SERVICE TAX

(As amended by the Finance Act, 2012)

2
APPLICABILITY/NON-APPLICABILITY OF NEGATIVE LIST AND RELATED TOPICS IN
SYLLABUS OF PART II: SERVICE TAX AND VAT OF PAPER 4: TAXATION (IPCC) FROM MAY
2013 EXAMINATION ONARDS
The Examination Committee at its 498th meeting held on September 23, 2012 has decided that the folloing
sections of the !inance "ct, 1994#r$les ill be co%ered $nder point no& 1 'Concepts and (eneral principles)
and point no& 2 'Charge of ser%ice tax and taxable ser%ices) of s*llab$s of +art ,,- Ser%ice tax . /"T in
+aper 4- Taxation from 0a* 2013 examination onards-
'i) Section 14 2 Extent, commencement and application
'ii) Sections 134 5 ,nterpretations 6onl* rele%ant ones hich o$ld be re7$ired to explain the concepts
incl$ded8
'iii) Section 114 5 Charge of ser%ice tax on and after !inance "ct, 2012
'i%) Section 119 2 :egati%e list of ser%ices
'%) Section 11! 5 +rinciples of interpretation of specified descriptions of ser%ices or b$ndled ser%ices&
'%i) Section 1;" 2 9ate of determination of rate of tax, %al$e of taxable ser%ice and rate of exchange
'%ii) +oint of Taxation <$les, 2011
,t ma* be noted that the abo%e2stated Sr& :o&'i) 2 Section 14 and Sr& :o&'%ii) 2 +oint of Taxation <$les, 2011
ha%e alread* been co%ered in the existing s*llab$s so far& Th$s, onl* Sr& :os&'ii) to '%i) ha%e been incl$ded
as ne topics in the s*llab$s $nder point no&1 'Concepts and (eneral principles) and point no&2 'Charge of
ser%ice tax and Taxable ser%ices)&
The Committee f$rther decided that the folloing topics pertaining to ser%ice tax la ill not be incl$ded in
the s*llab$s-
'i) Section 11C 2 9etermination of place of pro%ision of ser%ice
'ii) Section 11E 5 9eclared ser%ices
'iii) +lace of +ro%ision of Ser%ice <$les, 2012
'i%) Section 18'2) and <e%erse Charge notification
'%) Export of Ser%ices %ide r$le 1" of the Ser%ice Tax <$les, 1994
'%i) 0ega exemption notification and other exemptions
'%ii) "batement notification
,n f$rtherance to the abo%e2mentioned decision, it is clarified that other topics %i=&, %al$ation of taxable
ser%ice, pa*ment of ser%ice tax and filing of ret$rns, topics related to /"T etc& as co%ered in the St$d*
0aterial ill contin$e to appl* as the* $sed to appl* before&
,n %ie of the far2reaching changes effected ith the introd$ction of negati%e list approach of taxation in
ser%ice tax, St$d* 0aterial and +ractice 0an$al of +art2,,- Ser%ice tax . /"T of +aper 4- Taxation
'contained in /ol$me ,,,) !N"#$%&$' $()*)"+, ha%e been completel* re%amped& St$dents ma* note that the
re%ised St$d* 0aterial and +ractice 0an$al ha%e been prepared in accordance ith the abo%ementioned
decision of the Examination Committee&
,n other ords, all the chapters of the re%ised St$d* 0aterial and +ractice 0an$al o$ld be applicable for
examination p$rposes&
>ence, st$dents ith the older editions of the St$d* 0aterial and +ractice 0an$al are ad%ised to read the
ne edition 6:o%ember edition8&
3
INDEX
1- BASIC CONCEPTS OF SERVICE TAX 4-10
2- EXTENT. COMMENCEMENT AND APPLICATION SECTION /4 11-11
3- DEFINITION OF SERVICE SECTION /0B(44) 12-21
4- NEGATIVE LIST OF SERVICES SECTION //D 22-40
0- BUNDLED SERVICES SECTION //F 41-43
/- SMALL SERVICE PROVIDER EXEMPTION 43-43
1- POINT OF TAXATION 02-//
2- VALUATION OF TAXABLE SERVICE /1-20
3- PAYMENT OF SERVICE TAX 2/-103
10- FILING OF RETURNS 110-113
B45)6 C"+6$7*5 "8 S$'#)6$ T49 4
BASIC CONCEPTS OF SERVICE TAX
I+*'"(:6*)"+
,n an* ?elfare State, it is the prime responsibilit* of the (o%ernment to f$lfill the increasing de%elopmental
needs of the co$ntr* and its people b* a* of p$blic expendit$re& ,ndia, being a de%eloping econom*, has
been stri%ing to f$lfill the obligations of a ?elfare State ith its limited reso$rces& The (o%ernment@s
primar* so$rces of re%en$e are direct and indirect taxes& Central excise d$t* on the goods
man$fact$red#prod$ced in ,ndia and c$stoms d$ties on imported goods constit$te the to maAor so$rces of
indirect taxes in ,ndia& >oe%er, re%en$e receipts from c$stoms . excise ha%e been declining d$e to ?orld
Trade Commitments and rationali=ation of commodit* d$ties&
Bn the other hand, ser%ice sector has been groing phenomenall* all o%er the orld, tho$gh it ma* %ar* in
degree and magnit$de among the %ario$s co$ntries& The groing importance of this sector can be ga$ged
from the e%er increasing contrib$tion made b* the ser%ice sector to (9+, thereb* p$shing bacC the
contrib$tion of traditional contrib$tors liCe agric$lt$re and man$fact$ring sectors& ,ndia is also not an
exception to this changed phenomenon& ,n 2002, the ser%ice sector acco$nted for 49&2D of (9+ hile
agric$lt$re acco$nted for 23D and ind$str* 23&8D of (9+& Contin$ed groth in (9+ accompanied b*
higher rate of groth in ser%ice sector promises ne and ider a%en$es of taxation to the (o%ernment&
,n the present da* context, ser%ices are so idespread and encompass almost all acti%ities liCe
management, banCing, ins$rance, hospitalit*, administration, comm$nication, entertainment, tra%el,
holesale distrib$tion, retailing, research and de%elopment acti%ities, other professional ser%ices, etc&
Ser%ice sector is no occ$p*ing the center stage of the econom* so m$ch so that in the contemporar* orld,
de%elopment of ser%ice sector has become s*non*mo$s ith the ad%ancement of the econom*& Economists
belie%e that ith the phenomenal de%elopment of the ser%ice sector, the excl$sion of the ser%ice sector
from indirect taxation leads not onl* to the loss of considerable potential re%en$e, b$t also creates distortion
in the allocation of reso$rces& The distortion arises beca$se the cons$mer starts maCing the choice beteen
the cons$mption of goods and ser%ices&
>ence, the (o%ernment@s arg$ment as that s$bstantial re%en$e sho$ld come from the ser%ice sector and the
tax on goods 'excise d$t*) sho$ld be complemented ith the tax on ser%ices& The tax on ser%ices red$ces the
degree of intensit* of taxation on man$fact$ring and trade itho$t forcing the (o%ernment to compromise
on the re%en$e needs, it ill enable better pricing of its prod$cts b* the man$fact$ring sector in the global
marCet&
?ith these obAecti%es in mind, ser%ice tax as introd$ced in ,ndia in 1994 and toda* it is en%isaged as the
tax of the f$t$re&
G$+$5)5 "8 5$'#)6$ *49 )+ I+()4
The imposition of ser%ice tax as in se7$el to the <eport of the Chelliah Committee on Tax <eforms& Bn
these recommendations, 9r& 0anmohan Singh, the then Enion !inance 0inister, in his 4$dget speech '*ear
1994293) introd$ced the ne concept to tax ser%ices b* mentioning
@There is no so$nd reason for exempting ser%ices from taxation, hen goods are taxed and man* co$ntries
treat goods and ser%ices aliCe for tax p$rposes& The Tax <eforms Committee has also recommended
imposition of tax on ser%ices as a meas$re for broadening the base of indirect taxes& ,, therefore, propose to
maCe a modest effort in this direction b* imposing a tax on ser%ices of telephones, non2life ins$rance and
stocC broCers&F Th$s, initiall* ser%ice tax as imposed on 3 ser%ices&
The baton then passed on to s$ccessi%e finance ministers ho idened the ser%ice tax net in their rein& ?ith
the introd$ction of the !inance "ct, 2012, ,ndia has embraced the ne s*stem of taxation of ser%ices b* a*
of the introd$ction of negati%e list& >ence, ith effect from G$l* 1, 2012, there is comprehensi%e taxation of
the entire ser%ice sector&
B45)6 C"+6$7*5 "8 S$'#)6$ T49 0
C"+5*)*:*)"+4; A:*<"')*=
The (o%ernment deri%es its poer to le%* taxes from the Constit$tion of ,ndia& Elaborate pro%isions ha%e
been made in the Constit$tion of ,ndia to reg$late the poer of taxation of both the Central (o%ernment and
the State (o%ernments& "rticle 213 of the Constit$tion of ,ndia prohibits arbitrar* collection of tax& ,t reads
as-
F:o tax shall be le%ied or collected except b* a$thorit* of la&F
Th$s the (o%ernment ma* le%* a tax on the citi=ens onl* $nder the a$thorit* of the Constit$tion of ,ndia&
The Constit$tion, in its Sched$le /,,, has en$merated the matters on hich the Central (o%ernment and the
State (o%ernment can maCe las& S$ch matters are di%ided into three categories22
a) Hist 5 , - Enion Hist ',t contains the matters in respect of hich onl* the Central (o%ernment has the
poer of legislation)
b) Hist 5 ,, - State Hist ',t contains the matters in respect of hich onl* the State (o%ernment has the poer
of legislation)
c) Hist 5 ,,,- Conc$rrent Hist ',t contains the matters in respect of hich both the Central and the State
(o%ernments ha%e poer of legislation)&
Entries 82 to 92C of Hist , en$merate the s$bAects here the Central (o%ernment has poer to le%* taxes&
Entries 43 to 13 of Hist ,, en$merate the s$bAects here the State (o%ernments ha%e the poer to le%* taxes&
Entr* 92C of the Enion Hist of the Se%enth Sched$le to the Constit$tion of ,ndia enables the Enion to le%*
ITaxes on Ser%icesJ& ,nitiall* there as no specific entr* in the Enion Hist for le%*ing ser%ice tax& Ser%ice
tax as le%ied b* the Central (o%ernment b* draing poer from entr* 9; of the Enion Hist& Entr* 9; is a
@resid$ar* entr*@ in Hist2,, hich has been reprod$ced belo-
I9; 2 "n* other matter not en$merated in Hist ,, or Hist ,,, incl$ding an* tax not mentioned in either of those
Hists&J
The @resid$ar* entr*@ pro%ides ide poers to the Central (o%ernment in respect of taxation of the s$bAects
not mentioned in the Hists gi%en b* the constit$tion&
>oe%er, as a res$lt of deliberations beteen the States and the Centre and as per the recommendations of
the %ario$s expert committees, entr* 92C as introd$ced in the /,, Sched$le in the Enion Hist %ide
Constit$tion '92nd "mendment) "ct, 2003 ith effect from 0;&01&2004& Entr* 92C reads as $nder-
I92C 2 Taxes on ser%ices&J
" ne "rticle 218" as inserted in the Constit$tion hich reads as follos-
F218" '1) Taxes on ser%ices shall be le%ied b* the (o%ernment of ,ndia and s$ch tax shall be collected and
appropriated b* the (o%ernment of ,ndia and the State in the manner pro%ided in cla$se '2)&
'2) The proceeds in an* financial *ear of an* s$ch tax le%ied in accordance ith the pro%isions of cla$se '1)
shall be22
'a) Collected b* the (o%ernment of ,ndia and the StatesK
'b) "ppropriated b* the (o%ernment of ,ndia and the States,
in accordance ith s$ch principles of collection and appropriation as ma* be form$lated b* the +arliament
b* la&F
B45)6 C"+6$7*5 "8 S$'#)6$ T49 /
" conse7$ential amendment to "rticle 2;0 of the Constit$tion as also made to enable +arliament to
form$late b* la, principles for determining the modalities of le%*ing the ser%ice tax b* the Central
(o%ernment and collection of the proceeds thereof b* the Central (o%ernment and the State (o%ernment&
?ith this amendment in the Constit$tion, the Central (o%ernment has become competent to enact a separate
legislation on ser%ice tax&
:ote- "ltho$gh +arliament has passed the Constit$tional amendment maCing entr* 92C to Enion Hist, this
pro%ision has not *et been made effecti%e b* the +arliament& Conse7$entl*, ser%ice tax is presentl* collected
$nder the poers of Entr* 9; onl*&
S$'#)6$ T49 L4>
Ser%ice tax as introd$ced in the *ear 1994 b$t till date, there is no independent stat$te for le%*ing ser%ice
tax& >oe%er, folloing so$rces pro%ide stat$tor* pro%isions relating to ser%ice tax and can be broadl*
gro$ped $nder the folloing categories-
(4) F)+4+6$ A6*. 1334: The stat$tor* pro%isions relating to le%* of ser%ice tax on ser%ices ere first
prom$lgated thro$gh Chapter / of the !inance "ct, 1994& Since then, Chapter / of the !inance "ct, 1994 is
orCing as the "ct for the ser%ice tax le%*& Hater, in the *ear 2003, the !inance "ct 2003 inserted Chapter
/" to deal ith ad%ance r$lings& ,n the *ear 2004, the pro%isions relating to le%* of @ed$cation cess@ on the
amo$nt of ser%ice tax ere made applicable thro$gh Chapter /, of the !inance ':o&2) "ct, 2004&
(&) R:;$5 "+ 5$'#)6$ *49: Section 94 of Chapter / and section 91 21 of Chapter /" of the !inance "ct,
1994 grants poer to the Central (o%ernment for maCing r$les for effecti%e carr*ing o$t the pro%isions of
these Chapters& Esing these poers, the Central (o%ernment has iss$ed Ser%ices Tax <$les 1994, Ser%ice
Tax '"d%ance <$lings) <$les, 2003, Ser%ice Tax '<egistration of Special Categor* of +ersons) <$les,
2003, Ser%ice Tax '9etermination of /al$e) <$les, 2001, +oint of Taxation <$les, 2011 and +lace of
+ro%ision of Ser%ice <$les, 2012&
<$les sho$ld be read ith the stat$tor* pro%isions contained in the "ct& <$les are made for carr*ing o$t the
pro%isions of the "ct and the r$les cannot o%erride the pro%isions contained in the "ct i&e& in short, the r$les
can ne%er o%erride the "ct and in case of conflict "ct ill pre%ail&
(6) N"*)8)64*)"+5 "+ 5$'#)6$ *49: Sections 93 and 94 of Chapter /, and section 9121 of Chapter /" of the
!inance "ct, 1994 empoer the Central (o%ernment to iss$e notifications to exempt an* ser%ice from
ser%ice tax and to maCe r$les to implement ser%ice tax pro%isions& "ccordingl*, notifications on ser%ice tax
ha%e been iss$ed b* the Central (o%ernment from time to time& These notifications $s$all* declare date of
enforceabilit* of ser%ice tax pro%isions, pro%ide r$les relating to ser%ice tax, maCe amendments therein,
pro%ide or ithdra exemptions from ser%ice tax or deal ith an* other matter hich the Central
(o%ernment ma* thinC o$ld facilitate the go%ernance of ser%ice tax matters&
(() C)'6:;4'5 "' O88)6$ L$**$'5 (I+5*':6*)"+5) "+ 5$'#)6$ *49: The Central 4oard of Excise and C$stoms
'C4EC) iss$es departmental circ$lars or instr$ction letters from time to time to explain the scope of taxable
ser%ices and the scheme of ser%ice tax administration etc& These circ$lars#instr$ctions ha%e to be read ith
the stat$tor* pro%isions and notifications on ser%ice tax&
The circ$lars clarif* the pro%isions of the "ct and th$s, bring o$t the real intention of the legislat$re&
>oe%er, the pro%isions of an* "ct of the +arliament cannot be altered or contradicted or changed b* the
departmental circ$lars&
($) O'($'5 "+ 5$'#)6$ *49: Brders on ser%ice tax ma* be iss$ed either b* the C4EC or b* the Central
(o%ernment& <$le 3 of the Ser%ice Tax <$les, 1994, empoers the C4EC to appoint s$ch Central Excise
Bfficers as it thinCs fit for exercising the poers $nder Chapter / of the !inance "ct, 1994& "ccordingl*,
B45)6 C"+6$7*5 "8 S$'#)6$ T49 1
orders ha%e been iss$ed b* the C4EC, from time to time, to define A$risdiction of Central Excise Bfficers for
the p$rposes of ser%ice tax&
(8) T'4($ N"*)6$5 "+ 5$'#)6$ *49- Trade :otices are iss$ed b* the Central Excise#Ser%ice Tax
Commissionerates& These Commissionerates recei%e %ario$s instr$ctions from the 0inistr* of !inance or
Central 4oard of Excise . C$stoms for effecti%e implementation and administration of the %ario$s
pro%isions of ser%ice tax la& The same are circ$lated among the field officers and the instr$ctions hich
pertain to trade are comm$nicated to them in the form of trade notices& Trade "ssociations are s$pplied ith
the copies of these trade notices&
,ndi%id$al assesses ma* also appl* for copies of trade notices& The trade notice disseminate the contents of
the notifications and circ$lars#letters#orders, define their A$risdictionK identif* the banCs in hich ser%ice tax
can be depositedK gi%e clarifications regarding ser%ice tax matters, etc&
The %ario$s components maCing ser%ice tax la ha%e been represented in the folloing diagram-
SOURCES OF SERVICE TAX LA
S$;$6*)#$ #5- 6"%7'$<$+5)#$ 6"#$'4?$
9epending on the socio2economic comp$lsions, each co$ntr* e%ol%ed a taxation s*stem on ser%ices
adopting either a comprehensi%e approach or a selecti%e approach& ,n comprehensi%e approach all ser%ices
are made taxable and a negati%e list is pro%ided to exempt some of the ser%ices& ,n selecti%e approach,
selecti%e ser%ices are s$bAected to ser%ice tax& ?hile most of the de%eloped co$ntries, tax is le%ied on all the
ser%ices ith %er* fe and limited exemptions&
,ndia began its Ao$rne* of taxation of ser%ices on G$l* 1, 1994 ith a selecti%e approach for taxation of
ser%ices& The first *ear had %er* modest collections of `40; crore&
"fter appearing largel* as A$st2another2tax for the first 8 *ears, ith collections to$ching `3,302 crore in
2001202, ser%ice tax tooC some giant leaps in the next ; *ears, both on the bacC of ider co%erage as ell as
increase in tax rate, reaching `10,941 crore in 2008209&
:ext to *ears sa the groth somehat moderating ith collections reaching `;0,891 crore in 2010211&
The b$o*anc* began once again on the bacC of some polic* initiati%es and Ser%ice Tax contrib$ted `9;,444
crore d$ring 2011212, an increase of nearl* 3;D o%er the pre%io$s *ear&
?hile the re%en$e expectations ere often exceeded in all these *ears the administrati%e challenge began to
ass$me $nmanageable proportions& The neer additions to the list of ser%ices often raised iss$es of o%erlaps
ith the pre%io$sl* existing ser%ices, confo$nding both sides as to hether some acti%ities ere taxed for
the first time or ere alread* co%ered $nder an earlier, e%en if a little less specific head&
!inance "ct,
1994
<$les :otifications
Circ$lars or Bffice Hetters
',nstr$ctions)
Brders
Trade :otices
B45)6 C"+6$7*5 "8 S$'#)6$ T49 2
There as also a near $nanimit* across a ide section of thinCers that potential of ser%ice tax remained h$ge
and largel* $ntapped& +art of the problem identified as the lacC of comprehensi%e taxation of ser%ices, not
so m$ch in the lacC of co%erage b$t more on acco$nt of lacC of clarit* and significant gaps in existing
definitions, exposing the tax collection process to a%oidable leaCages and litigation&
4$dget 2012 has $shered a ne s*stem of taxation of ser%icesK pop$larl* Cnon as :egati%e Hist& The ne
changes are a paradigm shift from the existing s*stem here onl* ser%ices of specified descriptions are
s$bAected to tax& ,n the ne s*stem all ser%ices, except those specified in the negati%e list, ill be s$bAect to
taxation&
A(%)+)5*'4*)"+ "8 5$'#)6$ *49
The 9epartment of <e%en$e of the 0inistr* of !inance exercises control in respect of matters relating to all
the direct and indirect taxes thro$gh to stat$tor* 4oards, namel*, the Central 4oard of 9irect Taxes
'C49T) and the Central 4oard of Excise and C$stoms 'C4EC)& 0atters relating to the le%* and collection
of all the direct taxes 'income tax, ealth tax etc&) are looCed after b* C49T, hereas those relating to le%*
and collection of indirect taxes 'c$stoms d$ties, central excise d$ties etc&) fall ithin the p$r%ie of C4EC&
The to 4oards ere constit$ted $nder the Central 4oard of <e%en$e "ct, 1913&
The responsibilit* of administration and collection of ser%ice tax has also been %ested $pon the C4EC
'@4oard@)& The 4oard administers ser%ice tax matters thro$gh the Central Excise Lones and each Lone, in
t$rn orCs thro$gh Central Excise Commissionerate falling $nder its territor*& Each =one is headed b* a
Chief Commissioner of Central Excise, hile each Commissionerate is headed b* a Commissioner of
Central Excise&
The Chief Commissioner of Lone exercises s$per%ision and control o%er the orCing of the
Commissionerates in the Lone and is mainl* responsible for monitoring re%en$e collection, disposal of
pendencies, redressal of grie%ances of trade, etc& >e also ens$res coordination among the Commissionerates
ithin the Lone&
(4) D)'$6*"' G$+$'4; (S$'#)6$ T49)- Considering the increasing orCload d$e to the expanding co%erage of
ser%ice tax, it as decided to centralise all the orC and entr$st the same to a separate $nit s$per%ised b* a
%er* senior official& "ccordingl*, the office of 9irector (eneral 'Ser%ice Tax) as formed in the *ear 199;&
,t is headed b* the 9irector (eneral 'Ser%ice Tax)& The f$nctions and poers of 9irector (eneral 'Ser%ice
Tax) are as follos-
'1) To ens$re that proper establishment and infrastr$ct$re has been created $nder different Central Excise
Commissionerates to monitor the collection and assessment of ser%ice tax&
'2) To st$d* the staff re7$irement at field le%el for proper and effecti%e implementation of ser%ice tax&
'3) To st$d* as to ho the ser%ice tax is being implemented in the field and to s$ggest meas$res as ma* be
necessar* to increase re%en$e collection or to streamline proced$res&
'4) To $ndertaCe st$d* of la and proced$res in relation to ser%ice tax ith a %ie to simplif* the ser%ice
tax collection and assessment and maCe s$ggestions thereon&
'3) To form a data base regarding the collection of ser%ice tax from the date of its inception in 1994 and to
monitor the re%en$e collection from ser%ice tax&
'1) To inspect the ser%ice tax cells in the Commissionerate to ens$re that the* are f$nctioning effecti%el*&
';) To $ndertaCe an* other f$nctions as assigned b* the 4oard from time to time&
The 9irectorate of Ser%ice Tax coordinates beteen the C4EC and Central Excise Commissionerates& ,t also
monitors the collection and the assessment of ser%ice tax& ,t compiles the ser%ice tax re%en$e reports
recei%ed from %ario$s Central Excise Commissionerates and monitors the performances of the
Commissionerates& ,t scr$tinises the correspondences recei%ed from field formations and ser%ice pro%iders
and replies to the clarifications so$ght for, here%er possible& ,n cases here the do$bts#clarification so$ght
in%ol%es polic* matter, the 9irectorate appraises the 4oard for iss$ing clarification#instr$ction&
B45)6 C"+6$7*5 "8 S$'#)6$ T49 3
The administrati%e machiner* of the ser%ice tax la can be $nderstood ith the help of the folloing
diagram-
ADMINISTRATION OF SERVICE TAX
MINISTRY OF FINANCE (1)
DEPARTMENT OF REVENUE (2)
CENTRAL BOARD OF EXCISE AND CUSTOMS (3)
CENTRAL EXCISE ZONES HEADED BY CHIEF COMMISSIONERS (4)
CENTRAL EXCISE COMMISIONERATES HEADED BY COMMISSIONERS (5)
SERVICE TAX COMMISSIONERATE (6)
ADDITIONAL COMMISSIONER ()
!OINT COMMISSIONER (")
ASSISTANT COMMISSIONER#DEPUTY COMMISSIONER ($)
SUPERINTENDENT (1%)
INSPECTOR (11)
R";$ "8 4 C<4'*$'$( A66":+*4+*
Since ith the introd$ction of the negati%e list the gam$t of ser%ice tax has expanded s$bstantiall*, there
o$ld be a great need for professionals to ad%ice and assist the assessees& " chartered acco$ntant ith strong
gro$nding in acco$nting co$pled ith his training and experience is ell2e7$ipped to position himself in the
role as an ad%isor and facilitator for d$e compliance of ser%ice tax la& The nat$re of professional ser%ices
co$ld be-
(4) A(#)5"'= 5$'#)6$5 : ?ith the comprehensi%e co%erage of ser%ice tax, a great deal of professional ac$men
o$ld be re7$ired to interpret and $nderstand the la and ad%ise the applicabilit* of ser%ice tax 7$a an
acti%it* or ser%ice& " chartered acco$ntant o$ld be able to fill this %oid&
(&) P'"6$(:'4; 6"%7;)4+6$: The ser%ice tax la en%isages registration, pa*ment of tax, filing ret$rns and
assessments in%ol%ing interface ith the excise department& " chartered acco$ntant ith his experience and
expertise o$ld be the best person to assist the assessee in all the abo%e f$nctions and ens$re compliance&
(6) P$'5"+4; '$7'$5$+*4*)"+: "s per the ser%ice tax la read ith the Central Excise "ct and <$les, a
chartered acco$ntant is alloed to appear before the assessment a$thorit*, Commissioner '"ppeals) 'first
appeal) and Trib$nal 'second appeal)& >ere too ith his experience and expertise a chartered acco$ntant
o$ld be ell positioned to represent his clients& ?hen the matter goes $p to the >igh Co$rt or S$preme
Co$rt, the chartered acco$ntant can assist# ad%ise the ad%ocates&
(() C$'*)8)64*)"+ 4+( 4:()*: ?ith the idening of tax base there ill be a phenomenal groth in the
n$mber of ser%ice tax assessees& ,n the ens$ing *ears the department o$ld ha%e to e%ol%e a mechanism
DIRECTOR
GENERAL
OF
SERVICE
TAX
(Coordinato
r
B45)6 C"+6$7*5 "8 S$'#)6$ T49 10
here there is management b* exception i&e& generall* accept all the ret$rns as correct and picC and choose
those ret$rns hich need detailed scr$tin*& ,n this mechanism a chartered acco$ntant co$ld be of great
assistance& Ser%ice tax ret$rns and financial statements co$ld be certified b* the chartered acco$ntant from
the perspecti%e of ser%ice tax similar to an a$dit $nder section 44"4 of the ,ncome2tax "ct&
($) O+$'":5 *45@ *" @$$7 746$ : The ser%ice tax liCe excise is administered more b* a* of trade notices
iss$ed b* %ario$s Commissionerates& " chartered acco$ntant ill ha%e to Ceep himself abreast of the latest
notifications and trade notices in addition to the changes in la so as to meet the client expectations& Th$s,
in order to render good %al$e added ser%ices in the area of ser%ice tax a chartered acco$ntant has an onero$s
tasC to Ceep pace ith the latest in the legal front&
E9*$+*. C"%%$+6$%$+* 4+( A77;)64*)"+ 11
E9*$+*. C"%%$+6$%$+* 4+( A77;)64*)"+ !S$6*)"+ /4,
I- E9*$+* A 6"%%$+6$%$+*: The !inance "ct, 1994 came into force from 1&;&1994& /ide section 14'1), the
pro%isions of the "ct extends to the hole of the co$ntr* except the State of Gamm$ and Mashmir, and %ide
section 14'3), the le%* applies to all B*494&;$ 5$'#)6$5 7'"#)($(C&
P'"#)5)"+5 "8 *<$ A6* (" +"* $9*$+( *" D4%%: A E45<%)'
(4) S$'#)6$ 7'"#)($( )+ D4%%: A E45<%)' +"* ;)4&;$ *" 5$'#)6$ *49: Since the pro%isions of the !inance
"ct, 1994 do not extend to Gamm$ . Mashmir, ser%ices pro%ided in the State of Gamm$ and Mashmir are not
liable to ser%ice tax&
(&) R$45"+: "s per "rticle 3;0 of the Constit$tion, an* "ct of +arliament applies to Gamm$ . Mashmir onl*
ith conc$rrence of State (o%ernment& Since, no s$ch conc$rrence has been obtained in respect of !inance
"ct, 1994K the pro%isions of ser%ice tax are not applicable in the state of Gamm$ and Mashmir&
(6) S$'#)6$5 7'"#)($( 8'"% D4%%: A E45<%)' ":*5)($ D4%%: A E45<%)' ;)4&;$ *" 5$'#)6$ *49-
Ser%ice tax ill not be pa*able if ser%ices are pro%ided in Gamm$ . Mashmir& >oe%er, if a person from
Gamm$ . Mashmir pro%ides the ser%ice o$tside Gamm$ . Mashmir in an* other part of ,ndia, the ser%ice
ill be liable to ser%ice tax, as the location here ser%ice is cons$med is rele%ant& 0erel* beca$se the office
of the ser%ice pro%ider is sit$ated in Gamm$ . Mashmir, it does not mean that ser%ice is pro%ided in Gamm$
. Mashmir&
II- L$#= "8 5$'#)6$ *49: He%* of ser%ice tax extends to hole of ,ndia except Gamm$ and Mashmir&
FI+()4G means,N
'a) the territor* of the Enion as referred to in cla$ses '2) and '3) of article 1 of the Constit$tionK
'b) its territorial aters, continental shelf, excl$si%e economic =one or an* other maritime =one as defined in
the Territorial ?aters, Continental Shelf, Excl$si%e Economic Lone and other 0aritime Lones "ct, 19;1K
'c) the seabed and the s$bsoil $nderl*ing the territorial atersK
'd) the air space abo%e its territor* and territorial atersK and
'e) the installations, str$ct$res and %essels located in the continental shelf of ,ndia and the excl$si%e
economic =one of ,ndia, for the p$rposes of prospecting or extraction or prod$ction of mineral oil and
nat$ral gas and s$ppl* thereof !S$6*)"+ /0B(21),&
I+()4+ *$'')*"')4; >4*$'5 extend $pto 12 na$tical miles from the ,ndian land mass&
D$8)+)*)"+ "8 S$'#)6$ 12
D$8)+)*)"+ "8 S$'#)6$ !S$6*)"+ /0B(44),
Earlier, $nder the selecti%e approach of taxation of ser%ices, the ord Iser%iceJ as nohere defined in the
!inance "ct, 1994& ,n the negati%e list approach of taxation of ser%ices, the definition of ser%ice gains
paramo$nt importance& ,n order to determine hether a person is liable to pa* ser%ice tax, the first 7$estion
he needs to anser is hether the acti%it* $ndertaCen b* him comes ithin the ambit of definition of
Iser%iceJ& Conse7$entl*, section 134'44) defines the ord Iser%iceJ& !or ease of $nderstanding, the
definition of ser%ice tax ma* be di%ided into three sections-2
I- M$4+)+? "8 5$'#)6$
Ser%ice means
'i) an* acti%it* for consideration
'ii) carried o$t b* a person for another and
'iii) incl$des a declared ser%ice&
II- E96;:5)"+5
>oe%er, a ser%ice 5<4;; +"* )+6;:($-2
'a) an acti%it* hich constit$tes merel*,N
'i) a transfer of title in goods or immo%able propert*, b* a* of sale, gift or in an* other mannerK or
'ii) s$ch transfer, deli%er* or s$ppl* of an* goods hich is deemed to be a sale ithin the meaning of
cla$se '29") of article 311 of the Constit$tionK or
'iii) a transaction in mone* or actionable claimK
'b) a pro%ision of ser%ice b* an emplo*ee to the emplo*er in the co$rse of or in relation to his emplo*mentK
'c) fees taCen in an* Co$rt or trib$nal established $nder an* la for the time being in force&
III- E97;4+4*)"+5
E97;4+4*)"+ 1
!or the remo%al of do$bts, it is hereb* declared that nothing contained in this cla$se shall appl* to,N
'") the f$nctions performed b* the 0embers of +arliament, 0embers of State Hegislati%e, 0embers of
+ancha*ats, 0embers of 0$nicipalities and 0embers of other local a$thorities ho recei%e an*
consideration in performing the f$nctions of that office as s$ch memberK or
'4) the d$ties performed b* an* person ho holds an* post in p$rs$ance of the pro%isions of the
Constit$tion in that capacit*K or
'C) the d$ties performed b* an* person as a Chairperson or a 0ember or a 9irector in a bod* established b*
the Central (o%ernment or State (o%ernments or local a$thorit* and ho is not deemed as an emplo*ee
before the commencement of this section&
E97;4+4*)"+ 2
!or the p$rposes of this cla$se, transaction in mone* shall not incl$de an* acti%it* relating to the $se of
mone* or its con%ersion b* cash or b* an* other mode, from one form, c$rrenc* or denomination, to another
form, c$rrenc* or denomination for hich a separate consideration is charged&
E97;4+4*)"+ 3
!or the p$rposes of this Chapter,N
'a) an $nincorporated association or a bod* of persons, as the case ma* be, and a member thereof shall be
treated as distinct personsK
D$8)+)*)"+ "8 S$'#)6$ 13
'b) an establishment of a person in the taxable territor* and an* of his other establishment in a non2taxable
territor* shall be treated as establishments of distinct persons&
E97;4+4*)"+ 4
" person carr*ing on a b$siness thro$gh a branch or agenc* or representational office in an* territor* shall
be treated as ha%ing an establishment in that territor*&
Each of these sections has been disc$ssed #anal*sed in detail as follos-
()) M$4+)+? "8 5$'#)6$
Ser%ice means
I- ANY ACTIVITY FOR CONSIDERATION
(4) <4* )5 4+ A6*)#)*=H
The ord Oacti%it*P is a term ith %er* ide connotation& ,t has not been defined in the !inance "ct, 1994&
>oe%er, in terms of the common $nderstanding of the ord, acti%it* o$ld incl$de-2
'i) an act done
'ii) a orC done
'iii) a deed done
'i%) an operation carried o$t
'%) exec$tion of an act
'%i) pro%ision of a facilit* etc&
"cti%it* co$ld be acti%e or passi%e and o$ld also incl$de forbearance to act&
(&) <4* )5 4 6"+5)($'4*)"+H
Explanation 'a) to section 1; of the "ct pro%ides an incl$si%e definition of consideration& >ence, for better
$nderstanding, it o$ld be preferable to refer definition of the OconsiderationP as gi%en in section 2 'd) of the
,ndian Contract "ct, 18;2 as follos2
I?hen, at the desire of the promisor, the promisee or an* other person has done or abstained from doing, or
does or abstains from doing, or promises to do or to abstain from doing, something, s$ch act or abstinence or
promise is called a 6"+5)($'4*)"+ 8"' *<$ 7'"%)5$J&
,n other ords, OconsiderationP means e%er*thing recei%ed or reco%erable in ret$rn for a pro%ision of ser%ice
hich incl$des monetar* pa*ment and an* consideration of non2 monetar* nat$re or deferred consideration
as ell as recharges beteen establishments located in a non2taxable territor* on one hand and taxable
territor* on the other hand&
M"+$*4'= 6"+5)($'4*)"+ 4+( +"+-%"+$*4'= 6"+5)($'4*)"+
1- M"+$*4'= 6"+5)($'4*)"+ means an* consideration recei%ed in the form of mone*& M"+$= means legal
tender, che7$e, promissor* note, bill of exchange, letter of credit, draft, pa* order, tra%eller che7$e, mone*
order, postal or electronic remittance or an* s$ch similar instr$ment b$t shall not incl$de an* c$rrenc* that
is held for its n$mismatic %al$e&
2- N"+-%"+$*4'= 6"+5)($'4*)"+ essentiall* means compensation in Cind s$ch as the folloing-
S$ppl* of goods and ser%ices in ret$rn for pro%ision of ser%ice
<efraining or forbearing to do an act in ret$rn for pro%ision of ser%ice
Tolerating an act or a sit$ation in ret$rn for pro%ision of a ser%ice
9oing or agreeing to do an act in ret$rn for pro%ision of ser%ice&
E94%7;$5 "8 +"+-%"+$*4'= 6"+5)($'4*)"+ 4'$ 45 8";;">5:-
'a) <ohit agrees to dr* clean ShobitPs clothes, and in ret$rn, Shobit agrees to clicC <ohitPs photograph&
D$8)+)*)"+ "8 S$'#)6$ 14
'b) Sagar agrees not to open dr* clean shop in :areshPs neighborhood, and in ret$rn, :aresh agrees not to
open photograph* shop in SagarPs neighborhood&
'c) +$shCar agrees to design 4haratPs ho$se, and in ret$rn, 4harat agrees not to obAect to constr$ction of
+$shCarPs ho$se in his neighborhood&
'd) "Cash agrees to constr$ct 3 flats for 4hola on land oned b* 4hola, and in ret$rn, 4hola agrees to
pro%ide one flat to "Cash itho$t an* monetar* consideration&
(6) A6*)#)*= 8"' 6"+5)($'4*)"+
()) I%7;)64*)"+5 "8 *<$ 6"+()*)"+ *<4* 46*)#)*= 5<":;( &$ 64'')$( ":* 8"' 4 F6"+5)($'4*)"+G:-
To be taxable, an acti%it* sho$ld be carried o$t b* a person for a OconsiderationP&
"cti%it* carried o$t itho$t an* consideration liCe donations, gifts or free charities are therefore
o$tside the ambit of ser%ice& !or example, grants gi%en for a research here the researcher is $nder
no obligation to carr* o$t a partic$lar research o$ld not be a consideration for s$ch research&
"n act b* a charit* for consideration o$ld be a ser%ice and taxable $nless otherise exempted&
Conditions in a grant stip$lating merel* proper $sage of f$nds and f$rnishing of acco$nt also ill not
res$lt in maCing it a pro%ision of ser%ice&
())) C"+6$7* "8 46*)#)*= 8"' 6"+5)($'4*)"+
The concept Oacti%it* for a considerationP in%ol%es an element of contract$al relationship herein the person
doing an acti%it* does so at the desire of the person for hom the acti%it* is done in exchange for a
consideration&
"n acti%it* done itho$t s$ch a relationship i&e& itho$t the express or implied contract$al reciprocit* of a
consideration o$ld not be an Oacti%it* for considerationP e%en tho$gh s$ch an acti%it* ma* lead to accr$al
of gains to the person carr*ing o$t the acti%it*&
The significant points to be noted in this regard are as follos-2
(4) D)'$6* 4+( )%%$()4*$ ;)+@ &$*>$$+ 46*)#)*= 4+( 6"+5)($'4*)"+
()) D)'$6* ;)+@: ,t implies that there sho$ld be a direct linC and not an* cas$al linC beteen acti%it* and
consideration&
Ser%ices recei%ed from go%ernment against taxes paid not taxable per se, as no direct linC is there&
!ree seminar to ed$cate abo$t pr$dent in%estment indirectl* promoting a m$t$al f$nd, in this case
also direct linC is missing&
Ser%ices recei%ed from a cl$b against membership, there is a direct linC of maCing the facilities
a%ailable for $se, hether or not immediatel* $sed&
())) I%%$()4*$ 6"++$6*)"+: ,t implies that there sho$ld be an immediate and not remote connection beteen
acti%it* and consideration& Consideration ma* act$all* be pa*able at a later point of time b$t linCage sho$ld
be immediate&
!or instance, in case an aard is recei%ed in consideration for life time contrib$tion, there is no immediate
connection and hence, it is not taxable e&g& :obel +ri=e&
(&) N"* *" )+6;:($ 4+= 46*)#)*= ><$'$ +" 5:6< '$6)7'"6)*=
()) A6*)#)*= >)*<":* 6"+5)($'4*)"+ +"* *494&;$
Examples of an acti%it* itho$t consideration are as follos-2
D$8)+)*)"+ "8 S$'#)6$ 10
To$rism information free of charge
"ccess to free T/ channels
"n artist performing on a street here passersb* ma* drop some coins in his bol Cept either after
feeling reAoiced or o$t of compassion
Harge n$mber of go%ernmental acti%ities for citi=ens
())) C"+5)($'4*)"+ >)*<":* 46*)#)*= +"* *494&;$
Examples of consideration itho$t an acti%it* are as follos-2
+ersonal obligations e&g& pocCet mone*
"mo$nt paid as alimon* for di%orce
9onations itho$t conditions
+$re gifts
Tips and ex2gratia pa*ments
(6) C"+5)($'4*)"+ 8"' 5$'#)6$ %4= &$ 74)( &= 4 7$'5"+ "*<$' *<4+ *<$ 7$'5"+ '$6$)#)+? *<$ &$+$8)* "8
*<$ 5$'#)6$
The consideration for a ser%ice ma* be pro%ided b* a person other than the person recei%ing the benefit of
ser%ice
!or example, holding compan* ma* pa* for ser%ices that are pro%ided to its associated companies&
<$*<$' 8";;">)+? 74=%$+*5 6"+5*)*:*$ 4 6"+5)($'4*)"+ 8"' 7'"#)5)"+ "8 5$'#)6$H
S- N"- N4*:'$ "8 74=%$+* <$*<$' )* )5 6"+5)($'4*)"+ 8"' 5$'#)6$H
1& ,mposition of a fine or a penalt* for %iolation
of a pro%ision of la& ,s fine or penalt* the
consideration for the acti%it* of breaCing the
laQ
,n order to be ser%ice, an acti%it* has to be carried
o$t for a consideration& Therefore fines and
penalties hich are legal conse7$ences of a
person@s actions are not in the nat$re of
consideration for an acti%it*&
2& "mo$nt recei%ed in settlement of disp$te& ?o$ld depend on the nat$re of disp$te& +er se
s$ch amo$nts are not consideration $nless it
represents a portion of the consideration for an
acti%it* that has been carried o$t& ,f the disp$te
itself pertains to consideration relating to ser%ice
then it o$ld be a part of consideration&
3& "mo$nt recei%ed as ad%ances for
performance of ser%ice&
S$ch ad%ances are consideration for the
agreement to perform a ser%ice&
4& 9eposits ret$rned on cancellation of an
agreement to pro%ide a ser%ice&
<et$rned deposits are in the nat$re of a ret$rned
consideration& ,f tax has alread* been paid the tax
pa*er o$ld be entitled to ref$nd to the extent
specified and s$bAect to pro%isions of la in this
regard&
3& "d%ance forfeited for cancellation of an
agreement to pro%ide a ser%ice&
Since ser%ice becomes taxable on an agreement to
pro%ide a ser%ice s$ch forfeited deposits o$ld
represent consideration for the agreement that as
entered into for pro%ision of ser%ice&
1& Sec$rit* deposit that is ret$rnable on
completion of pro%ision of ser%ice&
<et$rnable deposit is in the nat$re of sec$rit* and
hence do not represent consideration for ser%ice&
>oe%er if the deposit is in the nat$re of a
D$8)+)*)"+ "8 S$'#)6$ 1/
colorable de%ice herein the interest on the
deposit s$bstit$tes for the consideration for
ser%ice pro%ided or the interest earned has a
perceptible impact on the consideration charged
