposes only. Service defined in section 65b 44 of the finance act, 1994, includes a declared service.
Declared service as per section 66e g of the finance act, 1994, activities in relation to delivery of goods on hire purchase or any system of payment by instalments is a declared service. The bare text of section 66b is available in the annexure, and the same can also be downloaded in the pdf version. Provisional attachment to protect revenue in certain cases. Presentation has been prepared from a speakers point of view for purpose of a seminar and thus it has not been described in detail. Section 66a of finance act, 1994 the reverse charge mechanism. In case of reverse charge under section 682 of the finance act, 1994, the liability has been shifted from service provider to the service recipient.
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