Service Tax Payment Liability on Recipient of Service
[Service Tax Notification No. 30 dated 20th
June 2012]
In exercise of the powers
conferred by sub-section (2) of section 68 of the Finance Act, 1994 (32 of
1994), and in supersession of (i) notification of the Government of India in
the Ministry of Finance (Department of Revenue), No. 15/2012-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 213(E), dated the 17th
March, 2012, and (ii) notification of the Government of India in the Ministry
of Finance (Department of Revenue), No. 36/2004-Service Tax, dated
the 31st December, 2004, published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i), vide number
G.S.R 849 (E), dated the 31st December, 2004, except as
respects things done or omitted to be done before such supersession, the
Central Government hereby notifies the following taxable services and the
extent of service tax payable thereon by the person liable to pay service tax
for the purposes of the said sub-section, namely:—
I. The taxable services,—
(A) (i) provided or agreed to be provided by
an insurance agent to any person carrying on the insurance business;
(ii) provided or
agreed to be provided by a goods transport agency in respect of transportation of
goods by road, where the person liable to pay freight is,—
(a) any factory
registered under or governed by the Factories Act, 1948 (63 of 1948);
(b) any society
registered under the Societies Registration Act, 1860 (21 of 1860) or under any
other law for the time being in force in any part of India;
(c) any co-operative
society established by or under any law;
(d) any dealer
of excisable goods, who is registered under the Central Excise Act, 1944 (1 of
1944) or the rules made thereunder;
(e) any body corporate established, by or under
any law; or
(f) any partnership
firm whether registered or not under any law including association of persons;
(iii) provided or
agreed to be provided by way of sponsorship to anybody corporate or partnership
firm located in the taxable territory;
(iv) provided
or agreed to be provided by,-
(A) an
arbitral tribunal, or
(B) an
individual advocate or a firm of advocates by way of support services,
or
(C) Government or
local authority by way of support services excluding,-
(1) renting
of immovable property, and
(2) services
specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of
the Finance Act,1994,
to any business entity located in the taxable territory;
(v) provided or agreed to be
provided by way of renting of a motor vehicle designed to carry passengers to
any person who is not in the similar line of business or supply of manpower for
any purpose or service portion in execution of works contract by any
individual, Hindu Undivided Family or partnership firm, whether registered
or not, including association of persons, located in the taxable territory
to a business entity registered as body corporate, located in the taxable
territory;
(B) provided or agreed to be provided by any person which is located in a
non-taxable territory and received by any person located in the taxable
territory;
(II) The extent of service tax
payable thereon by the person who provides the service and the person who
receives the service for the taxable services specified in (I) shall be as
specified in the following Table, namely:-
|
Table |
|||
|
Sl.No. |
Description
of a service |
Percentage
of service tax payable by the person providing service |
Percentage
of service tax payable by the person receiving the service |
|
1 |
in
respect of services provided or agreed to be provided by an insurance agent
to any person carrying on insurance business |
Nil |
100% |
|
2 |
in
respect of services provided or agreed to be provided by a goods
transport agency in respect of transportation of goods by road |
Nil |
100% |
|
3 |
in
respect of services provided or agreed to be provided by way of
sponsorship |
Nil |
100% |
|
4 |
in
respect of services provided or agreed to be provided by an arbitral
tribunal |
Nil |
100% |
|
5 |
in
respect of services provided or agreed to be provided by individual
advocate or a firm of advocates by way of legal services |
Nil |
100% |
|
6 |
in
respect of services provided or agreed to be provided by Government or
local authority by way of support services excluding,- (1) renting of
immovable property, and (2) services specified in sub-clauses (i), (ii) and
(iii) of clause (a) of section 66D of the Finance Act,1994 |
Nil |
100% |
|
7 |
(a)
in respect of services provided or agreed to be provided by way of
renting of a motor vehicle designed to carry passengers on abated value to
any person who is not engaged in the similar line of business (b)
in respect of services provided or agreed to be provided by way of
renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the
similar line of business |
Nil 60% |
100
% 40% |
|
8. |
in
respect of services provided or agreed to be provided by way of supply
of manpower for any purpose |
25% |
75
% |
|
9. |
in
respect of services provided or agreed to be provided in service portion
in execution of works contract |
50% |
50% |
|
10 |
in
respect of any taxable services provided or agreed to be provided by any
person who is located in a non-taxable territory and received by any person
located in the taxable territory |
Nil |
100% |
Explanation-I. - The person who pays or is liable to pay freight for the
transportation of goods by road in goods carriage, located in the taxable
territory shall be treated as the person who receives the service for the
purpose of this notification.
Explanation-II. - In
works contract services, where both service provider and service recipient is
the persons liable to pay tax, the service recipient has the option of choosing
the valuation method as per choice, independent of valuation method adopted by
the provider of service.
2. This notification shall come into force on the
1st day of July, 2012.
[F.No. 334/1/2012-