for ser%ice then s$ch interest o$ld form part of
gross amo$nt recei%ed for the ser%ice& "lso
sec$rit* deposit sho$ld not be in lie$ of ad%ance
pa*ment for the ser%ice&
;& Sec$rit* deposits forfeited for damages done
b* ser%ice recei%er in the co$rse of recei%ing
a ser%ice&
,f the forfeited deposits relate to accidental
damages d$e to $nforeseen actions not relatable to
pro%ision of ser%ice then s$ch forfeited deposits
o$ld not be a consideration in terms of
cla$se '%i) of s$b2r$le '2) of r$le 1 of the
/al$ation <$les&
8& Excess pa*ment made as a res$lt of a mistaCe ,f ret$rned it is not consideration& ,f not ret$rned
and retained b* the ser%ice pro%ider it becomes a
part of the taxable %al$e&
9& 9em$rrages pa*able for $se of ser%ices
be*ond the period initiall* agreed $pon e&g&
retention of containers be*ond the normal
period&
This ill be consideration&
II- ACTIVITY MUST BE CARRIED OUT BY A PERSON FOR ANOTIER
The phrase Opro%ided b* one person to anotherP signifies that there m$st be to distinct entities2ser%ice
pro%ider and ser%ice recei%er& >ence, ser%ices pro%ided b* a person to self are o$tside the ambit of taxable
ser%ice& !or instance, a ser%ice pro%ided b* one branch of a compan* to another or to its head office or %ice2
%ersa are not ser%ices pro%ided b* one person to another&
P$'5"+ incl$des,N
'i) an indi%id$al,
'ii) a >ind$ $ndi%ided famil*,
'iii) a compan*,
'i%) a societ*,
'%) a limited liabilit* partnership,
'%i) a firm,
'%ii) an association of persons or bod* of indi%id$als, hether incorporated or not,
'%iii) (o%ernment,
'ix) a local a$thorit*, or
'x) e%er* artificial A$ridical person, not falling ithin an* of the preceding s$b2cla$ses
!S$6*)"+ /0B(31),&
E96$7*)"+5
G$+$'4; ':;$ - Bnl* ser%ices pro%ided b* a person to another are taxable& Explanation 3car%es o$t to
exceptions to the general r$le-2
an establishment of a person located in taxable territor* and another establishment of s$ch person
located in non2taxable territor* are treated as establishments of distinct persons&
an $nincorporated association or bod* of persons and members thereof are also treated as distinct
persons&
>ence, s$ch persons shall be deemed to be separate persons and th$s, ser%ices pro%ided b* these persons
o$ld be taxable&
D$8)+)*)"+ "8 S$'#)6$ 11
!or example, ser%ices pro%ided b* a cl$b to its members and ser%ices pro%ided b* the branch office of a
m$ltinational compan* to the head7$arters of the m$lti2national compan* located o$tside ,ndia o$ld be
taxable pro%ided other conditions relating to taxabilit* of ser%ice are satisfied&
III- SERVICE INCLUDES DECLARED SERVICE
9eclared ser%ice means an* acti%it* carried o$t b* a person for another person for consideration and
declared as s$ch $nder section 11E !S$6*)"+ /0B(22),& The pro%isions relating to declared ser%ice ha%e been
explained in detail in +aper 8- ,ndirect Tax Has at the !inal le%el&
())) E96;:5)"+5
E96;:5)"+5 8'"% ($8)+)*)"+ "8 5$'#)6$
, mmo%able propert*
0 o%able propert*
" ctionable claims
( oods
E mplo*ee
(4) C;4:5$ (4)()) "8 $96;:5)"+5
A6*)#)*= *" &$ *494&;$ 5<":;( +"* 6"+5*)*:*$ "+;= 4 *'4+58$' )+ *)*;$ "8 ?""(5 "' )%%"#4&;$ 7'"7$'*= &=
>4= "8 54;$. ?)8* "' )+ 4+= "*<$' %4++$'
0ere transfer of title in goods or immo%able propert* b* a* of sale, gift or in an* other manner for a
consideration does not constit$te ser%ice& >oe%er, a transaction hich in addition to a transfer of title in
goods or immo%able propert* in%ol%es an element of another acti%it* carried o$t or to be carried o$t b* the
person transferring the title o$ld not be o$trightl* excl$ded from the definition of ser%ice&
M$4+)+? "8 ?""(5 4+( )%%"#4&;$ 7'"7$'*=
G""(5 means e%er* Cind of mo%able propert* other than actionable claim and mone*K and incl$des
sec$rities, groing crops, grass, and things attached to or forming part of the land hich are agreed to be
se%ered before sale or $nder the contract of sale !S$6*)"+ /0B(20),&
I%%"#4&;$ 7'"7$'*= has not been defined in the "ct& Therefore the definition of immo%able propert* in the
(eneral Cla$ses "ct, 189; ill be applicable hich defines immo%able propert* to incl$de land, benefits to
arise o$t of land, and things attached to the earth, or permanentl* fastened to an*thing attached to the earth&
(&) C;4:5$ (4)())) "8 $96;:5)"+5
A6*)#)*= *" &$ *494&;$ 5<":;( +"* 6"+5*)*:*$ %$'$;= 4 *'4+58$'. ($;)#$'= "' 5:77;= "8 ?""(5 ><)6< )5
($$%$( *" &$ 4 54;$ "8 ?""(5 >)*<)+ *<$ %$4+)+? "8 6;4:5$ (23A) "8 4'*)6;$ 3// "8 *<$ C"+5*)*:*)"+
,t ma* be noted that altho$gh the transfer of title b* a* of sale of goods is alread* excl$ded $nder cla$se
'i) abo%e, deemed sales ha%e been excl$ded specificall* b* this cla$se& The reason for the same is that some
categories of deemed sales do not in%ol%e transfer of title in goods liCe transfer of goods on hire2p$rchase or
transfer of right to $se goods& "ccordingl*, deemed sales ha%e been specificall* excl$ded&
The six categories of deemed sales as defined in article 311'29") of the Constit$tion are 5
transfer, otherise than in p$rs$ance of a contract, of propert* in an* goods for cash, deferred
pa*ment or other %al$able consideration
transfer of propert* in goods 'hether as goods or in some other form) in%ol%ed in the exec$tion of a
orCs contract
deli%er* of goods on hire2p$rchase or an* s*stem of pa*ment b* installments
D$8)+)*)"+ "8 S$'#)6$ 12
transfer of the right to $se an* goods for an* p$rpose 'hether or not for a specified period) for cash,
deferred pa*ment or other %al$able consideration
s$ppl* of goods b* an* $nincorporated association or bod* of persons to a member thereof for cash,
deferred pa*ment or other %al$able consideration
s$ppl*, b* a* of or as part of an* ser%ice or in an* other manner hatsoe%er, of goods, being food
or an* other article for h$man cons$mption or an* drinC 'hether or not intoxicating), here s$ch
s$ppl* or ser%ice, is for cash, deferred pa*ment or other %al$able consideration&
(6) C;4:5$ (4)()))) "8 $96;:5)"+5
T'4+546*)"+5 "+;= )+ %"+$= "' 46*)"+4&;$ 6;4)%5 (" +"* 6"+5*)*:*$ 5$'#)6$
Cla$se 'a)'iii) of excl$sions has to be read in conA$nction ith Explanation 2&
Explanation 2 clarifies that for the p$rposes of this cla$se, transaction in mone* shall not incl$de an*
acti%it* relating to the $se of mone* or its con%ersion b* cash or b* an* other mode, from one form,
c$rrenc* or denomination, to another form, c$rrenc* or denomination for hich a separate consideration is
charged&
The implications of this explanation are that hile mere transactions in mone* are o$tside the ambit of
ser%ice, an* acti%it* related to a transaction in mone* b* a* of its $se or con%ersion b* cash or b* an*
other mode, from one form, c$rrenc* or denomination to another form, c$rrenc* or denomination o$ld not
be treated as a transaction in mone* if a separate consideration is charged for s$ch an acti%it*& ?hile the
transaction in mone*, per2se, o$ld be o$tside the ambit of ser%ice the related acti%it*, for hich a separate
consideration is charged, o$ld not be treated as a transaction of mone* and o$ld be chargeable to ser%ice
tax if other elements of taxabilit* are present&
!or example, a foreign exchange dealer hile exchanging one c$rrenc* for another also charges a
commission 'often inb$ilt in the difference beteen the p$rchase price and selling price of forex)& The
acti%it* of exchange of c$rrenc*, per2se, o$ld be a transaction onl* in mone*, the related acti%it* of
pro%iding the ser%ices of con%ersion of forex, doc$mentation and other ser%ices for hich a commission is
charged separatel* or b$ilt in the margins o$ld be %er* m$ch a Oser%iceP&
<$*<$' *<$ 8";;">)+? *'4+546*)"+5 6"%$ :+($' F*'4+546*)"+ "+;= )+ %"+$=GH
S- N"- N4*:'$ "8 *'4+546*)"+5 <$*<$' 6"%$ :+($' *'4+546*)"+ "+;= )+
%"+$=H
1& " b$siness chit f$nd ,n b$siness chit f$nd since certain commission
recei%ed from members is retained b* the
promoters as consideration for pro%iding ser%ices
in relation to the chit f$nd, it is not a transaction
onl* in mone*& The consideration recei%ed for
s$ch ser%ices is therefore chargeable to ser%ice
tax&
2& 0aCing of a draft or a pa* order b* a banC be
a transaction
:o& Since the banC charges a commission for
preparation of a banC draft or a pa* order it is not
a transaction onl* in mone*& >oe%er, for a draft
or a pa* order made b* banC the ser%ice pro%ided
o$ld be onl* to the extent of commission
charged for the banC draft or pa* order&
The mone* recei%ed for the face %al$e of s$ch
instr$ment o$ld not be consideration for a
ser%ice since to the extent of face %al$e of the
instr$ment it is onl* a transaction in mone*&
3& "n in%estment ,n%estment of f$nds b* a person ith another for
D$8)+)*)"+ "8 S$'#)6$ 13
hich the ret$rn on s$ch in%estment is ret$rned or
repatriated to the in%estors itho$t retaining an*
portion of the ret$rn on s$ch in%estment of f$nds
is a transaction onl* in mone*& Th$s a partner
being admitted in a partnership against his share
ill be a transaction in mone*& >oe%er, if a
commission is charged or a portion of the ret$rn is
retained as ser%ice charges, then s$ch commission
or portion of ret$rn is o$t of the p$r%ie of
transaction onl* in mone* and hence taxable&
"lso, if a ser%ice is recei%ed in lie$ of an
in%estment it o$ld cease to be a transaction onl*
in mone* to the extent the in%estment represents
the consideration for the ser%ice recei%ed&
4& 9ebt collection ser%ices or credit control
ser%ices
:o& S$ch ser%ices pro%ided for consideration are
taxable&
3& Sale, p$rchase, ac7$isition or assignment of a
sec$red debt liCe a mortgage
Res& >oe%er, if a ser%ice fee or processing fee or
an* other charge is collected in the co$rse of
transfer or assignment of a debt then the same
o$ld be chargeable to ser%ice tax&
M"+$= means legal tender, che7$e, promissor* note, bill of exchange, letter of credit, draft, pa* order,
tra%eller che7$e, mone* order, postal or electronic remittance or an* s$ch similar instr$ment b$t shall not
incl$de an* c$rrenc* that is held for its n$mismatic %al$e !S$6*)"+ /0B(33),-
A6*)"+4&;$ 6;4)% means a claim to an* debt, other than a debt sec$red b* mortgage of immo%able propert*
or b* h*pothecation or pledge of mo%able propert*, or to an* beneficial interest in mo%able propert* not in
the possession, either act$al or constr$cti%e, of the claimant, hich the ci%il co$rts recogni=e as affording
gro$nds for relief, hether s$ch debt or beneficial interest be existent, accr$ing, conditional or contingent
!S$6*)"+ /0B(1),-
,ll$strations of actionable claims are 2
22Ensec$red debts
22<ight to participate in the dra to be held in a lotter*&
(() C;4:5$ (&) "8 $96;:5)"+5
P'"#)5)"+ "8 5$'#)6$ &= 4+ $%7;"=$$ *" *<$ $%7;"=$' )5 ":*5)($ *<$ 4%&)* "8 5$'#)6$ :ot all ser%ices
pro%ided b* an emplo*ee to the emplo*er are o$tside the ambit of ser%ices& Bnl* 5$'#)6$5 *<4* 4'$ 7'"#)($(
&= *<$ $%7;"=$$ *" *<$ $%7;"=$' )+ *<$ 6":'5$ "8 $%7;"=%$+* 4'$ ":*5)($ *<$ 4%&)* "8 5$'#)6$5&
Ser%ices pro%ided o$tside the ambit of emplo*ment for a consideration o$ld be a ser%ice& !or example, if
an emplo*ee pro%ides his ser%ices on contract basis to an associate compan* of the emplo*er, then this
o$ld be treated as pro%ision of ser%ice&
<$*<$' *<$ 8";;">)+? &$ '$?4'($( 45 5$'#)6$5 )+ 6":'5$ "8 $%7;"=%$+*
S- N"-
Nature of services Whether regarded as services in
course of e!"o#ent
1& Ser%ices pro%ided on contract basis b* a
person to another
:o& Ser%ices pro%ided on contract basis i&e&
principal2to2principal basis are not ser%ices
pro%ided in the co$rse of emplo*ment&
2& Ser%ices pro%ided b* a cas$al orCer to
emplo*er ho gi%es ages on dail* basis to
the orCer&
Res& These are ser%ices pro%ided b* the orCer in
the co$rse of emplo*ment&
D$8)+)*)"+ "8 S$'#)6$ 20
3& ,n case the cas$al orCers are emplo*ed b*
a contractor, liCe a b$ilding contractor or
sec$rit* agenc* ser %ices, ho deplo*s them
for exec$tion of a contract or for pro%ision of
sec$rit* ser%ices to a client&
Res& Ser%ices pro%ided b* the orCer to the
contractors are in the co$rse of emplo*ment&
>oe%er, ser%ices pro%ided b* the contractor to
his client b* deplo*ing s$ch orCers o$ld not be
a ser%ice pro%ided b* the orCers to the client in
the co$rse of emplo*ment& The consideration
recei%ed b* the contractor o$ld therefore be
taxable if other conditions of taxabilit* are
present&
()))) E97;4+4*)"+5
E97;4+4*)"+ 1 clarifies that Oser%iceP does not co%er f$nctions or d$ties performed b* 0embers of
+arliament, State Hegislat$res, +ancha*at, 0$nicipalities or an* other local a$thorit*, an* person ho holds
an* post in p$rs$ance of the pro%isions of the Constit$tion or an* person as a Chairperson or a 0ember or a
9irector in a bod* established b* the Central or State (o%ernments or local a$thorit* and ho is not deemed
as an emplo*ee&
E97;4+4*)"+ 2 A 3 ha%e alread* been disc$ssed at the rele%ant places&
E97;4+4*)"+ 4 explains that a branch or an agenc* of a person thro$gh hich the person carries o$t b$siness
is also an establishment of s$ch person&
C<4'?$ "8 S$'#)6$ T49 !S$6*)"+ //B,
Section 114 is the charging section of the "ct, hich pro%ides that there shall be le%ied a tax 'hereinafter
referred to as the ser%ice tax) at the rate of 12D on the %al$e of all ser%ices, other than those ser%ices
specified in the negati%e list, pro%ided or agreed to be pro%ided in the taxable territor* b* one person to
another and collected in s$ch manner as ma* be prescribed& The effecti%e rate of ser%ice tax is 12DK pl$s
ed$cation cess of 2D and secondar* . higher ed$cation cess of 1D&
(4) P'"#)($( "' 4?'$$( *" &$ 7'"#)($(: The implications of this phrase are 5
Ser%ices hich ha%e onl* been agreed to be pro%ided b$t are *et to be pro%ided are also taxable&
<eceipt of ad%ances for ser%ices agreed to be pro%ided become taxable before the act$al pro%ision of
ser%ice&
"d%ances that are retained b* the ser%ice pro%ider in the e%ent of cancellation of contract of ser%ice
b* the ser%ice recei%er become taxable as these represent consideration for a ser%ice that as agreed
to be pro%ided&
>oe%er, it is important to note that the liabilit* to pa* the ser%ice tax on a taxable ser%ice arise the moment
it is agreed to be pro%ided itho$t act$al pro%ision of ser%ice& The liabilit* to pa* tax arises in s$ch cases at
the point of taxation hich is determined as per the +oint of Taxation <$les, 2011 'disc$ssed in detail in
Chapter 2)&
(&) P'"#)($( )+ *<$ *494&;$ *$'')*"'=
The ser%ice m$st ha%e been pro%ided in the taxable territor*&
T494&;$ *$'')*"'= means the territor* to hich the pro%isions of this Chapter appl* i&e& the hole of
territor* of ,ndia other than the State of Gamm$ and Mashmir !S$6*)"+ /0B(02),&
(6) S$'#)6$ 5<":;( +"* &$ 57$6)8)$( )+ *<$ +$?4*)#$ ;)5*
"s per section 114, to be taxable a ser%ice sho$ld not be specified in the negati%e list& The negati%e list of
ser%ices has been specified in section 119 of the "ct&
D$8)+)*)"+ "8 S$'#)6$ 21
E(:64*)"+ C$55 4+( S$6"+(4'= 4+( I)?<$' E(:64*)"+ C$55
(4) E(:64*)"+ 6$55 (EC): "n ed$cation cess is le%ied S 2D, calc$lated on the ser%ice tax on all taxable
ser%ices& The ed$cation cess so collected is $tili=ed for pro%iding and financing $ni%ersali=ed 7$alit* basic
ed$cation&
(&) S$6"+(4'= 4+( <)?<$' $(:64*)"+ 6$55 (SIEC): !$rther, ith effect from 11&03&200;, a secondar* and
higher ed$cation cess S 1D is also being imposed on ser%ices liable to ser%ice tax&
Th$s, the effecti%e rate of ser%ice tax becomes 12&31D&
P")+*5 *" &$ +"*$( '$?4'()+? EC A SIEC
'a) Ser%ice tax, ed$cation cess and secondar* and higher ed$cation cess sho$ld be shon separatel* in the
in%oice&
'b) These cesses paid on inp$t ser%ices are a%ailable as credit for pa*ment of cesses on o$tp$t ser%ices or
final prod$cts&
'c) The ed$cation cess and secondar* and higher ed$cation cess on taxable ser%ices are in addition to the tax
chargeable on s$ch taxable ser%ices, $nder Chapter / of the !inance "ct, 1994&
'd) The pro%isions of Chapter / of the !inance "ct, 1994 and the r$les made there$nder, incl$ding those
relating to ref$nds and exemptions from tax and imposition of penalt*, appl* in relation to the le%* and
collection of the ed$cation cess and secondar* and higher ed$cation cess also, as the* appl* in relation to the
le%* and collection of tax on s$ch taxable ser%ices&
N$?4*)#$ L)5* "8 S$'#)6$5 22
N$?4*)#$ ;)5* "8 5$'#)6$5 !S$6*)"+ //D,
The charging section2section 114 of the !inance "ct, 1994, inter alia, pro%ides that ser%ice tax shall be
le%ied on all ser%ices, except the ser%ices specified in the negati%e list& "ccordingl*, section 119 of the "ct
has specified the list of ser%ices consisting of 1; heads of ser%ices hich is termed as @:egati%e Hist@& ,n a
comprehensi%e tax regime, this @:egati%e Hist@ is of paramo$nt importance beca$se e%er* acti%it* not
co%ered $nder this list is chargeable to ser%ice tax&
The negati%e list shall comprise of the folloing ser%ices, namel*-N
'a) ser%ices b* (o%ernment or a local a$thorit* excl$ding the folloing ser%ices to the extent the* are not
co%ered elsehereN
'i) ser%ices b* the 9epartment of +osts b* a* of speed post, express parcel post, life ins$rance, and
agenc* ser%ices pro%ided to a person other than (o%ernmentK
'ii) ser%ices in relation to an aircraft or a %essel, inside or o$tside the precincts of a port or an airportK
'iii) transport of goods or passengersK or
'i%) s$pport ser%ices, other than ser%ices co%ered $nder cla$ses 'i) to 'iii) abo%e, pro%ided to b$siness
entitiesK
'b) ser%ices b* the <eser%e 4anC of ,ndiaK
'c) ser%ices b* a foreign diplomatic mission located in ,ndiaK
'd) ser%ices relating to agric$lt$re or agric$lt$ral prod$ce b* a* ofN
'i) agric$lt$ral operations directl* related to prod$ction of an* agric$lt$ral prod$ce incl$ding
c$lti%ation, har%esting, threshing, plant protection or seed testingK
'ii) s$ppl* of farm labo$rK
'iii) processes carried o$t at an agric$lt$ral farm incl$ding tending, pr$ning, c$tting, har%esting,
dr*ing, cleaning, trimming, s$n dr*ing, f$migating, c$ring, sorting, grading, cooling or b$lC
pacCaging and s$ch liCe operations hich do not alter the essential characteristics of agric$lt$ral
prod$ce b$t maCe it onl* marCetable for the primar* marCetK
'i%) renting or leasing of agro machiner* or %acant land ith or itho$t a str$ct$re incidental to its
$seK
'%) loading, $nloading, pacCing, storage or areho$sing of agric$lt$ral prod$ceK
'%i) agric$lt$ral extension ser%icesK
'%ii) ser%ices b* an* "gric$lt$ral +rod$ce 0arCeting Committee or 4oard or ser%ices pro%ided b* a
commission agent for sale or p$rchase of agric$lt$ral prod$ceK
'e) trading of goodsK
'f) an* process amo$nting to man$fact$re or prod$ction of goodsK
N$?4*)#$ L)5* "8 S$'#)6$5 23
'g) selling of space or time slots for ad%ertisements other than ad%ertisements broadcast b* radio or
tele%isionK
'h) ser%ice b* a* of access to a road or a bridge on pa*ment of toll chargesK
'i) betting, gambling or lotter*K
'A) admission to entertainment e%ents or access to am$sement facilitiesK
'C) transmission or distrib$tion of electricit* b* an electricit* transmission or distrib$tion $tilit*K
'l) ser%ices b* a* ofN
'i) pre2school ed$cation and ed$cation $p to higher secondar* school or e7$i%alentK
'ii) ed$cation as a part of a c$rric$l$m for obtaining a 7$alification recognised b* an* la for the
time being in forceK
'iii) ed$cation as a part of an appro%ed %ocational ed$cation co$rseK
'm) ser%ices b* a* of renting of residential delling for $se as residenceK
'n) ser%ices b* a* ofN
'i) extending deposits, loans or ad%ances in so far as the consideration is represented b* a* of
interest or disco$ntK
'ii) inter se sale or p$rchase of foreign c$rrenc* amongst banCs or a$thorised dealers of foreign
exchange or amongst banCs and s$ch dealersK
'o) ser%ice of transportation of passengers, ith or itho$t accompanied belongings, b*N
'i) a stage carriageK
'ii) raila*s in a class other thanN
'") first classK or
'4) an airconditioned coachK
'iii) metro, monorail or trama*K
'i%) inland atera*sK
'%) p$blic transport, other than predominantl* for to$rism p$rpose, in a %essel beteen places located
in ,ndiaK and
'%i) metered cabs, radio taxis or a$to ricCshasK
'p) ser%ices b* a* of transportation of goodsN
'i) b* road except the ser%ices ofN
'") a goods transportation agenc*K or
N$?4*)#$ L)5* "8 S$'#)6$5 24
'4) a co$rier agenc*K
'ii) b* an aircraft or a %essel from a place o$tside ,ndia $p to the c$stoms station of clearance in
,ndiaK or
'iii) b* inland atera*sK
'7) f$neral, b$rial, crematori$m or mort$ar* ser%ices incl$ding transportation of the deceased&
ANALYSIS
"nal*sis of each of the entries of negati%e list in detail-2
1- E+*'= (4): S$'#)6$5 &= G"#$'+%$+* "' L"64; A:*<"')*=. $+*'= ("): T'4+57"'*4*)"+ "8 7455$+?$'5 A
$+*'= (7): T'4+57"'*4*)"+ "8 ?""(5
"ll the ser%ices pro%ided b* the (o%ernment or a local a$thorit* are not chargeable to ser%ice tax&
M$4+)+? "8 G"#$'+%$+*
(o%ernment has no here been defined in the !inance "ct, 1994 or the r$les made there$nder& "s per
(eneral Cla$ses "ct, 189;,
G"#$'+%$+* shall incl$de both the Central (o%ernment and an* State (o%ernment 6Section 3'23) of the
(eneral Cla$ses "ct, 189;8&
,t o$ld incl$de %ario$s departments and offices of the Central or State (o%ernment or the Enion Territor*
"dministrations hich carr* o$t their f$nctions in the name and b* order of the +resident of ,ndia or the
(o%ernor of a State&
M$4+)+? "8 ;"64; 4:*<"')*=
L"64; 4:*<"')*= meansN
'a) +ancha*at as referred to in cla$se 'd) of article 243 of the Constit$tion&
'b) 0$nicipalit* as referred to in cla$se 'e) of article 243+ of the Constit$tion&
'c) 0$nicipal Committee and a 9istrict 4oard, legall* entitled to, or entr$sted b* the (o%ernment ith, the
control or management of a m$nicipal or local f$nd&
'd) Cantonment 4oard as defined in section 3 of the Cantonments "ct, 2001&
'e) <egional co$ncil or a district co$ncil constit$ted $nder the Sixth Sched$le to the Constit$tion&
'f) 9e%elopment board constit$ted $nder article 3;1 of the Constit$tion&
'g) <egional co$ncil constit$ted $nder article 3;1" of the Constit$tion !S$6*)"+ /0B(31),-
E96$7*)"+5:
>oe%er, the folloing ser%ices, e%en if pro%ided b* the (o%ernment or local a$thorit*, are taxable-2
'i) Ser%ices b* the 9epartment of +osts b* a* of speed post, express parcel post, life ins$rance, and agenc*
ser%ices pro%ided to a person other than (o%ernmentK
'ii) Ser%ices in relation to an aircraft or a %essel, inside or o$tside the precincts of a port or an airportK
'iii) Transport of goods or passengersK or
'i%) S$pport ser%ices, other than ser%ices co%ered $nder cla$ses 'i) to 'iii) abo%e, pro%ided to b$siness
entities&
N$?4*)#$ L)5* "8 S$'#)6$5 20
R4*)"+4;$ &$<)+( *49)+? 6$'*4)+ 46*)#)*)$5 "8 *<$ G"#$'+%$+* "' ;"64; 4:*<"')*)$5
Bnl* those acti%ities of (o%ernment or local a$thorities are taxed here similar or s$bstit$table ser%ices are
pro%ided b* pri%ate entities& The rationale is as follos2
to pro%ide a le%el pla*ing field to pri%ate entities in these areas as exemption to (o%ernment in s$ch
acti%ities o$ld lead to competiti%e ine7$itiesK and
to a%oid breaC in CE:/"T chain as the s$pport ser%ices pro%ided b* (o%ernment are normall* in
the nat$re of intermediar* ser%ices&
I- SERVICES BY TIE DEPARTMENT OF POSTS PROVIDED TO A PERSON OTIER TIAN
GOVERNMENT
!olloing ser%ices 7'"#)($( *" 4 7$'5"+ "*<$' *<4+ G"#$'+%$+*, b* the 9epartment of +osts are taxable-2
(4) S7$$( 7"5*: pro%ides time2bo$nd and express deli%er* of letters, doc$ments and parcels across the
nation and aro$nd the orld& :o2da*s, speed posts can be tracCed on a dail* basis ith the help of speed
post tracCing ser%ice started b* +ostal 9epartment of ,ndia&
(&) E97'$55 74'6$; 7"5*: Express +arcel +ost is fast and reliable ser%ice for sending the parcels $pto 33 Cg
ithin ,ndia& ,t pro%ides con%enience to the c$stomers b* picCing $p from c$stomerPs premises and
deli%ering to consignee&
(6) L)8$ )+5:'4+6$: +ost offices offer ins$rance $nder to schemes-
'a) +ostal Hife ,ns$rance
'b) <$ral +ostal Hife ,ns$rance&
(() A?$+6= 5$'#)6$5: incl$des distrib$tion of m$t$al f$nds, bonds, passport applications, collection of
telephone and electricit* bills, hich are pro%ided b* the 9epartment of +osts to non2(o%ernment entities&
S$'#)6$5 7'"#)($( &= D$74'*%$+* "8 P"5*5 NOT ;)4&;$ *" 5$'#)6$ *49
Therefore, the folloing ser%ices pro%ided b* 9epartment of +osts are not liable to ser%ice tax-2
4asic mail ser%ices Cnon as postal ser%ices s$ch as post card, inland letter, booC post, registered
post pro%ided excl$si%el* b* the 9epartment of +osts to meet the $ni%ersal postal obligations&
Transfer of mone* thro$gh mone* orders, operation of sa%ings acco$nts, iss$e of postal orders,
pension pa*ments and other s$ch ser%ices&
I;;:5*'4*)"+: HaChanp$r +ost Bffice pro%ided the folloing ser%ices to persons other than (o%ernment
d$ring the 7$arter ending 31&03&2013-2
S$'#)6$5 '$+($'$( A%":+* ($)
4asic mail ser%ices 1,00,000
Transfer of mone* thro$gh mone* orders 3,00,000
Bperation of sa%ing acco$nts 1,30,000
<$ral postal life ins$rance ser%ices 2,00,000
9istrib$tion of m$t$al f$nds, bonds and passport applications 3,00,000
,ss$ance of postal orders 3,00,000
Collection of telephone and electricit* bills 1,00,000
+ension pa*ment ser%ices 30,000
Speed post ser%ices 3,00,000
N$?4*)#$ L)5* "8 S$'#)6$5 2/
Express parcel post ser%ices 2,00,000
Comp$te the ser%ice tax liabilit* of HaChanp$r +ost Bffice for the 7$arter ending 31&03&2013&
:otes-
1& +oint of taxation for all the aforesaid cases fall d$ring the 7$arter ending 31&03&2013&
2& "ll the ser%ice charges stated abo%e are excl$si%e of ser%ice tax&
3& Small Ser%ice +ro%idersP exemption need not be taCen into acco$nt hile sol%ing the aforesaid 7$estion&
S";:*)"+:
Ser%ices pro%ided b* the (o%ernment or a local a$thorit* are not chargeable to ser%ice tax as the* are
incl$ded in the negati%e list& >oe%er, folloing ser%ices pro%ided to a person other than (o%ernment, b*
the 9epartment of +osts are excl$ded from the negati%e list-2
'i) Speed post
'ii) Express parcel post
'iii) <$ral postal Hife ,ns$rance
'iii) "genc* ser%ices hich incl$de distrib$tion of m$t$al f$nds, bonds, passport applications, collection of
telephone and electricit* bills, etc&
>ence, the aforesaid ser%ices are taxable&
Th$s, the amo$nt of ser%ice tax pa*able b* HaChanp$r +ost Bffice for the 7$arter ending 31&03&2013 o$ld
be as follos-2
P4'*)6:;4'5 A%":+*($)
4asic mail ser%ices :il
Transfer of mone* thro$gh mone* orders :il
Bperation of sa%ing acco$nts :il
<$ral postal life ins$rance ser%ices 2,00,000
9istrib$tion of m$t$al f$nds, bonds and passport applications 3,00,000
,ss$e of postal orders :il
Collection of telephone and electricit* bills 1,00,000
+ension pa*ments :il
Speed post ser%ices 3,00,000
Express parcel post 2,00,000
/al$e of taxable ser%ice 13,00,000
Ser%ice tax S 12D 613,00,000T12D8 1,80,000
Ed$cation cess S 2D 61,80,000T2D8 3,100
Secondar* and higher ed$cation cess S 1D 61,80,000T1D8 1,800
Ser%ice tax liabilit* 1,83,400
II- SERVICES IN RELATION TO AN AIRCRAFT OR A VESSEL. INSIDE OR OUTSIDE TIE
PRECINCTS OF A PORT OR AN AIRPORT
Ser%ices in relation to an aircraft or a %essel, inside or o$tside the precincts of a port or an airport pro%ided
b* (o%ernment or local a$thorit* are taxable&
1- A)'6'48* means an* machine hich can deri%e s$pport in the atmosphere from reactions of the air, other
than reactions of the air against the earth@s s$rface and incl$des balloons, hether fixed or free, airships,
Cites, gliders and fl*ing machines !S$6*)"+ /0B(1),&
2- A)'7"'* means a landing and taCing off area for aircrafts, $s$all* ith r$na*s and aircraft maintenance
and passenger facilities and incl$des aerodromeUU!S$6*)"+ /0B(2),&
N$?4*)#$ L)5* "8 S$'#)6$5 21
UU"erodrome means an* definite or limited gro$nd or ater area intended to be $sed, either holl* or in
part, for the landing or depart$re of aircraft, and incl$des all b$ildings, sheds, %essels, piers and other
str$ct$res thereon or appertaining thereto&
3- "s per 5$6*)"+ /0B(32), 7"'* co%ers to t*pes of ports-2
()) M4J"' 7"'*5 as defined $nder section 2'7) of the 0aAor +ort Tr$sts "ct, 1913
P"'* means an* maAor port to hich this "ct applies ithin s$ch limits as ma*, from time to time, be defined
b* the Central (o%ernment for the p$rposes of this "ct b* notification in the Bfficial (a=ette, and, $ntil a
notification is so iss$ed, ithin s$ch limits as ma* ha%e been defined b* the Central (o%ernment $nder the
pro%isions of the ,ndian +orts "ct&
())) O*<$' 7"'*5 as defined $nder section 3'4) of the ,ndian +orts "ct, 1908
P"'* incl$des also an* part of a ri%er or channel in hich this "ct is for the time being in force&
4- V$55$; incl$des an*thing made for the con%e*ance, mainl* b* ater, of h$man beings or of goods and a
caisson !S$6*)"+ /0B(03),&
III- TRANSPORT OF GOODS OR PASSENGERS
Ser%ices of transport of passengers and goods ha%e been specificall* dealt ith in cla$se 'o) and 'p)& >ere
e are disc$ssing the complete taxabilit* of transport of passengers and goods& "s a res$lt of the combined
st$d* of the cla$se 'o), 'p) and this part of entr* 'a), the taxabilit* of transport of passengers and goods is
$nder-2
A- T'4+57"'* "8 7455$+?$'5
Transport of passengers b* (o%ernment or local a$thorit* is generall* taxable& >oe%er, folloing ser%ices
of transportation of passengers,'hether pro%ided b* (o%ernment or otherise) >)*< "' >)*<":*
466"%74+)$( &$;"+?)+?5 4'$ +"* *494&;$:N
()) T'4+57"'* "8 7455$+?$'5 &= 4 5*4?$ 64'')4?$
/ehicles hich can carr* more than six passengers shall be incl$ded here& ,n other ords, carriages r$nning
$nder p$blic transport shall not be taxable&
,t ma* be noted that transport of passengers b* %ehicles $nder contract carriage is o$tside the p$r%ie of this
entr*& >oe%er, specific exemption is a%ailable to ser%ices of transport of passengers b* a contract carriage
for transportation of passengers, excl$ding to$rism, cond$cted to$rs, charter or hire&
S*4?$ 64'')4?$ means a motor %ehicle constr$cted or adapted to carr* more than six passengers excl$ding
the dri%er for hire or reard at separate fares paid b* or for indi%id$al passengers, either for the hole
Ao$rne* or for stages of the Ao$rne* !S$6*)"+ /0B(4/),&
())) T'4+57"'* "8 7455$+?$'5 &= '4);>4=5 )+ 4 6;455 "*<$' *<4+K
(A) 8)'5* 6;455L "'
(B) 4+ 4)' 6"+()*)"+$( 6"46<
Transport of passengers in raila*s in first class or an air conditioned coach is taxable& Th$s, Ao$rne* b* rail
in 2nd class, sleeper class or general class is not taxable&
()))) T'4+57"'* "8 7455$+?$'5 &= %$*'". %"+"'4); "' *'4%>4=
Transport of passengers b* metro, monorail or trama* is not taxable&
N$?4*)#$ L)5* "8 S$'#)6$5 22
()#) T'4+57"'* "8 7455$+?$'5 &= )+;4+( >4*$'>4=5
I+;4+( >4*$'>4=5 means-2
()) N4*)"+4; >4*$'>4=5 as defined in section 2'h) of the ,nland ?atera*s "$thorit* of ,ndia "ct, 1983, or
())) O*<$' >4*$'>4= "+ 4+= )+;4+( >4*$' as defined in section 2'b) of the ,nland /essels "ct, 191;
!S$6*)"+ /0B(23),-
"s per section 2'h) of the ,nland ?atera*s "$thorit* of ,ndia "ct, 1983,
N4*)"+4; >4*$'>4= means the inland atera* declared b* section 2 of the :ational ?atera* '"llahabad2
>aldia Stretch of the (anga24hagirathi2>ooghl* <i%er) "ct, 1982, to be a national atera*&
Explanation5,f +arliament declares b* la an* other atera* to be a national atera*, then from the date
on hich s$ch declaration taCes effect, s$ch other atera*5
'i) shall be deemed also to be a national atera* ithin the meaning of this cla$seK and
'ii) the pro%isions of this "ct shall, ith necessar* modifications 'incl$ding modification for constr$ing an*
reference to the commencement of this "ct as a reference to the date aforesaid), appl* to s$ch national
atera*&
"s per section 2'b) of the ,nland /essels "ct, 191;,
I+;4+( >4*$' means an* canal, ri%er, laCe or other na%igable ater&
(#) T'4+57"'* "8 7455$+?$'5 &= 7:&;)6 *'4+57"'*. "*<$' *<4+ 7'$("%)+4+*;= 8"' *":')5% 7:'7"5$. )+ 4
#$55$; &$*>$$+ 7;46$5 ;"64*$( )+ I+()4
The ords Oother than predominantl* for to$rism p$rposeP 7$alif* the preceding ords Ip$blic transportJ&
This implies that the p$blic transport b* a %essel sho$ld not be predominantl* for to$rism p$rposes& :ormal
p$blic ships or other %essels that sail beteen places located in ,ndia o$ld be co%ered in the negati%e list
entr* e%en if some of the passengers on board are $sing the ser%ice for to$rism as predominantl*, s$ch
ser%ice is not for to$rism p$rpose&
>oe%er, ser%ices pro%ided b* leis$re or charter %essels or a cr$ise ship, predominant p$rpose of hich is
to$rism, o$ld not be co%ered in the negati%e list e%en if some of the passengers in s$ch %essels are not
to$rists&
F"' )+5*4+6$, ser%ices b* a* of transportation of passengers on a %essel, from MolCata to +ort 4lair
'mainland 5 island) or +ort 4lair to <ose ,sland 'inter island), is co%ered in the negati%e list entr*&
(#)) M$*$'$( 64&5. '4()" *49)5 "' 4:*" ')6@5<4>5
M$*$'$( 64& means an* contract carriage on hich an a$tomatic de%ice, of the t*pe and maCe appro%ed
$nder the rele%ant r$les b* the State Transport "$thorit*, is fitted hich indicates reading of the fare
chargeable at an* moment and that is charged accordingl* $nder the conditions of its permit iss$ed $nder the
0otor /ehicles "ct, 1988 and the r$les made there $nder !S$6*)"+ /0B(32),&
B- T'4+57"'*4*)"+ "8 ?""(5
Transport of goods b* (o%ernment or local a$thorit* is generall* taxable& >oe%er, folloing ser%ices of
transportation of goods, 'hether pro%ided b* (o%ernment or otherise) 4'$ +"* *494&;$:-N
()) S$'#)6$5 &= >4= "8 *'4+57"'*4*)"+ "8 ?""(5 &= '"4( $96$7* *<$ 5$'#)6$5 "8K
N$?4*)#$ L)5* "8 S$'#)6$5 23
(A) 4 ?""(5 *'4+57"'*4*)"+ 4?$+6=L "'
(B) 4 6":')$' 4?$+6=-
Transportation of goods b* road is not taxable& >oe%er, ser%ices of goods transportation agenc* and
co$rier agenc* ser%ices are excl$ded from the negati%e list entr* relating to transportation of goods b* road
thereb* maCing these to ser%ices taxable&
(A) G""(5 *'4+57"'*4*)"+ 4?$+6= 5$'#)6$5
?hen the goods are transported b* road b* a goods transport agenc*, it is liable to tax&
!$rther, the pro%isions relating to re%erse charge, i&e& ser%ice tax is liable to be paid b* the consigner or
consignee in specified cases, are applicable e%en after the introd$ction of negati%e list&
G""(5 *'4+57"'* 4?$+6= means an* person ho pro%ides ser%ice in relation to transport of goods b* road
and iss$es consignment note, b* hate%er name called !S$6*)"+ /0B(2/),&
(B) C":')$' 4?$+6=
Co$rier agenc* ser%ices are liable to ser%ice tax&
E97'$55 64'?" 5$'#)6$: The nat$re of ser%ice pro%ided b* OExpress Cargo Ser%iceP falls ithin the scope
and definition of the co$rier agenc*& >ence, the said ser%ice is liable to ser%ice tax&
A+?4()4: O"ngadiaP $ndertaCes deli%er* of doc$ments, goods or articles recei%ed from a c$stomer to
another person for a consideration& Therefore, OangadiasP are co%ered ithin the definition of a Oco$rierP and
ser%ices pro%ided b* angadia are liable to ser%ice tax&
C":')$' 4?$+6= means an* person engaged in the door2to2door transportation of time sensiti%e doc$ments,
goods or articles $tilising the ser%ices of a person, either directl* or indirectl*, to carr* or accompan* s$ch
doc$ments, goods or articles !S$6*)"+ /0B(20),&
())) S$'#)6$5 &= >4= "8 *'4+57"'*4*)"+ "8 ?""(5 &= 4+ 4)'6'48* "' 4 #$55$; 8'"% 4 7;46$ ":*5)($ I+()4 :7
*" *<$ 6:5*"%5 5*4*)"+ "8 6;$4'4+6$ )+ I+()4
Transportation of goods either b* air or b* sea from o$tside ,ndia $pto c$stom station of clearance in ,ndia is
not taxable&
1- A)'6'48* means an* machine hich can deri%e s$pport in the atmosphere from reactions of the air, other
than reactions of the air against the earth@s s$rface and incl$des balloons, hether fixed or free, airships,
Cites, gliders and fl*ing machines !S$6*)"+ /0B(1),&
2- V$55$; incl$des an*thing made for the con%e*ance, mainl* b* ater, of h$man beings or of goods and a
caisson !S$6*)"+ /0B(03),&
3- C:5*"%5 5*4*)"+ means an* c$stoms port, c$stoms airport or land c$stoms station !S$6*)"+ /0B(21),&
()))) S$'#)6$5 &= >4= "8 *'4+57"'*4*)"+ "8 ?""(5 &= )+;4+( >4*$'>4=5
"lmost an* ater transport ithin ,ndia o$ld be co%ered $nder the negati%e entr* for transportation of
goods b* inland atera*s&
IV- SUPPORT SERVICES. OTIER TIAN SERVICES COVERED UNDER CLAUSES I- TO III-
ABOVE. PROVIDED TO BUSINESS ENTITIES
Bther s$pport ser%ices pro%ided b* the (o%ernment or a local a$thorit* to the b$siness entities are taxable
ser%ices&
N$?4*)#$ L)5* "8 S$'#)6$5 30
1- B:5)+$55 $+*)*= means an* person ordinaril* carr*ing o$t an* acti%it* relating to ind$str*, commerce or
an* other b$siness or profession !S$6*)"+ /0B(11),&
2- S:77"'* 5$'#)6$5 means infrastr$ct$ral, operational, administrati%e, logistic, marCeting or an* other
s$pport of an* Cind comprising f$nctions that entities carr* o$t in ordinar* co$rse of operations themsel%es,
b$t ma* obtain as ser%ices b* o$tso$rcing from others for an* reason hatsoe%er and shall incl$de
ad%ertisement and promotion, constr$ction or orCs contract, renting of immo%able propert*, sec$rit*,
testing and anal*sis !S$6*)"+ /0B(43),&
2- E+*'= (&): S$'#)6$5 7'"#)($( &= R$5$'#$ B4+@ "8 I+()4
"ll the ser%ices b* the <eser%e 4anC of ,ndia gets co%ered in the negati%e list, and becomes non taxable&
"ccordingl*, the ser%ices pro%ided b* banCs to <4, o$ld be taxable as these are neither in the negati%e list
nor co%ered in an* of the exemptions&
:ote- Ser%ices PROVIDED TO the <eser%e 4anC of ,ndia are NOT in the negati%e list and o$ld be
taxable $nless otherise co%ered in an* other entr* in the negati%e list or in an* exemption&
3- E+*'= (6): S$'#)6$5 &= 4 F"'$)?+ D)7;"%4*)6 M)55)"+ ;"64*$( )+ I+()4
"ll the ser%ices rendered b* a foreign diplomatic mission located in ,ndia are not chargeable to ser%ice tax&
This entr* does not co%er ser%ices, if an*, pro%ided b* an* office or establishment of an international
organi=ation&
N"*$- ,n the past regime there as no exemption or excl$sion similar to the abo%e& This entr* in the negati%e
list ma* ha%e been inserted in %ie of e%er* acti%it* for consideration becoming a taxable ser%ice&
4- E+*'= ((): S$'#)6$5 '$;4*)+? *" 4?')6:;*:'$ "' 4?')6:;*:'4; 7'"(:6$
!olloing ser%ices relating to agric$lt$re or agric$lt$ral prod$ce are not taxable2
()) A?')6:;*:'4; "7$'4*)"+5 ()'$6*;= '$;4*$( *" 7'"(:6*)"+ "8 4+= 4?')6:;*:'4; 7'"(:6$ )+6;:()+?
