Effective Service Value for
Tax Calculation
[Service Tax
Notification No. 26 dated 20th June 2012]
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 13/2012- Service Tax, dated the 17th
March, 2012, published in the Gazette of India, Extraordinary, Part II, Section
3, Sub-section (i) vide number G.S.R. 211 (E), dated the 17th March,
2012, the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts the taxable service of the description
specified in column (2) of the Table below, from so much of the service tax leviable thereon under section 66B of the said Act, as is
in excess of the service tax calculated on a value which is equivalent to a
percentage specified in the corresponding entry in column (3) of the said
Table, of the amount charged by such service provider for providing the said
taxable service, unless specified otherwise, subject to the relevant conditions
specified in the corresponding entry in column (4) of the said Table, namely;-
|
Table |
|||
|
Sl. |
Description of taxable |
Percentage |
Conditions |
|
(1) |
(2) |
(3) |
(4) |
|
1 |
Services in relation to financial
leasing including hire purchase |
10 |
Nil. |
|
2 |
Transport of goods by rail |
30 |
Nil. |
|
3 |
Transport of passengers, with or
without accompanied belongings by rail |
30 |
Nil. |
|
4 |
Bundled service by way of supply of
food or any other article of human consumption or any drink, in a premises ( including
hotel, convention center, club, pandal, shamiana or any other place, specially arranged for
organizing a function) together with renting of such premises |
70 |
(i) CENVAT credit on any goods
classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5
of 1986) used for providing the taxable service, has not been taken under the
provisions of the CENVAT Credit Rules, 2004. |
|
5 |
Transport of passengers by air, with
or without accompanied belongings |
40 |
CENVAT credit on inputs and capital
goods, used for providing the taxable service, has not been taken under the
provisions of the CENVAT Credit Rules, 2004. |
|
6 |
Renting of hotels, inns, guest
houses, clubs, campsites or other commercial places meant for residential or
lodging purposes. |
60 |
Same as above. |
|
7 |
Services of goods transport agency in
relation to transportation of goods. |
25 |
CENVAT credit on inputs, capital
goods and input services, used for providing the taxable service, has not
been taken under the provisions of the CENVAT Credit Rules, 2004. |
|
8 |
Services provided in relation to chit |
70 |
Same as above. |
|
9 |
Renting of any motor vehicle designed
to carry passengers |
40 |
Same as above. |
|
10 |
Transport of goods in a vessel |
50 |
Same as above. |
|
11 |
Services by a tour operator in
relation to,- (i) a package tour |
25 |
(i) CENVAT credit on inputs, capital
goods and input services, used for providing the taxable service, has not been
taken under the provisions of the CENVAT Credit Rules, 2004. (ii) The bill issued for this purpose
indicates that it is inclusive of charges for such a tour. |
|
(ii) a tour, if the tour operator is
providing services solely of arranging or booking accommodation for any
person in relation to a tour |
10 |
(i) CENVAT credit on inputs, capital
goods and input services, used for providing the taxable service, has not
been taken under the provisions of the CENVAT Credit Rules, 2004. (ii) The invoice, bill or challan issued indicates that it is towards the charges
for such accommodation. (iii) This exemption shall not apply
in such cases where the invoice, bill or challan
issued by the tour operator, in relation to a tour, only includes the service
charges for arranging or booking accommodation for any person and does not
include the cost of such accommodation. |
|
|
(iii) any
services other than specified at (i) and (ii) above. |
40 |
(i) CENVAT credit on inputs, capital
goods and input services, used for providing the taxable service, has not
been taken under the provisions of the CENVAT Credit Rules, 2004. (ii)The bill issued indicates that
the amount charged in the bill is the gross amount charged for such a tour. |
|
|
12. |
Construction of a complex, building,
civil structure or a part thereof, intended for a sale to a buyer, wholly or
partly except where entire consideration is received after issuance of
completion certificate by the competent authority |
25 |
(i) CENVAT credit on inputs used for
providing the taxable service has not been taken under the provisions of the
CENVAT Credit Rules, 2004. (ii)The value of land is included in
the amount charged from the service receiver. |
Explanation. –
A.
For the purposes of exemption at Serial number 1 -
(i)
The
amount charged shall be an amount, forming or representing as interest, i.e.
the difference between the installments paid towards repayment of the lease
amount and the principal amount contained in such installments;
(ii)the exemption shall not apply to an
amount, other than an amount forming or representing as interest, charged by
the service provider such as lease management fee, processing fee,
documentation charges and administrative fee, which shall be added to the
amount calculated in terms of (i) above.
B.
For the purposes of exemption at Serial number 4 -
The amount
charged shall be the sum total of the gross amount charged and the fair market
value of all goods and services supplied in or in relation to the supply
of food or any other article of human consumption or any drink (whether or
not intoxicating) and whether or not supplied under the same contract
or any other contract, after deducting-
(i) the amount charged for such goods or services supplied to
the service provider, if any; and
(ii)
the value added tax or sales tax, if any, levied
thereon:
Provided that the fair market value of goods
and services so supplied may be determined in accordance with the generally
accepted accounting principles.
C. For the purposes of exemption at Serial number 12 –
The
amount charged shall be the sum total of the amount charged for the service
including the fair market value of all goods and services supplied by the
recipient(s) in or in relation to the service, whether or not supplied under
the same contract or any other contract, after deducting-
(i) the amount charged for such goods or services supplied to
the service provider, if any; and
(ii)
the value added tax or sales tax, if any, levied
thereon:
Provided that the fair market value of goods and services so
supplied may be determined in accordance with the generally accepted accounting
principles.
2. For
the purposes of this notification, unless the context otherwise requires,-
a.
“chit”
means a transaction whether called chit, chit fund, chitty, kuri,
or by whatever name by or under which a person enters into an agreement with a
specified number of persons that every one of them shall subscribe a certain
sum of money (or a certain quantity of grain instead) by way of periodical
installments over a definite period and that each subscriber shall, in his
turn, as determined by lot or by auction or by tender or in such other manner
as may be specified in the chit agreement, be entitled to a prize amount,
b. "package tour" means a tour wherein
transportation, accommodation for stay, food, tourist guide, entry to monuments
and other similar services in relation to tour are provided by the tour
operator as part of the package tour to the person undertaking the tour,
c.
“tour
operator” means any person engaged in the business of planning, scheduling,
organizing, arranging tours (which may include arrangements for accommodation,
sightseeing or other similar services) by any mode of transport, and includes
any person engaged in the business of operating tours,
3.
This notification shall come into force on the 1st day of July, 2012.
[F.No. 334 /1/ 2012-