6:;*)#4*)"+. <4'#$5*)+?. *<'$5<)+?. 7;4+* 7'"*$6*)"+ "' 5$$( *$5*)+?
"cti%ities liCe breeding of fish 'piscic$lt$re), rearing of silC orms 'seric$lt$re), c$lti%ation of
ornamental floers 'floric$lt$re) and hortic$lt$re, forestr* are incl$ded in the definition of
agric$lt$re&
+lantation crops liCe r$bber, tea or coffee o$ld be also co%ered $nder agric$lt$ral prod$ce&
The processes contemplated in the definition of agric$lt$ral prod$ce are those as are M:5:4;;= ("+$
&= *<$ 6:;*)#4*"' "' 7'"(:6$'M& Th$s agric$lt$ral prod$cts liCe cereals, p$lses, copra and Aagger*
here certain amo$nt of processing on these prod$cts is done b* a person other than a c$lti%ator or
prod$cer ma* not get co%ered in the ambit of @agric$lt$ral prod$ce@&
1- A?')6:;*:'$ means the c$lti%ation of plants and rearing of all life2forms of animals, except the rearing of
horses, for food, fibre, f$el, ra material or other similar prod$cts !S$6*)"+ /0B(3),-
2- A?')6:;*:'4; 7'"(:6$ means an* prod$ce of agric$lt$re on hich either no f$rther processing is done or
s$ch processing is done as is :5:4;;= ("+$ &= 4 6:;*)#4*"' "' 7'"(:6$' hich does not alter its essential
characteristics b$t maCes it marCetable for primar* marCet !S$6*)"+ /0B(0),-
())) S:77;= "8 84'% ;4&":'
The ser%ice pro%ider ho is pro%iding the desired farm labo$r to the ser%ice recei%er is not liable to pa*
ser%ice tax on the said ser%ices&
N$?4*)#$ L)5* "8 S$'#)6$5 31
()))) P'"6$55$5 ><)6< (" +"* 4;*$' *<$ $55$+*)4; 6<4'46*$')5*)65 "8 4?')6:;*:'4; 7'"(:6$ &:* %4@$ )* "+;=
%4'@$*4&;$ 8"' *<$ 7')%4'= %4'@$*
The processes carried o$t at an agric$lt$ral farm incl$ding tending, pr$ning, c$tting, har%estingK dr*ing,
cleaning, trimming, s$n dr*ing, f$migating, c$ring, sorting, grading, cooling or b$lC pacCaging and s$ch
liCe operations hich do not alter the essential characteristics of agric$lt$ral prod$ce b$t maCe it onl*
marCetable for the primar* marCet are not taxable&
(4) P'"6$55 ><)6< 4;*$'5 *<$ $55$+*)4; 6<4'46*$')5*)65 "8 *<$ 4?')6:;*:'4; 7'"(:6$
+otato chips or tomato Cetch$p does not 7$alif* as agric$lt$ral prod$ce beca$se in terms of the definition of
agric$lt$ral prod$ce, onl* s$ch processing sho$ld be carried o$t as is $s$all* done b* c$lti%ator prod$cers
><)6< ("$5 +"* 4;*$' )*5 $55$+*)4; 6<4'46*$')5*)65 b$t maCes it marCetable for primar* marCet& +otato chips
or tomato Cetch$p are man$fact$red thro$gh processes hich alter the essential characteristic of farm
prod$ce 'potatoes and tomatoes in this case)&
(&) P'"6$55 ><)6< %4@$5 4?')6:;*:'4; 7'"(:6$ %4'@$*4&;$ )+ *<$ '$*4); %4'@$*
The processes of grinding, sterili=ing, extraction pacCaging in retail pacCs of agric$lt$ral prod$cts, hich
maCe the agric$lt$ral prod$cts marCetable in retail marCet, o$ld :BT be co%ered in the negati%e list& Bnl*
s$ch processes are co%ered in the negati%e list hich maCes agric$lt$ral prod$ce marCetable in the primar*
marCet&
()#) R$+*)+? "' ;$45)+? "8 4?'" %46<)+$'= "' #464+* ;4+( >)*< "' >)*<":* 4 5*':6*:'$ )+6)($+*4; *" )*5
:5$
Heasing of %acant land ith a green ho$se or a storage shed meant for agric$lt$ral prod$ce o$ld be
co%ered in the negati%e list& ,n terms of the specified ser%ices relating to agric$lt$re, OleasingP of %acant land
ith or itho$t str$ct$re incidental to its $seP is co%ered in the negati%e list& Therefore, if %acant land has a
str$ct$re liCe storage shed or a green ho$se b$ilt on it hich is incidental to its $se for agric$lt$re then its
lease o$ld be co%ered $nder the negati%e list entr*&
(#) L"4()+?. :+;"4()+?. 746@)+?. 5*"'4?$ "' >4'$<":5)+? "8 4?')6:;*:'4; 7'"(:6$
(#)) A?')6:;*:'4; $9*$+5)"+ 5$'#)6$5
"gric$lt$ral extension means application of scientific research and Cnoledge to agric$lt$ral practices
thro$gh farmer ed$cation or training !S$6*)"+ /0B(4),&
(#))) S$'#)6$5 &= 4+= A?')6:;*:'4; P'"(:6$ M4'@$*)+? C"%%)**$$ "' B"4'( "' 5$'#)6$5 7'"#)($( &= 4
6"%%)55)"+ 4?$+* 8"' 54;$ "' 7:'6<45$ "8 4?')6:;*:'4; 7'"(:6$
"gric$lt$ral +rod$ce 0arCeting Committees or 4oards are set $p $nder a State Ha for p$rpose of
reg$lating the marCeting of agric$lt$ral prod$ce& S$ch marCeting committees or boards ha%e been set $p in
most of the States and pro%ide a %ariet* of s$pport ser%ices for facilitating the marCeting of agric$lt$ral
prod$ce b* pro%ision of facilities and amenities liCe, sheds, ater, light, electricit*, grading facilities etc&
The* also taCe meas$res for pre%ention of sale or p$rchase of agric$lt$ral prod$ce belo the minim$m
s$pport price& "+0Cs collect marCet fees, license fees, rents etc& Ser%ices pro%ided b* s$ch "gric$lt$ral
+rod$ce 0arCeting Committee or 4oard are co%ered in the negati%e list& >oe%er an* ser%ice pro%ided b*
s$ch bodies hich is not directl* related to agric$lt$re or agric$lt$ral prod$ce ill be liable to tax e&g&
renting of shops or other propert*&
Ser%ice pro%ided b* commission agent for sale or p$rchase of agric$lt$ral prod$ce are also co%ered $nder
the negati%e list entr*&
0- E+*'= ($): T'4()+? "8 ?""(5
The abo%e entr* refers to the acti%it* of trading of goods&
Th$s, the checC has to be tofold 5
N$?4*)#$ L)5* "8 S$'#)6$5 32
'1) the acti%it* sho$ld be of trading and
'2) trading, sho$ld be of goods&
<$*<$' *<$ 8";;">)+? >":;( &$ 6"#$'$( :+($' *'4()+? "8 ?""(5H
(4) A6*)#)*)$5 "8 4 6"%%)55)"+ 4?$+*/CIA 5$;;)+? ?""(5 "+ &$<4;8 "8 4+"*<$' 8"' 4 6"%%)55)"+
The ser%ices pro%ided b* commission agent or a clearing and forarding agent 'C>") are not in the nat$re
of trading of goods& These are a$xiliar* for trading of goods& ,n terms of the pro%ision of cla$se '1) of
section 11! 'disc$ssed later in this chapter in heading 13&) reference to a ser%ice does not incl$de reference
to a ser%ice $sed for pro%iding s$ch ser%ice& 0oreo%er the title in the goods ne%er passes on to s$ch agents
to come ithin the ambit of trading of goods&
(&) F"'>4'( 6"+*'46*5 )+ 6"%%"()*)$5
!orard contracts o$ld be co%ered $nder trading of goods as these are contracts hich in%ol%e transfer of
title in goods on a f$t$re date at a pre2determined price&
(6) C"%%"()*= 8:*:'$5
Commodit* f$t$res o$ld be co%ered $nder trading of goods& ,n commodit* f$t$res act$al deli%er* of goods
does not normall* taCe place and the p$rchaser $nder a f$t$res contract normall* offset all obligations or
closes o$t b* selling an e7$al 7$antit* of goods of the same description $nder another contract for deli%er*
on the same date& These are in the nat$re of deri%ati%es&
(() A:9);)4'= 5$'#)6$5 '$;4*)+? *" 8:*:'$ 6"+*'46*5 "' 6"%%"()*= 8:*:'$5
S$ch ser%ices pro%ided b* commodit* exchanges clearing ho$ses or agents o$ld not be co%ered in the
negati%e list entr* relating to trading of goods&
:ote- ,t is rele%ant to note here that in common parlance hene%er the term @trading@ is $sed, it is considered
as @trading in goods@& The term @trading of ser%ice@ seems to be little $ncommon to $se b$t these Cind of
acti%ities commonl* taCes place here a person proc$res ser%ices from one person and pro%ides to another,
practicall* s$ch transactions most of the times get recognised as commission agent@s ser%ices tho$gh ma*
not be strictl* commission based&
G""(5 means e%er* Cind of mo%able propert* other than actionable claim and mone*K and incl$des
sec$rities, groing crops, grass, and things attached to or forming part of the land hich are agreed to be
se%ered before sale or $nder the contract of sale !S$6*)"+ /0B(20),&
S$6:')*)$5 incl$de N
'i) shares, scrips, stocCs, bonds, debent$res, debent$re stocC or other marCetable sec$rities of a liCe nat$re in
or of an* incorporated compan* or other bod* corporateK
'ia) deri%ati%eK
'ib) Enits or an* other instr$ment iss$ed b* an* collecti%e in%estment scheme to the in%estors in s$ch
schemesK
'ii) (o%ernment sec$ritiesK
'iia) s$ch other instr$ments as ma* be declared b* the central (o%ernment to be Sec$ritiesK and
'iii) rights or interest in sec$rities !S$6*)"+ /0B(43),&
/- E+*'= (8): P'"6$55$5 4%":+*)+? *" %4+:846*:'$ "' 7'"(:6*)"+ "8 ?""(5
"n* process amo$nting to man$fact$re or prod$ction of goods shall not be taxable&
P")+*5 *" &$ +"*$(
This entr* co%ers %4+:846*:')+? 46*)#)*= 64'')$( ":* "+ 6"+*'46* "' J"& >"'@ &45)5, hich does
not in%ol%e transfer of title in goods, 7'"#)($( d$ties of excise are le%iable on s$ch processes $nder
the Central Excise "ct, 1944 or an* of the State "cts&
N$?4*)#$ L)5* "8 S$'#)6$5 33
,n other ords, if Central Excise d$t* is le%iable on a partic$lar process, as the same amo$nts to
man$fact$re, then s$ch process o$ld be co%ered in the negati%e list e%en if there is a central excise
d$t* exemption for s$ch process&
>oe%er if central excise d$t* is rongl* paid on a certain process hich does not amo$nt to
man$fact$re, ith or itho$t an intended benefit, it ill not sa%e the process on this gro$nd&
P'"6$55 4%":+*)+? *" %4+:846*:'$ "' 7'"(:6*)"+ "8 ?""(5 means a process on hich d$ties of excise are
le%iable $nder section 3 of the Central Excise "ct, 1944 or an* process amo$nting to man$fact$re of
alcoholic li7$ors for h$man cons$mption, opi$m, ,ndian hemp and other narcotic dr$gs and narcotics on
hich d$ties of excise are le%iable $nder an* State "ct for the time being in force !S$6*)"+ /0B(40),&
1- E+*'= (?): S$;;)+? "8 5746$ "' *)%$ 5;"*5 8"' 4(#$'*)5$%$+*5 "*<$' *<4+ 4(#$'*)5$%$+*5 &'"4(645* &=
'4()" "' *$;$#)5)"+
This entr* co%ers selling of space or time slots for ad%ertisements other than ad%ertisements broadcast b*
radio or tele%ision.
T494&;$/N"* 6"#$'$( &= +$?4*)#$ ;)5*
$+*'= (?)
N"+-*494&;$
Sale of space or time for ad%ertisement to be
broadcast on radio or tele%ision
Sale of space for ad%ertisement in print media
Sale of time slot b* a broadcasting organi=ation& Sale of space for ad%ertisement in bill boards p$blic
places 'incl$ding stadia), b$ildings, con%e*ances,
cell phones, a$tomated teller machines, internet
"erial ad%ertisingU
U"erial ad%ertising is a form of ad%ertising that incorporates the $se of aircraft, balloons or airships to
create, transport, or displa*, ad%ertising media& The media can be static, s$ch as a banner, logo, lighted sign
or sponsorship branding& ,t can also be d*namic, s$ch as animated, lighted or a$dio&
A(#$'*)5$%$+* means an* form of presentation for promotion of, or bringing aareness abo$t, an* e%ent,
idea, immo%able propert*, person, ser%ice, goods or actionable claim thro$gh nespaper, tele%ision, radio or
an* other means b$t does not incl$de an* presentation made in person !S$6*)"+ /0B(2),-
P")+*5 *" &$ +"*$(
1- M4@)+? "' 7'$74')+? 4(#$'*)5$%$+*5
Ser%ices pro%ided b* ad%ertisement agencies relating to maCing or preparation of ad%ertisements o$ld not
be co%ered in this entr* and th$s, o$ld be taxable& This o$ld also not co%er commissions recei%ed b*
ad%ertisement agencies from the broadcasting or p$blishing companies for facilitating b$siness, hich ma*
also incl$de some portion for the preparation of ad%ertisement&
2- C"%7"5)*$ 5$'#)6$ "8 7'"#)()+? 5746$ 8"' 4(#$'*)5$%$+* 6":7;$( >)*< ($5)?+)+? 4+( 7'$74'4*)"+ "8
*<$ 4(#$'*)5$%$+*
,n case a person pro%ides a composite ser%ice of pro%iding space for ad%ertisement that is co%ered in the
negati%e list entr* co$pled ith taxable ser%ice relating to design and preparation of the ad%ertisement, this
o$ld be a case of b$ndled ser%ices taxabilit* of hich has to be determined in terms of the principles laid
don in section 11! 'disc$ssed later in this chapter in heading 13&) of the "ct&
"s per section 11!, if s$ch ser%ices are b$ndled in the ordinar* co$rse of b$siness then the b$ndle of
ser%ices ill be treated as consisting entirel* of s$ch ser%ice hich determines the dominant nat$re of s$ch a
b$ndle&
N$?4*)#$ L)5* "8 S$'#)6$5 34
,f s$ch ser%ices are not b$ndled in the ordinar* co$rse of b$siness then the b$ndle of ser%ices ill be treated
as consisting entirel* of s$ch ser%ice hich attracts the highest liabilit* of ser%ice tax&
3- C4+#455)+? 4(#$'*)5$%$+* 8"' 7:&;)5<)+? "+ 4 6"%%)55)"+ &45)5
0erel* can%assing ad%ertisement for p$blishing on a commission basis b* persons#agencies is not co%ered
in the negati%e list entr* and is taxable&
2- E+*'= (<): A66$55 *" 4 '"4( "' 4 &')(?$ "+ 74=%$+* "8 *";; 6<4'?$5
This entr* co%ers the ser%ices of pro%iding access to road and charging toll charges&
<$*<$' *<$ 8";;">)+? 4'$ 6"#$'$( )+ *<)5 $+*'= "8 +$?4*)#$ ;)5*H
1- A66$55 *" +4*)"+4; <)?<>4=5 "' 5*4*$ <)?<>4=5
:ational higha*s or state higha*s are also roads and hence co%ered in this entr*&
2- C";;$6*)"+ 6<4'?$5 "' 5$'#)6$ 6<4'?$5 74)( *" 4+= *";; 6";;$6*)+? 4?$+6=
The negati%e list entr* onl* co%ers access to a road or a bridge on pa*ment of toll charges&
Ser%ices of toll collection on behalf of an agenc* a$thori=ed to le%* toll are in the nat$re of ser%ices $sed for
pro%iding the negati%e list ser%ices& "s per the principle laid don in s$b section '1) of section 11! of the
"ct the reference to a ser%ice b* nat$re or description in the "ct ill not incl$de reference to a ser%ice $sed
for pro%iding s$ch ser%ice&
3- E+*'= ()): B$**)+?. ?4%&;)+? "' ;"**$'=
Ser%ices in relation to betting, gambling or lotter* are incl$ded in this entr*&
A:9);)4'= 5$'#)6$5 :5$( 8"' "'?4+)N)+?/7'"%"*)+? &$**)+?/?4%&;)+? $#$+*5 NOT 6"#$'$(
The a$xiliar* ser%ices that are $sed for organi=ing or promoting betting or gambling e%ents are NOT
co%ered in this entr*& These ser%ices are in the nat$re of ser%ices $sed for pro%iding the negati%e list ser%ices
of betting or gambling& "s per the principle laid don in s$b section '1) of section 11! of the "ct, the
reference to a ser%ice b* nat$re or description in the "ct ill not incl$de reference to a ser%ice $sed for
pro%iding s$ch ser%ice&
B$**)+? "' ?4%&;)+? means p$tting on staCe something of %al$e, partic$larl* mone*, ith conscio$sness of
risC and hope of gain on the o$tcome of a game or a contest, hose res$lt ma* be determined b* chance or
accident, or on the liCelihood of an*thing occ$rring or not occ$rring !S$6*)"+ /0B(10),&
10- E+*'= (J): E+*'= *" E+*$'*4)+%$+* E#$+*5 4+( A66$55 *" A%:5$%$+* F46);)*)$5
!olloing to ser%ices are not taxable-2
'i) Entr* to entertainment e%ents
'ii) "ccess to am$sement facilities
P")+*5 *" &$ +"*$(
1- C:;*:'4; 7'"?'4%%$. ('4%4 "' 4 &4;;$* <$;( )+ 4+ "7$+ ?4'($+ 4+( +"* )+ 4 *<$4*'$ O:4;)8)$5 45 4+
$+*$'*4)+%$+* $#$+*
The ords $sed in the definition are Otheatrical performancesP and not Operformances in theatresP& " c$lt$ral
programme, drama or a ballet preformed in the open does not cease to be a theatrical performance pro%ided
it is performed in the manner it is performed in a theatre, i&e& before an a$dience&
2- S*4+(4;"+$ ')($ 5$* :7 )+ 4 %4;; O:4;)8)$5 45 4+ 4%:5$%$+* 846);)*=
N$?4*)#$ L)5* "8 S$'#)6$5 30
" standalone am$sement ride in a mall is also a facilit* in hich f$n or recreation is pro%ided b* means of a
ride& "ccess to s$ch am$sement ride on pa*ment of charges o$ld be co%ered in the negati%e list&
3- E+*'= *" #)($" 74';"'5 $9<)&)*)+? %"#)$5 7;4=$( "+ 4 DVD 7;4=$' 4+( ()57;4=$( *<'":?< 4 TV
56'$$+ 6"#$'$( )+ *<$ $+*'=
Entr* to %ideo parlors exhibiting mo%ies pla*ed on a 9/9 pla*er and displa*ed thro$gh a T/ screen is
co%ered in the entr* beca$se s$ch exhibition is an exhibition of cinematographic film&
4- M$%&$'5<)7 "8 4 6;:& DOES NOT O:4;)8= 45 466$55 *" 4+ 4%:5$%$+* 846);)*=
" cl$b does not fall in the definition of an am$sement facilit*& >ence, membership of a cl$b does not mean
access to an am$sement facilit*&
0- A:9);)4'= 5$'#)6$5 8"' "'?4+)N)+? 4+ $+*$'*4)+%$+* $#$+* "' 8"' 7'"#)()+? *<$ $+*$'*4)+%$+* *" 4+
$+*$'*4)+%$+* $#$+* "'?4+)N$' NOT 6"#$'$( )+ *<)5 $+*'=
"$xiliar* ser%ices pro%ided b* a person, liCe an e%ent manager, for organi=ing an entertainment e%ent or b*
an entertainer for pro%iding the entertainment to an entertainment e%ent organi=er o$ld NOT be co%ered in
this entr*& S$ch ser%ices are in the nat$re of ser%ices $sed for pro%iding the ser%ice specified in this negati%e
list entr* and o$ld not be co%ered in the ambit of s$ch specified ser%ice b* operation of the r$le of
interpretation contained in cla$se '1) of section 11! of the "ct&
1- E+*$'*4)+%$+* $#$+* means an e%ent or a performance hich is intended to pro%ide recreation, pastime,
f$n or enAo*ment, b* a* of exhibition of cinematographic film, circ$s, concerts, sporting e%ent, pageants,
aard f$nctions, dance, m$sical or *<$4*')64; 7$'8"'%4+6$5 incl$ding drama, ballets or an* s$ch e%ent or
programme !S$6*)"+ /0B(24),&
2- A%:5$%$+* 846);)*= means a facilit* here f$n or recreation is pro%ided b* means of rides, gaming
de%ices or boling alle*s in am$sement parCs, am$sement arcades, ater parCs, theme parCs or s$ch other
places b$t does not incl$de a place ithin s$ch facilit* here other ser%ices are pro%ided !S$6*)"+ /0B(3),&
11- E+*'= (@): T'4+5%)55)"+ "' ()5*')&:*)"+ "8 $;$6*')6)*=
The abo%e entr* co%ers the ser%ices of transmission or distrib$tion of electricit* b* an electricit*
transmission or distrib$tion $tilit*&
1- E;$6*')6)*= *'4+5%)55)"+ "' ()5*')&:*)"+ :*);)*= means
the Central Electricit* "$thorit*
a State Electricit* 4oard
the Central Transmission Etilit*
a State Transmission Etilit* notified $nder the Electricit* "ct, 2003
a distrib$tion or transmission licensee
an* other entit* entr$sted ith s$ch f$nction b* the Central or State (o%ernment !S$6*)"+ /0B(23),&
12- E+*'= (I): S7$6)8)$( 5$'#)6$5 '$;4*)+? *" $(:64*)"+
The folloing ser%ices relating to ed$cation are specified in the negati%e list 5-2
'i) +re2school ed$cation and ed$cation $p to higher secondar* school or e7$i%alentK
'ii) Ed$cation as a part of a c$rric$l$m for obtaining a 7$alification recognised b* an* la for the time being
in forceK
'iii) Ed$cation as a part of an appro%ed %ocational ed$cation co$rse&
()) P'$-56<""; $(:64*)"+ 4+( $(:64*)"+ :7 *" <)?<$' 5$6"+(4'= 56<""; "' $O:)#4;$+*
1& Ser%ices pro%ided b* )+*$'+4*)"+4; 56<"";5 gi%ing certifications liCe ,4 ',nternational 4accala$reate) are
also co%ered in this entr*&
N$?4*)#$ L)5* "8 S$'#)6$5 3/
2& P')#4*$ *:)*)"+5 are :BT co%ered in this entr*& >ence, the* are liable to pa* ser%ice tax if their aggregate
%al$es of taxable ser%ices exceed the threshold exemption&
3& B"4'()+? 56<"";5 pro%ide ser%ice of ed$cation co$pled ith other ser%ices liCe pro%iding delling $nits
for residence and food& This ma* be a case of b$ndled ser%ices if the charges for ed$cation and lodging and
boarding are inseparable& Their taxabilit* ill be determined in terms of the principles laid don in section
11! of the "ct&
S$ch ser%ices in the case of boarding schools are b$ndled in the ordinar* co$rse of b$siness& Therefore the
b$ndle of ser%ices ill be treated as consisting entirel* of s$ch ser%ice hich determines the dominant
nat$re of s$ch a b$ndle& ,n this case since dominant nat$re is determined b* the ser%ice of ed$cation other
dominant ser%ice of pro%iding residential delling is also co%ered in a separate entr* of the negati%e list, the
entire b$ndle o$ld be treated as a negati%e list ser%ice&
())) E(:64*)"+ 45 4 74'* "8 4 6:'')6:;:% 8"' "&*4)+)+? 4 O:4;)8)64*)"+ '$6"?+)5$( &= 4+= ;4> 8"' *<$
*)%$ &$)+? )+ 8"'6$
'a) ,n order to be co%ered in the negati%e list, a co$rse sho$ld be recogni=ed b* an ,ndian la& Ser%ices
pro%ided b* a* of ed$cation as a part of a prescribed c$rric$l$m for obtaining a 7$alification recogni=ed
b* a la of a 8"'$)?+ 6":+*'= 4'$ NOT 6"#$'$( in the negati%e list entr*&
'b) ,f a co$rse in a college leads to (:4; O:4;)8)64*)"+ onl* one of hich is recogni=ed b* la, ser%ice in
respect of each 7$alification o$ld, therefore, be assessed separatel*&
+ro%ision of d$al 7$alifications is in the nat$re of to separate ser%ices as the c$rric$l$m and fees for each
of s$ch 7$alifications are prescribed separatel*& ,f an artificial b$ndle of ser%ice is created b* cl$bbing to
co$rses together, onl* one of hich leads to a 7$alification recogni=ed b* la, then b* application of the r$le
of determination of taxabilit* of a ser%ice hich is not b$ndled in the ordinar* co$rse of b$siness contained
in section 11! of the "ct it is liable to be treated as a co$rse hich attracts the highest liabilit* of ser%ice tax&
>oe%er incidental a$xiliar* co$rses pro%ided b* a* of hobb* classes or extra2c$rric$lar acti%ities in
f$rtherance of o%erall ell being ill be an example of nat$rall* b$ndled co$rse& Bne rele%ant consideration
in s$ch cases ill be the amo$nt of extra billing being done for the $nrecogni=ed component %i=2a2%i= the
recogni=ed co$rse&
E(:64*)"+ 45 4 74'* "8 6:'')6:;:% 8"' "&*4)+)+? 4 O:4;)8)64*)"+ '$6"?+)N$( &= ;4> means that onl* s$ch
ed$cational ser%ices are in the negati%e list as are related to deli%er* of ed$cation as Oa partP of the
c$rric$l$m that has been prescribed for obtaining a 7$alification prescribed b* la& ,t is important to
$nderstand that to be in the negati%e list the ser%ice sho$ld be deli%ered as part of c$rric$l$m& Cond$ct of
degree co$rses b* colleges, $ni%ersities or instit$tions hich lead grant of 7$alifications recogni=ed b* la
o$ld be co%ered& Training gi%en b* pri%ate coaching instit$tes o$ld not be co%ered as s$ch training does
not lead to grant of a recogni=ed 7$alification&
()))) E(:64*)"+ 45 4 74'* "8 4+ 477'"#$( #"64*)"+4; $(:64*)"+ 6":'5$
A77'"#$( #"64*)"+4; $(:64*)"+ 6":'5$ means,N
'i) a co$rse r$n b* an ind$strial training instit$te or an ind$strial training centre affiliated to the :ational
Co$ncil for /ocational Training offering co$rses in designated trades notified $nder the "pprentices "ct,
1911K or
'ii) a 0od$lar Emplo*able SCill Co$rse, appro%ed b* the :ational Co$ncil of /ocational Training, r$n b* a
person registered ith the 9irectorate (eneral of Emplo*ment and Training, Enion 0inistr* of Habo$r and
Emplo*mentK or
N$?4*)#$ L)5* "8 S$'#)6$5 31
'iii) a co$rse r$n b* an instit$te affiliated to the :ational SCill 9e%elopment Corporation set $p b* the
(o%ernment of ,ndia !S$6*)"+ /0B(11),&
P")+*5 *" &$ +"*$(
1- Ed$cational instit$tes s$ch as ,,Ts, ,,0s charge a fee from prospecti%e emplo*ers liCe corporate ho$ses#
0:Cs, ho come to the instit$tes for recr$iting candidates thro$gh camp$s inter%ies& Ser%ice tax is liable
on ser%ices pro%ided b* s$ch instit$tions in relation to camp$s recr$itment as s$ch ser%ices are not co%ered
in the negati%e list&
2- Ser%ices of cond$cting admission tests for admission to colleges are exempt in case the ed$cational
instit$tions are pro%iding 7$alification recogni=ed b* la for the time being in force&
13- E+*'= (%): S$'#)6$5 &= >4= "8 '$+*)+? "8 '$5)($+*)4; (>$;;)+? 8"' :5$ 45 '$5)($+6$
The abo%e entr* co%ers ser%ices 2
b* a* of renting
of a residential delling
for $se as residence
1- R$+*)+? means alloing, permitting or granting access, entr*, occ$pation, $se or an* s$ch facilit*, holl*
or partl*, in an immo%able propert*, ith or itho$t the transfer of possession or control of the said
immo%able propert* and incl$des letting, leasing, licensing or other similar arrangements in respect of
immo%able propert* !S$6*)"+ /0B(41),&
2- R$5)($+*)4; (>$;;)+?: The phrase Oresidential dellingP has not been defined in the "ct& ,t has therefore to
be interpreted in terms of the normal trade parlance as per hich it is an* residential accommodation, b$t
does not incl$de hotel, motel, inn, g$est ho$se, camp5site, lodge, ho$se boat, or liCe places meant for
temporar* sta*&
R$+*)+? "8 4 '$5)($+*)4; (>$;;)+? ><)6< )5 8"' :5$ 74'*;= 45 4 '$5)($+6$ 4+( 74'*;= 8"' +"+ '$5)($+*)4;
7:'7"5$ liCe an office of a la*er or the clinic of a doctor o$ld also be a case of b$ndled ser%ices as
renting ser%ice is being pro%ided both for residential $se and for non residential $se& Taxabilit* of s$ch
b$ndled ser%ices has to be determined in terms of the principles laid don in section 11! of the "ct&
<$*<$' *<$ 8";;">)+? '$+*)+? *'4+546*)"+5 4'$ )+6;:($( )+ *<$ +$?4*)#$ $+*'=H
1- R$5)($+*)4; <":5$ *4@$+ "+ '$+* :5$( "+;= "' 7'$("%)+4+*;= 8"' 6"%%$'6)4; "' +"+'$5)($+*)4; :5$
The said renting transaction is not co%ered in this negati%e list entr*&
2- I":5$ ?)#$+ "+ '$+* 4+( *<$ 54%$ )5 :5$( 45 4 <"*$; "' 4 ;"(?$
The said renting transaction is not co%ered in this negati%e list entr* beca$se the person taCing it on rent is
$sing it for a commercial p$rpose&
3- R""%5 )+ 4 <"*$; "' 4 ;"(?$ ;$* ":* ><$*<$' "' +"* 8"' *$%7"'4'= 5*4=
The said renting transaction is not co%ered in this negati%e list entr* beca$se a hotel or a lodge is not a
residential delling&
4- I":5$5 4;;"**$( &= G"#$'+%$+* ($74'*%$+* *" )*5 $%7;"=$$5 4+( 4 ;)6$+5$ 8$$ )5 C<4'?$(
S$ch ser%ice o$ld be co%ered in the negati%e list entr* relating to ser%ices pro%ided b* (o%ernment and
hence non2 taxable&
0- F:'+)5<$( 8;4*5 ?)#$+ "+ '$+* 8"' *$%7"'4'= 5*4= (4 8$> (4=5)
N$?4*)#$ L)5* "8 S$'#)6$5 32
S$ch renting as residential delling for the bonafide $se of a person or his famil* for a reasonable period
shall be residential $seK b$t if the same is gi%en for a short sta* for different persons o%er a period of time
the same o$ld be liable to tax&
14- E+*'= (+): S7$6)8)$( 8)+4+6)4; 5$'#)6$5
!olloing ser%ices are incl$ded in this entr*-2
'i) Ser%ices b* a* of extending deposits, loans or ad%ances in so far as the consideration is represented b*
a* of interest or disco$ntK
'ii) Ser%ices b* a* of inter se sale or p$rchase of foreign c$rrenc* amongst banCs or a$thorised dealers of
foreign exchange or amongst banCs and s$ch dealers&
()) S$'#)6$5 &= >4= "8 $9*$+()+? ($7"5)*5. ;"4+5 "' 4(#4+6$5 )+ 5" 84' 45 *<$ 6"+5)($'4*)"+ )5
'$7'$5$+*$( &= >4= "8 )+*$'$5* "' ()56":+*
"n* s$ch ser%ice herein mone*s d$e are alloed to be $sed or retained "+ 74=%$+* "8 )+*$'$5* "' "+ 4
()56":+* are co%ered here& ,t is important to note that the ords F($7"5)*5. ;"4+5 "' 4(#4+6$5G ha%e to be
taCen in the ?$+$')6 sense&
The* o$ld co%er an* facilit* b* hich an amo$nt of mone* is lent or alloed to be $sed or retained on
pa*ment of hat is commonl* called the time %al$e of mone* hich co$ld be in the form of an interest or a
disco$nt&
E94%7;$5 "8 5$'#)6$5 6"#$'$( )+ *<)5 $+*'=:
Hoan or o%erdraft facilit* or a credit limit facilit* pro%ided in consideration for pa*ment of interest&
0ortgages or loans ith a collateral sec$rit* to the extent that the consideration for ad%ancing s$ch
loans or ad%ances are represented b* a* of interest&
!ixed deposits or sa%ing deposits or an* other s$ch deposits in a banC or a financial instit$tion for
hich ret$rn is recei%ed b* a* of interest&
Corporate deposits to the extent that the consideration for ad%ancing s$ch loans or ad%ances are
represented b* a* of interest or disco$nt&
N"*$: This entr* o$ld not co%er in%estments b* a* of e7$it* or an* other manner here the in%estor is
entitled to a share of profit&
<$*<$' *<$ 8";;">)+? 8)+4+6)4; *'4+546*)"+5 4'$ 6"#$'$( )+ *<)5 +$?4*)#$ ;)5* $+*'=H
S- N"- I8 T<$+
1& an* ser%ice charges or administrati%e
Charges or entr* charges are reco%ered in
addition to interest on a loan, ad%ance or a
deposit
s$ch charges or amo$nts collected o%er and abo%e
the interest or disco$nt amo$nts o$ld not be part of
this negati%e entr* and th$s o$ld represent taxable
consideration
2& there is in%oice disco$nting or che7$e
disco$nting or an* other similar form of
disco$nting
s$ch disco$nting is co%ered onl* to the extent
consideration is represented b* a* of disco$nt as
s$ch disco$nting is nothing else b$t a manner of
extending a credit facilit* or a loan&
3& ser%ices are pro%ided b* banCs or a$thori=ed
dealers of foreign exchange b* a* of sale
of foreign exchange to general p$blic
s$ch ser%ices o$ld not be co%ered in this entr*
beca$se this entr* onl* co%ers sale and p$rchase of
foreign exchange beteen banCs or a$thori=ed
dealers of foreign exchange or beteen banCs and
s$ch dealers&
N$?4*)#$ L)5* "8 S$'#)6$5 33
4& transactions are entered into b* banCs in
instr$ments liCe repos and re%erse reposU
the* are more appropriatel* excl$ded from the
definition of ser%ice itself being the sale and
p$rchase of sec$rities, hich are goods&
3& there is a s$bscription to or trading in
Commercial +aper 'C+) or Certificates of
9eposit 'C9)UU
since these are instr$ments for lending or borroing
mone* herein consideration is represented b* a*
of a disco$nt, iss$e or s$bscription to C+s or C9s,
the* o$ld be co%ered in the negati%e list entr*
relating to Oser%ices b* a* of extending deposits,
loans or ad%ances in so far as consideration is
represented b* a* of interest or disco$ntP& ,t ma*
also be borne in mind that promissor* note is
incl$ded in the definition of mone* in the "ct as
gi%en in cla$se '33) of section 134&
PR$7"5 4+( '$#$'5$ '$7"5 are financial instr$ments of short term call mone* marCet that are normall* $sed
b* banCs to borro from or lend mone* to <4,& The margins, called the repo rate or re%erse repo rate in
s$ch transactions are nothing b$t interest charged for lending or borroing of mone*&
PPC"%%$'6)4; P47$' (FCPG) 4+( C$'*)8)64*$ "8 D$7"5)* (FCDG) are $nderstood as $nsec$red mone*
marCet instr$ments hich ma* be iss$ed in the form of a promissor* note or in a demateriali=ed form
thro$gh an* of the depositories appro%ed b* and registered ith SE4,&
C+s are normall* iss$ed b* highl* rated companies, primar* dealers and financial instit$tions at a disco$nt
to the face %al$e& C9s can be iss$ed b* Sched$led Commercial 4anCs 'excl$ding <<4s and Hocal "rea
4anCs) and "ll 5 ,ndia !inancial ,nstit$tions '!,s) permitted b* <4,&
I;;:5*'4*)"+: E$ro 4anC Htd& f$rnishes the folloing information relating to ser%ices pro%ided and the gross
amo$nt recei%ed-
P4'*)6:;4'5 A%":+* ($)
,nterest on o%erdraft 3,00,000
,nterest on loans ith a collateral sec$rit* 1,00,000
,nterest on corporate deposits 10,00,000
"dministrati%e charges 'o%er and abo%e interest) on loans, ad%ances and deposits 1,00,000
Sale of foreign exchange to general p$blic 13,00,000U
Ser%ice charges relating to iss$ance of Certificates of 9eposit 'C9s) 20,00,000
Comp$te the %al$e of taxable ser%ice and the ser%ice tax liabilit* of E$ro 4anC Htd& considering the rate of
ser%ice tax at 12D ass$ming that it is not eligible for small ser%ice pro%idersP exemption $nder Notification
No. 33/2012 ST dated 20.06.2012&
U,t represents the %al$e of taxable ser%ice comp$ted as per r$le 24 of the Ser%ice Tax /al$ation <$les&
S";:*)"+:
C"%7:*4*)"+ "8 #4;:$ "8 *494&;$ 5$'#)6$ 4+( 5$'#)6$ *49 ;)4&);)*= "8 E:'" B4+@ L*(-:-
P4'*)6:;4'5 A%":+* ($)
,nterest on o%erdraft ':ote21) :il
,nterest on loans ith a collateral sec$rit* ':ote21) :il
,nterest on corporate deposits ':ote21) :il
"dministrati%e charges 'o%er and abo%e interest) on loans, ad%ances and deposits ':ote22) 1,00,000
Sale of foreign exchange to general p$blic ':ote23) 13,00,000
Ser%ice charges relating to iss$ance of C9 ':ote24) 20,00,000
/al$e of taxable ser%ice 41,00,000
Ser%ice tax S 12D 6` 41,00,000T12D8 4,92,000
N$?4*)#$ L)5* "8 S$'#)6$5 40
Ed$cation cess S 2D 6` 4,92,000T2D8 9,840
Secondar* and higher ed$cation cess S 1D 6` 4,92,000T1D8 4,920
Ser%ice tax liabilit* 3,01,;10
N"*$5:
1& !olloing ser%ices pro%ided in consideration of pa*ment of interest are incl$ded in the negati%e list and
hence are not taxable-2
B%erdraft facilit*&
Hoans ith a collateral sec$rit*&
Corporate deposits&
2& "dministrati%e charges or amo$nts collected o%er and abo%e the interest or disco$nt amo$nts o$ld not
be part of the negati%e list and th$s o$ld represent taxable consideration&
3& Sale of foreign exchange beteen banCs or b* banCs to a$thori=ed dealers of foreign exchange is incl$ded
in the negati%e list& >oe%er, sale of foreign exchange to general p$blic is not so co%ered and hence taxable&
4& Since C9s are in the nat$re of promissor* notes, transactions in C9s shall be considered as transaction in
mone*& >oe%er, a related acti%it*, for hich a separate consideration is charged o$ld not be treated as a
transaction of mone* and o$ld be taxable& >ence, ser%ice charges relating to iss$ance of C9s shall be
chargeable to ser%ice tax&
10- E+*'= (O): F:+$'4;. &:')4;. 6'$%4*"'):% "' %"'*:4'= 5$'#)6$5
!$neral, b$rial, crematori$m or mort$ar* ser%ices incl$ding transportation of the deceased are incl$ded in
this entr* and hence are not liable to ser%ice tax&
N$?4*)#$ L)5* "8 S$'#)6$5 41
B:+(;$( S$'#)6$5 42
P')+6)7;$5 "8 )+*$'7'$*4*)"+ "8 57$6)8)$( ($56')7*)"+5 "8 5$'#)6$5 "' &:+(;$( 5$'#)6$5 !S$6*)"+ //F,
Enless otherise specified, reference to a ser%ice 'herein referred to as main ser%ice) shall not incl$de
reference to a ser%ice hich is $sed for pro%iding main ser%ice !S:&-5$6*)"+ (1),&
?here a ser%ice is capable of differential treatment for an* p$rpose based on its description, the most
specific description shall be preferred o%er a more general description !S:&-5$6*)"+ (2),&
S$bAect to the pro%isions of s$b2section '2), the taxabilit* of a b$ndled ser%ice shall be determined in the
folloing manner, namel* -N
'a) if %ario$s elements of s$ch ser%ice are nat$rall* b$ndled in the ordinar* co$rse of b$siness, it shall be
treated as pro%ision of the single ser%ice hich gi%es s$ch b$ndle its essential characterK
'b) if %ario$s elements of s$ch ser%ice are not nat$rall* b$ndled in the ordinar* co$rse of b$siness, it shall
be treated as pro%ision of the single ser%ice hich res$lts in highest liabilit* of ser%ice tax !S:&-5$6*)"+ (3),&
ANALYSIS
"ltho$gh the negati%e list approach largel* ob%iates the need for descriptions of ser%ices, s$ch descriptions
contin$e to exist in 5
:egati%e list of ser%ices&
9eclared list of ser%ices&
Exemption notifications&
+lace of +ro%ision of Ser%ice <$les, 2012
,n a fe other r$les and notifications e&g& CE:/"T Credit <$les, 2004&
Section 11! la*s don the principles of interpretation of specified descriptions of ser%ices and b$ndled
ser%ices&
(4) S:&-5$6*)"+ (1)
S$b2section '1) can be better $nderstood ith the help of the folloing examples-2
O+ro%ision of access to an* road or bridge on pa*ment of tollP is a specified entr* in the negati%e list
in section 119 of the "ct& "n* ser%ice pro%ided in relation to collection of tolls or for sec$rit* of a
toll road o$ld be in the nat$re of ser%ice $sed for pro%iding s$ch specified ser%ice and ill not be
entitled to the benefit of the negati%e list entr*&
Transportation of goods on an inland atera* is a specified entr* in the negati%e list in section 119
of the "ct& Ser%ices pro%ided b* an agent to booC s$ch transportation of goods on inland atera*s
or to facilitate s$ch transportation o$ld not be entitled to the negati%e list entr*&
(&) S:&-5$6*)"+ (3)-T494&);)*= "8 &:+(;$( 5$'#)6$
To r$les ha%e been prescribed for determining the taxabilit* of b$ndled ser%ices in s$bsection '3)&
These r$les, hich are explained belo, are s$bAect to the pro%isions of the r$le contained in s$b section '2)
of section 11!, %i= a specific description ill be preferred o%er a general description& ,n other ords, if a
b$ndled ser%ice falls $nder a ser%ice specified b* a* of a description, then s$ch ser%ice o$ld be co%ered
b* the description so specified-2
()) S$'#)6$5 ><)6< 4'$ +4*:'4;;= &:+(;$( )+ *<$ "'()+4'= 6":'5$ "8 &:5)+$55
,f %ario$s elements of a b$ndled ser%ice are nat$rall* b$ndled in the ordinar* co$rse of b$siness, it shall be
treated as pro%ision of a single ser%ice hich gi%es s$ch b$ndle its essential character&
B:+(;$( S$'#)6$5 43
I;;:5*'4*)"+5
1& " hotel pro%ides a 4 da*s23 nights pacCage ith the facilit* of breaCfast& This is a nat$ral b$ndling of
ser%ices in the ordinar* co$rse of b$siness& The ser%ice of hotel accommodation gi%es the b$ndle the
essential character and o$ld, therefore, be treated as ser%ice of pro%iding hotel accommodation&
2& " 3 star hotel is booCed for a conference of 100 delegates on a l$mp s$m pacCage ith the folloing
facilities-
"ccommodation for the delegates
4reaCfast for the delegates,
Tea and coffee d$ring conference
"ccess to fitness room for the delegates
"%ailabilit* of conference room
4$siness centre
"s is e%ident a bo$7$et of ser%ices is being pro%ided, man* of them chargeable to different effecti%e rates of
tax& :one of the indi%id$al constit$ents are able to pro%ide the essential character of the ser%ice& >oe%er, if
the ser%ice is described as con%ention ser%ice it is able to capt$re the entire essence of the pacCage& Th$s the
ser%ice ma* be A$dged as con%ention ser%ice and chargeable to f$ll rate&
>oe%er, it ill be f$ll* A$stifiable for the hotel to charge indi%id$all* for the ser%ices as long as there is no
attempt to offload the %al$e of one ser%ice on to another ser%ice that is chargeable at a concessional rate&
())) S$'#)6$5 ><)6< 4'$ +"* +4*:'4;;= &:+(;$( )+ *<$ "'()+4'= 6":'5$ "8 &:5)+$55
,f %ario$s elements of a b$ndled ser%ice are not nat$rall* b$ndled in the ordinar* co$rse of b$siness, it shall
be treated as pro%ision of a ser%ice hich attracts the highest amo$nt of ser%ice tax&
I;;:5*'4*)"+ -
" ho$se is gi%en on rent one floor of hich is to be $sed as residence and the other for ho$sing a printing
press& S$ch renting for to different p$rposes is not nat$rall* b$ndled in the ordinar* co$rse of b$siness&
Therefore, if a single rent deed is exec$ted it ill be treated as a ser%ice comprising entirel* of s$ch ser%ice
hich attracts highest liabilit* of ser%ice tax& ,n this case renting for $se as residence is a negati%e list
ser%ice hile renting for non2residence $se is chargeable to tax& Since the latter categor* attracts highest
liabilit* of ser%ice tax amongst the to ser%ices b$ndled together, the entire b$ndle o$ld be treated as
renting of commercial propert*&
M4++$' "8 ($*$'%)+)+? )8 *<$ 5$'#)6$5 4'$ &:+(;$( )+ *<$ "'()+4'= 6":'5$ "8 &:5)+$55
?hether ser%ices are b$ndled in the ordinar* co$rse of b$siness o$ld depend $pon the normal or fre7$ent
practices folloed in the area of b$siness to hich ser%ices relate&
S$ch normal and fre7$ent practices adopted in a b$siness can be ascertained from se%eral indicators some of
hich are listed belo 5
The perception of the cons$mer or the ser%ice recei%er& ,f large n$mber of ser%ice recei%ers of s$ch
b$ndle of ser%ices reasonabl* expect s$ch ser%ices to be pro%ided as a pacCage then s$ch a pacCage
co$ld be treated as nat$rall* b$ndled in the ordinar* co$rse of b$siness&
0aAorit* of ser%ice pro%iders in a partic$lar area of b$siness pro%ide similar b$ndle of ser%ices& !or
example, b$ndle of catering on board and transport b* air is a b$ndle offered b* a maAorit* of
airlines&
The nat$re of the %ario$s ser%ices in a b$ndle of ser%ices ill also help in determining hether the
ser%ices are b$ndled in the ordinar* co$rse of b$siness& ,f the nat$re of ser%ices is s$ch that one of
B:+(;$( S$'#)6$5 44
the ser%ices is the main ser%ice and the other ser%ices combined ith s$ch ser%ice are in the nat$re of
incidental or ancillar* ser%ices hich help in better enAo*ment of a main ser%ice& !or example
ser%ice of sta* in a hotel is often combined ith a ser%ice or la$ndering of 324 items of clothing free
of cost per da*& S$ch ser%ice is an ancillar* ser%ice to the pro%ision of hotel accommodation and the
res$ltant pacCage o$ld be treated as ser%ices nat$rall* b$ndled in the ordinar* co$rse of b$siness&
Bther ill$strati%e indicators, not determinati%e b$t indicati%e of b$ndling of ser%ices in ordinar*
co$rse of b$siness are 5
There is a single price or the c$stomer pa*s the same amo$nt, no matter ho m$ch of the
pacCage the* act$all* recei%e or $se&
The elements are normall* ad%ertised as a pacCage&
The different elements are not a%ailable separatel*&
The different elements are integral to one o%erall s$ppl* 5 if one or more is remo%ed, the
nat$re of the s$ppl* o$ld be affected&
:o straight AacCet form$la can be laid don to determine hether a ser%ice is nat$rall* b$ndled in the
ordinar* co$rse of b$siness& Each case has to be indi%id$all* examined in the bacCdrop of se%eral factors
some of hich are o$tlined abo%e&
B:+(;$( 5$'#)6$ means a b$ndle of pro%ision of %ario$s ser%ices herein an element of pro%ision of one
ser%ice is combined ith an element or elements of pro%ision of an* other ser%ice or ser%ices&
E94%7;$ "8 &:+(;$( 5$'#)6$: "ir transport ser%ices pro%ided b* airlines herein an element of
transportation of passenger b* air is combined ith an element of pro%ision of catering ser%ice on board&
Each ser%ice in%ol%es differential treatment as a manner of determination of %al$e of to ser%ices for the
p$rpose of charging ser%ice tax is different&
D4*$ "8 ($*$'%)+4*)"+ "8 '4*$ "8 *49. #4;:$ "8 *494&;$ 5$'#)6$ 4+( '4*$ "8 $96<4+?$ !S$6*)"+ /1A,
Section 1;" pro%ides that the rate of ser%ice tax, %al$e of a taxable ser%ice and rate of exchange ill be the
one as in force or as applicable at the time hen the taxable ser%ice has been pro%ided or agreed to be
pro%ided&
!or the p$rposes of this section, F'4*$ "8 $96<4+?$F means the rate of exchange N
'i) determined b* the 4oard, or
'ii) ascertained in s$ch manner as the 4oard ma* direct, for the con%ersion of ,ndian c$rrenc* into foreign
c$rrenc* or foreign c$rrenc* into ,ndian c$rrenc*&
S%4;; S$'#)6$ P'"#)($'G5 (SSP) $9$%7*)"+
Central (o%ernment has exempted the taxable ser%ices of aggregate %al$e not exceeding `10 laCh in an*
financial *ear from the hole of the ser%ice tax le%iable thereon $nder section 114 of the !inance "ct, 1994
in case the aggregate %al$e of taxable ser%ices rendered b* the ser%ice pro%ider from one or more premises,
does not exceed `10 laCh in the preceding financial *ear& >oe%er, s$ch exemption is not a%ailable to the
taxable ser%ices pro%ided b* a person $nder a brand name or trade name, hether registered or not, of
another person and to s$ch %al$e of taxable ser%ices in respect of hich ser%ice tax is pa*able on re%erse
charge mechanism b* a person 'disc$ssed in detail in +aper28 ,ndirect Tax Has at !inal He%el)&
!N"*)8)64*)"+ N"- 33/2012 Q ST (4*$( 20-0/-2012
B:+(;$( S$'#)6$5 40
4/
PRACTICE MANUAL
R:$5*)"+ 1
4riefl* anser the folloing-2
'a) Explain as to ho and hen the amendments made in !inance 4ill, in respect of ser%ice tax matters
come into forceQ
'b) ,s ser%ice tax pa*able in respect of ser%ices pro%ided in the ,ndian territorial atersQ
A+5>$'
'a) "mendments made b* the !inance 4ill, in respect of ser%ice tax matters, come into force from the date of
enactment of the !inance 4ill i&e&, the date on hich the !inance 4ill recei%es the assent of the +resident of
,ndia& >oe%er, here%er it is specificall* pro%ided so in the !inance 4ill, certain amendments become
effecti%e from a date to be notified after the enactment of the !inance 4ill&
'b) Res, ser%ices pro%ided ithin ,ndian territorial aters are liable to ser%ice tax, as the le%* of ser%ice tax
extends to the hole of ,ndia except Gamm$ and Mashmir and ,ndia incl$des ,ndian territorial aters&
,ndian territorial aters extend $pto 12 na$tical miles from the ,ndian land mass&
R:$5*)"+ 2
?hat are the so$rces of ser%ice tax laQ
A+5>$'
There is no independent stat$te on ser%ice tax as *et& >oe%er, the so$rces of ser%ice tax la are-2
'i) !inance "ct, 1994
'ii) <$les on ser%ice tax
'iii) :otifications on ser%ice tax
'i%) Circ$lars or Bffice Hetters ',nstr$ctions) on ser%ice tax
'%) Brders on ser%ice tax and
'%i) Trade notices on ser%ice tax
R:$5*)"+3
State the pro%isions hich enable the Central (o%ernment to maCe r$les for administering ser%ice tax& !or
hat p$rposes are s$ch r$les madeQ :ame an* fo$r s$ch r$les iss$ed b* the Central (o%ernment so far&
A+5>$'
Section 94 of Chapter / and section 912, of Chapter /" of the !inance "ct, 1994 grants poer to Central
(o%ernment to maCe r$les for carr*ing o$t the pro%isions of these Chapters& <$les sho$ld be read ith the
stat$tor* pro%isions contained in the "ct& <$les can ne%er o%erride the "ct and in case of conflict "ct ill
pre%ail&
So far, the Central (o%ernment has iss$ed the folloing r$les for administering ser%ice tax 5
'a) Ser%ice Tax <$les, 1994
'b) Ser%ice Tax '"d%ance <$ling) <$les, 2003
'c) +oint of Taxation <$les, 2011
'd) +lace of +ro%ision of Ser%ice <$les, 2012
'e) Ser%ice Tax '<egistration of Special Categor* of +ersons) <$les, 2003
'f) Ser%ice Tax '9etermination of /al$e) <$les, 2001 and
:ote- "n* fo$r r$les ma* be mentioned&
41
R:$5*)"+ 4
State ith reasons in brief hether the folloing statement is correct or incorrect ith reference to
the pro%isions of ser%ice tax-
Ser%ice tax pro%isions are not applicable in Gamm$ and Mashmir beca$se State (o%ernment conc$rrence
as not obtained in respect of !inance "ct, 1994&
A+5>$'
The statement is correct& "s per "rticle 3;0 of the Constit$tion, an* "ct of +arliament applies to Gamm$ and
Mashmir onl* ith the conc$rrence of the State (o%ernment& Since, no s$ch conc$rrence has been obtained
in respect of !inance "ct, 1994, ser%ice tax pro%isions are not applicable in Gamm$ and Mashmir&
R:$5*)"+ 0
4riefl* explain abo$t the charge of ser%ice tax&
A+5>$'
Section 114 is the charging section of the "ct, hich pro%ides that there shall be le%ied a tax at the rate of
12D on the %al$e of all ser%ices, other than those ser%ices specified in the negati%e list, pro%ided or agreed
to be pro%ided in the taxable territor* b* one person to another and collected in s$ch manner as ma* be
prescribed& The effecti%e rate of ser%ice tax is 12DK pl$s ed$cation cess of 2D and secondar* and higher
ed$cation cess of 1D&
R:$5*)"+ /
9efine the folloing terms in terms of !inance "ct, 1994
'i) "d%ertisement
'ii) 4$siness Entit*
'iii) (oods
'i%) (oods Transport "genc*
'%) +rocess amo$nting to man$fact$re
'%i) <enting
'%ii) S$pport Ser%ices
'%iii) 4$ndled Ser%ice
A+5>$'
Section 134 has been inserted b* !inance "ct, 2012 ith effect from 01&0;&2012& Section 134 has stat$tor*
defined certain terms& Th$s, stat$tor* definitions of all the abo%e terms as per section 134 are gi%en in the
folloing table-
S- N"- T$'% R$;$#4+* D$8)+)*)"+ R$;$#4+*
S$6*)"+
'i) "d%ertisement I"d%ertisementJ means an* form of presentation for
promotion of, or bringing aareness abo$t an* e%ent,
idea, immo%able propert*, person, ser%ice, goods or
actionable claim thro$gh nespaper, tele%ision, radio or
an* other means b$t does not incl$de an* presentation
made in person&
134'2)
'ii) 4$siness Entit* I4$siness Entit*J means an* person ordinaril* carr*ing
o$t an* acti%it* relating to ind$str*, commerce or an*
other b$siness or profession&
134'1;)
'iii) (oods I(oodsJ means e%er* Cind of mo%able propert* other than
actionable claim and mone*K and incl$des sec$rities,
groing crops, grass and things attached to or forming
part of the land hich are agreed to be se%ered before sale
or $nder the contract of sale&
134'23)
42
'i%) (oods Transport
"genc*
I(oods Transport "genc*J means an* person ho
pro%ides ser%ice in relation to transport of goods b* road
and iss$e consignment note, b* hate%er name called&
134'21)
'%) +rocess
amo$nting to
man$fact$re
F+rocess amo$nting to man$fact$re or prod$ction of
goodsF means a process on hich d$ties of excise are
le%iable $nder section 3 of the Central Excise "ct, 1944 '1
of 1944) or an* process amo$nting to man$fact$re of
alcoholic li7$ors for h$man cons$mption, opi$m, ,ndian
hemp and other narcotic dr$gs and narcotics on hich
d$ties of excise are le%iable $nder an* State "ct for the
time being in force&
134'40)
'%i) <enting F<entingF means alloing, permitting or granting access,
entr*, occ$pation, $se or an* s$ch facilit*, holl* or
partl*, in an immo%able propert*, ith or itho$t the
transfer of possession or control of the said immo%able
propert* and incl$des letting, leasing, licensing or other
similar arrangements in respect of immo%able propert*&
134'41)
'%ii) S$pport
Ser%ices
FS$pport ser%icesF means infrastr$ct$ral, operational,
administrati%e, logistic, marCeting or an* other s$pport of
an* Cind comprising f$nctions that entities carr* o$t in
ordinar* co$rse of operations themsel%es b$t ma* obtain
as ser%ices b* o$tso$rcing from others for an* reason
hatsoe%er and shall incl$de ad%ertisement and
promotion, constr$ction or orCs contract, renting of
immo%able propert*, sec$rit*, testing and anal*sis&
134'49)
'%iii) 4$ndled
Ser%ice
I4$ndled ser%iceJ means a b$ndle of pro%ision of %ario$s
ser%ices herein an element of pro%ision of one ser%ice is
combined ith an element or elements of pro%ision of an*
other ser%ice or ser%ices&
,n order to tr$l* appreciate the concept of Ob$ndled
ser%iceP, a co$ple of examples are gi%en belo-
'") Ser%ice of sta* in a hotel is often combined ith a
ser%ice of la$ndering of certain specified items of clothing
per da*&
'4) Transport b* air is often combined b*
catering on board&
Explanation
to Section
11!'3)
R:$5*)"+ 1
State briefl* hether ser%ice tax ill be le%ied in the folloing case-
Ser%ices pro%ided in the State of <aAasthan b* a person ha%ing a place of b$siness in the State of Gamm$ and
Mashmir&
A+5>$'
"s per section 14'1) of the !inance "ct, 1994, ser%ice tax pro%isions do not extend to the State of Gamm$
and Mashmir& >oe%er, since ser%ice tax is a destination based cons$mption tax, ser%ice pro%ided in
<aAasthan from Gamm$ and Mashmir o$ld be liable to ser%ice tax&
R:$5*)"+ 2
9efine the term I:egati%e HistJ& Specif* an* eight ser%ices hich ha%e been incl$ded in :egati%e
Hist of Ser%ices&
43
A+5>$'
"ccording to Section 134 '34) of !inance "ct, 1994 Inegati%e listJ means the ser%ices hich ha%e been
listed in section 119& !olloing Se%enteen ser%ices ha%e been listed in Section 119&
S- N"- D$56')7*)"+
1& Ser%ices b* (o%ernment or a local a$thorit* excl$ding the folloing ser%ices to the extent
the* are not co%ered elsehereN
'i) ser%ices b* the 9epartment of +osts b* a* of speed post, express parcel post, life
ins$rance and agenc* ser%ices pro%ided to a person other than (o%ernmentK
'ii) ser%ices in relation to an aircraft or a %essel, inside or o$tside the precincts of a port or an
airportK
'iii) transport of goods or passengersK or
'i%) s$pport ser%ices, other than ser%ices co%ered $nder cla$ses 'i) to 'iii) abo%e, pro%ided to
b$siness entitiesK
2& ser%ices b* the <eser%e 4anC of ,ndiaK
3& ser%ices b* a foreign diplomatic mission located in ,ndiaK
4& ser%ices relating to agric$lt$re or agric$lt$ral prod$ce b* a* ofN
'i) agric$lt$ral operations directl* related to prod$ction of an* agric$lt$ral prod$ce incl$ding
c$lti%ation, har%esting, threshing, plant protection or seed testingK
'ii) s$ppl* of farm labo$rK
'iii) processes carried o$t at an agric$lt$ral farm incl$ding tending, pr$ning, c$tting,
har%esting, dr*ing, cleaning, trimming, s$n dr*ing, f$migating, c$ring, sorting, grading,
cooling or b$lC pacCaging and s$ch liCe operations hich do not alter the essential
characteristics of agric$lt$ral prod$ce b$t maCe it onl* marCetable for the primar* marCetK
'i%) renting or leasing of agro machiner* or %acant land ith or itho$t a str$ct$re incidental
to its $seK
'%) loading, $nloading, pacCing, storage or areho$sing of agric$lt$ral prod$ceK '%i)
agric$lt$ral extension ser%icesK
'%ii) ser%ices b* an* "gric$lt$ral +rod$ce 0arCeting Committee or 4oard or ser%ices
pro%ided b* a commission agent for sale or p$rchase of agric$lt$ral prod$ceK
3& trading of goodsK
1& an* process amo$nting to man$fact$re or prod$ction of goodsK
;& selling of space or time slots for ad%ertisements other than ad%ertisements broadcast b* radio or
tele%isionK
8& ser%ice b* a* of access to a road or a bridge on pa*ment of toll chargesK
9& betting, gambling or lotter*K
10& admission to entertainment e%ents or access to am$sement facilitiesK
11& transmission or distrib$tion of electricit* b* an electricit* transmission or distrib$tion $tilit*K
12& ser%ices b* a* ofN
'i) pre2school ed$cation and ed$cation $p to higher secondar* school or e7$i%alentK
'ii) ed$cation as a part of a c$rric$l$m for obtaining a 7$alification recognised b* an* la
00
for the time being in forceK
'iii) ed$cation as a part of an appro%ed %ocational ed$cation co$rseK
13& ser%ices b* a* of renting of residential delling for $se as residenceK
14& ser%ices b* a* ofN
'i) extending deposits, loans or ad%ances in so far as the consideration is represented
b* a* of interest or disco$ntK
'ii) inter se sale or p$rchase of foreign c$rrenc* amongst banCs or a$thorised dealers of
foreign exchange or amongst banCs and s$ch dealersK
13& ser%ice of transportation of passengers, ith or itho$t accompanied belongings, b*N
'i) a stage carriageK
'ii) raila*s in a class other thanN
'") first classK or
'4) an air2conditioned coachK
'iii) metro, monorail or trama*K
'i%) inland atera*sK
'%) p$blic transport, other than predominantl* for to$rism p$rpose, in a %essel beteen
places located in ,ndia and
'%i) metered cabs, radio taxis or a$to ricCshas&
11& ser%ices b* a* of transportation of goodsN
'i) 4* road except the ser%ices of 2
'") a goods transportation agenc*K or
'4) a co$rier agenc*K
'ii) b* an aircraft or a %essel from a place o$tside ,ndia $pto the c$stoms station of clearance
in ,ndiaK or
'iii) b* inland atera*sK
1;& !$neral, b$rial, crematori$m or mort$ar* ser%ices incl$ding transportation of the deceased&
(N"*$: ":* "8 *<$ 4&"#$ 5$#$+*$$+ 5$'#)6$5. 5*:($+*5 %4= 57$6)8= 4+= $)?<* 5$'#)6$5)
R:$5*)"+ 3
"ccording to Section 134 '44) the term Iser%iceJ, inter alia, means an* acti%it* carried o$t b* a person for
another for consideration& ,n this bacCgro$nd, explain the meaning of monetar* consideration as ell as
non2monetar* considerationQ
A+5>$'
O0onetar* considerationP means an* consideration recei%ed in the form of mone*& "ccording to Section
134'33) Imone*J means legal tender, che7$e, promissor* note, bill of exchange, letter of credit, draft, pa*
order, tra%eller che7$e, mone* order, postal or electronic remittance or an* s$ch similar instr$ment b$t shall
not incl$de an* c$rrenc* that is held for its n$mismatic %al$e& Bn the other hand, O:on2monetar*
considerationP essentiall* means compensation in Cind& !or instance-
'") S$ppl* of goods and ser%ices in ret$rn for pro%ision of ser%ice&
01
'4) <efraining or forbearing to do an act in ret$rn for pro%ision of ser%ice&
'C) Tolerating an act or sit$ation in ret$rn for pro%ision of a ser%ice&
'9) 9oing or agreeing to do an act in ret$rn for pro%ision of a ser%ice&
EXERCISES
1& Ser%ice tax as introd$ced in ,ndia in the *ear-
'a) 1994
'b) 1991
'c) 1993
'd) 1991
2& The pro%isions relating to ser%ice tax are contained in-
'a) Ser%ice tax "ct, 1992
'b) !inance "ct, 1994
'c) !inance "ct, 1992
'd) ,ncome2tax "ct, 1911
3& ?hich of the folloing statement is tr$eQ
'a) <$les can o%erride the pro%isions of the "ct&
'b) Bnl* in certain exceptional circ$mstances can the r$les o%erride the pro%isions of the "ct&
'c) <$les can ne%er o%erride the pro%isions of the "ct&
'd) none of the abo%e
4& 9irector (eneral 'Ser%ice tax) coordinates beteen VVVVVVVVVVVVVVVV and VVVVVVVV&
'a) C4EC and C49T
'b) Chief Commissioner of Central Excise and Commissioner of Central Excise
'c) 9epartment of <e%en$e and C4EC
'd) C4EC and Central Excise Commissionerates
3& Sections VVVVVVVV and VVVVVVV of the !inance "ct, 1994 empoer the Central (o%ernment to maCe
r$les&
'a) 14 and 13
'b) 94 and 912,
'c) 93 and 94
'd) none of the abo%e
1& ,ndian Territorial ?aters extend $p to VVVVVVVVVna$tical miles from the ,ndian land mass&
'a) 200
'b) 24
'c) 12
'd) none of the abo%e
;& ,n hich of the folloing cases ser%ice tax ill not be attractedQ
02
'a) a person from Gamm$ pro%ides ser%ice at :e 9elhi
'b) a person ha%ing office at Srinagar pro%ides ser%ice at :e 9elhi
'c) a person from :e 9elhi pro%ides ser%ice at Gamm$
'd) all of the abo%e
8& ?hich committee recommended the introd$ction of ser%ice taxQ
9& ?hich ere the first three ser%ices to be bro$ght $nder the ser%ice tax netQ
10& ?hat is the extent and application of the pro%isions of !inance "ct, 1994 relating to ser%ice taxQ
11& ?rite a note on administration of ser%ice tax&
12& ?hat do *o$ mean b* selecti%e and comprehensi%e co%erage of ser%ices for the p$rpose of ser%ice taxQ
?hich s*stem is being adopted in ,ndiaQ
13& ?rite briefl* abo$t the role of a chartered acco$ntant in the field of ser%ice tax cons$ltanc*&
14& ?hat is ed$cation cessQ ?h* is it being le%iedQ ?hat is the so$rce of le%* of ed$cation cessQ
13& 9oes ser%ice tax la pro%ide for an* exemption to small ser%ice pro%idersQ ,f *es, then hat is the
7$ant$m of s$ch exemptionQ
A+5>$'5
1-'a)K 2-'b)K 3-'c)K 4-'d)K 0-'b)K /-'c)K 1-'c)K 2- Tax <eforms Committee headed b* 9r& <aAa G& ChelliahK 3-
Telephones, (eneral ins$rance and StocC broCers&
03
REGISTRATION
R$?)5*'4*)"+ S$6*)"+ /3/R:;$ 4(1) "8 STR. 1334
" ser%ice pro%ider can charge ser%ice tax onl* if he is registered ith the Ser%ice Tax 9epartment&
E%er* ser%ice pro%ider in hose case, gross receipt has exceeded `9,00,000 shall appl* for registration to
the Ser%ice Tax 9epartment in !orm :o ST21 ithin 30 da*s from the date of crossing the limit of
`9,00,000, hoe%er, he ill charge ser%ice tax after crossing the limit of `10,00,000& >e ill also s$bmit a
cop* of +ermanent "cco$nt :$mber and proof of residence& 9epartment shall grant him a registration
certificate in !orm :o ST22 ithin ; da*s from the date of receipt of application otherise the ser%ice
pro%ider shall be deemed to be registered&
The ser%ice pro%ider shall be gi%en a <egistration :$mber b* the 9epartment hich ill be called ST+ code
i&e& Ser%ice Tax +a*er Code and it ill be 13 digit +": based n$mber and first 10 digit shall be that of +":
and remaining 3 digit shall be allotted b* Ser%ice Tax 9epartment e&g& ""E+C12989 5 ST2001
The last three digit shall indicate total n$mber of registration for the same +ermanent "cco$nt :$mber&
,f a person is pro%iding more than one taxable ser%ice, he ma* gi%e onl* one application& >e sho$ld mention
in the application all the taxable ser%ices pro%ided b* him&
" person ma* appl* for %ol$ntar* registration at an* time and also a person ma* forgo 'reAect) the general
exemption of `10,00,000&
"s per section ;;, an* person ho has failed to taCe registration shall pa* penalt* of `200 per da* or
`10,000 hiche%er is higher&
C$+*'4;)5$( R$?)5*'4*)"+ R:;$ 4(2) "8 STR. 1334
,f a ser%ice pro%ider is pro%iding ser%ices from more than one premises, in s$ch cases he can appl* for
separate registration for each of s$ch premises& >e ma* appl* for a single registration called Centrali=ed
<egistration pro%ided he has either centrali=ed acco$nting or centrali=ed billing s*stem& ,n s$ch cases one of
the places shall be considered to be >ead Bffice and all other premises shall be considered to be branches& "
single registration certificate shall be iss$ed& ,f the ser%ice pro%ider do not ha%e centrali=ed acco$nting and
also there is no centrali=ed billing s*stem, he ill not be alloed to appl* for centrali=ed registration&
A%$+(%$+* "8 R$?)5*'4*)"+ C$'*)8)64*$ R:;$ 4(0A) "8 STR. 1334
" ser%ice pro%ider ma* appl* for amendment in registration in the folloing cases-
1& Change in place of b$siness
2& Change in the name of b$siness
3& Change in ser%ices rendered i&e& there ma* be addition # deletion
4& "n* other similar change
,f there is an* s$ch change, ser%ice pro%ider sho$ld appl* to the department ithin 30 da*s for effecting the
change&
C4+6$;;4*)"+ "8 R$?)5*'4*)"+ C$'*)8)64*$ R:;$ 4(1). 4(2) "8 STR. 1334
E%er* registered assessee, ho ceases to pro%ide the taxable ser%ice for hich he is registered or if he dies,
registration certificate shall be cancelled&
The S$perintendent of Central Excise shall ens$re that the assessee has paid all monies d$e to the Central
(o%ernment $nder the pro%isions of the "ct, and the r$les and the notifications iss$ed there$nder, and
there$pon cancel the registration certificate&
?here a registered assessee transfers his b$siness to another person, the transferee shall obtain a fresh
certificate of registration&
P")+* "8 T494*)"+ 04
%OINT OF TAXATION
&' Introduction
+oint of taxation means the point in time hen a ser%ice shall be deemed to ha%e been pro%ided& The point
of taxation enables $s to determine the rate of tax, %al$e of taxable ser%ice, rate of exchange and d$e date for
pa*ment of ser%ice tax& !or determination of point of taxation of a ser%ice, +oint of Taxation <$les, 2011
ere introd$ced ith effect from 01&04&2011& These r$les ere introd$ced as a prec$rsor to (oods and
Ser%ice Tax& The* bro$ght a paradigm shift in the point of taxation of ser%ices&
Earlier, the pro%ider of the ser%ice as liable for pa*ment of ser%ice tax onl* hen the consideration
toards the %al$e of taxable ser%ices as Orecei%edP& These r$les shifted the point of taxation for ser%ice tax
from receipt basis to h*brid basis& "s per these r$les, point of taxation is 5
the time hen the in%oice for the ser%ice pro%ided or agreed to be pro%ided is iss$edK
if in%oice is not iss$ed ithin prescribed time period '30 da*s except for specified financial sector
here it is 43 da*s) of completion of pro%ision of ser%ice, then the date of completion of ser%iceK
the date of receipt of pa*ment here pa*ment is recei%ed before iss$ance of in%oice or
completion of ser%ice&
Therefore agreements to pro%ide taxable ser%ices ill become liable to pa* tax onl* on iss$ance of in%oice
or date of completion of ser%ice if in%oice is not iss$ed ithin prescribed period of completion or on receipt
of pa*ment&
The detailed pro%isions of the said r$les along ith their anal*sis are as $nder-2
2- D$*$'%)+4*)"+ "8 7")+* "8 *494*)"+-G$+$'4; ':;$ !R:;$ 3,
!or the p$rposes of these r$les, $nless otherise pro%ided, Opoint of taxationP shall be2
'a) the time hen the in%oice for the ser%ice pro%ided# agreed to be pro%ided is iss$ed&
>oe%er, in case the in%oice is not iss$ed >)*<)+ *<$ *)%$ 7$')"( 57$6)8)$( )+ ':;$ 4A "8 *<$ S$'#)6$ T49
R:;$5. 1334 (30 "' 40 (4=5. 45 *<$ 645$ %4= &$) of the completion of the pro%ision of the ser%ice, the point
of taxation shall be date of s$ch completion&
'b) in a case, here the person pro%iding the ser%ice, recei%es a pa*ment before the time specified in cla$se
'a), the time, hen he recei%es s$ch pa*ment, to the extent of s$ch pa*ment&
F"' *<$ 7:'7"5$5 "8 6;4:5$5 (4) 4+( (&). -
()) )+ 645$ "8 6"+*)+:":5 5:77;= "8 5$'#)6$ ><$'$ *<$ 7'"#)5)"+ "8 *<$ ><";$ "' 74'* "8 *<$
5$'#)6$ )5 ($*$'%)+$( 7$')"()64;;= "+ *<$ 6"%7;$*)"+ "8 4+ $#$+* )+ *$'%5 "8 4 6"+*'46*.
><)6< '$O:)'$5 *<$ '$6$)#$' "8 5$'#)6$ *" %4@$ 4+= 74=%$+* *" 5$'#)6$ 7'"#)($'. *<$ (4*$ "8
6"%7;$*)"+ "8 $46< 5:6< $#$+* 45 57$6)8)$( )+ *<$ 6"+*'46* 5<4;; &$ ($$%$( *" &$ *<$ (4*$ "8
6"%7;$*)"+ "8 7'"#)5)"+ "8 5$'#)6$L
'ii) ><$'$#$' *<$ 7'"#)($' "8 *494&;$ 5$'#)6$ '$6$)#$5 4 74=%$+* :7 *" ` 1.000 )+ $96$55 "8 *<$
4%":+* )+()64*$( )+ *<$ )+#")6$. *<$ 7")+* "8 *494*)"+ *" *<$ $9*$+* "8 5:6< $96$55 4%":+*. 4*
*<$ "7*)"+ "8 *<$ 7'"#)($' "8 *494&;$ 5$'#)6$. 5<4;; &$ ($*$'%)+$( )+ 466"'(4+6$ >)*< *<$
7'"#)5)"+5 "8 6;4:5$ (4) !P'"#)5" *" ':;$ 3,-
P")+* "8 T494*)"+ 00
P")+* "8 *494*)"+ )+ 645$ "8 4(#4+6$ '$6$)#$( &= 5$'#)6$ 7'"#)($'
!or the p$rpose of this r$le, here%er an* ad%ance b* hate%er name Cnon, is recei%ed b* the ser%ice
pro%ider toards the pro%ision of taxable ser%ice, the point of taxation shall be *<$ (4*$ "8 '$6$)7* "8 $46<
5:6< 4(#4+6$
ANALYSIS
"s per r$le 3 of the said r$les, point of taxation o$ld be determined as follos-2
S- N"- I+ 645$ P")+* "8 *494*)"+ >":;( &$
1& the in%oice is iss$ed ithin the prescribed period of 30P
(4=5 from the
date of completion of pro%ision of ser%ice
'a) 9ate of in%oice
or
'b) 9ate of pa*ment
hiche%er is earlier
2& the in%oice is not iss$ed ithin the prescribed period of 30P
(4=5 from the
date of completion of pro%ision of ser%ice
'a) 9ate of completion of ser%ice
or
'b) 9ate of pa*ment
hiche%er is earlier
The principle of point of taxation can be better $nderstood ith the help of the folloing Tab$lar s$mmar*
folloed b* an ill$stration-2
C45$ I+ 645$ ><$'$ P")+* "8 *494*)"+
, ,n%oice is iss$ed ithin 30P (4=5 from the
completion of ser%ice and pa*ment is recei%ed
after in%oice
9ate of in%oice
,, ,n%oice is iss$ed ithin 30 P(4=5 from the
completion of ser%ice, b$t pa*ment is recei%ed
before in%oice
9ate on hich pa*ment is recei%ed&
,,, ,n%oice is not iss$ed ithin 30P (4=5 from the
completion of ser%ice and pa*ment is recei%ed
after completion of ser%ice&
9ate of completion of ser%ice
,/ ,n%oice is not iss$ed ithin 30P (4=5 from the
completion of ser%ice& >oe%er, part pa*ment is
recei%ed before the completion of ser%ice and
remaining pa*ment is recei%ed after the
completion of ser%ice&
F"' *<$ 74=%$+*
'$6$)#$(
P")+* "8 *494*)"+ )5
4efore the date of
completion of
ser%ice
The date on hich
pa*ment is recei%ed&
"fter the date of
completion of
ser%ice
The date of completion
of ser%ice&
P 40 (4=5 )+ 645$ "8 )+ 645$ "8 &4+@)+? 4+( "*<$' 8)+4+6)4; )+5*)*:*)"+5 )+6;:()+? NBFC5-
I;;:5*'4*)"+
,n case of pro%ision of the taxable ser%ices other than banCing and other financial instit$tion incl$ding
:4!Cs, point of taxation o$ld be determined as $nder-2
C45$ D4*$ "8 6"%7;$*)"+
"8 5$'#)6$
D4*$ "8 )+#")6$ D4*$ "+ ><)6<
74=%$+* '$6$)#$(
P")+* "8 T494*)"+
, September 3, 2012 September 28, 2012 Bctober 10, 2012 September 28, 2012
,, September 3, 2012 Bctober 03, 2012 September 20, 2012 September 20, 2012
,,, September 3, 2012 Bctober 8, 2012 September 23, 2012 September 3, 2012
P")+* "8 T494*)"+ 0/
,/ September 3, 2012 Bctober 8, 2012 "mo$nt recei%ed
partl* on September 3,
2012 and remaining on
September 20, 2012
September 3, 2012 and
September 3, 2012 for
respecti%e amo$nts&
D$*$'%)+4*)"+ "8 (4*$ "8 6"%7;$*)"+ "8 5$'#)6$
()) D4*$ "8 6"%7;$*)"+ "8 5$'#)6$ )+ 645$5 "*<$' *<4+ 6"+*)+:":5 5:77;= "8 5$'#)6$5
CBEC #)($ C)'6:;4' N"- 144/13/2011- ST (4*$( 12-01-2011 <45 6;4')8)$( *<4* *<$ *$5* 8"' *<$
($*$'%)+4*)"+ ><$*<$' 4 5$'#)6$ <45 &$$+ 6"%7;$*$( >":;( &$ *<$ 6"%7;$*)"+ "8 4;; *<$ '$;4*$(
46*)#)*)$5 *<4* 7;46$ *<$ 5$'#)6$ 7'"#)($' )+ 4 5)*:4*)"+ *" &$ 4&;$ *" )55:$ 4+ )+#")6$- T<$ S$'#)6$
T49 R:;$5. 1334 '$O:)'$ *<4* )+#")6$ 5<":;( &$ )55:$( >)*<)+ 4 7$')"( "8 30 (4=5 8'"% *<$
6"%7;$*)"+ "8 *<$ *494&;$ 5$'#)6$- T<$ )+#")6$ +$$(5 *" )+()64*$ )+*$' 4;)4 *<$ #4;:$ "8 5$'#)6$ 5"
6"%7;$*$(- T<:5. )* )5 )%7"'*4+* *" )($+*)8= *<$ 5$'#)6$ 5" 6"%7;$*$(- T<)5 >":;( )+6;:($ +"* "+;=
*<$ 7<=5)64; 74'* "8 7'"#)()+? *<$ 5$'#)6$ &:* 4;5" *<$ 6"%7;$*)"+ "8 4;; "*<$' 4:9);)4'= 46*)#)*)$5
*<4* $+4&;$ *<$ 5$'#)6$ 7'"#)($' *" &$ )+ 4 7"5)*)"+ *" )55:$ *<$ )+#")6$- S:6< 4:9);)4'= 46*)#)*)$5
6":;( )+6;:($ 46*)#)*)$5 ;)@$ %$45:'$%$+*. O:4;)*= *$5*)+? $*6- ><)6< %4= &$ $55$+*)4; 7'$-'$O:)5)*$5
8"' )($+*)8)64*)"+ "8 6"%7;$*)"+ "8 5$'#)6$- I">$#$'. )* <45 &$$+ 6;4')8)$( *<4* 5:6< 46*)#)*)$5 (" +"*
)+6;:($ 8;)%5= "' )''$;$#4+* ?'":+(5 8"' ($;4= )+ )55:4+6$ "8 )+#")6$-
())) D4*$ "8 6"%7;$*)"+ "8 5$'#)6$ )+ 645$ "8 6"+*)+:":5 5:77;= "8 5$'#)6$5
T<$ B"4'( <45 $;:6)(4*$( *<4* *<$ 4&"#$ )+*$'7'$*4*)"+ 4;5" 477;)$5 *" ($*$'%)+4*)"+ "8 *<$ (4*$ "8
6"%7;$*)"+ "8 7'"#)5)"+ "8 5$'#)6$ )+ 645$ "8 B6"+*)+:":5 5:77;= "8 5$'#)6$C&
F:'*<$'. 6;4:5$ ()) "8 7'"#)5" *" ':;$ 3 7'"#)($5 *<4* )+ 645$ "8 6"+*)+:":5 5:77;= "8 5$'#)6$ ><$'$
*<$ 7'"#)5)"+ "8 *<$ ><";$ "' 74'* "8 *<$ 5$'#)6$ )5 ($*$'%)+$( 7$')"()64;;= "+ *<$ 6"%7;$*)"+ "8 4+
$#$+* )+ *$'%5 "8 4 6"+*'46*. ><)6< '$O:)'$5 *<$ '$6$)#$' "8 5$'#)6$ *" %4@$ 4+= 74=%$+* *" 5$'#)6$
7'"#)($'. *<$ (4*$ "8 6"%7;$*)"+ "8 $46< 5:6< $#$+* 45 57$6)8)$( )+ *<$ 6"+*'46* 5<4;; &$ ($$%$( *"
&$ *<$ (4*$ "8 6"%7;$*)"+ "8 7'"#)5)"+ "8 5$'#)6$-
P")+* "8 *494*)"+ )+ 645$ ><$'$ 74=%$+* :7*" ` 1.000 '$6$)#$( )+ $96$55 "8 *<$ )+#")6$( 4%":+*
<$'$#$' *<$ 7'"#)($' "8 *494&;$ 5$'#)6$ '$6$)#$5 4 74=%$+* :7 *" ` 1.000 )+ $96$55 "8 *<$ 4%":+*
)+()64*$( )+ *<$ )+#")6$. *<$ 7")+* "8 *494*)"+ *" *<$ $9*$+* "8 5:6< $96$55 4%":+*. 4* *<$ "7*)"+ "8
*<$ 7'"#)($' "8 *494&;$ 5$'#)6$. 5<4;; &$ ($*$'%)+$( "+ *<$ &45)5 "8 )+#")6$ "' 6"%7;$*)"+ "8 5$'#)6$.
45 *<$ 645$ %4= &$. '4*<$' *<4+ 74=%$+*-
P:'7"5$ "8 *<$ 48"'$54)( 7'"#)5)"+:-
A5 4 %$45:'$ "8 4(($( 846);)*4*)"+. 4+ "7*)"+ <45 &$$+ 7'"#)($( *" ($*$'%)+$ *<$ 7")+* "8 *494*)"+
)+ '$57$6* "8 5%4;; 4(#4+6$5 :7 *" ` 1000. )+ $96$55 "8 *<$ 4%":+* )+()64*$( )+ *<$ )+#")6$. "+ *<$
&45)5 "8 )+#")6$ "' 6"%7;$*)"+ "8 5$'#)6$ '4*<$' *<4+ 74=%$+*- S:6< 7'"#)5)"+ )5 $97$6*$( *"
4(('$55 *<$ 466":+*)+? 7'"&;$%5 846$( &= 5$'#)6$ 7'"#)($'5 )+ *$;$6"%%:+)64*)"+5. 6'$()* 64'(
&:5)+$55$5 ><" '$?:;4';= '$6$)#$ %)+"' $96$55 74=%$+*5 8'"% *<$)' 6:5*"%$'5-
3- D$*$'%)+4*)"+ "8 7")+* "8 *494*)"+ )+ 645$ "8 6<4+?$ )+ $88$6*)#$ '4*$ "8 *49 !R:;$ 4,
:otithstanding an*thing contained in r$le 3, the point of taxation in cases here there is a 6<4+?$ )+
$88$6*)#$ '4*$ "8 *49 in respect of a ser%ice, shall be determined in the manner laid don in the folloing
table namel*-2
P")+* "8 T494*)"+ 01
I+ 645$ 4 *494&;$
5$'#)6$ <45 &$$+
7'"#)($(
I+#")6$ <45 &$$+ )55:$( P4=%$+* '$6$)#$( 8"' *<$
)+#")6$
P")+* "8 *494*)"+ 5<4;;
&$
'i) BEFORE the
change in effecti%e
rate of tax
AFTER the change in
effecti%e rate of tax
AFTER the change in
effecti%e rate of tax
'a) date of iss$ance of
in%oice
or
'b) date of receipt of
pa*ment
hiche%er is earlier
PRIOR to the change in
effecti%e rate of tax
AFTER the change in
effecti%e rate of tax
date of iss$ance of
in%oice
AFTER the change in
effecti%e rate of tax
PRIOR to the change in
effecti%e rate of tax
date of receipt of
pa*ment
'ii) AFTER the
change in effecti%e
rate of tax&
PRIOR to the change in
effecti%e rate of tax
AFTER the change in
effecti%e rate of tax
date of receipt of
pa*ment
PRIOR to the change in
effecti%e rate of tax
PRIOR to the change in
effecti%e rate of tax
'a) date of iss$ance of
in%oice
or
'b) date of receipt of
pa*ment hiche%er is
earlier
AFTER the change in
effecti%e rate of tax
PRIOR to the change in
effecti%e rate of tax
date of iss$ance of
in%oice
4- P4=%$+* "8 *49 )+ 645$5 "8 +$> 5$'#)6$5 !R:;$ 0,
<$'$ 4 5$'#)6$ )5 *49$( 8"' *<$ 8)'5* *)%$. *<$+.K
(4) +" *49 5<4;; &$ 74=4&;$ *" *<$ $9*$+* *<$ )+#")6$ <45 &$$+ )55:$( 4+( *<$ 74=%$+* '$6$)#$( 4?4)+5*
5:6< )+#")6$ &$8"'$ 5:6< 5$'#)6$ &$64%$ *494&;$L
(&) +" *49 5<4;; &$ 74=4&;$ )8 *<$ 74=%$+* <45 &$$+ '$6$)#$( &$8"'$ *<$ 5$'#)6$ &$6"%$5 *494&;$ 4+(
)+#")6$ <45 &$$+ )55:$( >)*<)+ 14 (4=5PP "8 *<$ (4*$ ><$+ *<$ 5$'#)6$ )5 *49$( 8"' *<$ 8)'5* *)%$-
ANALYSIS
T<)5 ':;$ 57$6)8)64;;= ()56:55$5 *<$ 5)*:4*)"+ ><$'$ 4 5$'#)6$ )5 6<4'?$( *" *49 8"' *<$ 8)'5* *)%$ )-$-
&$6"%$5 *494&;$ 8"' *<$ 8)'5* *)%$-
T<$ ':;$ 7'"#)($5 *<4*:-
(4) I8 4+ )+#")6$ <45 &$$+ )55:$( 4+( 74=%$+* )5 '$6$)#$( &$8"'$ 4 5$'#)6$ &$6"%$5 *494&;$. +" *49
>":;( &$ 6<4'?$( $#$+ )8 *<$ 5$'#)6$ )5 7'"#)($( 48*$' *<$ 54%$ <45 &$6"%$ *494&;$- T<)5 7'"#)5)"+ )5
6"+5)5*$+* >)*< *<$ "*<$' 5)%);4' 7'"#)5)"+5 )+ *<$5$ ':;$5. 4+( $+5:'$5 *<4* 4 8)+4+6)4; *'4+546*)"+
><)6< <45 46<)$#$( 8)+4;)*= &$8"'$ 4 5$'#)6$ >45 *494&;$ 5<4;; +"* &$ '$"7$+$( 8"' 6";;$6*)"+ "8 *49-
(&) I8 4+= 74=%$+* <45 &$$+ '$6$)#$( 7')"' *" 4 5$'#)6$ &$)+? 6<4'?$4&;$ *" *49. +" *49 5<4;; &$
6<4'?$4&;$ )8 4+ )+#")6$ <45 4;5" &$$+ )55:$( >)*<)+ 14 (4=5PP "8 *<$ (4*$ ><$+ *<$ 5$'#)6$ )5 *49$( 8"'
*<$ 8)'5* *)%$-
PPI* )5 )%7"'*4+* *" +"*$ *<4* )+ 645$ "8 +$> ;$#=. *)%$-7$')"( 4#4);4&;$ 8"' *<$ )55:4+6$ "8 *<$ )+#")6$
<45 5*);; &$$+ '$5*')6*$( *" 14 (4=5 45 4?4)+5* +"'%4; *)%$-7$')"( 8"' )55:4+6$ "8 )+#")6$ &$$+ $9*$+($(
*" 30 (4=5-
P")+* "8 T494*)"+ 02
0- D$*$'%)+4*)"+ "8 7")+* "8 *494*)"+ )+ 645$ "8 455"6)4*$( $+*$'7')5$5 !R:;$ 1,
,n case of B455"6)4*$( $+*$'7')5$5C. here the person pro%iding the ser%ice is located o$tside ,ndia, the
point of taxation shall be-2
(4) *<$ (4*$ "8 ($&)* )+ *<$ &""@5 "8 466":+* "8 *<$ 7$'5"+ '$6$)#)+? *<$ 5$'#)6$
"'
(&) (4*$ "8 %4@)+? *<$ 74=%$+*
><)6<$#$' )5 $4';)$'-
A55"6)4*$( $+*$'7')5$ shall ha%e the meaning assigned to it in section 92" of the ,ncome2tax "ct, 1911P
!S$6*)"+ /0B(13),-
"n enterprise hich participates, directl* or indirectl*, or thro$gh one or more intermediaries, in the
management or control or capital of the other enterprise is considered as associated enterprise&
USection 92" of the ,ncome2tax "ct, 1911 has been disc$ssed in detail in the St$d* 0aterial of +aper ;-
9irect Tax Has of C" !inal Exam
I;;:5*'4*)"+ : Sambha% ,nd$stries Htd& 'S,H) is an ,ndian Compan*& ,t has recei%ed taxable ser%ices from a
EM based compan*2(eorge Htd& on 01&01&2013& (eorge Htd& raised on S,H an in%oice of W 43,000 on
2;&01&2013& S,H debited its booCs of acco$nts on 0;&02&2013 and made the pa*ment on 23&03&2013&
(eorge Htd& and S,H are associated enterprises& 9etermine the point of taxation $sing aforesaid details&
S";:*)"+:
,n case of Iassociated enterprisesJ, here the person pro%iding the ser%ice is located o$tside ,ndia, the point
of taxation shall be-2
'a) the date of debit in the booCs of acco$nt of the person recei%ing the ser%ice
or
'b) date of maCing the pa*ment
hiche%er is earlier&
>ence, in the gi%en case, the point of taxation shall be earlier of the folloing to dates-2
'a) the date of debit in the booCs of acco$nt of S,H i&e& 0;&02&2013
or
'b) date of maCing the pa*ment i&e& 23&03&2013
Th$s, the point of taxation is 0;&02&2013&
/- D$*$'%)+4*)"+ "8 7")+* "8 *494*)"+ )+ 645$ "8 6"7=')?<*5. $*6- !R:;$ 2,
<$le 8 applies here in case of ro*alties and pa*ments pertaining to cop*rights, trademarCs, designs or
patents, the hole amo$nt of the consideration for the pro%ision of ser%ice is not ascertainable at the time
hen ser%ice as performed, and s$bse7$entl* the $se or the benefit of these ser%ices b* a person other than
the pro%ider gi%es rise to an* pa*ment of consideration&
,n s$ch a case, the ser%ice shall be treated as ha%ing been pro%ided each time hen-2
'a) a pa*ment in respect of s$ch $se#benefit is recei%ed b* the pro%ider in respect thereof
or
'b) an in%oice is iss$ed b* the pro%ider
P")+* "8 T494*)"+ 03
hiche%er is earlier&
1- D$*$'%)+4*)"+ "8 7")+* "8 *494*)"+ )+ "*<$' 645$5 !R:;$ 2A,
R:;$ 2A )5 *<$ '$5)(:4; ':;$ *" ($*$'%)+$ *<$ 7")+* "8 *494*)"+ &= >4= "8 &$5* J:(?%$+* *" <4+(;$
5)*:4*)"+5 ><$'$ *<$ *49-74=$' )5 :+4&;$ *" 8:'+)5< "+$ "' %"'$ "8 *<$ ($*4);5 +$$($( )-$- (4*$ "8
74=%$+* "' (4*$ "8 )+#")6$ "' &"*< *" ($*$'%)+$ 7")+* "8 *494*)"+- I* 7'"#)($5 45 8";;">5:-
<$'$ *<$ 7")+* "8 *494*)"+ 64++"* &$ ($*$'%)+$( 45 7$' *<$5$ ':;$5 45 *<$ (4*$ "8 )+#")6$ "' *<$ (4*$
"8 74=%$+* "' &"*< 4'$ +"* 4#4);4&;$. *<$ C$+*'4; E96)5$ O88)6$'. %4=. '$O:)'$ *<$ 6"+6$'+$( 7$'5"+ *"
7'"(:6$ 5:6< 466":+*5. ("6:%$+*5 "' "*<$' $#)($+6$ 45 <$ %4= ($$% +$6$554'= 4+( 48*$' *4@)+? )+*"
466":+* 5:6< %4*$')4; 4+( *<$ $88$6*)#$ '4*$ "8 *49 7'$#4;$+* 4* ()88$'$+* 7")+*5 "8 *)%$. 5<4;;. &= 4+
"'($' )+ >')*)+?. 48*$' ?)#)+? 4+ "77"'*:+)*= "8 &$)+? <$4'(. ($*$'%)+$ *<$ 7")+* "8 *494*)"+ *" *<$
&$5* "8 <)5 J:(?%$+*-
2- T'4+5)*)"+4; P'"#)5)"+5 !R:;$ 3,
:othing contained in these r$les shall be applicable2
'i) here the pro%ision of ser%ice is completedK or
'ii) here in%oices are iss$ed
prior to "pril 01, 2011&
>oe%er, the point of taxation shall, at the option of the taxpa*er, be the date on hich the pa*ment is
recei%ed#made as the case ma* be in the folloing to cases-2
'i) Ser%ices for hich pro%ision is completed on#before 30&01&2011
or
'ii) here the in%oices are iss$ed $p to 30&01&2011&
ANALYSIS
A55$55$$5 B$+$8)* :+($' *'4+5)*)"+4; 7'"#)5)"+5 >);; 477;= *"
ho sitch o%er to the ne r$les on 01&04&2011 'a) all in%oices iss$ed before 01&04&2011
'b) ser%ices for hich pro%ision has been completed
before 01&04&2011&
ho liCe to shift to the ne r$les on 01&0;&2011 'a) in%oices iss$ed before 01&0;&2011
'b) ser%ices for hich pro%ision has been completed
before 01&0;&2011&
,t ma* be noted that the pa*ments recei%ed before the ne r$les come into force do not re7$ire an*
transitional pro%isions as the* are alread* re7$ired to pa* tax on pa*ment basis&
I%7"'*4+* ($8)+)*)"+5
1- D$8)+)*)"+5 :+($' ':;$ 2
,n these r$les, $nless the context otherise re7$ires,
(4) A6* means the !inance "ct, 1994&
(&) C"+*)+:":5 5:77;= "8 5$'#)6$ %$4+5
'i) an* ser%ice hich is pro%ided, or agreed to be pro%ided contin$o$sl* "' "+ '$6:''$+* &45)5. :+($' 4
6"+*'46*. 8"' 4 7$')"( $96$$()+? *<'$$ %"+*<5 >)*< *<$ "&;)?4*)"+ 8"' 74=%$+* 7$')"()64;;= "' 8'"%
*)%$ *" *)%$.
"'
P")+* "8 T494*)"+ /0
())) ><$'$ *<$ C$+*'4; G"#$'+%$+*. &= 4 +"*)8)64*)"+ )+ *<$ O88)6)4; G4N$**$. 7'$56')&$5 7'"#)5)"+ "8 4
74'*)6:;4' 5$'#)6$ *" &$ 4 6"+*)+:":5 5:77;= "8 5$'#)6$. ><$*<$' "' +"* 5:&J$6* *" 4+= 6"+()*)"+&
S$'#)6$5 +"*)8)$( &= *<$ C$+*'4; G"#$'+%$+*
I+ *<)5 '$?4'( *<$ C$+*'4; G"#$'+%$+* <45 7'$56')&$( *<$ 7'"#)5)"+ "8 8";;">)+? 5$'#)6$5 *" &$ 4
6"+*)+:":5 5:77;= "8 5$'#)6$:-
()) T$;$6"%%:+)64*)"+ S$'#)6$5
())) "'@5 C"+*'46* S$'#)6$5
(6) I+#")6$ means the in%oice referred to in r$le 4" of the Ser%ice Tax <$les, 1994 and shall incl$de an*
doc$ment as referred to in the said r$le&
(() P")+* "8 *494*)"+ means the point in time hen a ser%ice shall be deemed to ha%e been pro%ided&
($) BC<4+?$ )+ $88$6*)#$ '4*$ "8 *49C 5<4;; )+6;:($ 4 6<4+?$ )+ *<$ 7"'*)"+ "8 #4;:$ "+ ><)6< *49 )5
74=4&;$ )+ *$'%5 "8 4 +"*)8)64*)"+ )55:$( )+ *<$ O88)6)4; G4N$**$ :+($' *<$ 7'"#)5)"+5 "8 *<$ A6*. "'
':;$5 %4($ *<$'$ :+($'-
2- D$8)+)*)"+ "8 (4*$ "8 74=%$+* :+($' ':;$ 2A
D4*$ "8 74=%$+* 5<4;; &$:-
(4) (4*$ "+ ><)6< *<$ 74=%$+* )5 $+*$'$( )+ *<$ &""@5 "8 466":+*5
"'
(&) (4*$ "+ ><)6< 74=%$+* )5 6'$()*$( *" *<$ &4+@ 466":+* "8 *<$ 7$'5"+ ;)4&;$ *" 74= *49
><)6<$#$' )5 $4';)$'-
(A) D4*$ "8 74=%$+* )+ 645$ "8 6<4+?$ )+ $88$6*)#$ '4*$ "8 *49 "' 4 +$> ;$#= &$*>$$+ *<$ 4&"#$ *>"
(4*$5
I+ 645$.
()) *<$'$ )5 4 6<4+?$ )+ $88$6*)#$ '4*$ "8 *49 "' ><$+ 4 5$'#)6$ )5 *49$( 8"' *<$ 8)'5* *)%$ (:')+? *<$
7$')"( &$*>$$+ 5:6< $+*'= )+ &""@5 "8 466":+*5 4+( )*5 6'$()* )+ *<$ &4+@ 466":+*L
())) *<$ &4+@ 466":+* )5 6'$()*$( 48*$' 8":' >"'@)+? (4=5 8'"% *<$ (4*$ ><$+ *<$'$ )5 6<4+?$ )+
$88$6*)#$ '4*$ "8 *49 "' 4 5$'#)6$ )5 *49$( 8"' *<$ 8)'5* *)%$L 4+(
()))) *<$ 74=%$+* )5 %4($ &= >4= "8 4+ )+5*':%$+* ><)6< )5 6'$()*$( *" 4 &4+@ 466":+*.
*<$ (4*$ "8 74=%$+* 5<4;; &$ *<$ (4*$ "8 6'$()* )+ *<$ &4+@ 466":+* )+5*$4( "8 *<$ (4*$ "8 '$6"'()+? "8
74=%$+* )+ *<$ &""@5 "8 466":+*5-
A+4;=5)5
S)+6$ '4*$ "8 5$'#)6$ *49 <45 &$$+ 6<4+?$( 8'"% 10S *" 12S >)*< $88$6* 8'"% 01-04-2012.
()) I+ 645$ ><$'$ 5$'#)6$ <45 &$$+ 7'"#)($( &$8"'$ 01-04-2012 4+( *<$ 6<$O:$ / ($%4+( ('48* $*6- <45
&$$+ '$6$)#$( :7*" M4'6< 31. 2012. 477;)64&;$ '4*$ "8 5$'#)6$ *49 >":;( &$ 10S 7'"#)($( 6<$O:$ /
($%4+( ('48* )5 6'$()*$( )+ *<$ &4+@ 466":+* &= A7'); 0. 2012- O*<$'>)5$. *<$ (4*$ "8 74=%$+* >":;(
&$ (4*$ "8 6'$()* )+ *<$ &4+@ 466":+* !#)N- 48*$' A7'); 0. 2012, 4+( 6"+5$O:$+*;=. +$> '4*$ "8 12S
>":;( &$ 477;)64&;$-
P")+* "8 T494*)"+ /1
())) I+ 645$ ><$'$ (4*$ "8 )55:4+6$ "8 )+#")6$ 4+( '$6$)7* "8 74=%$+* &= 6<$O:$ / ($%4+( ('48* $*6- )5
'$6$)#$( &$8"'$ 01-04-2012. 477;)64&;$ '4*$ "8 5$'#)6$ *49 >":;( &$ 10S 7'"#)($( 6<$O:$ / ($%4+(
('48* $*6- )5 6'$()*$( )+ *<$ &4+@ 466":+* &= A7'); 0. 2012- O*<$'>)5$. *<$ (4*$ "8 74=%$+* >":;( &$
(4*$ "8 6'$()* )+ *<$ &4+@ 466":+* !#)N- 48*$' A7'); 0. 2012, 4+( 6"+5$O:$+*;=. +$> '4*$ "8 12S >":;(
&$ 477;)64&;$-
(B) I8 4+= ':;$ '$O:)'$5 ($*$'%)+4*)"+ "8 *<$ *)%$ "' (4*$ "8 74=%$+* '$6$)#$(: *<$ $97'$55)"+ B(4*$ "8
74=%$+*C 5<4;; &$ 6"+5*':$( *" %$4+ 5:6< (4*$ "+ ><)6< *<$ 74=%$+* )5 '$6$)#$(-
P")+* "8 T494*)"+ /2
PRACTICE MANUAL
R:$5*)"+ 1
:iChil Htd& pro%ides 0anagement Cons$ltanc* Ser%ices to its client "ggaral +roperties Htd& for agreed
consideration of `1,30,000& "ggaral +roperties Htd& maCes the pa*ment on 23
th
"pril, 2012& >oe%er, the
date of completion of ser%ice is 13th "pril, 2012& The rele%ant in%oice for `1,30,000 is raised b* :iChil Htd&
as per folloing table-
C"SE , 30
th
"pril, 2012
C"SE ,, 11
th
0a*, 2012
C"SE ,,, 20
th
"pril, 2012
9etermine +oint of Taxation in each of the abo%e three cases&
A+5>$'
"s per <$le 3 of the +oint of Taxation <$les, point of taxation o$ld be determined as follos-2
1& 9ate of in%oice or pa*ment, hiche%er is earlier, if the in%oice is iss$ed ithin 30 da*s from the date
of completion of ser%ice&
2& 9ate of completion of pro%ision of ser%ice or pa*ment, if the in%oice is not iss$ed ithin 30 da*s&
+oint of Taxation in each of the abo%e three cases ill be as $nder-
CASE I2The point of taxation is date of pa*ment 623th "pril,20128 as date of pa*ment 623&04&20128 falls
before date of iss$ance of in%oice630&04&20128 and in%oice has been iss$ed ithin 30 da*s of completion of
ser%ice&613&04&20128&
CASE II- The point of taxation is date of completion of ser%ice 613th "pril, 20128 as date of completion of
ser%ice 613&04&20128 falls before date of pa*ment 623&04&20128 and in%oice 611&03&20128 has not been iss$ed
ithin 30 da*s of completion of ser%ice 613&04&20128&
CASE III2 The point of taxation is 20th "pril, 2012 as date of in%oice 620&04&20128 falls before date of
pa*ment 623&04&20128 and in%oice has been iss$ed ithin 30 da*s of completion of ser%ice 613&04&20128&
R:$5*)"+ 2
4riefl* anser the folloing 7$estions-2
'a) ?here a ser%ice pro%ider maintains booCs of acco$nts on mercantile basis relating to taxable ser%ices
pro%ided b* him, ill ser%ice tax be pa*able on accr$al basisQ
'b) " partic$lar ser%ice has been bro$ght into the ser%ice tax net ith effect from 1&;&2012&0r& /ignesh has
pro%ided this ser%ice on 20&1&2012 and iss$ed the in%oice on 2&0;&2012,the pa*ment for the same as
recei%ed on 10&;&2012& ,s ser%ice tax pa*able on the sameQ
A+5>$'
(4) Ser%ice tax is pa*able as per +oint of Taxation <$les, 2011 and the method of acco$nting is irrele%ant for
maCing pa*ment of ser%ice tax&
(&) +a*ment of tax in cases of ne ser%ices 6<$le 3 of +oint of Taxation <$les 20118
<$'$ 4 5$'#)6$ )5 *49$( 8"' *<$ 8)'5* *)%$. *<$+.K
(4) +" *49 5<4;; &$ 74=4&;$ *" *<$ $9*$+* *<$ )+#")6$ <45 &$$+ )55:$( 4+( *<$ 74=%$+* '$6$)#$( 4?4)+5*
5:6< )+#")6$ &$8"'$ 5:6< 5$'#)6$ &$64%$ *494&;$L
P")+* "8 T494*)"+ /3
(&) +" *49 5<4;; &$ 74=4&;$ )8 *<$ 74=%$+* <45 &$$+ '$6$)#$( &$8"'$ *<$ 5$'#)6$ &$6"%$5 *494&;$ 4+(
)+#")6$ <45 &$$+ )55:$( >)*<)+ 14 (4=5 "8 *<$ (4*$ ><$+ *<$ 5$'#)6$ )5 *49$( 8"' *<$ 8)'5* *)%$-
The facts gi%en in the 7$estion does not fall $nder an* of the abo%e to cla$ses& >ence ser%ice tax is
pa*able on the same&
R:$5*)"+ 3
"Aa* Htd& has agreed to render ser%ices to 0r& ($r$& The folloing are the chronological e%ents-
P4'*)6:;4'5 $
Contract for ser%ices entered into on 31&8&2012
"d%ance recei%ed in September, 2012 toards all ser%ices 10,000
Total %al$e of ser%ices, billed in !ebr$ar*, 2013 2,10,000
"bo%e incl$des non2taxable ser%ices of ;0,000
4alance amo$nt is recei%ed in 0arch, 2013
?hen does the liabilit* to pa* ser%ice tax arise and for hat amo$ntQ Contract contains clear details of
ser%icesK consideration and ser%ice tax are charged separatel*, as m$t$all* agreed $pon&
A+5>$'
"s per <$le 3 of point of taxation <$les, 2011,
The point of taxation shall be 2
'a) the time hen the in%oice for the ser%ice pro%ided# agreed to be pro%ided is iss$ed& >oe%er, in case the
in%oice is not iss$ed ithin 30 da*s of the completion of the pro%ision of the ser%ice, the point of taxation
shall be date of s$ch completion&
'b) in a case, here the person pro%iding the ser%ice, recei%es a pa*ment before the time specified in cla$se
'a), the time, hen he recei%es s$ch pa*ment, to the extent of s$ch pa*ment&
!or the p$rpose of this r$le, here%er an* ad%ance b* hate%er name Cnon, is recei%ed b* the ser%ice
pro%ider toards the pro%ision of taxable ser%ice, the point of taxation shall be the date of receipt of each
s$ch ad%ance&
A(#4+6$ 7"'*)"+
P4'*)6:;4'5 $
"d%ance recei%ed toards all ser%ices in September, 2012 X 10,000
"mo$nt billed for taxable ser%ices X 2,10,000 5 ;0,000
X 1,40,000
"d%ance recei%ed toards taxable ser%ices
X

000 , 10 , 2
000 , 40 , 1
000 , 10
X 40,000
Ser%ice tax S 12D 'since, ser%ice tax is charged separatel*) X 40,000 x 12D
X 4,800
Ed$cation cess S 2D X 91
Secondar* and higher ed$cation cess S 1D X 48
Total ser%ice tax liabilit* X 4,944
,n this case, the d$e date for pa*ment of ser%ice tax ill be 3th Bctober, 2012&
P")+* "8 T494*)"+ /4
B4;4+6$ 7"'*)"+
P4'*)6:;4'5 $
"mo$nt billed for taxable ser%ices X `1,40,00
"d%ance recei%ed toards taxable ser%ices X 40,000
"mo$nt billed b$t not recei%ed toards taxable ser%ices X `'1,40,000 5 40,000)
X 1,00,000
Ser%ice tax S 12D X 1,00,000 x 12D
X 12,000
Ed$cation cess S 2D X 240
Secondar* and higher ed$cation cess S 1D X 120
Total ser%ice tax liabilit* X 12,310
,n this case, the d$e date for pa*ment of ser%ice tax ill be 3th 0arch, 2013&
R:$5*)"+ 4
9etermine the +oint of Taxation in each of folloing independent cases in accordance ith P")+* "8
T494*)"+ R:;$5. 2011:
S- N"- D4*$ "8 6"%7;$*)"+ "8 5$'#)6$ T)%$ !(4*$, "8 )+#")6$ D4*$ "+ ><)6< 74=%$+*
'$6$)#$(
1& 10&04&2012 03&03&2012 20&03&2012
2- 10&04&2012 03&03&2012 23&04&2012
3 10&04&2012 03&03&2012 23&04&2012 'part) and 20&03&2012
'remaining)
4- 10&04&2012 03&03&2012 B1&04&2012 'part) and 09&04&2012
'remaining)
0- 10&04&2012 03&03&2012 01&04&2012 'part) and 01&03&2012
'remaining)
/- 10&04&2012 11&03&2012 20&03&2012
1- 10&04&2012 11&03&2012 03&04&2012 'part) and 14&03&2012
'remaining)
A+5>$'
The pro%isions of <$le 3 of +oint of Taxation <$les are gi%en belo in Tab$lar !ormat for eas* recap-
R$;$#4+* C;4:5$
4+( R:;$
T)%$ "8 I55:$ "8 I+#")6$ P")+* "8 T494*)"+ :+;$55
"*<$'>)5$ 57$6)8)$(
Cla$se 'a) of
<$le 3
?ithin the time period specified in <$le 4" of the
Ser%ice Tax <$les, 1994 i&e& thirt* da*s 'or fort* fi%e
da*s for banCs and financial instit$tions) from the date
of 6"%7;$*)"+ of the ser%ice
Time of iss$ance of in%oice
"ccording to s$bstit$ted pro%iso to <$le 3'a) ith
effect from 01&04&2012 if in%oice is :ot iss$ed ithin
6i&e& "fter8 thirt* da*s 'or fort* fi%e da*s for banCs and
financial instit$tions )from the date of completion of the
ser%ice
9ate of Completion of
pro%ision of ser%ice
Cla$se 'b) of
<$le 3
,f, ser%ice pro%ider recei%es an* pa*ment before time
specified in cla$se 'a) abo%e i&e& before the iss$ance of
in%oice or before date of completion of ser%ice as the
case ma* be&
Time 69ate8 of +a*ment to
the extent it is recei%ed&
P")+* "8 T494*)"+ /0
N"*$ )+ '$57$6* "8 '$6$)7* "8 4(#4+6$: "ccording to Explanation appended to this <$le 3 here%er an*
ad%ance b* hate%er name Cnon is recei%ed b* the ser%ice pro%ider toards the pro%ision of taxable
ser%ice, the +oint of Taxation shall be the 9ate of <eceipt of each s$ch ad%ance
P")+* "8 T494*)"+ )+ $46< "8 4&"#$ 645$5 <45 &$$+ ?)#$+ )+ 8";;">)+? *4&;$:
S-
N"-
D4*$ "8
C"%7;$*)"+
"8 5$'#)6$
T)%$ !D4*$, "8
I+#")6$. B);; "'
C<4;;4+ 45 *<$
645$ %4= &$
D4*$ "+ ><)6<
74=%$+*
'$6$)#$(
P")+* "8
T494*)"+
R$%4'@5
1& 10&04& 2012 3&03&2012 20&03&2012 3&03&2012 ,n%oice iss$ed
ithin 30 da*s and
before receipt of
pa*ment&
2& 10&04&2012 3&03&2012 23&04&2012 23&04&2012 ,n%oice iss$ed
ithin 30 da*s b$t
pa*ment recei%ed
before in%oice&
3& 10&04& 2012 3&03&2012 +art pa*ment
on 23&04&2012
remaining on
20&03&2012
23&04&2012 for
the part
pa*ment and
3&03&2012 for
the remaining
amo$nt
,n%oice iss$ed
ithin 30 da*s&
+art pa*ment
recei%ed before
in%oice and
remaining
pa*ment after
in%oice&
4& 10&04& 2012 3&03&2012 +art pa*ment on
1&04&2012 and
remaining on
09&04&2012
01&04&2012
and
09&04&2012 for
the respecti%e
amo$nt
,n%oice iss$ed
ithin 30 da*s&
>oe%er, the
4(#4+6$ has been
recei%ed in to
installments before
the date of
completion of
ser%ice& Th$s, date
of receipt of each
s$ch ad%ance shall
be treated as point
of taxation&
3& 10&04& 2012 3&03&2012 +art pa*ment
on 01&04&2012
and remaining
on 1&03&2012
01&04&2012
and 1&03&2012
for the
respecti%e
amo$nt
,n%oice iss$ed
ithin 30 da*s&
+art pa*ment 6in
the form of
4(#4+6$, recei%ed
before iss$e of
in%oice and
remaining
pa*ment
recei%ed before
iss$ance of
,n%oice
1& 10&04& 2012 11&03&2012 20&03&2012 10&04&2012 ,n%oice +"* )55:$(
ithin 30 da*s and
pa*ment recei%ed
P")+* "8 T494*)"+ //
after completion of
ser%ice& Th$s&
+oint
of Taxation is 9ate
of completion of
ser%ice&
;& 10&04& 2012 11&03&2012 +art pa*ment
on 03&04&2012
and remaining
on 14&03&2012
03&04&2012
and
10&04&2012 for
<especti%e
amo$nts
,n%oice +"* )55:$(
ithin 30 da*s&
+art pa*ment
recei%ed 45
4(#4+6$ before
completion of
ser%ice and
remaining
pa*ment
recei%ed after
completion of
ser%ice
R:$5*)"+ 0
" ser%ice becomes taxable ith effect from 01-01-2012- 9etermine in each of the folloing independent
cases hether ser%ice tax is le%iable in accordance ith +oint of Taxation <$les, 2011Q
C45$ D4*$ "8 I55:4+6$ "8 I+#")6$ D4*$ "8 '$6$)7* "8 74=%$+*
, 23&01&2012 for `1,00,000 21&01&2012 for ` 1,00,000
,, 23&01&2012 for ` 1,00,000 21&01&2012 for ` 10,000
,,, 23&01&2012 for `10,000 21&01&2012 for ` 1,00,000
,/ 24&&01&2012 for `1,00,000 20&01&2012 for ` 1,00,000
/ 03&0;&2012 for ` 1,00,000 30&01&2012 for ` 1,00,000
/, 24&0;&2012 for ` 1,00,000 20&01&2012 for ` 1,00,000
A+5>$'
"ccording to s$bstit$ted <$le 3 of +oint of Taxation <$les, 2011 ith effect from 01&04&2012, here a
ser%ice is taxed for the 8)'5* *)%$, then +oint of Taxation ill be determined in the folloing manner-
R$;$#4+* R:;$
"8 POT R:;$5.
2011
T)%$ "8 I55:$ "8 I+#")6$ T)%$ "8 '$6$)7* "8
74=%$+*
P"5)*)"+ "8
T494&);)*=
<$le 3'a) 4efore the date s$ch ser%ice
becomes taxable for the first
time
4efore the date s$ch
ser%ice becomes
taxable for the first
time
:ot2Taxable *" *<$ $9*$+* "8
iss$e of in%oice and receipt of
pa*ment against s$ch in%oice&
<$le 3'b) ,ss$e of in%oice ithin
fo$rteen da*s of the date
hen the ser%ice is taxed for
the first time&
4efore the date s$ch
ser%ice becomes
taxable for the first
time
:ot Taxable if the pa*ment has
been recei%ed before the
ser%ice become taxable and
in%oice has been iss$ed ithin
fo$rteen da*s of the date hen
the ser%ice is taxed for the first
time&
,n the light of abo%e pro%isions of <$le 3 of +BT <$les, 2011 the position of taxabilit* in each of cases
gi%en in the 7$estion ill be as $nder-
P")+* "8 T494*)"+ /1
D4*$ "8 I55:4+6$
"8 I+#")6$
D4*$ "8 '$6$)7*
"8 74=%$+*
P"5)*)"+ "8 T494&);)*=
23&01&2012 for
` 1,00,000
21&01&2012 for
`1,00,000
N"*-T494&;$ to the extent of iss$e of in%oice and receipt of
pa*ment against s$ch in%oice before s$ch ser%ice becomes taxable
i&e& entire amo$nt of `1,00,000 in this case&
23&01&2012 for
` 1,00,000
21&01&2012 for `
10,000
N"*-*494&;$ to the extent of `10,000 beca$se against the in%oice of
`1,00,000 onl* part pa*ment to the extent of `10,000 has been
recei%ed before s$ch ser%ice becomes taxable for the first time& ,n
other ords, `40,000 recei%ed after s$ch ser%ice become taxable
6i&e& after 01&0;&20128 ill be s$bAect to ser%ice tax&
23&01&2012 for
` 10,000
21&01&2012 for `
1,00,000
N"*-*494&;$ to the extent of ` 10,000 beca$se of <$le 3'a) of this
<$le i&e& to the extent of iss$e of in%oice and receipt of pa*ment
against s$ch in%oice before s$ch ser%ice becomes taxable&
The taxabilit* of remaining ` 40,000#2 ill be determined in the
8";;">)+? %4++$'-
T)%$ "8 I55:4+6$
"8
I+#")6$
T)%$ "8
R$6$)7* "8
P4=%$+*
P"5)*)"+ "8
T494&);)*=
,f in%oice for
`40,000 is iss$ed
ithin 14 da*s
6i&e& latest b*
14&0;&2012 in the
present case8
from the date
s$ch ser%ice
becomes taxable&
4efore the date s$ch
Ser%ice becomes
taxable for the first
time
:ot Taxable beca$se
the sit$ation ill
be s7$arel* co%ered b*
<$le 3'b)&
,f in%oice for `
40,000#2 is not
iss$ed ithin 14
da*s 6i&e& after
14&0;&2012 in the
present case8
from the date
s$ch ser%ice
becomes taxable&
4efore the date s$ch
ser%ice becomes
taxable for the first
time
Taxable beca$se
neither the re7$irement
of <$le 3'a) nor <$le
3'b) is met&
24&01&2012 for
`1,00,000
20&01&2012 for
` 1,00,000
N"* T494&;$ as the pa*ment has been recei%ed before the ser%ice
became taxable and in%oice has also been iss$ed before s$ch
ser%ice became taxable&
03&0;&2012 for `
1,00,000
30&01&2012 for `
1,00,000
:o Tax shall be pa*able beca$se pa*ment has been recei%ed before
the ser%ice becomes taxable and in%oice has been iss$ed ithin 14
da*s of the date hen the ser%ice is taxed for the first time&
24&0;&2012 for
` 1,00,000
20&01&202 for
` 1,00,000
Taxable beca$se essential re7$irement of iss$e of in%oice ithin 14
da*s of the date hen ser%ice is taxed for the first time is not met&
R:$5*)"+ /
E)'*) L*( is the oner of a coal2mine in 4ihar& ,t obtained a patent from the concerned competent
a$thorities in relation of foregoing coal2mine in !ebr$ar*, 2011& !$rther, the compan* has entered into an
agreement ith "4C Htd in A7');. 2011 for alloing the latter part* to extract coals for the next three *ears&
The consideration pa*able b* "4C Htd& !or $sing the coal2mine has been fixed S `1000 per tonne& The
7$ant$m of coal extracted b* "4C Htd and other rele%ant details are gi%en in the folloing table-
P")+* "8 T494*)"+ /2
R$;$#4+* Y$4' R$;$#4+* O:*7:*
()+ T"++$5,
C"+5)($'4*)"+ 8"'
:5)+? *<$ 6"4;-
%)+$ T $1000/-
7$' *"++$
D4*$ "8 I55:4+6$
"8 I+#")6$
D4*$ "8 R$6$)7* "8
P4=%$+*
2011212
2012213
2013214
2,000
3,000
4,000
20,00,000
30,00,000
40,00,000
03&0;&2012
13&04&2013
11&04&2014
21&08&2012
03&04&2013
20&0;&2014
:ote- Mirti Htd& has not exercise the option gi%en $nder r$le 9 and applied +oint of Taxation <$le from "pril
1, 2011 itself&
A+5>$'
,t is pertinent to clarif* here that in the present 7$estion, Mirti Htd& is the ser%ice pro%ider and "4C Htd& is
the ser%ice recipient& Since hole amo$nt of the consideration for the pro%ision of patent is not ascertainable
at the time hen ser%ice as performed and s$bse7$entl* the $se of these ser%ices b* a person other than
the pro%ider gi%es right to an* pa*ment of consideration, both the conditions specified in <$le 8 of +BT
<$les, 2011 get satisfied& The +oint of Taxation of Mirti Htd& for the %ario$s !inancial Rears has been
exhibited in the folloing table-
P")+* "8 T494*)"+ F"' V4')":5 F)+4+6)4; Y$4'5 A5 P$' R:;$ 2
Earlier of the folloing to-
'i) 9ate of ,ss$ance of ,n%oiceK
'ii) 9ate of receipt of pa*ment&
,t is orth highlighting that +oint of Taxation is to be determined in the abo%e manner $46< *)%$ on the
occ$rrence of earlier of the abo%e to e%ents&
P")+* "8 T494*)"+ R$45"+/R$%4'@5
03&0;&2012 9ate of ,ss$ance of ,n%oice603&0;&20128 falls before 9ate of +a*ment6 21&08&20128
03&04&2013 9ate of +a*ment 603&04&20138precedes 9ate of ,ss$ance of ,n%oice613&04&20138
11&04&2014 9ate of ,ss$ance of ,n%oice611&04&20148 falls before 9ate of +a*ment620&0;&20148
EXERCISES
1& The %al$e of a taxable ser%ice is ` 10,000& Ser%ice tax pa*able on it is-
'a) ` 1231
'b) ` 1200
'c) ` 1030
'd) ` 1020
2& The charge of ser%ice tax is on the-
'a) ser%ice pro%ided
'b) ser%ice pro%ided or agreed to be pro%ided
'c) ser%ice to be pro%ided
'd) none of the abo%e
A+5>$'5
1&'a)L 2-'b)
V4;:4*)"+ "8 T494&;$ S$'#)6$ /3
VALUATION OF TAXABLE SERVICE
L$4'+)+? "&J$6*)#$5
"fter reading this chapter *o$ ill be able to $nderstand the-
Y pro%isions relating to %al$ation of taxable ser%ices for charging ser%ice tax&
Y concept of gross amo$nt charged and consideration for taxable ser%ices&
1- V4;:4*)"+ "8 *494&;$ 5$'#)6$5 8"' 6<4'?)+? 5$'#)6$ *49 !S$6*)"+ /1,
Section 1; pro%ides for the %al$ation of taxable ser%ices& The pro%isions of this section are disc$ssed belo-
(1) C"+5)($'4*)"+ )+ *$'%5 "8 %"+$=
,f the consideration for a taxable ser%ice is in terms of mone*, the %al$e of s$ch ser%ice shall be the gross
amo$nt charged b* the ser%ice pro%ider for s$ch ser%ice pro%ided or to be pro%ided b* him&
(2) C"+5)($'4*)"+ +"* ><";;= "' 74'*;= )+ *$'%5 "8 %"+$=
,f the consideration for a taxable ser%ice is not holl* or partl* in terms of mone*, then the %al$e of s$ch
ser%ice shall be s$ch amo$nt in mone*, ith the addition of ser%ice tax charged, is e7$i%alent to the
consideration&
(3) C"+5)($'4*)"+ +"* 456$'*4)+4&;$
,f the consideration for a taxable ser%ice is not ascertainable, the %al$e of s$ch ser%ice shall be the amo$nt as
ma* be determined in the prescribed manner&
(4) <$'$ *<$ ?'"55 4%":+* 6<4'?$( )5 )+6;:5)#$ "8 5$'#)6$ *49 74=4&;$
?here the gross amo$nt charged b* a ser%ice pro%ider, for the ser%ice pro%ided or to be pro%ided is
incl$si%e of ser%ice tax pa*able, the %al$e of s$ch taxable ser%ice shall be s$ch amo$nt as, ith the addition
of tax pa*able, is e7$al to the gross amo$nt charged&
I;;:5*'4*)"+
<ishabh pro%ides a taxable ser%ice to +adam for a consideration of `10,000 incl$si%e of ser%ice tax at
12&31D& The %al$e, in s$ch case, shall be comp$ted as
1231 & 1
000 , 10
or
=

31 & 112
100
000 , 10
`8,900
(0) G'"55 4%":+* 6<4'?$( )+6;:($5 4%":+* '$6$)#$( &$8"'$/(:')+?/48*$' *<$ 7'"#)5)"+ "8 5:6< 5$'#)6$
The gross amo$nt charged for the taxable ser%ice shall incl$de an* amo$nt recei%ed toards the taxable
ser%ice either before, d$ring or after the pro%ision of s$ch ser%ice&
(/) S$bAect to the aforementioned pro%isions mentioned, the %al$e of a taxable ser%ice shall be determined in
s$ch manner as ma* be prescribed&
1- G'"55 4%":+* 6<4'?$( incl$des pa*ment b* che7$e, credit card, ded$ction from acco$nt and an* form
of pa*ment b* iss$e of credit notes or debit notes and booC adA$stment, and an* amo$nt credited or debited,
as the case ma* be, to an* acco$nt, hether called Is$spense acco$ntJ or b* an* other name, in the booCs of
acco$nt of a person liable to pa* ser%ice tax, here the transaction of taxable ser%ice is ith an* associated
enterprise&
2- C"+5)($'4*)"+ incl$des an* amo$nt that is pa*able for the taxable ser%ices pro%ided or to be pro%ided&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 10
2- S$'#)6$ T49 (D$*$'%)+4*)"+ "8 V4;:$) R:;$5. 200/
Notification No.12/2006-ST, dated 19.04.2006 has notified the Ser%ice Tax '9etermination of /al$e) <$les,
2001& The* ha%e come into force from 19&04&2001&
2-1 D$8)+)*)"+5 !R:;$ 2,
V4;:$: IV4;:$J shall ha%e the meaning assigned to it in section 1; !C;4:5$ (6),&
The ords and expressions $sed in these r$les and not defined b$t defined in the !inance "ct, 1994 shall
ha%e the meaning respecti%el* assigned to them in the "ct&
2-2 D$*$'%)+4*)"+ "8 #4;:$ "8 5$'#)6$ )+ '$;4*)"+ *" %"+$= 6<4+?)+? !R:;$ 2B,
<$le 24 pro%ides the manner of determination of the %al$e of taxable ser%ice pro%ided so far as the ser%ices
so pro%ided pertains to p$rchase or sale of foreign c$rrenc*, incl$ding mone* changing& The %al$e of ser%ice
shall be determined as follos-2
(4) F"' 4 6:''$+6=. ><$+ $96<4+?$( 8'"%. "' *". I+()4+ R:7$$5 (INR)
!or a c$rrenc*, hen exchanged from, or to, ,ndian <$pees ',:<), the %al$e shall be e7$al to the difference
in the b$*ing rate or the selling rate, as the case ma* be, and the <eser%e 4anC of ,ndia '<4,) reference rate
for that c$rrenc* at that timeU, m$ltiplied b* the total $nits of c$rrenc*&
PN"*$: <$'$ *<$ RBI '$8$'$+6$ '4*$ 8"' 4 6:''$+6= )5 +"* 4#4);4&;$
?here the <4, reference rate for a c$rrenc* is not a%ailable, the %al$e shall be 1D of the gross amo$nt of
,ndian <$pees pro%ided or recei%ed, b* the person changing the mone*&
E94%7;$ I: ESZ 1,000 are sold b* a c$stomer at the rate of `43 per ESZ&
<4, reference rate for ESZ is `43&30 for that da*&
/al$e of taxable ser%iceX '<4, reference rate for Z 5 Selling rate for Z) T Total $nits
X `'43&30 2 43) T 1,000
X ` 0&30 T 1,000
The taxable %al$e shall be `300&
E94%7;$ II: ,:< ;0,000 is changed into (reat 4ritain +o$nd '(4+) and the exchange rate offered is `;0,
thereb* gi%ing (4+ 1000&
<4, reference rate for that da* for (4+ is `19&
The taxable %al$e shall be `1,000&
(&) <$'$ +$)*<$' "8 *<$ 6:''$+6)$5 $96<4+?$( )5 I+()4+ R:7$$
?here neither of the c$rrencies exchanged is ,ndian <$pee, the %al$e shall be e7$al to 1D of the lesser of
the to amo$nts the person changing the mone* o$ld ha%e recei%ed b* con%erting an* of the to
c$rrencies into ,ndian <$pee on that da* at the reference rate pro%ided b* <4,&
I;;:5*'4*)"+ 2: 'i) Siddhi Htd& exported some goods to Samson ,nc& of ES"& ,t recei%ed ES Z 9,000 as
consideration for the same and sold it S ` 44 per ES dollar& Comp$te the %al$e of taxable ser%ice $nder r$le
24 of the Ser%ice Tax '9etermination of /al$e) <$les, 2001 in the folloing cases-2
'a) <4, reference rate for ES dollar at that time is ` 43 per ES dollar&
'b) <4, reference rate for ES dollars is not a%ailable&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 11
'ii) ?hat o$ld be the %al$e of taxable ser%ice if ES Z 9,000 are con%erted into EM W 4,300& <4, reference
rate at that time for ES Z is ` 41 per ES dollar and for EM W is ` 88 per EM +o$nd&
S";:*)"+:
()) (4) !or a c$rrenc*, hen exchanged from, or to, ,ndian <$pees ',:<), the %al$e shall be e7$al to the
difference in the b$*ing rate or the selling rate, as the case ma* be, and the <eser%e 4anC of ,ndia '<4,)
reference rate for that c$rrenc* at that time, m$ltiplied b* the total $nits of c$rrenc*&
>ence, in the gi%en case, %al$e of taxable ser%ice o$ld be as follos-2
'<4, reference rate for Z 5 Selling rate for Z) T Total $nits of ES Z
X ` '43244) T 9,000
X ` 9,000
(&) ,f the <4, reference rate for a c$rrenc* is not a%ailable, the %al$e shall be 1D of the gross amo$nt of
,ndian <$pees pro%ided or recei%ed, b* the person changing the mone* &
>ence, in the gi%en case, %al$e of taxable ser%ice o$ld be as follos-2
1D of ` '44 T 9,000)
X` 3,910
())) ?here neither of the c$rrencies exchanged is ,ndian <$pee, the %al$e shall be e7$al to 1D of the lesser
of the to amo$nts the person changing the mone* o$ld ha%e recei%ed b* con%erting an* of the to
c$rrencies into ,ndian <$pee on that da* at the reference rate pro%ided b* <4,&
>ence, in the gi%en case, %al$e of taxable ser%ice o$ld be 1D of the loer of the folloing-2
'a) ES dollar con%erted into ,ndian r$pees X Z 9,000 T ` 41
X ` 4,14,000
'b) EM po$nd con%erted into ,ndian r$pees X W 4,300T ` 88
X ` 3,91,000
/al$e of taxable ser%ice X 1D of ` 3,91,000
X ` 3,910
2-3 M4++$' "8 ($*$'%)+4*)"+ "8 #4;:$ when such value is not ascertainable !R:;$ 3,
The %al$e of taxable ser%ice, where such value is not ascertainable, shall be determined b* the ser%ice
pro%ider in the manner described belo&
S$bAect to the pro%isions of section 1;, the %al$e of taxable ser%ice, here s$ch %al$e is not ascertainable,
shall be determined b* the ser%ice pro%ider in the folloing manner-2
(4) V4;:$ "8 5)%);4' 5$'#)6$5
The %al$e of taxable ser%ice shall be e7$i%alent to the gross amo$nt charged b* the ser%ice pro%ider to
pro%ide similar ser%ice to an* other person s$bAect to f$lfillment of the conditions belo-
1& S$ch ser%ice is in the ordinar* co$rse of trade&
2& The gross amo$nt charged is the sole consideration&
(&) <$+ #4;:$ "8 5)%);4' 5$'#)6$5 64++"* &$ 456$'*4)+$(
?here the %al$e cannot be determined in accordance ith cla$se 'a), the ser%ice pro%ider shall determine
the e7$i%alent mone* %al$e of s$ch consideration& >oe%er, s$ch %al$e shall, in no case be less than the cost
of pro%ision of s$ch taxable ser%ice&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 12
2-4 R$J$6*)"+ "8 #4;:$ &= C$+*'4; E96)5$ O88)6$' 4+( )*5 ($*$'%)+4*)"+ *<$'$"+ !R:;$ 4,
(1) C$+*'4; E96)5$ O88)6$' $%7">$'$( *" #$')8= *<$ #4;:$ 4("7*$( &= *<$ 5$'#)6$ 7'"#)($'
The Central Excise Bfficer shall ha%e the poer to satisf* himself as to the acc$rac* of an* information
f$rnished or doc$ment presented for %al$ation& ,n other ords, here there are ade7$ate reasons arranting
%erification of the %al$e adopted b* the ser%ice pro%ider for pa*ment of ser%ice tax, r$le 4 specificall*
enables %erification of records in s$ch cases&
(2) R:;$ 3 >":;( +"* '$5*')6* 5:6< 7">$'
The pro%isions contained in r$le 3 shall not restrict or p$t to 7$estion s$ch poer of the Central Excise
Bfficer&
(3) I55:$ "8 5<"> 64:5$ +"*)6$ (SCN)
" sho ca$se notice 'SC:) shall be iss$ed to the ser%ice pro%ider, if the Central Excise Bfficer is satisfied
that the %al$e determined b* s$ch ser%ice pro%ider is not in accordance ith the pro%isions of the "ct or
these r$les&
(4) SCN *" 57$6)8= *<$ 4%":+* "8 5$'#)6$ *49 8)9$(
S$ch sho ca$se notice ill specif* the amo$nt of ser%ice tax fixed b* the Central Excise officer&
(0) P'"#)5)"+ "8 "77"'*:+)*= "8 &$)+? <$4'( 4+( ($*$'%)+4*)"+ "8 #4;:$ "8 *494&;$ 5$'#)6$
The Central Excise Bfficer shall pro%ide a reasonable opport$nit* of being heard, to the ser%ice pro%ider&
Thereafter, he shall determine the %al$e of s$ch taxable ser%ice for the p$rpose of charging ser%ice tax in
accordance ith the pro%isions of the "ct and these r$les&
2-0 I+6;:5)"+ )+ "' $96;:5)"+ 8'"% #4;:$ "8 6$'*4)+ $97$+()*:'$ "' 6"5*5 !R:;$ 0,
(1) G$+$'4; 7'"#)5)"+
The expendit$re or costs inc$rred b* the ser%ice pro%ider in the co$rse of pro%iding taxable ser%ice forms
integral part of the taxable %al$e of the ser%ice pro%ided or to be pro%ided& Therefore, the* shall be incl$ded
in the %al$e for the p$rpose of charging ser%ice tax on the said ser%ice& ,t shall not be rele%ant that %ario$s
expendit$re or costs are separatel* indicated in the in%oice or bill iss$ed b* the ser%ice pro%ider to his client&
This is a general r$le hich maCes it clear that e%en hen s$ch expendit$re or costs are reco%ered separatel*
b* ser%ice pro%ider from the ser%ice recei%er sho$ld be incl$dible for discharging the ser%ice tax&
E97;4+4*)"+ *" ':;$ 0(1)-V4;:$ "8 *494&;$ 5$'#)6$ 8"' *<$ *$;$6"%%:+)64*)"+ 5$'#)6$
!or the remo%al of do$bts, it is hereb* clarified that for the telecomm$nication ser%ice, the %al$e of the
taxable ser%ice shall be the gross amo$nt paid b* the person to hom telecom ser%ice is pro%ided b* the
telegraph a$thorit*&
>ence, in case of ser%ice pro%ided b* a* of recharge co$pons or prepaid cards or the liCe, the %al$e shall
be the gross amo$nt charged from the s$bscriber or the $ltimate $ser of the ser%ice and not the amo$nt paid
b* the distrib$tor or an* s$ch intermediar* to the telegraph a$thorit*&
I+()#)(:4; 6"%7"+$+*5 "8 *"*4; 6"+5)($'4*)"+ $#$+ )8 )+()64*$( 5$74'4*$;= )+ )+#")6$ >":;( 4;5" 8"'%
74'* "8 #4;:$ "8 *494&;$ 5$'#)6$
,t is clarified that the %al$e of the taxable ser%ice is the total amo$nt of consideration consisting of all
components of the taxable ser%ice and it is immaterial that the details of indi%id$al components of the total
consideration is indicated separatel* in the in%oice&
I;;:5*'4*)"+ 1 2 ,n the co$rse of pro%iding a taxable ser%ice, a ser%ice pro%ider inc$rs costs s$ch as tra%elling
expenses, postage, telephone, etc&, and ma* indicate these items separatel* on the in%oice iss$ed to the
recipient of ser%ice& ,n s$ch a case, the ser%ice pro%ider is not acting as an agent of the recipient of ser%ice
V4;:4*)"+ "8 T494&;$ S$'#)6$ 13
b$t proc$res s$ch inp$ts or inp$t ser%ice on his on acco$nt for pro%iding the taxable ser%ice& S$ch
expenses do not become reimb$rsable expendit$re merel* beca$se the* are indicated separatel* in the
in%oice iss$ed b* the ser%ice pro%ider to the recipient of ser%ice&
I;;:5*'4*)"+ 2- 2 " contracts ith 4, an architect for b$ilding a ho$se& 9$ring the co$rse of pro%iding the
taxable ser%ice, 4 inc$rs expenses s$ch as telephone charges, air tra%el ticCets, hotel accommodation, etc&, to
enable him to effecti%el* perform the pro%ision of ser%ices to "& ,n s$ch a case, in hate%er form 4 reco%ers
s$ch expendit$re from ", hether as a separatel* itemised expense or as part of an incl$si%e o%erall fee,
ser%ice tax is pa*able on the total amo$nt charged b* 4& /al$e of the taxable ser%ice for charging ser%ice tax
is hat " pa*s to 4&
I;;:5*'4*)"+ 3- - Compan* [ pro%ides a ser%ice of rent2a2cab b* pro%iding cha$ffe$r dri%en cars for o%erseas
%isitors& The cha$ffe$r is gi%en a l$mp s$m amo$nt to co%er his food and o%ernight accommodation and an*
other incidental expenses s$ch as parCing fees b* the Compan* [ d$ring the to$r& "t the end of the to$r, the
cha$ffe$r ret$rns the balance of the amo$nt ith a statement of his expenses and the rele%ant bills& Compan*
[ charges these amo$nts from the recipients of ser%ice& The cost inc$rred b* the
cha$ffe$r and billed to the recipient of ser%ice constit$tes part of gross amo$nt charged for the pro%ision of
ser%ices b* the Compan* [&
(2) A%":+*5 74)( *" *<$ *<)'( 74'*= &= *<$ 5$'#)6$ 7'"#)($' 45 4 B7:'$ 4?$+*C "8 *<$ 6;)$+* +"* *" &$
)+6;:($( )+ *<$ *494&;$ #4;:$
There co$ld be sit$ations here the client of the ser%ice pro%ider specificall* engages the ser%ice pro%ider,
as his agent, to contract ith the third part* for s$ppl* of an* goods or ser%ices on his behalf& ,n those cases,
s$ch goods or ser%ices so proc$red are treated as s$pplied to the client rather than to the contracting agent&
The ser%ice pro%ider in s$ch cases inc$rs the expendit$re p$rel* on behalf of his client in his capacit* as an
agent, i&e& Ip$re agentJ of the client& "mo$nts paid to third part* b* the ser%ice pro%ider as a p$re agent of
his client can be treated as reimb$rsable expendit$re and shall not be incl$ded in taxable %al$e&
C"+()*)"+5 *" &$ 54*)58)$( )+ *<)5 '$?4'(:-
S$bAect to the pro%isions mentioned in point '1) abo%e, the expendit$re or costs inc$rred b* the ser%ice
pro%ider as a p$re agent of the recipient of ser%ice shall be excl$ded from the %al$e of the taxable ser%ice if
all the folloing conditions are satisfied-
'i) the ser%ice pro%ider acts as a p$re agent of the recipient of ser%ice hen he maCes pa*ment to third part*
for the goods or ser%ices proc$redK
'ii) the recipient of ser%ice recei%es and $ses the goods or ser%ices so proc$red b* the ser%ice pro%ider in his
capacit* as p$re agent of the recipient of ser%iceK
'iii) the recipient of ser%ice is liable to maCe pa*ment to the third part*K
'i%) the recipient of ser%ice a$thorises the ser%ice pro%ider to maCe pa*ment on his behalfK
'%) the recipient of ser%ice Cnos that the goods and ser%ices for hich pa*ment has been made b* the
ser%ice pro%ider shall be pro%ided b* the third part*K
'%i) the pa*ment made b* the ser%ice pro%ider on behalf of the recipient of ser%ice has been separatel*
indicated in the in%oice iss$ed b* the ser%ice pro%ider to the recipient of ser%iceK
'%ii) the ser%ice pro%ider reco%ers from the recipient of ser%ice onl* s$ch amo$nt as has been paid b* him to
the third part*K and
'%iii) the goods or ser%ices proc$red b* the ser%ice pro%ider from the third part* as a p$re agent of the
recipient of ser%ice are in addition to the ser%ices he pro%ides on his on acco$nt&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 14
M$4+)+? "8 7:'$ 4?$+*
BP:'$ 4?$+*C means a person ho5
'a) enters into a contract$al agreement ith the recipient of ser%ice to act as his p$re agent to inc$r
expendit$re or costs in the co$rse of pro%iding taxable ser%iceK
'b) neither intends to hold nor holds an* title to the goods or ser%ices so proc$red or pro%ided as p$re agent
of the recipient of ser%iceK
'c) does not $se s$ch goods or ser%ices so proc$redK and
'd) recei%es onl* the act$al amo$nt inc$rred to proc$re s$ch goods or ser%ices&
I;;:5*'4*)"+ 5 [ contracts ith R, a real estate agent to sell his ho$se and there$pon R gi%es an
ad%ertisement in tele%ision& R billed [ incl$ding charges for Tele%ision ad%ertisement and paid ser%ice tax
on the total consideration billed& ,n s$ch a case, consideration for the ser%ice pro%ided is hat [ pa*s to R& R
does not act as an agent on behalf of [ hen obtaining the tele%ision ad%ertisement e%en if the cost of
tele%ision ad%ertisement is mentioned separatel* in the in%oice iss$ed b* [& "d%ertising ser%ice is an inp$t
ser%ice for the estate agent in order to enable or facilitate him to perform his ser%ices as an estate agent&
"bo%e ill$stration pro%ides the distinction beteen pa*ment made as Ip$re agentJ and pa*ment made as
IprincipalJ&
(3) C;4')8)64*)"+
I55:$ C;4')8)64*)"+
The principal Aob of a c$stom ho$se agent 'C>") is
to get the import#export consignments cleared
thro$gh c$stoms&
>oe%er, at times the* also pro%ide ser%ices for
pacCing, $npacCing, loading, $nloading, bringing or
remo%ing the goods to or from the c$stoms area,
%esselsor aircrafts for their c$stomers 'i&e& importers
or exporters)& C>"s initiall* pa* the ser%ice charges
to these agencies and later reco%er these charges
from the c$stomer along ith their on charges
C>"s& Similar arrangement can occ$r for pa*ment
of stat$tor* le%ies liCe c$stom d$ties, port charges,
cesses etc& le%iable on the said goods& ?hether the
charges hich are said to be paid b* the C>"s and
later reco%ered from the c$stomers 'i&e& reimb$rsable
charges) sho$ld be added to the %al$e for charging
ser%ice tax from C>"sQ
,t is clarified that the aforesaid reimb$rsable charges
o$ld be excl$ded from the %al$e of taxable ser%ice
if all the folloing conditions are satisfied, 2
'a) The acti%it*#ser%ice for hich a charge is made
sho$ld be in addition to pro%ision of C>" ser%ice&
'b) There sho$ld be arrangement beteen the
c$stomer . the C>" hich a$thori=es or allos the
C>" to-2
'i) arrange for s$ch acti%ities#ser%ices for the
c$stomerK and
'ii) maCe pa*ments to other ser%ice pro%iders on
his behalfK
'c) The C>" does not $se the acti%ities#ser%ices for
his on benefit or for the benefit of his other
c$stomersK
'd) The C>" reco%ers the reimb$rsements on
Oact$alP basis i&e& itho$t an* marC2$p or margin&
'e) C>" sho$ld pro%ide e%idence to pro%e nex$s
beteen s$ch other than C>" ser%ices pro%ided and
the reimb$rsable amo$nts&
Similar o$ld be the case for stat$tor* le%ies,
charges b* carriers and c$stodians, ins$rance
agencies and the liCe&
'f) Each charge for separate acti%ities#ser%ices is to
be co%ered either b* a separate in%oice or b* a
separate entr* in a common in%oice&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 10
"n* other miscellaneo$s#o$t of pocCet expenses
charged b* the C>" o$ld not be excl$ded&
[Circular No. 119/13/2009-S.T. dated 21-12-2009]
2-/ S$'#)6$ 57$6)8)6 )+6;:5)"+/$96;:5)"+ "8 6$'*4)+ )*$%5 8'"% *<$ #4;:$ "8 *494&;$ 5$'#)6$ !R:;$ /,
(1) I+6;:5)"+5
S$bAect to the pro%isions of section 1;, the %al$e of the taxable ser%ices shall incl$de5
'i) the commission or broCerage charged b* a broCer on the sale or p$rchase of sec$rities incl$ding the
commission or broCerage paid b* the stocC2broCer to an* s$b2broCerK
'ii) the adA$stments made b* the telegraph a$thorit* from an* deposits made b* the s$bscriber at the time of
application for telephone connection or pager or facsimile or telegraph or telex or for leased circ$itK
'iii) the amo$nt of premi$m charged b* the ins$rer from the polic* holderK
'i%) the commission recei%ed b* the air tra%el agent from the airlineK
'%) the commission, fee or an* other s$m recei%ed b* an act$ar*, or intermediar* or ins$rance intermediar*
or ins$rance agent from the ins$rerK
'%i) the reimb$rsement recei%ed b* the a$thorised ser%ice station, from man$fact$rer for carr*ing o$t an*
ser%ice of an* motor car, light motor %ehicle or to heeled motor %ehicle man$fact$red b* s$ch
man$fact$rerK
'%ii) the commission or an* amo$nt recei%ed b* the rail tra%el agent from the <aila*s or the c$stomerK
'%iii) the rem$neration or commission, b* hate%er name called, paid to s$ch agent b* the client engaging
s$ch agent for the ser%ices pro%ided b* a clearing and forarding agent to a client rendering ser%ices of
clearing and forarding operations in an* mannerK and
'ix) the commission, fee or an* other s$m, b* hate%er name called, paid to s$ch agent b* the ins$rer
appointing s$ch agent in relation to ins$rance a$xiliar* ser%ices pro%ided b* an ins$rance agent&
!" The a#ount realised as de#urra$e or b% an% other na#e whatever called &or the 'rovision o& a service
be%ond the 'eriod ori$inall% contracted or in an% other #anner relatable to the 'rovision o& service.
(2) E96;:5)"+5
S$bAect to the pro%isions contained in s$b2r$le '1), the %al$e of an* taxable ser%ice, as the case ma* be, does
not incl$de5
'i) initial deposit made b* the s$bscriber at the time of application for telephone connection or pager or
facsimile '!"[) or telegraph or telex or for leased circ$itK
'ii) the airfare collected b* air tra%el agent in respect of ser%ice pro%ided b* himK
'iii) the rail fare collected b* rail tra%el agent in respect of ser%ice pro%ided b* himK
iv" interest on dela%ed 'a%#ent o& an% consideration &or the 'rovision o& services or sale o& 'ro'ert%(
whether #oveable or i##oveable and
V4;:4*)"+ "8 T494&;$ S$'#)6$ 1/
'%) the taxes le%ied b* an* (o%ernment 'incl$ding foreign (o%ernments, here a passenger disembarCs) on
an* passenger tra%elling b* air, if shon separatel* on the ticCet, or the in%oice for s$ch ticCet, iss$ed to the
passenger&
vi" accidental da#a$es due to un&oreseen actions not relatable to the 'rovision o& service.
vii" subsidies and $rants disbursed b% the )overn#ent( not directl% a&&ectin$ the value o& service.
V4;:4*)"+ "8 T494&;$ S$'#)6$ 11
PRACTICE MANUAL
R:$5*)"+ 1
?ill the pa*ment to a hotelier of ` 10,000 on behalf of an architect, the ser%ice pro%ider b* a ser%ice
recei%er be incl$ded in the %al$e of taxable ser%icesQ
A+5>$'
Ser%ice tax chargeable on an* taxable ser%ice is on the basis of gross amo$nt charged b* ser%ice pro%ider for
s$ch ser%ice pro%ided or to be pro%ided b* him& ,t is not necessar* that the ser%ice recei%er sho$ld pa* the
consideration onl* to the ser%ice pro%iderK an* mone* paid to the third part* is also incl$dible& >ence, the
hotel bill met b* the client o$ld be incl$dible in the %al$e of taxable ser%ices&
R:$5*)"+ 2
"nser the folloing 7$estions-
'a) Can it be said that if the taxable ser%ice is not capable of ascertainment, the same cannot form part of
%al$e of taxable ser%icesQ
'b) >o is the %al$e of taxable ser%ices determined hen the consideration against taxable ser%ices is
recei%ed in other than monetar* termsQ
A+5>$'
(4) :o, it cannot be said so& The pro%isions of section 1; states clearl* that if the consideration for a
taxable ser%ice is not ascertainable, the %al$e of s$ch ser%ice shall be the amo$nt as ma* be
determined in the manner prescribed $nder the Ser%ice Tax '9etermination of /al$e) <$les, 2001&
(&) Section 1; of the !inance "ct, 1994 pro%ides that if the consideration for a taxable ser%ice is not
holl* or partl* in terms of mone*, then the %al$e of s$ch ser%ice shall be s$ch amo$nt in mone*,
ith the addition of ser%ice tax charged, is e7$i%alent to the consideration&
R:$5*)"+ 3
0s& +ri*a rendered a taxable ser%ice to a client& " bill for ` 40,000 as raised on 29&4&2012K ` 13,000 as
recei%ed from the client on 1&3&2012 and the balance on 23&3&2012& :o ser%ice tax as separatel* charged in
the bill& The 7$estions are-
'a) ,s 0s& +ri*a liable to pa* ser%ice tax, e%en tho$gh the same has not been charged b* herQ
'b) ,n case she is liable, hat is the %al$e of taxable ser%ice and the ser%ice tax pa*ableQ
A+5>$'
Section 18 of the !inance "ct, 1994 casts the liabilit* to pa* ser%ice tax $pon the ser%ice pro%ider &This
liabilit* is not contingent $pon the ser%ice pro%ider reali=ing or charging the ser%ice tax at the pre%ailing
rate& The stat$tor* liabilit* does not get exting$ished if the ser%ice pro%ider fails to reali=e or charge the
ser%ice tax from the ser%ice recei%er& >ence, 0s& +ri*a is liable to pa* ser%ice tax&
>oe%er, sometimes it ma* happen that the assessee is not able to charge ser%ice tax beca$se of the nat$re
of ser%ice or he fails to reco%er the ser%ice tax from the client # c$stomer as he is not aare that his ser%ices
are taxable& >ence, in these cases, the amo$nt reco%ered from the client in lie$ of ha%ing rendered the
ser%ice ill be taCen to be incl$si%e of ser%ice tax and accordingl* tax pa*able ill be calc$lated b* maCing
bacC calc$lations&
The rates of ser%ice tax pa*able are-
4asic rate 12D
V4;:4*)"+ "8 T494&;$ S$'#)6$ 12
Ed$cation cess '2D of 12D) 0&24D
Secondar* and higher ed$cation cess '1D of 12D) 0&12D
Effecti%e rate of ser%ice tax 12&31D
"s per <$le 3 of point of taxation <$les, 2011,
The point of taxation shall be 2
'a) the time hen the in%oice for the ser%ice pro%ided#to be pro%ided is iss$ed&
>oe%er, in case the in%oice is not iss$ed ithin 30 da*s of the completion of the pro%ision of the
ser%ice, the point of taxation shall be date of s$ch completion&
'b) in a case, here the person pro%iding the ser%ice, recei%es a pa*ment before the time specified in
cla$se 'a), the time, hen he recei%es s$ch pa*ment, to the extent of s$ch pa*ment&
/al$e of taxable ser%ice X
100
rate) 100 '
charged amo$nt

+ Effective
Gross
/al$e of taxable ser%ice X
=

31 & 112
100 000 , 40
`33,100
Ser%ice tax pa*able X
31 & 112
31 & 12 000 , 40
X `4,400
R:$5*)"+ 4
0s& +ri*anCa, a proprietress of <o*al Sec$rit* "genc* recei%ed ` 1,00,000 b* an acco$nt pa*ee che7$e as
ad%ance hile signing a contract for pro%iding taxable ser%ice& She recei%ed ` 3,00,000 b* credit card hile
pro%iding the ser%ice and another ` 3,00,000 b* a pa* order after completion of ser%ice on Gan$ar* 31, 2013&
"ll three transactions tooC place d$ring financial *ear 2012213& She seeCs *o$r ad%ice abo$t her liabilit*
toards %al$e of taxable ser%ice and the ser%ice tax pa*able b* her& The amo$nt of ser%ice tax has been
charged separatel*&
A+5>$'
C"%7:*4*)"+ "8 *494&;$ 5$'#)6$ "8 M5- P')=4+@4 8"' 8)+4+6)4; =$4' 2012-13
P4'*)6:;4'5 $
"d%ance recei%ed b* an acco$nt pa*ee che7$e 1,00,000
"mo$nt recei%ed hile pro%iding ser%ice thro$gh credit card 3,00,000
"mo$nt recei%ed on completion of ser%ice b* a pa* order 3,00,000
/al$e of taxable ser%ice 11,00,000
C4;6:;4*)"+ "8 5$'#)6$ *49 ;)4&);)*=
P4'*)6:;4'5 $
Ser%ice tax S12D on ` 11,00,000 1,32,000
"dd- 'i) Ed$cation cess S 2D on ser%ice tax 2,140
"dd- 'ii) Secondar* and higher ed$cation cess S 1D on ser%ice tax 1,320
Total ser%ice tax pa*able 1,33,910
N"*$5:
V4;:4*)"+ "8 T494&;$ S$'#)6$ 13
1& 0one* means legal tender, che7$e, promissor* note, bill of exchange, letter of credit, draft, pa* order,
tra%eler che7$e, mone* order, postal or electronic remittance or an* s$ch similar instr$ment b$t shall not
incl$de an* c$rrenc* that is held for its n$mismatic %al$e
2& (ross amo$nt charged incl$des pa*ment b* che7$e, credit card, ded$ction from acco$nt and an* form of
pa*ment b* iss$e of credit notes or debit notes and booC adA$stment
3& ,t has been ass$med that the assessee is not an SS+&
R:$5*)"+ 0
State ith reason in brief hether the folloing statement is tr$e or false ith reference to the pro%isions of
ser%ice tax-
0r& Salim, an architect has recei%ed the fees of ` 4,48,300 after the ded$ction of income2tax of `
31,300&Ser%ice tax ill be pa*able on ` 4,48,300&
A+5>$'
F4;5$ : "s the charge of the ser%ice tax is on the total %al$e of ser%ices pro%ided, the gross receipts are to be
considered for tax calc$lation& >ence, ser%ice tax ill be pa*able on the gross fee of ` 3 laCh&
R:$5*)"+ /
+areesh . Co&, is a partnership firm engaged in the b$siness of recr$itment and s$ppl* of labo$rers& The
firm, hich had rendered taxable ser%ices to the t$ne of ` 20&2 lacs in the financial *ear 2011212, f$rnishes
the folloing details pertaining to the half *ear ended on 30&9&2012-
'`)
'i) "mo$nts collected from companies for pre2recr$itment screening 2,30,000
'ii) "mo$nts collected from companies for recr$itment of
+ermanent staff 3,00,000
Temporar* staff 4,00,000
'iii) "d%ances recei%ed from prospecti%e emplo*ers for cond$cting camp$s inter%ies
in colleges
1,00,000
?here%er applicable, ser%ice tax has been charged separatel* and recei%ed from clients& Comp$te the %al$e
of taxable ser%ices rendered and the ser%ice tax pa*able b* the assessee for the rele%ant half *ear&
A+5>$'
C"%7:*4*)"+ "8 #4;:$ "8 *494&;$ 5$'#)6$5 4+( 5$'#)6$ *49 74=4&;$ &= M/5 P4'$$5< A C"-:-
P4'*)6:;4'5 A%":+* "8
*494&;$ 5$'#)6$5
($)
A%":+* "8
5$'#)6$ *49
($)
"mo$nts collected from companies for pre2recr$itment screening 2,30,000 30,900
"mo$nts collected from companies for recr$itment of permanent staff 3,00,000 3;,080
"mo$nts collected from companies for recr$itment of temporar* staff 4,00,000 49,440
"d%ances recei%ed from prospecti%e emplo*ers for cond$cting camp$s
inter%ie in colleges ':ote21) 89,000 11,000
T"*4; 10,39,000 1,28,420
N"*$5:
1& "mo$nts recei%ed as ad%ance are also liable to ser%ice tax& Ser%ice tax on ad%ance has been calc$lated on
the pres$mption that the same is incl$si%e of ser%ice tax

31 & 112
31 & 12 000 , 00 , 1
&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 20
2& Since the %al$e of taxable ser%ices rendered in the preceding *ear is more than ` 10 laCh 'i&e& ` 20&2 laCh),
the assessee is not a small ser%ice pro%ider& >ence, it is not eligible for the exemption a%ailable to the small
ser%ice pro%ider&
R:$5*)"+ 1
9$ring the *ear ended 31&3&2012, Mohli . Co& , r$nning a coaching centre, has collected a s$m of ` 10&2
lacs as ser%ice tax, ` ;0,000 as met thro$gh Cen%at credit and the balance as paid b* che7$es on %ario$s
dates& The details pertaining to the 7$arter ended 30&1&2012 are as $nder-
P4'*)6:;4'5 A%":+*
($)
/al$e of free coaching rendered 20,000
Coaching fees collected from st$dents 'Ser%ice tax collected separatel*) 14,30,000
"d%ance recei%ed from a college for coaching their st$dents, on 30&1&2012&
>oe%er, no coaching as cond$cted and the mone* as ret$rned on 12&4&2013
3,00,000
9etermine the Ser%ice Tax Hiabilit* for the 7$arter and indicate the date b* hich the ser%ice tax has to be
remitted b* the assessee&
A+5>$'
C"%7:*4*)"+ "8 S$'#)6$ T49 L)4&);)*= "8 E"<;) A C"- 8"' *<$ O:4'*$' $+($( 30-0/-2012:-
P4'*)6:;4'5 A%":+* "8
5$'#)6$ *49
($)
!ree coaching rendered :il
Coaching fees collected from st$dents

100
31 & 12 000 , 30 , 14 1,;9,220
"d%ance recei%ed from a college for coaching their st$dents 33,001
T"*4; S$'#)6$ T49 L)4&);)*= 8"' *<$ O:4'*$' $+($( 30-0/-2012 2.12.221
N"*$5:
1& !ree coaching is not exigible to ser%ice tax
2& Coaching fees collected from st$dents ill be liable to ser%ice tax S 12&31D&
3& "d%ance receipt is chargeable to ser%ice tax& ,t is immaterial that no coaching as cond$cted and the
mone* as ret$rned on 12&4&2013& "d%ance o$ld be chargeable to ser%ice tax in the 7$arter ended
30&01&2012& "d%ance has been ass$med to be incl$si%e of ser%ice tax

31 & 112
31 & 12 000 , 00 , 3
9$ring the preceding financial *ear, the ser%ice tax liabilit* met b* the assessee, incl$si%e of CE:/"T
credit a%ailed as more than ` 10 laCh& >ence, d$ring the c$rrent financial *ear, for all 7$arters, pa*ment of
ser%ice tax ill ha%e to be made electronicall*& Therefore, the last date for maCing the pa*ment of ser%ice
tax b* Mohli . Co& 'non2corporate assessee), other than >E! for the 7$arter ended 30&01&2012 is 1
th
G$l*,
2012&
R:$5*)"+ 2
>o ill a taxable ser%ice be %al$ed hen the consideration thereof is not holl* or partl* in terms of
mone*Q
A+5>$'
"s per section 1; '2) of the !inance "ct, 1994, if the consideration for a taxable ser%ice is not holl* or
partl* in terms of mone*, then the %al$e of s$ch ser%ice shall be s$ch amo$nt in mone*, ith the addition of
ser%ice tax charged, is e7$i%alent to the consideration&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 21
,n other ords, here the ser%ice rendered is for a consideration not holl* or partl* consisting of mone*
the %al$e of the taxable ser%ice is e7$i%alent to the total %al$e of the consideration& >oe%er, the total of
s$ch mone* and non2mone* %al$es of the consideration has to be treated as incl$si%e of the ser%ice tax
pa*able thereon&
R:$5*)"+ 3
"4C +artnership firm, is engaged in pro%iding a taxable ser%ice& !or the 7$arter ended on 31
st
0arch 2013,
its gross receipts ere ` 18,00,000 ':o amo$nt as recei%ed in preceding 7$arters)& The breaC2$p of these
receipts are as follos-
M"+*< )+ ><)6< 5$'#)6$5 4'$ 7$'8"'%$( R$6$)7*
($)
G$l*, 2012 'incl$des ` 1,00,000 for the ser%ices in relating to betting) 4,00,000
"$g$st, 2012 'incl$des ` 1,23,000 for the ser%ices rendered ith the ,ndian territorial aters) 3,00,000
Gan$ar*, 2013 'incl$des ` 1,;3,000 for ser%ices rendered to its associated enterprise in ,ndia) 3,00,000
!ebr$ar*, 2013 'incl$des ` 1,30,000 for ser%ices rendered in the State of Gamm$ . Mashmir) 1,00,000
,n the financial *ear 2011212, "4C +artnership firm, had paid `2,4;,200 as ser%ice tax 'S12&31D)& State the
amo$nt of Ser%ice Tax +a*ableK for the 7$arter ended on 31
st
0arch 2013&
A+5>$'
C"%7:*4*)"+ "8 5$'#)6$ *49 74=4&;$ &= ABC 74'*+$'5<)7 8)'% 8"' *<$ %"+*< "8 D4+:4'=. 2013
P4'*)6:;4'5 $
Ser%ices performed in G$l*, 2012 6<efer :ote 18 3,00,000
Ser%ices performed in "$g$st, 2012 6<efer :ote 28 3,00,000
Ser%ices performed in Gan$ar*, 2013 6<efer :ote 38 3,00,000
Ser%ices performed in !ebr$ar*, 2013 6<efer :ote 48 4,30,000
Total taxable ser%ices incl$ding ser%ice tax 13,30,000
Ser%ice tax 'incl$ding 3D ed$cation cesses) pa*able on abo%e, ro$nded off 6<efer :ote 38 1,;0,301
N"*$5:
1& Ser%ices in relation to betting is incl$ded in the negati%e list of ser%ices& >ence, it is not taxable&
2& He%* of ser%ice tax extends to hole of ,ndia excl$ding Gamm$ and Mashmir and ,ndia incl$des ,ndian
territorial aters& >ence, ser%ices rendered ithin ,ndian territorial aters o$ld be liable to ser%ice tax&
3& Ser%ices rendered to associated enterprise are liable to ser%ice tax&&
4& He%* of ser%ice tax extends to hole of ,ndia excl$ding Gamm$ and Mashmir& >ence, ser%ices rendered in
Gamm$ and Mashmir o$ld not be liable to ser%ice tax&
3& "s the partic$lars relate to gross receipts, the same are taCen to be incl$si%e of ser%ice tax and hence
ser%ice tax has been comp$ted b* maCing bacC calc$lations
X
31 & 112
31 & 12 000 , 30 , 13
1& The aggregate %al$e of taxable ser%ices of "4C partnership firm ,n the preceding financial *ear i&e&, !&R&
2011212 is more than ` 10,00,000 as it has paid ser%ice tax of ` 2,4;,200& >ence, it ill not be entitled to
exemption for small ser%ice pro%iders in !&R&2012213 and o$ld be liable to ser%ice tax&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 22
R:$5*)"+ 10
0r& <am ho has entered into a roll o%er contract approached :94C 4anC for selling ES Z33,000 at rate of
`49 per ES Z <4, reference rate for ES Z is `49&30 at that time& >oe%er, rate of exchange declared b*
C4EC for the da* is `30&30 per ES Z& Calc$late the %al$e of taxable ser%ice&
A+5>$'
<$le 24 of the Ser%ice Tax '9etermination of /al$e) <$les, 2001 pro%ides the manner of determination of
the %al$e of taxable ser%ice so far pertains to p$rchase or sale of foreign c$rrenc*, incl$ding mone*
changing& The %al$e of ser%ice for a c$rrenc*, hen exchanged from, or to, ,ndian <$pee ',:<), shall be
e7$al to the difference in the b$*ing rate or the selling rate, as the case ma* be, and the <eser%e 4anC of
,ndia '<4,) reference rate for that c$rrenc* at that time, m$ltiplied b* the total $nits of c$rrenc*&
>ence, the %al$e of taxable ser%ice X '<4, reference rate for Z2Selling rate for Z) Total $nits
X ` '49&30 5 49) 33,000
X ` 0&30 33,000
The taxable %al$e shall be `1;,300&
R:$5*)"+ 11
<ishabh +rofessionals Htd& is engaged in pro%iding ser%ices hich became taxable ith effect from G$l* 01,
2012& Comp$te the ser%ice tax pa*able b* <ishabh +rofessionals Htd& on the folloing amo$nts 'excl$si%e
of ser%ice tax) recei%ed for the month of 0arch, 2013-2
P4'*)6:;4'5 A%":+* ($)
Ser%ices performed before s$ch ser%ice became taxable 3,00,000
Ser%ices b* a* of renting of residential delling for $se as residence 1,30,000
0arCet /al$e of free ser%ices rendered to the friends 20,000
"d%ance recei%ed in 0arch, 2013 for ser%ices to be rendered in G$l*, 2013
'The agreement got terminated in "pril, 2013& >ence, no ser%ices ere rendered in G$l*,
2013& >oe%er, a s$m of ` 3,30,000 as ref$nded in G$ne, 2013)
3,00,000
Bther receipts 12,00,000
A+5>$'
C"%7:*4*)"+ "8 S$'#)6$ T49 P4=4&;$ &= R)5<4&< P'"8$55)"+4;5 L*(-:-
P4'*)6:;4'5 A%":+* (`)
Ser%ices performed before s$ch ser%ice became taxable '"mo$nt recei%ed after the
ser%ice become taxable is taxable as per r$le 3 of +BT <$les, 2011&)
3,00,000
Ser%ices b* a* of renting of residential delling for $se as residence ':ote21) :il
!ree ser%ices rendered to the friends ':ote22) :il
"d%ance recei%ed for the ser%ices to be rendered in G$l*, 2013 ':ote23) 3,00,000
Bther receipts 12,00,000
Total 22,00,000
Less Exemption a%ailable to small ser%ice pro%iders ':ote24) 10,00,000
/al$e of taxable ser%ices 12,00,000
Ser%ice tax S12D 1,44,000
!dd Ed$cation cess S 2D 2,880
!dd Secondar* and higher ed$cation cess S 1D 1,440
Ser%ice Tax +a*able 1,48,320
V4;:4*)"+ "8 T494&;$ S$'#)6$ 23
N"*$5:-
1& Ser%ices b* a* of renting of residential delling for $se as residence are incl$ded in the negati%e
list of ser%ices& >ence, the* are not s$bAect to ser%ice tax&
2& Ser%ice tax is chargeable on the %al$e of ser%ice& Th$s, ser%ice tax is not pa*able in case of free
ser%ices as there is no consideration in s$ch case&
3& "d%ance recei%ed for the ser%ices to be rendered in G$l*, 2013 is liable for ser%ice tax& The amo$nt
of ser%ice tax incl$ded in the amo$nt ref$nded in the next financial *ear i&e& G$ne 2013 o$ld be
adA$sted against ser%ice tax liabilit* of s$bse7$ent periods& 6,t is ass$med that ` 3,30,000 ref$nded in
G$ne, 2013 after the termination of agreement incl$des the amo$nt of ser%ice tax pa*able thereon8&
4& Since, ser%ices pro%ided b* <ishabh +rofessional Htd& became taxable on G$l* 01, 2012, aggregate
%al$e of taxable ser%ices rendered in preceding financial *ear 2011212 is :il& >ence, <ishabh
+rofessional Htd& is eligible for exemption $nder :otification :o& 33#2012 ST dated 20&01&2012&
R:$5*)"+ 12
Sambah% +ri%ate Himited is engaged in pro%iding the ser%ices liable to ser%ice tax& Comp$te the ser%ice tax
pa*able b* it in the month of Bctober, 2012 from the information f$rnished belo-2
P4'*)6:;4'5 A%":+*
(`)
Ser%ices rendered to poor people free of cost '/al$e of the ser%ices comp$ted on comparati%e
basis)
40,000
"d%ances recei%ed in Bctober, 2012 from clients for hich no ser%ice has been rendered so far 30,000
<enting of agro machiner* for agric$lt$ral p$rpose 3,00,000
"mo$nt recei%ed for the ser%ices rendered in G$l*, 2012 '4ills for the same ere iss$ed on G$l*
29, 2012)
10,000
N"*$: The aforesaid amo$nts are excl$si%e of ser%ice tax& Sambah% +ri%ate Himited is not eligible for small
ser%ice pro%idersP exemption in the financial *ear 2012213&
A+5>$'
Comp$tation of Ser%ice Tax +a*able b* Sambha% +ri%ate Himited in the month of Bctober, 2012-2
P4'*)6:;4'5 A%":+*(`)
Ser%ices rendered to poor people free of cost ':ote21) :il
"d%ances recei%ed in Bctober, 2012 from clients ':ote22) 30,000
<enting of agro machiner* for agric$lt$ral p$rpose ':ote23) :il
"mo$nt recei%ed for the ser%ices rendered in G$l*, 2012 ' :ote24) :il
/al$e of taxable ser%ices 30,000
Ser%ice tax S 12D X `30,000 T 12D 1,000
Ed$cation cess S 2D X ` 1,000 T 2D 120
Secondar* and higher ed$cation cess S 1D X ` 1,000 T 1D 10
Ser%ice Tax +a*able 1,180
N"*$5:
1& Ser%ice tax is chargeable on the %al$e of ser%ice& Th$s, ser%ice tax is not pa*able in case of free
ser%ices as there is no consideration in s$ch case&
2& "d%ances recei%ed in Bctober, 2012 shall be taxable in the month of receipt of ad%ance onl*&
6Explanation to r$le 3 of the +oint of Taxation <$les, 20118&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 24
3& Ser%ices relating to renting of agro machiner* for agric$lt$ral p$rpose is incl$ded in the negati%e list
of ser%ice& >ence, it is not taxable&
4& +oint of taxation in respect of the ser%ices rendered in G$l*, 2012 is G$l* 29, 2012& >ence, receipts of
` 10,000 is not chargeable to ser%ice tax in Bctober, 2012 6<$le 3'a) of the +oint of Taxation <$les,
20118&
R:$5*)"+ 13
"hmed . Co& of Srinagar rendered taxable ser%ices both ithin and o$tside the State of Gamm$ . Mashmir&
,t recei%ed ` 21,12,000 for the ser%ices rendered inside the State of Gamm$ . Mashmir and ` 18,00,000 for
the ser%ices rendered o$tside the State of Gamm$ . Mashmir&
Comp$te its taxable ser%ice %al$e and ser%ice tax liabilit*&
,n case, "hmed . Co& as sit$ated in 0$mbai, hat o$ld be %al$e of its taxable ser%ice and ser%ice tax
liabilit*Q
A+5>$'
E;)?)&);)*= *" 5$'#)6$ *49 8"' 5$'#)6$5 '$+($'$( )+ D4%%: A E45<%)' 4+( "*<$' 7;46$5:-
The ser%ices rendered inside the State of Gamm$ and Mashmir are not liable to ser%ice tax and hence,
`21,12,000 is not chargeable to ser%ice tax&
The ser%ices rendered o$tside the State of Gamm$ and Mashmir are liable to ser%ice tax and ser%ice tax
sho$ld be paid b* the ser%ice recipient $nder re%erse charge&
/al$e of taxable ser%ice X `18,00,000
The ser%ice tax liabilit* o$ld be `18,00,000 x
100
31 & 12
X ` 2,22,480
,n case "hmed . Co& as in 0$mbai, the ser%ices rendered in the State of Gamm$ and Mashmir o$ld not
be liable to ser%ice tax le%* and the ser%ices rendered at an* place other than Gamm$ and Mashmir o$ld be
liable to ser%ice tax&
>ence, receipts of ` 18,00,000 is liable to ser%ice tax&
/al$e of taxable ser%ice X `18,00,000 x
31 & 112
100
X ` 11,01,994
The ser%ice tax liabilit* o$ld be `18,00,000 x
31 & 112
31 & 12
X ` 1,98,001
:ote- ,t has been ass$med that "hmed . Co& is non SS+&
R:$5*)"+ 14
State ith reasons hether the folloing are liable for ser%ice tax -
'i) Ser%ices rendered b* a s$b2contractor&
'ii) Ser%ices rendered to associated enterprise&
A+5>$'
'i) Ser%ices rendered b* s$b2contractor are liable to ser%ice tax& " s$b2contractor is essentiall* a taxable
ser%ice pro%ider& The fact that ser%ices pro%ided b* s$ch s$bcontractors are $sed b* the main ser%ice
pro%ider for completion of his orC does not in an* a* alter the fact of pro%ision of taxable ser%ice
b* the s$b2contractor&
V4;:4*)"+ "8 T494&;$ S$'#)6$ 20
'ii) Ser%ices rendered to associated enterprise are liable to ser%ice tax& :o special treatment from
exigibilit* to ser%ice tax or exemption has been pro%ided for ser%ices rendered to an associated
enterprise&
R:$5*)"+ 10
Chandra Himited started pro%iding taxable ser%ices& The ser%ices became taxable from 01&10&2012&
Chandra Himited for the month of 0arch, 2013, recei%ed folloing receipts 'incl$si%e of ser%ice tax)
S- N"- P4'*)6:;4'5 A%":+* ($)
1& "mo$nt recei%ed in respect of ser%ices rendered in G$l* and "$g$st, 2012& 10,30,000
2& Ser%ices rendered to its a$ditors against a$dit fee +a*able& 3,13,000
3& "d%ance recei%ed for ser%ices to be rendered in 0a*, 2013& 1,18,000
4& 0arCet /al$e of Ser%ices pro%ided to office staff and their relati%es free of cost 20,000
B$t of ad%ance recei%ed, 30D as ret$rned on 1320422013 to the part*, as the* ha%e closed their operations
from 3120322013&
Comp$te the taxable ser%ices and ser%ice tax pa*able for 0arch, 2013 b* Chandra Himited&
A+5>$'
C"%7:*4*)"+ "8 4%":+* "8 5$'#)6$ *49 6";;$6*$( &= C<4+('4 L)%)*$(:-
%articu"ars Aount
(`)
"mo$nt recei%ed in respect of ser%ices rendered in G$l* and "$g$st 2012'"mo$nt <ecei%ed
after the ser%ice become taxable is taxable as per r$le 3 of +BT <$les,2011)
10,30,000
Ser%ices pro%ided to its a$ditors against a$dit fee pa*able 3,13,000
"d%ance recei%ed for ser%ices to be rendered in 0a* 2013 'ad%ance receipt is chargeable to
ser%ice tax& ,t is immaterial that operation has been closed from 31#03#2013 and ad%ance
as ret$rned on 13#04#2013& "s regards this month, it is chargeable to tax&)
1,18,000
Ser%ices pro%ided to office staff and their relati%es free of cost 'ser%ice rendered itho$t
an* consideration are not liable to ser%ice tax)
:,H
(ross "mo$nt 21,13,000
Hess- Exemption a%ailable to small ser%ice pro%iders 'since, ser%ice became taxable in
2012213 itself, the aggregate %al$e of taxable ser%ices in 2011212 o$ld be =ero& >ence,
Chandra Himited is eligible for small ser%ice pro%idersP exemption in the c$rrent financial
*ear
10,00,000
/al$e of taxable ser%ices 'incl$si%e of ser%ice tax) 11,13,000
/al$e of taxable ser%ices 'excl$ding ser%ice tax) X `11,13,000 T100#112&31 10,33,011
Ser%ice tax X `11,13,000 T 12&31#112&31 1,2;,934
N"*$5:-
1& ,t has been ass$med that Chandra Himited and it has not collected ser%ice tax on the t$rno%er $p to
`10 laCh and has started collecting the same thereafter&
2& "mo$nt <ecei%ed after the ser%ice become taxable is taxable as per r$le 3 of +BT <$les,2011&
R:$5*)"+ 1/
V4;:4*)"+ "8 T494&;$ S$'#)6$ 2/
4riefl* explain the IExemption a%ailable to small scale ser%ice pro%idersJ in reference to ser%ice tax-
A+5>$'
Central (o%ernment has exempted the taxable ser%ices of aggregate %al$e not exceeding ` 10 laCh in an*
financial *ear from the hole of the ser%ice tax le%iable thereon $nder section 114 of the !inance "ct, 1994
in case the aggregate %al$e of taxable ser%ices rendered b* the ser%ice pro%ider from one or more premises,
does not exceed `10 laCh in the preceding financial *ear&
R:$5*)"+ 11
"4C . Co& recei%ed the folloing amo$nts d$ring the half *ear ended 31&03&2013-
P4'*)6:;4'5 A%":+*(`)
'i) !or ser%ices performed prior to the date of le%* of ser%ice tax 3,30,000
'ii) "d%ance amo$nt recei%ed in 0arch, 2013 ':o ser%ice as rendered and the amo$nt as
ref$nded to the client in G$l* 2013)
;3,000
'iii) !or free ser%ices rendered to c$stomers, amo$nt reimb$rsed b* the man$fact$rer of s$ch
prod$ct& 'for the period after the imposition of ser%ice tax)
30,000
'i%) "mo$nts reali=ed and on hich ser%ice tax is pa*able 'excl$ding the items 'i) to 'ii)
abo%e)
14,21,300
Calc$late the Ser%ice Tax Hiabilit* d$l* considering the threshold limit&
A+5>$'
C"%7:*4*)"+ "8 S$'#)6$ T49 L)4&);)*= "8 ABC A C"-:-
P4'*)6:;4'5 A%":+*(`)
"mo$nt recei%ed for the ser%ices rendered prior to le%* of ser%ice tax is taxable as the amo$nt
recei%ed after the ser%ice become taxable '<$le 3 of +BT <$les, 2011&)
3,30,000
"d%ance recei%ed is liable to ser%ice tax& Bn ref$nd of amo$nt recei%ed for the ser%icesK
ser%ice tax so paid o$ld be adA$sted against ser%ice tax liabilit* of the s$bse7$ent period&
;3,000
"mo$nt recei%ed from man$fact$rer for free ser%ices rendered to c$stomers is liable for
ser%ice tax
30,000
"mo$nt reali=ed for ser%ices rendered after imposition of ser%ice tax&
14,21,300
Total 19,01,300
Hess- Threshold limit 10,00,000
/al$e of taxable ser%ice 9,01,300
Ser%ice Tax Hiabilit* X '`9,01,300 x 12&31)#112&31 99,118
R:$5*)"+12
4riefl* pro%ide the manner of determination of the %al$e of taxable ser%ice relating to p$rchase or sale of
foreign c$rrenc*, incl$ding mone* changing&
A+5>$'
<$le 24 of Ser%ice Tax ' 9etermination of /al$e ) <$les, 2001 pro%ides the manner of determination of the
%al$e of taxable ser%ice pro%ided so far as the ser%ices so pro%ided pertains to p$rchase or sale of foreign
c$rrenc*, incl$ding mone* changing& The %al$e of ser%ice shall be determined as follos-2
(4) F"' 4 6:''$+6=. ><$+ $96<4+?$( 8'"%. "' *". I+()4+ R:7$$5 (INR)
!or a c$rrenc*, hen exchanged from, or to, ,ndian <$pees ',:<), the %al$e shall be e7$al to the
difference in the b$*ing rate or the selling rate, as the case ma* be, and the <eser%e 4anC of ,ndia
'<4,) reference rate for that c$rrenc* at that time, m$ltiplied b* the total $nits of c$rrenc*&
(&) <$'$ *<$ RBI '$8$'$+6$ '4*$ 8"' 4 6:''$+6= )5 +"* 4#4);4&;$
V4;:4*)"+ "8 T494&;$ S$'#)6$ 21
?here the <4, reference rate for a c$rrenc* is not a%ailable, the %al$e shall be 1D of the gross
amo$nt of ,ndian <$pees pro%ided or recei%ed, b* the person changing the mone*&
(6) <$'$ +$)*<$' "8 *<$ 6:''$+6)$5 $96<4+?$( )5 I+()4+ R:7$$
?here neither of the c$rrencies exchanged is ,ndian <$pee, the %al$e shall be e7$al to 1D of the
lesser of the to amo$nts the person changing the mone* o$ld ha%e recei%ed b* con%erting an* of
the to c$rrencies into ,ndian <$pee on that da* at the reference rate pro%ided b* <4,&
EXERCISES
1& ?hich section go%erns the %al$ation of taxable ser%icesQ
'a) section 13 of the !inance "ct, 1994
'b) section 1; of the Ser%ice Tax "ct, 1994
'c) section 1; of the !inance "ct, 1994
'd) none of the abo%e
2& 0one* for the p$rpose of %al$ation of taxable ser%ice incl$des-
'a) promissor* note
'b) che7$e
'c) postal remittance
'd) all of the abo%e
3& (ross amo$nt charged for the taxable ser%ice incl$des-
'a) onl* the amo$nt recei%ed before the pro%ision of taxable ser%ice
'b) an* amo$nt recei%ed before, d$ring or after the pro%ision of taxable ser%ice
'c) onl* the amo$nt recei%ed d$ring the pro%ision of taxable ser%ice
'd) onl* the amo$nt recei%ed after the pro%ision of taxable ser%ice
4& >o ill a taxable ser%ice be %al$ed hen the consideration thereof is not in holl* or partl* in
terms of mone*Q
3& >o ill a taxable ser%ice be %al$ed hen the gross amo$nt charged for it incl$des ser%ice tax
pa*ableQ
A+5>$'5
1- 'c)K 2& 'd)K 3- 'b)
P4=%$+* "8 S$'#)6$ T49 22
PAYMENT OF SERVICE TAX
PAYMENT OF SERVICE TAX
L$4'+)+? "&J$6*)#$5
"fter reading this $nit, *o$ ill be able to-
Y identif* persons liable to pa* ser%ice tax&
Y get an insight of the basic principles $nderl*ing the proced$res relating to pa*ment of ser%ice tax&
Y Cno the time period for pa*ing ser%ice tax&
Y comprehend the manner of pa*ment of ser%ice tax&
1-1 P$'5"+ ;)4&;$ *" 74= 5$'#)6$ *49 !S$6*)"+ /2(1),
(enerall*, the ser%ice pro%ider rendering taxable ser%ices is liable to pa* ser%ice tax to the Central
(o%ernment at reg$lar inter%als of time& >oe%er, in certain cases, (o%ernment finds it con%enient to
collect ser%ice tax from the ser%ice recei%er& ,t is termed as re%erse charge mechanism& The said mechanism
has been disc$ssed in detail in +aper 8- ,ndirect Tax Has at !inal le%el&
Section 18 of the !inance "ct, 1994 is the principal section hich fixes responsibilit* to pa* ser%ice tax& The
poers to decide time and manner of pa*ment of ser%ice tax ha%e been granted to the Central (o%ernment
%ide r$le 1 of the Ser%ice Tax <$les, 1994&
E%er* person pro%iding taxable ser%ice to an* person shall pa* ser%ice tax at the '4*$ 57$6)8)$( )+ 5$6*)"+
//B '12&31D) in the prescribed manner and ithin the prescribed period&
!S$6*)"+ /2(1),&
The period and the manner ha%e been prescribed in ':;$ / "8 *<$ S$'#)6$ T49 R:;$5. 1334&
1-2 S:&-6"+*'46*"'5 ;)4&;$ *" 5$'#)6$ *49
" taxable ser%ice pro%ider o$tso$rces a part of the orC b* engaging another ser%ice pro%ider, generall*
Cnon as s$b2contractor& Ser%ice tax is paid b* the ser%ice pro%ider for the total orC& " 7$estion arises as
to hether ser%ice tax is liable to be paid b* the ser%ice pro%ider&
" s$b2contractor is essentiall* a taxable ser%ice pro%ider& The fact that ser%ices pro%ided b* s$ch s$b2
contractors are $sed b* the main ser%ice pro%ider for completion of his orC does not in an* a* alter the
fact of pro%ision of taxable ser%ice b* the s$b2contractor&
The s$b contractorPs ser%ice tax charge can be a%ailed as a credit b* the main contractor hose b$rden of
pa*ing the tax o$ld red$ce to that extent& This is the essence of %al$e added tax '/"T) of hich ser%ice tax
is part& The fact that the s$b contractor in ,ndia is generall* not literate and ma* not be able to $nderstand or
compl* ith these re7$irements is onl* mitigated $pto \ 10 laChs of small ser%ice pro%ider exemption&
The ad%antage of the s$b contractor being in the CE:/"T chain is that the credit of inp$ts, capital goods or
inp$t ser%ices $tili=ed b* him for pro%iding the ser%ices can be passed onto the main contractor hereb* the
transaction o$ld become tax efficient&
Ser%ices pro%ided b* s$b2contractors are in the nat$re of inp$t ser%ices& Ser%ice tax is, therefore, le%iable on
an* taxable ser%ices pro%ided, hether or not the ser%ices are pro%ided b* a person in his capacit* as a s$b2
contractor and hether or not s$ch ser%ices are $sed as inp$t ser%ices& The fact that a gi%en taxable ser%ice
is intended for $se as an inp$t ser%ice b* another ser%ice pro%ider does not alter the taxabilit* of the ser%ice
pro%ided&
1-3 P4=%$+* "8 5$'#)6$ *49 !R:;$ / "8 *<$ S$'#)6$ T49 R:;$5. 1334,
P4=%$+* "8 S$'#)6$ T49 23
(4) P4=%$+* &"*< "+ '$6$)7* 4+( 466':4; &45)5
"s per r$le 1'1) of the Ser%ice Tax <$les, 1994, ser%ice tax is pa*able on ser%ice deemed to be pro%ided as
per +oint of Taxation <$les, 2011& "s per the +oint of Taxation <$les, 2011-2
,n case the in%oice is iss$ed ithin the prescribed period of 30 da%s from the date of completion of pro%ision
of ser%ice, ser%ice tax is pa*able on-2
'a) date of in%oice
or
'b) date of pa*ment
hiche%er is earlier&
>oe%er, in case the in%oice is not iss$ed ithin 30 da%s of the completion of the pro%ision of the ser%ice,
ser%ice tax is pa*able on-2
'a) date of completion of ser%ice
or
'b) date of pa*ment
hiche%er is earlier&
*urther( in case o& individuals and 'artnershi' &ir#s whose a$$re$ate value o& ta!able services 'rovided
&ro# one or #ore 're#ises is ` +0 la,h or less in the 'revious &inancial %ear( service ta! on ta!able
services 'rovided or to be 'rovided b% hi# u' to a total o& ` +0 la,h in the current &inancial %ear is
'a%able on recei't basis. "lso in case of ad%ance, ser%ice tax is pa*able on receipt basis, i&e& hen the
consideration for the ser%ices are recei%ed& >ence, ser%ice tax is pa*able on both receipt and accr$al basis&
(&) S$'#)6$ *49 +"* 74=4&;$ "+ 8'$$ 5$'#)6$5
Section 1;'1)'iii) and Ser%ice Tax '9etermination of /al$e) <$les, 2001 maCe pro%isions for %al$ation e%en
hen consideration is not ascertainable& >oe%er, these pro%isions appl* onl* hen there is consideration&
,f there is no consideration i&e&, in case of free ser%ice, section 1; and Ser%ice Tax '9etermination of /al$e)
<$les, 2001 cannot appl*&
Th$s, no ser%ice tax is pa*able hen %al$e of ser%ice is =ero& ,n other ords, if the %al$e is =ero, the tax ill
also be =ero e%en tho$gh the ser%ice ma* be taxable& >oe%er, this principle applies onl* hen there is
reall* a Ofree ser%iceP and not hen its cost is reco%ered thro$gh other means&
(6) S$'#)6$ *49 ;)4&;$ *" &$ 74)( $#$+ )8 +"* 6";;$6*$( 8'"% *<$ 6;)$+*
Section 18 casts the liabilit* to pa* ser%ice tax $pon the ser%ice pro%ider& This liabilit* is not contingent
$pon the ser%ice pro%ider reali=ing or charging the ser%ice tax at the pre%ailing rate& The stat$tor* liabilit*
does not get exting$ished if the ser%ice pro%ider fails to reali=e or charge the ser%ice tax from the ser%ice
recei%er&
>oe%er, sometimes it ma* happen that the assessee is not able to charge ser%ice tax beca$se of the nat$re
of ser%ice or he fails to reco%er the ser%ice tax from the client#c$stomer as he is not aare that his ser%ices
are taxable& >ence, in these cases the amo$nt reco%ered from the client in lie$ of ha%ing rendered the ser%ice
ill be taCen to be incl$si%e of ser%ice tax and accordingl* tax pa*able ill be calc$lated b* maCing bacC
calc$lations&
!or example, if bill amo$nt is ` 3,000 and ser%ice tax is not shon separatel* in in%oice, then ser%ice tax
pa*able shall be comp$ted as follos-
3000#112&31 x 12&31 X ` 330
,t ma* be noted that ser%ice tax pa*able is not ` 118 comp$ted b* appl*ing 12&31D to ` 3000&
P4=%$+* "8 S$'#)6$ T49 30
The %al$e of the taxable ser%ice in this case is ` 4430&
The example gi%en abo%e can be sol%ed b* $sing the folloing form$lae-
/al$e of taxable ser%ice X 6(ross amo$nt charged#'100 ] rate of tax)8 x 100
Ser%ice tax X 6(ross amo$nt charged#'100 ] rate of tax)8 x rate of tax
(() S$'#)6$ *49 74=4&;$ "+ 4(#4+6$ '$6$)#$(
"s per explanation to r$le 3 of the +oint of Taxation <$les, 2011, ser%ice tax is pa*able on an* ad%ance b*
hate%er name Cnon, recei%ed b* the ser%ice pro%ider toards the pro%ision of ser%ice&
!or example, a sec$rit* agenc* taCes a contract to pro%ide sec$rit* ser%ices to a client for the month of
Bctober for a consideration of `30,000& ,t recei%es an ad%ance of `23,000 from the client in the month of
September& ,n this case ser%ice tax shall be pa*able b* the sec$rit* agenc* on the amo$nt of `23,000
recei%ed as an ad%ance e%en tho$gh the ser%ice has not been pro%ided at that time&
($) A(#4+6$ 74=%$+* "8 5$'#)6$ *49 : The assessee has been pro%ided a facilit* to maCe ad%ance pa*ment
of ser%ice tax on his on and adA$st the amo$nt so paid against the ser%ice tax hich he is liable to pa* for
the s$bse7$ent period& S$ch facilit* shall be a%ailable hen the assessee-
'i) intimates the details of the amo$nt of ser%ice tax paid in ad%ance, to the G$risdictional
S$perintendent of Central Excise ithin a period of 13 da*s from the date of s$ch pa*ment, and 'ii)
indicates the details of the ad%ance pa*ment made, and its adA$stment, if an* in the s$bse7$ent ret$rn
to be filed $nder section ;0 !S:&-':;$ (1A) "8 ':;$ /,&
(8) S$;8 4(J:5*%$+* "8 5$'#)6$ *49 ><$'$ 5$'#)6$5 4'$ 74'*;= "' ><";;= +"* '$+($'$(
?here an assessee has iss$ed an in%oice, or recei%ed an* pa*ment, against a ser%ice to be pro%ided hich is
not so pro%ided b* him either holl* or partiall* for an* reason or here the amo$nt of in%oice is
renegotiated d$e to deficient pro%ision of ser%ice, or an* terms contained in a contract, the assessee ma*
taCe the credit of s$ch excess ser%ice tax paid b* him, if the assessee-
'a) has ref$nded the pa*ment or part thereof, so recei%ed for the ser%ice pro%ided to the person from
hom it as recei%edK or
'b) has iss$ed a credit note for the %al$e of the ser%ice not so pro%ided to the person to hom s$ch an
in%oice had been iss$ed !S:&-':;$ (3) "8 ':;$ /,&
N"*$: <$le 1'3) does not allo adA$stment of excess pa*ment of ser%ice tax per se, sa* d$e to clerical
mistaCe etc& ,n s$ch cases the assessee has to follo the proced$re laid don in section 114 of Central
Excise "ct to claim the ref$nd of excess tax paid&
(?) S$'#)6$ *49 6";;$6*$( 8'"% *<$ '$6)7)$+* "8 5$'#)6$ %:5* &$ 74)( *" *<$ C$+*'4; G"#$'+%$+* !S$6*)"+
13A,
Section ;3" co%ers the amo$nts collected b* an* person in the g$ise of ser%ice tax& "t times tax pa*ers ho
are $ns$re of tax liabilit* collect the ser%ice tax, b$t do not remit the amo$nt so collected& ,n s$ch a case,
the* o$ld be charged ith both interest and penalt*& Therefore, e%en if one is not s$re hether tax is
pa*able or not, the same sho$ld be remitted to the re%en$e a$thorities&
()) S$'#)6$ *49 6";;$6*$( *" &$ ($7"5)*$( >)*< *<$ C$+*'4; G"#$'+%$+*
Ser%ice tax collected has to be paid to the credit of the Central (o%ernment in the folloing casesN
'a) +erson liable to pa* ser%ice tax has collected ser%ice tax in excess assessed or determined
and paid on an* taxable ser%ice
P4=%$+* "8 S$'#)6$ T49 31
'b) "n* person has collected the ser%ice tax hich is not re7$ired to be collected !S:&5$6*)"+
(1) 4+( (2),-
())) N"*)6$ *" &$ 5$'#$( )+ 645$ *<$ 5$'#)6$ *49 +"* 5" ($7"5)*$( >)*< *<$ C$+*'4; G"#$'+%$+*
,f an* person, ho is liable to pa* an* of the abo%ementioned amo$nts, does not pa* s$ch amo$nt to
the credit of the Central (o%ernment, a notice shall be ser%ed on him b* the Central Excise Bfficer&
The notice ill re7$ire s$ch person to sho ca$se h* the said amo$nt, as specified in the notice,
sho$ld not be paid b* him to the credit of the Central (o%ernment !S:&-5$6*)"+ (3),&
S$ch person ma* maCe a representation to the Central Excise Bfficer after recei%ing the notice& The
Central Excise Bfficer shall consider the said representation and then determine the amo$nt d$e from
s$ch person& S$ch amo$nt ill hoe%er, not exceed the amo$nt specified in the notice& There$pon,
s$ch person shall pa* the amo$nt so determined !S:&-5$6*)"+ (4),&
()))) A(J:5*%$+* "8 4%":+* 74)( *" *<$ 6'$()* "8 *<$ C$+*'4; G"#$'+%$+* 4?4)+5* *<$ 5$'#)6$ *49
74=4&;$ !S:&-5$6*)"+ (0) A (/),
S$ch amo$nts paid shall be adA$sted against the ser%ice tax pa*able b* the person on finali=ation of
assessment or an* other proceeding for determination of ser%ice tax relating to the taxable ser%ice
referred to in s$b2section '1)&
S:'7;:5 4%":+* : ?here an* s$rpl$s amo$nt is left after the adA$stment, s$ch amo$nt shall be-2
'i) credited to the Cons$mer ?elfare !$nd, or
'ii) ref$nded to the person ho has borne the incidence of s$ch amo$nt 'in accordance ith
the pro%isions of section 114 of the Central Excise "ct, 1944)&
T)%$-;)%)* 8"' 8);)+? '$8:+( 6;4)% : S$ch person ma* maCe an application ithin six months from
the date of the p$blic notice to be iss$ed b* the Central Excise Bfficer for the ref$nd of s$ch s$rpl$s
amo$nt&
(<) I+*$'$5* "+ 4%":+* 6";;$6*$( )+ $96$55 !S$6*)"+ 13B,
()) C45$5 ><$'$ )+*$'$5* )5 *" &$ ;$#)$(: ?here an amo$nt has been collected in excess of the tax
assessed#determined and paid for an* taxable ser%ice $nder this Chapter#r$les made there$nder from
the recipient of s$ch ser%ice&
())) <" )5 ;)4&;$ *" 74= )+*$'$5* 4+( "+ ><4* 4%":+*H: S$ch person ho is liable to pa* s$ch
amo$nt as determined $nder s$b2section '4) of section ;3" abo%e, shall, in addition to the amo$nt,
be liable to pa* interest&
()))) R4*$ "8 )+*$'$5* : The interest co$ld be ranging beteen 10D to 24D p&a& "t present, the rate of
interest S 18D p&a& has been notified %ide Notification No. 1"/2011 dated 01.03.2011&
()#) P$')"( 8"' ><)6< )+*$'$5* >":;( &$ 6<4'?$( : The interest shall be pa*able from the first da*
of the month s$cceeding the month in hich the amo$nt o$ght to ha%e been paid till the date of
pa*ment of s$ch amo$nt&
(#) N" )+*$'$5* 74=4&;$ 5:&J$6* *" 6$'*4)+ 6"+()*)"+5: :o interest shall be pa*able here the
amo$nt becomes pa*able conse7$ent to iss$e of an order, instr$ction or direction b* the 4oard $nder
section 3;4 of Central Excise "ct, 1944, s$bAect to f$lfillment of the folloing conditions-
'i) the f$ll amo$nt is paid %ol$ntaril* ithin 43 da*s from the date of iss$e of s$ch order,
instr$ction or directionK and
'ii) no right to appeal against s$ch pa*ment at an* s$bse7$ent stage is reser%ed&
P4=%$+* "8 S$'#)6$ T49 32
,n other cases, the interest shall be pa*able on the hole amo$nt, incl$ding the amo$nt alread* paid&
(#)) C<4+?$ )+ 4%":+* "8 )+*$'$5*: ?here the amo$nt determined b* the Central Excise Bfficer
$nder section ;3" is red$ced or increased b* the Commissioner '"ppeals), the "ppellate Trib$nal, or
the Co$rt, the interest pa*able thereon $nder this section shall be on s$ch red$ced or increased
amo$nt&
(#))) C"+6$55)"+ "8 3S 8"' 57$6)8)$( 455$55$5: ,n the case of a ser%ice pro%ider, hose %al$e of
taxable ser%ice pro%ided in a financial *ear does not exceed `10 laCh d$ring an* of the financial
*ears of the notice iss$ed $nder section ;3"'3) or d$ring the preceding financial *ear, as the case
ma* be, s$ch rate of interest shall be red$ced b* 3D per ann$m&
>ence, a concessional rate of interest of 13D per ann$m is a%ailable to the tax pa*ers hose t$rno%er
d$ring an* of the *ears co%ered in the notice iss$ed $nder section ;3"'3) or the preceding financial
*ear is $pto ` 10 laCh&
()) D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$ *49
+ro%isions of r$le 1'1) inter alia pro%ides as follos-
D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$ *49 "+ *<$ 5$'#)6$ ><)6< )5 ($$%$( *" &$ 7'"#)($( (45 7$' *<$ P")+* "8
T494*)"+ R:;$5. 2011) &= 4+ )+()#)(:4; "' 4 7'"7')$*4'= 8)'% "' 4 74'*+$'5<)7 8)'%:-
S- N"- P4'*)6:;4'5 D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$
*49
1& ,f the ser%ice tax is paid electronicall* thro$gh internet
banCing
1th da* of the folloing
R:4'*$'
2& ,n an* other case 3th da* of the folloing
R:4'*$'
3& ,n the case ser%ice is deemed to be pro%ided in the 7$arter
ending in 0arch
31st da* of 0arch
D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$ *49 "+ *<$ 5$'#)6$ ><)6< )5 ($$%$( *" &$ 7'"#)($( (45 7$' *<$ P")+* "8
T494*)"+ R:;$5. 2011) )+ 4+= "*<$' 645$5 (6"%74+= 4+( IUF):-
S- N"- P4'*)6:;4'5 D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$
*49
1& ,f the ser%ice tax is paid electronicall* thro$gh internet
banCing
1th da* of the folloing %"+*<
2& ,n an* other case 3th da* of the folloing %"+*<
3& ,n the case ser%ice is deemed to be pro%ided in the month of
0arch
31st da* of 0arch
N"*$: ,f the last da* of pa*ment of ser%ice tax is a p$blic holida*, tax can be paid on next orCing da*&
[C-.C Circular No. /3/12/2003 - S.T. dated 10.10.2003]
I+()#)(:4;5/74'*+$'5<)7 8)'%5 >)*< 4??'$?4*$ #4;:$ "8 *494&;$ 5$'#)6$5 "8 $ 00 ;4@< "' ;$55 )+ 7'$#)":5
8)+4+6)4; =$4' 4;;">$( *" 74= 5$'#)6$ *49 "+ 74=%$+* &45)5 )+ 6:''$+* 8)+4+6)4; =$4' :7*" 4 *"*4; "8 $ 00
;4@< !T<)'( 7'"#)5" *" 5:&-':;$ (1),
,n case of indi%id$als and partnership firms hose aggregate %al$e of taxable ser%ices pro%ided from one or
more premises is ` 30 laCh or less in the pre%io$s financial *ear, the d$e dates for pa*ment of ser%ice tax on
taxable ser%ices pro%ided or agreed to be pro%ided b* him $p to a total of ` 30 laCh in the c$rrent financial
*ear, at the option of ser%ice pro%ider, is as follos-2
S- N"- P4'*)6:;4'5 D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$ *49
P4=%$+* "8 S$'#)6$ T49 33
1& ,f the ser%ice tax is paid electronicall* thro$gh
internet banCing
1
th
da* of the folloing 7$arter in hich the
pa*ment is recei%ed
2& ,n an* other case 3
th
da* of the folloing 7$arter in hich the
pa*ment is recei%ed
3& ,n the case pa*ment is recei%ed in the 7$arter
ending in 0arch
31
st
da* of 0arch
Note1 2artnershi' &ir# includes li#ited liabilit% 'artnershi' [3ule 2cd" o& the Service Ta! 3ules( 1990].
(J) M4++$' "8 74=%$+*
A- C"+#$+*)"+4; %"($ "8 74=%$+*: ,n case, the assessee is not re7$ired to maCe the e2pa*ment of the
ser%ice tax and he pa*s ser%ice tax b* ("<2; challan, folloing proced$re o$ld be folloed-
()) B4+@ *" <4#$ EASIEST 846);)*=
Ser%ice tax is pa*able in a$thori=ed banC b* a* of ("<2; challan here 4anC is ha%ing OE"S,ESTP
facilit* 'Earlier, it as a T<21 challans)&
())) S)+?;$ 6"7= 6<4;;4+
("<2; challan is a single cop* challan ith tax pa*erPs co$nterfoil at the bottom of challan& 4oth challan
and co$nterfoil are to be filled in b* assessee& The challan sho$ld be on hite paper ith blacC printing&
()))) C<4;;4+ *" &$ 5$')4;;= +:%&$'$(
The challans sho$ld be seriall* n$mbered from 1st "pril onards&
()))) D$*4);5 '$O:)'$( )+ GAR-1 6<4;;4+
9etails to be filled in ("<2; challan are as follos2
'a) !$ll name of assessee
'b) Complete "ddress
'c) Telephone n$mber
'd) +,: code
'e) "ssesseePs STC Code '13 digit)
'f) Commissionerate name
'g) Commissionerate Code
'h) 9i%ision Code
'i) <ange Code
'A) "cco$nting Code of ser%ice tax#cess
'C) "mo$nt tendered in \ '1 col$mns)
'l) Total
'm) Total <$pees in ords
'n) Cash#Che7$e#9raft#+a* order :o& and date
'o) 4anC on hich Che7$e#9raft#+a* order :o& is dran&
()#) R$;$#4+* ($*4);5 *" &$ '$7$4*$( "+ 6":+*$'8");
<ele%ant among these details liCe assessee code, amo$nt tendered in `, acco$nting code of ser%ice tax#cess
etc& are repeated in the Tax pa*erPs co$nter2foil& 9etails filled in the challan and Taxpa*erPs co$nter2foil
sho$ld be identical&
(#) R$6$)7* "8 74=%$+*
The co$nterfoil d$l* receipted b* 4anC ith stamp of 4anC ill be gi%en b* recei%ing 4anC to assessee&
The stamp of recei%ing banC ill contain Challan ,dentification :$mber 'C,:)& This C,: ill ha%e to be
7$oted in the ret$rn&
(#)) E#)($+6$ "8 74=%$+* "8 5$'#)6$ *49
P4=%$+* "8 S$'#)6$ T49 34
The Taxpa*ers acCnoledgement is the e%idence of pa*ment& The Challan ,dentification :$mber 'C,:)
appearing on this acCnoledgement ill ha%e to be 7$oted in the ret$rn&
The banCs ill be gi%ing the tax pa*er a comp$ter generated acCnoledgement#receipt ith the %ario$s
details incl$ding the C,:&
P4=%$+* )+ 645$ "8 %:;*)7;$ 5$'#)6$ 7'"#)($': " m$ltiple ser%ice pro%ider 'a ser%ice pro%ider rendering
more than one taxable ser%ice) can $se single ("<2; challan for pa*ment of ser%ice tax on different
ser%ices& >oe%er, amo$nts attrib$table to each s$ch ser%ice along ith concerned acco$nting codes sho$ld
be mentioned clearl* in the col$mn pro%ided for this p$rpose in the ("<2; challan& "lternati%el*, separate
("<2; challans ma* be $sed for pa*ment of ser%ice tax for each ser%ice pro%ided b* the ser%ice pro%ider&
B- E-74=%$+* "8 5$'#)6$ *49: ?here an assessee has paid a total ser%ice tax of ` 10 laCh or more incl$ding
the amo$nt paid b* $tilisation of CE:/"T credit, in the preceding financial *ear, he shall deposit the ser%ice
tax liable to be paid b* him electronicall*, thro$gh internet banCing&
E-74=%$+* )+ 645$ "8 4 7$'5"+ 7'"#)()+? *494&;$ 5$'#)6$ 8'"% %"'$ *<4+ "+$ 7'$%)5$
!or a person pro%iding taxable ser%ice from more than one premises, here each s$ch premises is separatel*
registered ith the 9epartment for pa*ment of ser%ice tax, the criterion of ` 10 laCh o$ld appl* to each
registered premises indi%id$all*, as each registered premises is separatel* an assessee in terms of la&
Similar is the sit$ation in the case of a person pa*ing ser%ice tax on taxable ser%ice recei%ed b* him&
>oe%er, in case of a Harge Taxpa*er 'HTE), the c$m$lati%e ser%ice tax paid b* all registered premises of
s$ch Harge Taxpa*er ill be taCen into acco$nt for satisfaction of criterion of pa*ment of ser%ice tax amo$nt
of `10 laCh&
P'"6$(:'$ 8"' $-74=%$+* "8 5$'#)6$ *49: E2pa*ment of ser%ice tax facilitates an*time, an*here pa*ment
of the ser%ice tax& 0oreo%er, after the pa*ment of ser%ice tax online, the receipt of the same is generated
instantl*& ,t pro%ides the con%enience of maCing on line pa*ment of Central excise and ser%ice tax thro$gh
banCPs ,nternet banCing ser%ice& E2pa*ment of the ser%ice tax can be made thro$gh "CES&
!or e2pa*ment, assessees sho$ld open a net banCing acco$nt ith one of the a$thori=ed banCs 'c$rrentl*
there are 28 banCs)& !or effecting pa*ment, assessees can access the "CES ebsite and clicC on the e2
pa*ment linC that ill taCe them to the E"S,EST portal or the* can directl* %isit the E"S,EST portal&
+roced$re for e2pa*ment of ser%ice tax can be s$mmari=ed as follos-2
'i) To pa* excise d$t* and ser%ice tax online, the assessee has to enter the 13 digit "ssessee Code allotted b*
the 9epartment $nder ersthile S"CE<#S"+S or the c$rrent application "CES& There ill be an online
checC on the %alidit* of the "ssessee Code entered&
'ii) ,f the "ssessee code is %alid, then corresponding assessee details liCe name, address, Commissionerate
Code etc& as present in the "ssessee Code 0aster ill be displa*ed&
'iii) 4ased on the "ssessee Code, the d$t* # tax i&e& Central Excise d$t* or Ser%ice Tax to be paid ill be
a$tomaticall* selected&
'i%) The assessee is re7$ired to select the t*pe of d$t* # tax to be paid b* clicCing on Select "cco$nting
Codes for Excise or Select "cco$nting Codes for Ser%ice Tax, depending on the t*pe of d$t* # tax to be paid&
'%) "t a time the assessee can select $p to six "cco$nting Codes&
'%i) The assessee sho$ld also select the banC thro$gh hich pa*ment is to be made&
P4=%$+* "8 S$'#)6$ T49 30
'%ii) Bn s$bmission of data entered, a confirmation screen ill be displa*ed& ,f the taxpa*er confirms the
data entered in the screen, it ill be directed to the net2banCing site of the banC selected&
'%iii) The taxpa*er ill login to the net2banCing site ith the $ser id# passord, pro%ided b* the banC for
net2banCing p$rpose, and ill enter pa*ment details at the banC site&
'ix) Bn s$ccessf$l pa*ment, a challan co$nterfoil ill be displa*ed containing C,:, pa*ment details and
banC name thro$gh hich e2pa*ment has been made& This co$nterfoil is proof of pa*ment made&
A:*"%4*)"+ "8 C$+*'4; E96)5$ 4+( S$'#)6$ T49 (ACES)
(4) <4* )5 ACESH
,n contin$ation of its efforts for trade facilitation, C4EC has rolled2o$t a ne centrali=ed, eb2based and
orCflo2based softare application called "$tomation of Central Excise and Ser%ice Tax '"CES) in all
104 Commissionerates of Central excise, ser%ice tax and large tax pa*er $nits 'HTEs) as on 23rd 9ecember,
2009& "CES is a 0ission 0ode proAect '00+) of the (o%t& of ,ndia $nder the national e2go%ernance plan
and it aims at impro%ing tax2pa*er ser%ices, transparenc*, acco$ntabilit* and efficienc* in the indirect tax
administration in ,ndia&
This application has replaced the c$rrent applications of SE<0B:, S"CE<, and S"+S $sed in Central
Excise and Ser%ice Tax for capt$ring ret$rns and registration details of the assessees&
(&) A:*"%4*)"+ "8 %4J"' 7'"6$55$5
"CES has a$tomated the maAor processes of Central excise and ser%ice tax2registration, ret$rns, acco$nting,
ref$nds, disp$te resol$tion, a$dit, pro%isional assessment, exports, claims, intimations and permissions&
(6) B$+$8)*5 *" *<$ 455$55$$
The "CES offers folloing benefits to the assessee-2
1& <ed$ce ph*sical interface ith the 9epartment
2& Sa%e time
3& <ed$ce paper orC
4& Bnline registration and amendment of registration details
3& Electronic filing of all doc$ments s$ch as applications for registration, ret$rns 6Bn2line and off2line
donloadable %ersions of E< 1,2,3,4,3,1, 9ealer <et$rn, and ST38, claims, permissions and intimationsK
pro%isional assessment re7$est, export2related doc$ments, ref$nd re7$est
1& S*stem2generated E2"cCnoledgement
;& Bnline tracCing of the stat$s of selected doc$ments
8& Bnline %ie facilit* to see selected doc$ments
9& ,nternal messaging s*stem on b$siness2related matters
(() R$?)5*'4*)"+ >)*< ACES
P4=%$+* "8 S$'#)6$ T49 3/
To transact b$siness on "CES a $ser has to first register himself#herself ith "CES thro$gh a process called
O<egistration ith "CESP& This registration is not a stat$tor* registration as en%isaged in "cts#<$les
go%erning Central Excise and Ser%ice Tax b$t helps the application in recogni=ing the bonafide $sers&
($) E-8);)+? "8 R$*:'+5
The assesses can electronicall* file stat$tor* ret$rns of Central Excise and Ser%ice Tax b* choosing one of
the to facilities being offered b* the 9epartment at present-2
'a) the* can file it online, or
'b) donload the off2line ret$rn $tilities hich can be filled2in off2line and $ploaded to the s*stem
thro$gh the internet&
(8) C$'*)8)$( F46);)*4*)"+ C$+*'$5 (CFC5)
C4EC has set $p "CES Certified !acilitation Centres 'C!Cs) ith the help of professional bodies liCe
,nstit$te of Chartered "cco$ntants of ,ndia ',C",), ,nstit$te of Cost and ?orCs "cco$ntants of ,ndia
',C?",) etc&
'i) These C!Cs can pro%ide a host of ser%ices to the assessees s$ch as digiti=ation of paper doc$ments
liCe ret$rns etc& and $ploading the same to "CES&
'ii) "ssessees re7$iring the ser%ices of the C!Cs ma* be re7$ired to pa* ser%ice fees to the C!Cs&

'iii) C4EC has appro%ed the maxim$m rates at hich C!Cs can charge their c$stomers for the ser%ices
rendered b* them&
'i%) !or this p$rpose, assessees are re7$ired to rite to the 9epartment a$thori=ing one of the C!Cs, from
the appro%ed list, to orC in "CES on their behalf& The* ha%e to f$rnish the name and other details
of the C!Cs, incl$ding the registration n$mber iss$ed b* the ,C",#,C?", etc&
'%) "t an* gi%en time, one assessee can a$thori=e one C!C, hile one C!C can pro%ide ser%ices to more
than one assessee thro$gho$t ,ndia&
'%i) ,n case the assessee ants to ithdra the a$thori=ation, it can do so b* intimating the 9epartment&
'%ii) >oe%er, an assessee ill be held liable for all actions of omission or commission of the C!C,
d$ring the period the* are a$thori=ed b* him#her to orC in "CES&
EASIEST (E;$6*'"+)6 A66":+*)+? S=5*$% )+ E96)5$ 4+( S$'#)6$ T49)
()) <4* )5 EASIEST 56<$%$H
EASIEST has been de%eloped to maCe pa*ment of tax eas*& The facilit* is a%ailable ith 28 banCs&
())) B$+$8)*5 "8 EASIEST *" *<$ *4974=$'
'a) Bnl* one cop* of the challan has to be filled instead of earlier fo$r copies&
'b) !acilit* of online %erification of the stat$s of tax pa*ment $sing C,:&
()))) C<4;;4+ I($+*)8)64*)"+ N:%&$' (CIN)
Challan ,dentification :$mber 'C,:) is a 20 digit $ni7$e identifier hich ill be gi%en on the Taxpa*erPs
comp$ter generated acCnoledgement #receipt& This n$mber is a combination of the 4S< code of the banC
branch 'first ; digits), the date of deposit 'next 8 digits) and Challan Serial :$mber 'last 3 digits)&
()#) S$'#)6$ T49 C"($ N:%&$'
P4=%$+* "8 S$'#)6$ T49 31
"ssessee code#registration n$mber#STC code are all one and the same& ,t is a 132character identification
n$mber allotted b* the s*stem to the assessee based on the +": n$mber or temporar* n$mber 'if +": is not
s$bmitted) hen the registration details are entered in the Central Ser%er& The 132character assessee code
ill be a%ailable in the registration certificate iss$ed to the assessee b* the "ssistant Commissioner#9ep$t*
Commissioner of the 9i%ision&
The first 10 digits of the STC code are 10 character +": iss$ed b* ,ncome tax a$thorities&
:ext to are OSTP& Hast three are n$meric code 001, 002, 003 etc& The concerned person has to appl* in a
prescribed form to obtain STC&
The main obAecti%e of allocating an alphan$merical n$mber b* the (o%ernment agencies is to identif* the
assessees#exporters#importers& ,t is also $sed to identif* in some cases the concerned office here the person
o$ld be assessed or registered& !$rther alphan$meric n$mber helps in processing of the information in
relation to the assessee on comp$ters&
^$oting of ser%ice tax code n$mber on all the related doc$ments has become comp$lsor*from 1&;&2002&
(@) P")+*5 *" &$ '$%$%&$'$( ><);$ 74=)+? 5$'#)6$ *49
The folloing important points sho$ld be Cept in mind hile pa*ing ser%ice tax-
Y Ser%ice tax is to be paid on the %al$e of taxable ser%ices hich is charged b* an assessee& "n* income tax
ded$cted at so$rce is incl$ded in the charged amo$nt&
Therefore, ser%ice tax is to be paid on the amo$nt of income tax ded$cted at so$rce also& !or example, if
in%oice is for ` 9,000 and pa*ment recei%ed is ` 8,300 after ded$cting a T9S of ` 300, ser%ice tax ill be
pa*able on ` 9,000&
Y +a*ment sho$ld be ro$nded off in m$ltiple of r$pees.
Y The date of presentation of che7$e to the banC shall be deemed to be date on hich ser%ice tax has been
paid s$bAect to the reali=ation of the che7$e&
(;) A(J:5*%$+* "8 $96$55 4%":+* 74)( *">4'(5 5$'#)6$ *49 ;)4&);)*= !S:&-':;$ (4A) A (4B) "8 ':;$ /,
?here an assessee has paid to the credit of Central (o%ernment an* amo$nt in excess of the amo$nt
re7$ired to be paid toards ser%ice tax liabilit* for a month or 7$arter, as the case ma* be, the assessee ma*
adA$st s$ch excess amo$nt paid b* him against his ser%ice tax liabilit* for the s$cceeding month or 7$arter,
as the case ma* be& 4owever( sel&-ad5ust#ent o& such e!cess a#ount 'aid shall be sub5ect to the condition
that the e!cess a#ount 'aid is on account o& reasons not involvin$ inter'retation o& law( ta!abilit%(
valuation or a''licabilit% o& an% e!e#'tion noti&ication.
(%) A(J:5*%$+* "8 $96$55 4%":+* 74)( 45 5$'#)6$ *49 )+ 645$ "8 '$+*)+? "8 )%%"#4&;$ 7'"7$'*= 5$'#)6$
!S:&-':;$ (4C) "8 ':;$ /,
,n case of renting of immo%able propert* ser%ice, a ded$ction of propert* taxes paid in respect of the
immo%able propert* is alloed from the gross amo$nt charged for renting of the said immo%able propert*
%ide Noti&ication No.29/2012 ST dated 20.0/.2012& >oe%er, here an* amo$nt in excess of the amo$nt
re7$ired to be paid toards ser%ice tax liabilit* has been paid on acco$nt of non2a%ailment of s$ch
ded$ction, s$ch excess amo$nt ma* be adA$sted against the ser%ice tax liabilit* ithin 1 *ear from the date
of pa*ment of s$ch propert* tax& The details of s$ch adA$stment shall be intimated to the S$perintendent of
Central Excise ha%ing A$risdiction o%er the ser%ice pro%ider ithin a period of 13 da*s from the date of s$ch
adA$stment&
P4=%$+* "8 S$'#)6$ T49 32
(+) R$6"#$'= "8 *<$ 4%":+* "8 5$'#)6$ *49 5<"'* 74)(/+"* 74)( :+($' 5$;8-455$55%$+* !S:&-':;$ (/A),
?here an amo$nt of ser%ice tax pa*able has been self2assessed $nder s$b2section '1) of section ;0 of the
"ct, b$t not paid, either in f$ll or part, the same, shall be reco%erable alongith interest in the manner
prescribed $nder section 8; of the "ct&
(") P'"#)5)"+4; 74=%$+* "8 5$'#)6$ *49 !S:&-':;$ (4). (0) 4+( (/) "8 ':;$ /,
,n case the assessee is $nable to correctl* estimate, at the time of the deposit, the act$al amo$nt of ser%ice
tax for an* month or 7$arter, he ma* maCe a ritten re7$est to "ssistant#9ep$t* Commissioner of Central
Excise for maCing pa*ment of ser%ice tax on pro%isional basis& P'"6$(:'$ 8"' 7'"#)5)"+4; 455$55%$+*
(4) R$O:$5* 8"' 7'"#)5)"+4; 455$55%$+*: The assessee shall maCe a re7$est in riting to the
"ssistant Commissioner#9ep$t* Commissioner of Central Excise, as the case ma* be, to maCe a
pro%isional pa*ment of tax on the basis of the amo$nt deposited&
(&) O'($' "8 7'"#)5)"+4; 455$55%$+* "8 5$'#)6$ *49 : The "ssistant Commissioner#9ep$t*
Commissioner as the case ma* be, ma*, on receipt of s$ch re7$est, order pro%isional assessment of
tax&
(6) M$%"'4+(:% )+ F"'% ST-3A *" &$ 5:&%)**$( 4;"+? >)*< F"'% ST-3: ,n case an assessee
re7$esting for pro%isional assessment, the assessee shall s$bmit a memorand$m in form ST23"K
gi%ing details of difference beteen the pro%isional amo$nt of ser%ice tax deposited and the act$al
amo$nt of ser%ice tax pa*able for each month along ith the half2*earl* ret$rn in form ST23&
(() F)+4;)N4*)"+ "8 7'"#)5)"+4; 455$55%$+* : ?here the assessee s$bmits a memorand$m in !orm
ST23" $nder s$b2r$le '3), it shall be laf$l of the "ssistant Commissioner#9ep$t* Commissioner of
Central Excise, as the case ma* be to complete the assessment, here%er he deems it necessar*, after
calling s$ch f$rther doc$ments or records as he ma* consider necessar* and proper in the
circ$mstances of the case&
(7) S7$6)4; 7'"#)5)"+ 8"' 74=%$+* "8 5$'#)6$ *49
A- I+ 645$ "8 4)' *'4#$; 4?$+* !S:&-':;$ (1),
+erson liable for pa*ing the ser%ice tax in relation to the ser%ices of booCing of ticCets for tra%el b* air
pro%ided b* an air tra%el agent, shall ha%e the option to pa* folloing amo$nts instead of pa*ing ser%ice tax
at the rate of 12D-2
I+ *<$ 645$ "8 O7*)"+ *" 74= 4+ 4%":+* 64;6:;4*$( 4* *<$ '4*$ "8
9omestic booCings of passage for tra%el b* air
d$ring an* calendar month or 7$arter, as the case
ma* be
0&1D of the basic fare
,nternational booCings of passage for tra%el b* air
d$ring an* calendar month or 7$arter, as the case
ma* be
1&2D of the basic fare
P")+*5 *" &$ +"*$(
1- The option once exercised, shall appl* $niforml* in respect of all the booCings of passage for tra%el b* air
made b* him and shall not be changed d$ring a financial *ear $nder an* circ$mstances&
2- M$4+)+? "8 &45)6 84'$
!or the p$rposes of this s$b2r$le, the expression U&45)6 84'$U means that part of the air fare on hich
commission is normall* paid to the air tra%el agent b* the airline&
P4=%$+* "8 S$'#)6$ T49 33
-. 6n case o& insurer carr%in$ on li&e insurance business [Sub-rule 78"] 1 8n insurer carr%in$ on li&e
insurance business shall have the o'tion to 'a% ta!1
i" on the $ross 're#iu# char$ed &ro# a 'olic% holder reduced b% the a#ount allocated &or invest#ent(
or savin$s on behal& o& 'olic% holder( i& such a#ount is inti#ated to the 'olic% holder at the ti#e o&
'rovidin$ o& service9
ii" :here a#ount o& the $ross 're#iu# allocated &or invest#ent or savin$s on behal& o& 'olic% holder is
not inti#ated to the 'olic% holder at the ti#e o& 'rovidin$ o& service1-
!irst *ear on 3D of the gross amo$nt of premi$m charged
S$bse7$ent *ear on 1&3D of the gross amo$nt of premi$m charged
toards the discharge of his ser%ice tax liabilit* instead of pa*ing ser%ice tax at the rate of 12D&
P")+* *" &$ +"*$(
S$ch option shall not be a%ailable in cases here the entire premi$m paid b* the polic* holder is onl*
toards risC co%er in life ins$rance&
L)8$ )+5:'4+6$ &:5)+$55: means the b$siness of effecting contracts of ins$rance $pon h$man life, incl$ding
an* contract hereb* the pa*ment of mone* is ass$red on death 'except death b* accident onl*) or the
happening of an* 6<$le 2'ccb)8&
C- I+ 645$ "8 54;$/7:'6<45$ "8 8"'$)?+ 6:''$+6= )+6;:()+? %"+$= 6<4+?)+? !S:&-':;$ (1B), : +erson
liable to pa* ser%ice tax in relation to p$rchase or sale of foreign c$rrenc*, incl$ding mone* changing, has
an option to pa* an amo$nt at the folloing rates instead of pa*ing ser%ice tax at the rate of 12D-2
S- N"- F"' 4+ 4%":+* S$'#)6$ *49 5<4;; &$ 64;6:;4*$( 4* *<$ '4*$ "8
1& Epto `100,000 0&12 D of the gross amo$nt of c$rrenc*
exchanged
or
` 30
hiche%er is higher
2& Exceeding `1,00,000 and $pto ` 10,00,000 ` 120 ] 0&01 D of the 'gross amo$nt of c$rrenc*
exchanged2 ` 1 laCh)
3& Exceeding `10,00,000 ` 110 ] 0&012 D of the 'gross amo$nt of
c$rrenc* exchanged 5` 10 laCh)
or
` 1,000
hiche%er is loer
P")+* *" &$ +"*$(
>oe%er, the person pro%iding the ser%ice shall exercise s$ch option for a financial *ear and s$ch option
shall not be ithdran d$ring the remaining part of that financial *ear&
D- O7*)"+4; C"%7"5)*)"+ S6<$%$ 8"' *<$ *494&;$ 5$'#)6$ "8 7'"%"*)"+. %4'@$*)+? "'
"'?4+)5)+?/455)5*)+? )+ "'?4+)5)+? ;"**$'= !S:&-':;$ (1C), : "n optional mode of pa*ment of ser%ice tax
has been pro%ided for the taxable ser%ice of promotion, marCeting or organising#assisting in organising
lotter* in the folloing manner instead of pa*ing ser%ice tax at the rate of 12D-2
?here the g$aranteed lotter*
pri=e pa*o$t is _ 80D
` ;000#2 on e%er* ` 10 HaCh 'or part of ` 10 HaCh)
of aggregate face %al$e of lotter* ticCets printed b*
the organising State for a dra&
P4=%$+* "8 S$'#)6$ T49 100
?here the g$aranteed lotter*
pri=e pa*o$t is ` 80D
`11,000#2 on e%er* ` 10 HaCh 'or part of ` 10 HaCh)
of aggregate face %al$e of lotter* ticCets printed b*
the organising State for a dra&
P")+*5 *" &$ +"*$(:-
1& ,n case of online lotter*, the aggregate face %al$e of lotter* ticCets ill be the aggregate %al$e of ticCets
sold&
2& The distrib$tor#selling agent ill ha%e to exercise s$ch option ithin a period of one month of the
beginning of each financial *ear& The ne ser%ice pro%ider can exercise s$ch option ithin one month of
pro%iding the ser%ice&
3& The option once exercised cannot be ithdran d$ring the remaining part of the financial *ear&
M$4+)+? "8 )%7"'*4+* *$'%5
(4) D)5*')&:*"' "' 5$;;)+? 4?$+*: means an indi%id$al or firm or bod* corporate or other legal entit* $nder
la so appointed b* the Brganising State thro$gh an agreement to marCet and sell lotteries on behalf of the
Brganising State 6<$le 2'c) of the Hotter* '<eg$lation) <$les, 20108 and shall incl$de the distrib$tor#selling
agent a$thori=ed b* lotter* organi=ing State&
(&) D'4>: means a method b* hich the pri=e inning n$mbers are dran for each lotter*#lotter* scheme
b* operating the dra machine or an* other mechanical method based on random technolog* hich is
%isibl* transparent to the %ieers 6<$le 2'd) of the Hotter* '<eg$lation) <$les, 20108&
(6) O+;)+$ ;"**$'=: means a s*stem created to permit pla*ers to p$rchase lotter* ticCets generated b* the
comp$ter or online machine at the lotter* terminals here the information abo$t the sale of a ticCet and the
pla*erPs choice of an* partic$lar n$mber or combination of n$mbers is sim$ltaneo$sl* registered ith the
central comp$ter ser%er 6<$le 2'e) of the Hotter* '<eg$lation) <$les, 20108&
(() O'?4+)5)+? S*4*$: means the State (o%ernment hich cond$cts the lotter* either in its on territor* or
sells its ticCets in the territor* of an* other State 6<$le 2'f) of the Hotter* '<eg$lation) <$les, 20108&
(O) I+*$'$5* "+ ($;4=$( 74=%$+* "8 5$'#)6$ *49 (S$6*)"+ 10)
!ail$re to pa* ser%ice tax, incl$ding a part thereof ithin the period prescribed, attracts simple interest at a
rate not belo 10D p&a& b$t not exceeding 31D p&a& as ma* be notified b* the Central (o%ernment&
,nterest o$ld also appl* in case of excess a%ailment and $tili=ation of CE:/"T credit&
R4*$ "8 )+*$'$5*
C$rrentl*, the interest rate S 18D per ann$m has been notified %ide Notification No. 14/2011 dated
01.03.2011&
T)%$-7$')"( 8"' 74=%$+* "8 )+*$'$5*
,nterest is pa*able for the period b* hich s$ch crediting of the tax or an* part thereof is dela*ed&
I;;:5*'4*)"+
The comp$tation of interest for the abo%e is as $nder-
9$e date of +a*ment 03&01&2013
"ct$al 9ate of +a*ment 30&03&2013
:o of da*s of dela* '21]28]30) 84
"mo$nt of ser%ice tax ` 10,000#2
Calc$lation of interest
10,000
100
18
313
84

"mo$nt of interest pa*able ` 414#2
P4=%$+* "8 S$'#)6$ T49 101
C"+6$55)"+ "8 3S 8"' 57$6)8)$( 455$55$5 : ,n case of a ser%ice pro%ider, hose %al$e of taxable ser%ice
pro%ided in a financial *ear does not exceed ` 10 laCh d$ring an* of the financial *ears co%ered b* the
notice or d$ring the preceding financial *ear, as the case ma* be, s$ch rate of interest shall be red$ced b* 3D
per ann$m&
>ence, a concessional rate of interest of 13D per ann$m is a%ailable to the tax pa*ers hose t$rno%er d$ring
an* of the *ears co%ered in the notice or the preceding financial *ear is $pto ` 10 laCh&
P4=%$+* "8 S$'#)6$ T49 102
PRACTICE MANUAL
R:$5*)"+ 1
4riefl* anser the folloing 7$estions-2
'a) Sho$ld ser%ice tax be paid e%en if not collected from the client or ser%ice recei%erQ
'b) ,s a ser%ice pro%ider alloed to pa* ser%ice tax on a pro%isional basisQ
'c) 0r& Sara%anan has collected a s$m of `13,000 as ser%ice tax from a client mistaCenl*, e%en tho$gh no
ser%ice tax is chargeable for s$ch ser%ice& Sho$ld the amo$nt so collected be remitted to the credit of the
Central (o%ernmentQ
'd) ?ho is liable to maCe e2pa*ment of ser%ice taxQ
'e) ?hether life ins$rer carr*ing on life ins$rance b$siness has option to calc$late ser%ice tax at different
rateQ
'f) 0r& [, a ser%ice pro%ider ho pa*s ser%ice tax reg$larl*, as of the opinion that a partic$lar ser%ice as
not liable for ser%ice tax& >e, therefore, did not charge ser%ice tax in his bill& >e recei%ed the bill amo$nt
itho$t ser%ice tax& >o ill ser%ice tax liabilit* of 0r& [ be determined in s$ch caseQ
A+5>$'
(4) Section 18 of the !inance "ct, 1994 casts the liabilit* to pa* ser%ice tax $pon the ser%ice pro%ider&
This liabilit* is not contingent $pon the ser%ice pro%ider reali=ing or charging the ser%ice tax at the
pre%ailing rate& The stat$tor* liabilit* does not get exting$ished if the ser%ice pro%ider fails to reali=e
or charge the ser%ice tax from the ser%ice recei%er&
(&) ,n case the assessee is $nable to correctl* estimate, at the time of the deposit, the act$al amo$nt of
ser%ice tax for an* month or 7$arter, he ma* maCe a ritten re7$est to "ssistant#9ep$t*
Commissioner of Central Excise for maCing pa*ment of ser%ice tax on pro%isional basis& The
pro%isions of the Central Excise <$les, 2002 relating to pro%isional assessment shall appl* except the
pro%isions relating to exec$tion of bond&
(6) Section ;3" of the !inance "ct, 1994 casts an obligation on e%er* person ho has collected ser%ice
tax from an* recipient of ser%ice in an* manner as representing ser%ice tax, to remit the same to the
credit of the Central (o%ernment& Bn acco$nt of this pro%ision, here an* person has collected an*
amo$nt, hich is not re7$ired to be collected from an* other person, in an* manner as representing
ser%ice tax, he sho$ld also immediatel* pa* the amo$nt so collected to the credit of the Central
(o%ernment&
>ence, 0r& Sara%anan has to remit the ser%ice tax collected b* him on the non taxable ser%ices to the
credit of the Central (o%ernment before the d$e date&
(() "n assessee ho has paid a total ser%ice tax of `10 laCh or more incl$ding the amo$nt paid b*
$tilisation of CE:/"T credit, in the preceding financial *ear, has to deposit the ser%ice tax liable to
be paid b* him electronicall*, thro$gh internet banCing&
($) "n ins$rer carr*ing on life ins$rance b$siness has the option to pa* tax-
'i) on the gross premi$m charged from a polic* holder red$ced b* the amo$nt allocated for
in%estment, or sa%ings on behalf of polic* holder, if s$ch amo$nt is intimated to the polic*
holder at the time of pro%iding of ser%iceK
P4=%$+* "8 S$'#)6$ T49 103
'ii) ?here amo$nt of the gross premi$m allocated for in%estment or sa%ings on behalf of polic*
holder is not intimated to the polic* holder at the time of pro%iding of ser%ice-2
!irst *ear on 3D of the gross amo$nt of premi$m charged
S$bse7$ent *ear on 1&3D of the gross amo$nt of premi$m charged
toards the discharge of his ser%ice tax liabilit* instead of pa*ing ser%ice tax at the rate of
12D&
>oe%er, s$ch option shall not be a%ailable in cases here the entire premi$m paid b* the
polic* holder is onl* toards risC co%er in life ins$rance&
(8) Section 18 casts the liabilit* to pa* ser%ice tax $pon the ser%ice pro%ider& This liabilit* is not
contingent $pon the ser%ice pro%ider reali=ing or charging the ser%ice tax at the pre%ailing rate& The
stat$tor* liabilit* does not get exting$ished if the ser%ice pro%ider fails to reali=e or charge the
ser%ice tax from the ser%ice recei%er&
,n this case, the amo$nt recei%ed from the ser%ice recei%er ill be taCen to be incl$si%e of ser%ice
tax& "ccordingl*, ser%ice tax liabilit* b* the ser%ice pro%ider shall be ascertained b* maCing bacC
calc$lations in the folloing manner-2
Ser%ice tax liabilit* X "mo$nt recei%ed x Effecti%e rate # '100 ] Effecti%e rate)
R:$5*)"+ 2
"nser the folloing 7$estions-
(4) "n assessee ho has collected ser%ice tax from a client is $nable to perform the ser%ice&
4riefl* explain the sit$ations in hich and the conditions s$bAect to hich he can adA$st the ser%ice
tax relating to abo%e, against his forthcoming ser%ice tax liabilit*&
(&) 0r& /as$de%an has rendered freel*, a ser%ice to a client hich is taxable, b$t has not charged or
recei%ed an* fee from the client& ,s ser%ice tax pa*able on s$ch free ser%iceQ
(6) ?hat are the d$e dates for pa*ment of ser%ice taxQ
A+5>$'
(4) ?here an assessee has iss$ed an in%oice, or recei%ed an* pa*ment, against a ser%ice to be pro%ided
hich is not so pro%ided b* him either holl* or partiall* for an* reason or here the amo$nt of
in%oice is renegotiated d$e to deficient pro%ision of ser%ice, or an* terms contained in a contract, the
assessee ma* taCe the credit of s$ch excess ser%ice tax paid b* him, if the assessee-
'a) has ref$nded the pa*ment or part thereof, so recei%ed for the ser%ice pro%ided to the person
from hom it as recei%edK or
'b) has iss$ed a credit note for the %al$e of the ser%ice not so pro%ided to the person to hom
s$ch an in%oice had been iss$ed
(&) Section 1;'1)'iii) and Ser%ice Tax '9etermination of /al$e) <$les, 2001 maCe pro%isions for
%al$ation e%en hen consideration is not ascertainable& >oe%er, these pro%isions appl* onl* hen
there is consideration& ,f there is no consideration i&e&, in case of free ser%ice, section 1; and Ser%ice
Tax '9etermination of /al$e) <$les, 2001 cannot appl*&
P4=%$+* "8 S$'#)6$ T49 104
Th$s, no ser%ice tax is pa*able hen %al$e of ser%ice is =ero& ,n other ords, if the %al$e is =ero, the
tax ill also be =ero e%en tho$gh the ser%ice ma* be taxable& >oe%er, this principle applies onl*
hen there is reall* a Ofree ser%iceP and not hen its cost is reco%ered thro$gh other means&
(6) The d$e date for pa*ment of ser%ice tax on the ser%ice hich is deemed to be pro%ided 'as per the
+oint of Taxation <$les, 2011) b* an indi%id$al or a proprietar* firm or a partnership firm-2
S-
N"-
P4'*)6:;4'5 D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$
*49
1& ,f the ser%ice tax is paid electronicall* thro$gh internet
banCing
1th da* of the folloing O:4'*$'
2& ,n an* other case 3th da* of the folloing O:4'*$'
3& ,n the case ser%ice is deemed to be pro%ided in the
7$arter ending in 0arch
31st da* of 0arch
D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$ *49 "+ *<$ 5$'#)6$ ><)6< )5 ($$%$( *" &$ 7'"#)($( (45 7$' *<$
P")+* "8 T494*)"+ R:;$5. 2011) )+ 4+= "*<$' 645$5 (6"%74+= 4+( IUF):-
S- N"- P4'*)6:;4'5 D:$ (4*$ 8"' 74=%$+* "8 5$'#)6$
*49
1& ,f the ser%ice tax is paid electronicall* thro$gh
internet banCing
1th da* of the folloing month
2& ,n an* other case 3th da* of the folloing month
3& ,n the case ser%ice is deemed to be pro%ided in the
month of 0arch
31st da* of 0arch
R:$5*)"+ 3
9oes a ser%ice pro%ider ha%e an option to pa* ser%ice tax at a rate different from the general rate applicable
on gross %al$e of taxable ser%ices, in the case of p$rchase or sale of foreign c$rrenc*Q
A+5>$'
Res, the person liable to pa* ser%ice tax in relation to p$rchase or sale of foreign c$rrenc*, incl$ding mone*
changing, has an option to pa* an amo$nt at the folloing rates instead of pa*ing ser%ice tax at the rate of
12D-2
S& :o& !or an amo$nt Ser%ice tax shall be calc$lated at the rate of
1& Epto ` 100,000 0&12 D of the gross amo$nt of c$rrenc* exchanged
or
` 30
hiche%er is higher
2& Exceeding ` 1,00,000 and $pto
`10,00,000
` 120 ] 0&01 D of the gross amo$nt of c$rrenc*
exchanged
3& Exceeding ` 10,00,000 ` 110 ] 0&012 D of the gross amo$nt of c$rrenc*
exchanged
or
` 1,000
hiche%er is loer
>oe%er, the person pro%iding the ser%ice shall exercise s$ch option for a financial *ear and s$ch option
shall not be ithdran d$ring the remaining part of that financial *ear&
R:$5*)"+ 4
>o can an assessee adA$st the excess pa*ment of ser%ice tax against his liabilit* of ser%ice tax for
s$bse7$ent periodsQ ?hat is the basic condition for itQ
P4=%$+* "8 S$'#)6$ T49 100
A+5>$'
?here an assessee has paid to the credit of Central (o%ernment an* amo$nt in excess of the amo$nt
re7$ired to be paid toards ser%ice tax liabilit* for a month or 7$arter, as the case ma* be, the assessee ma*
adA$st s$ch excess amo$nt paid b* him against his ser%ice tax liabilit* for the s$cceeding month or 7$arter,
as the case ma* be& I">$#$'. 5$;8-4(J:5*%$+* "8 5:6< $96$55 4%":+* 74)( 5<4;; &$ 5:&J$6* *" *<$
6"+()*)"+ *<4* *<$ $96$55 4%":+* 74)( )5 "+ 466":+* "8 '$45"+5 +"* )+#";#)+? )+*$'7'$*4*)"+ "8 ;4>.
*494&);)*=. #4;:4*)"+ "' 477;)64&);)*= "8 4+= $9$%7*)"+ +"*)8)64*)"+-
R:$5*)"+ 0
?rite a note in brief on pro%isional pa*ment of ser%ice tax&
A+5>$'
,n case the assessee is $nable to correctl* estimate, at the time of the deposit, the act$al amo$nt of ser%ice
tax for an* month or 7$arter, he ma* maCe a ritten re7$est to "ssistant# 9ep$t* Commissioner of Central
Excise for maCing pa*ment of ser%ice tax on pro%isional basis& The pro%isions of the Central Excise <$les,
2002 relating to pro%isional assessment shall appl* except the pro%isions relating to exec$tion of bond&
!or the p$rpose of pro%isional assessment at the time of filing the ret$rn, the assessee is re7$ired to file a
statement in form ST 2 3" gi%ing detail of difference beteen ser%ice tax deposited and the ser%ice tax liable
to be paid for each month& The 7$arterl* or half *earl* statements sho$ld also accompan*&
The "ssistant#9ep$t* Commissioner of Central Excise, on the basis of memorand$m in form ST 2 3" ma*
complete the assessment after calling for necessar* doc$ments or records, if need be&
R:$5*)"+ /
4riefl* disc$ss abo$t the adA$stment of excess amo$nt of ser%ice tax paid in case of renting of immo%able
propert* ser%ice, oing to propert* tax pa*ment&
A+5>$'
,n case of renting of immo%able propert* ser%ice, a ded$ction of propert* taxes paid in respect of the
immo%able propert* is alloed from the gross amo$nt charged for renting of the said immo%able propert*
%ide N"*)8)64*)"+ N"-23/2012 ST (4*$( 20-0/-2012& >oe%er, here an* amo$nt in excess of the amo$nt
re7$ired to be paid toards ser%ice tax liabilit* has been paid on acco$nt of non2a%ailment of s$ch
ded$ction, s$ch excess amo$nt ma* be adA$sted against the ser%ice tax liabilit* ithin 1 *ear from the date
of pa*ment of s$ch propert* tax& The details of s$ch adA$stment shall be intimated to the S$perintendent of
Central Excise ha%ing A$risdiction o%er the ser%ice pro%ider ithin a period of 13 da*s from the date of s$ch
adA$stment&
R:$5*)"+ 1
4riefl* explain the pro%isions relating to ad%ance pa*ment of ser%ice tax
A+5>$'
The assessee has been pro%ided a facilit* to maCe ad%ance pa*ment of ser%ice tax on his on and adA$st the
amo$nt so paid against the ser%ice tax hich he is liable to pa* for the s$bse7$ent period& S$ch facilit* shall
be a%ailable hen the assessee-
'i) intimates the details of the amo$nt of ser%ice tax paid in ad%ance, to the G$risdictional
S$perintendent of Central Excise ithin a period of 13 da*s from the date of s$ch pa*ment, and
'ii) indicates the details of the ad%ance pa*ment made, and its adA$stment, if an* in the s$bse7$ent ret$rn
to be filed $nder section ;0&
R:$5*)"+ 2
'i) ?hen does e2pa*ment of ser%ice tax become mandator*Q
'ii) State the @d$e date@ for e2pa*ment of ser%ice tax b* indi%id$als and companies&
P4=%$+* "8 S$'#)6$ T49 10/
A+5>$'
()) E2pa*ment of ser%ice tax becomes mandator* if the assessee has paid a total ser%ice tax of `10 laCh
or more 'incl$ding the amo$nt of ser%ice tax paid b* $tili=ing CE:/"T credit) in the pre%io$s
financial *ear&
()))
A55$55$$ D:$ (4*$ 8"' $-74=%$+* "8 5$'#)6$ *49
'i) ,ndi%id$als 1th da* of the month immediatel* folloing the 7$arter in hich the ser%ice is
deemed to be pro%ided 'as per the +oint of Taxation <$les, 2011)
'ii) Companies 1th da* of the month immediatel* folloing the month in hich the ser%ice is
deemed to be pro%ided 'as per the +oint of Taxation <$les, 2011)
>oe%er, ser%ice tax on the %al$e of taxable ser%ices ser%ice deemed to be pro%ided in the 7$arter
ending in 0arch 'in case of indi%id$als) or in the month of 0arch 'in case of companies) is pa*able
b* 31st 0arch&
R:$5*)"+ 3
Explain optional composition scheme $nder ser%ice tax for distrib$tor or selling agents of lotteries&
A+5>$'
"n optional mode of pa*ment of ser%ice tax has been pro%ided for the taxable ser%ice of promotion,
marCeting or organising#assisting in organising lotter* in the folloing manner instead of pa*ing ser%ice tax
at the rate of 12D-2
G:4'4+*$$( ;"**$'= 7')N$ 74=":* A%":+* "8 5$'#)6$ *49 74=4&;$ "+ $#$'= $ 10 L4@< ("' 74'* "8
$ 10 L4@<) "8 4??'$?4*$ 846$ #4;:$ "8 ;"**$'= *)6@$*5 7')+*$(
&= *<$ "'?4+)5)+? S*4*$ 8"' 4 ('4>
0ore than 80D
Hess than 80D
` ;000#2&
` 11,000#2
,n case of online lotter*, the aggregate face %al$e of lotter* ticCets ill be the aggregate %al$e of ticCets sold&
The distrib$tor#selling agent ill ha%e to exercise s$ch option ithin a period of one month of the beginning
of each financial *ear& The ne ser%ice pro%ider can exercise s$ch option ithin one month of pro%iding the
ser%ice& The option once exercised cannot be ithdran d$ring the remaining part of the financial *ear&
R:$5*)"+ 10
?rite short notes on Ser%ice Tax Code :$mber and the obAecti%e so$ght to be achie%ed there$nder&
A+5>$'
Ser%ice Tax Code :$mber is a 132digit alphan$merical n$mber allotted b* the s*stem to the assessee based
on the +": n$mber or temporar* n$mber 'if +": is not s$bmitted)& The assessee applies for it in a
prescribed form& This code is a%ailable in the registration certificate iss$ed to the assessee b* the "ssistant
Commissioner#9ep$t* Commissioner of the 9i%ision& ,t is also Cnon as assessee code or registration
n$mber&
The first 10 digits of the STC code are 10 character +": iss$ed b* ,ncome tax a$thorities& :ext to are
OSTP& Hast three are n$meric code 001, 002, 003 etc&
O&J$6*)#$ 5":?<* *" &$ 46<)$#$(
1& The obAecti%e is to identif* the assessees, exporters or importers as also the concerned office here
the person o$ld be assessed or registered&
2& ,t helps in online processing of the information in relation to the assessee&
R:$5*)"+ 11
P4=%$+* "8 S$'#)6$ T49 101
?hat is E"S,EST scheme and state the benefits in the context of ser%ice tax Q
A+5>$'
E"S,EST stands for Electronic "cco$nting S*stem in Excise and Ser%ice Tax& ,t maCes tax pa*ment eas*&
This facilit* is a%ailable ith 28 banCs&
The benefits of E"S,EST to the taxpa*er are as follos-2
'a) Bnl* one cop* of the challan is to be filled instead of fo$r copies as re7$ired earlier&
'b) E"S,EST facilitates online %erification of the stat$s of tax pa*ment $sing Challan ,dentification
:$mber&
R:$5*)"+ 12
0iss <adhiCa, a edding planner, has rendered ser%ice to 0r& <am Mapoor in relation to planning the
marriage of his son& 0iss <adhiCa, being a close relati%e of 0r& <am Mapoor, has not charged an* fee from
him& ,s ser%ice tax pa*able on s$ch free, b$t taxable ser%iceQ
A+5>$'
Section 1;'1)'iii) and Ser%ice Tax '9etermination of /al$e) <$les, 2001 maCe pro%isions for %al$ation e%en
hen consideration is not ascertainable& >oe%er, these pro%isions appl* onl* hen there is consideration&
,f there is no consideration i&e&, in case of free ser%ice, section 1; and Ser%ice Tax '9etermination of /al$e)
<$les, 2001 cannot appl*&
Th$s, no ser%ice tax is pa*able hen %al$e of ser%ice is =ero& ,n other ords, if the %al$e is =ero, the tax ill
also be =ero e%en tho$gh the ser%ice ma* be taxable& >oe%er, this principle applies onl* hen there is
reall* a Ofree ser%iceP and not hen its cost is reco%ered thro$gh other means&
Therefore, in the light of the aforesaid disc$ssion, it ma* be inferred that, the ser%ice tax is not pa*able on
ser%ice rendered b* 0iss <adhiCa to 0r& <am Mapoor as 0iss <adhiCa has not charged an* fee from 0r&
<am Mapoor&
R:$5*)"+ 13
0r& <aAesh Singla, an assessee ants to adA$st `2,30,000, the excess pa*ment of ser%ice tax against his
liabilit* of ser%ice tax for the s$bse7$ent periods& Can he do soQ ?hat is the condition to be satisfied for itQ
A+5>$'
Res, 0r& <aAesh Singla, can adA$st ` 2,30,000, the excess pa*ment of ser%ice tax against his liabilit* of
ser%ice tax for the s$bse7$ent periods s$bAect to the f$lfillment of specified condition&
?ith effect from 1st "pril, 2012 <$le 1'44) has been s$bstit$ted ith the ne one pro%iding for onl* one
condition for adA$stment of excess amo$nt paid toards ser%ice tax liabilit* that is the excess amo$nt paid is
on acco$nt of reasons not in%ol%ing interpretation of la, taxabilit*, classification, %al$ation or applicabilit*
of an* exemption notification& >ence, ith effect from 1st "pril, 2012 other restrictions earlier pro%ided in
r$le 1'44) has been omitted thereb* alloing $nlimited amo$nt of permissible adA$stment of excess ser%ice
tax paid&
R:$5*)"+ 14
/ibha Htd& is engaged in pro%iding management cons$ltanc* ser%ices& ,t as liable to pa* the ser%ice tax
amo$nting to ` 10,000, electronicall*, for the month of "$g$st 2012& >oe%er, d$e to some $na%oidable
circ$mstances, it co$ld not pa* the said amo$nt on d$e date and paid the ser%ice tax on 30th :o%ember,
2012& Ro$ are re7$ired to comp$te the interest pa*able b* /ibha Htd& on dela*ed pa*ment of ser%ice tax&
A+5>$'
P4=%$+* "8 S$'#)6$ T49 102
C"%7:*4*)"+ "8 )+*$'$5* 74=4&;$ "+ ($;4=$( 74=%$+* "8 5$'#)6$ *49 &= V)&<4 L*(-:-
9$e date of pa*ment of ser%ice tax 01&09&2012
"ct$al date of pa*ment 30&11&2012
:o& of da*s of dela* '24]31]30) 83
"mo$nt of ser%ice tax ` 10,000#2
Calc$lation of interest $nder section ;3 S 18D per ann$mU 10,000 x
313
83
x
100
18
"mo$nt of interest pa*able ` 419#2
:ote- ,t has been ass$med that %al$e of taxable ser%ices is abo%e `10 laCh in preceding financial *ear&
R:$5*)"+ 10
S& Htd& paid ser%ice tax of ` 8 lacs d$ring the preceding financial *ear and $tili=ed CE:/"T credit of ` 3
lacs& ?hether he is re7$ired to deposit ser%ice tax electronicall* for the financial *ear 2012213&
A+5>$'
"n assessee is re7$ired to deposit ser%ice tax electronicall* thro$gh internet banCing if he has paid the total
ser%ice tax of ` 10 laChs or more 'incl$ding the amo$nt of ser%ice tax paid b* $tili=ation of CE:/"T credit)
in the preceding financial *ear&
"s the total ser%ice tax paid 'incl$ding CE:/"T credit) b* S& Htd&, in the preceding financial *ear is ` 11
laChs on the pres$mption that ser%ice tax of ` 8 laCh does not incl$de ser%ice tax of ` 3 laCh paid b*
$tili=ing CE:/"T credit, it ill be re7$ired to deposit ser%ice tax electronicall* for the financial *ear 20122
2013&
R:$5*)"+ 1/
State the ser%ice tax pro%isions regarding adA$stment of ser%ice tax paid hen ser%ice as not pro%ided
either holl* or partl*&
A+5>$'
"s per r$le 1'3) of Ser%ice Tax r$les, 1994, here an assessee has iss$ed an in%oice, or recei%ed an*
pa*ment, against a ser%ice to be pro%ided hich is not so pro%ided b* him either holl* or partiall* for an*
reason or here the amo$nt of in%oice is renegotiated d$e to deficient pro%ision of ser%ice, or an* terms
contained in a contract, the assessee ma* taCe the credit of s$ch excess ser%ice tax paid b* him, if the
assessee-
'a) has ref$nded the pa*ment or part thereof, so recei%ed for the ser%ice pro%ided to the person from
hom it as recei%edK or
'b) has iss$ed a credit note for the %al$e of the ser%ice not so pro%ided to the person to hom s$ch an
in%oice had been iss$ed
>oe%er, <$le 1'3) does not allo adA$stment of excess pa*ment of ser%ice tax per se, sa* d$e to clerical
mistaCe etc& ,n s$ch cases the assessee has to follo the proced$re laid don in section 114 of Central
Excise "ct to claim the ref$nd of excess tax paid&
R:$5*)"+ 11
P4=%$+* "8 S$'#)6$ T49 103
4riefl* explain the important points to be Cept in mind hile pa*ing ser%ice tax&
A+5>$'
The important points to be Cept in mind hile pa*ing ser%ice tax are as follos-
1& Ser%ice tax is to be paid on the %al$e of taxable ser%ices hich is charged b* an assessee& "n*
income tax ded$cted at so$rce is incl$ded in the charged amo$nt& Therefore, ser%ice tax is to be paid
on the amo$nt of income tax ded$cted at so$rce also&
!or example, if in%oice is for ` 9,000 and pa*ment recei%ed is ` 8,300 after ded$cting a T9S of
`300, ser%ice tax ill be pa*able on ` 9,000&
2& +a*ment sho$ld be ro$nded off in m$ltiple of r$pees&
3& The date of presentation of che7$e to the banC shall be deemed to be date on hich ser%ice tax has
been paid s$bAect to the reali=ation of the che7$e&
R:$5*)"+ 12
[ . Co& is a ser%ice pro%ider& ,t recei%ed ` 19,80,000 d$ring the financial *ear 2012213 after ded$ction of
tax at so$rce $nder section 194 G of the ,ncome2tax "ct, 1911&
The rate of tax ded$ction is 10D 'i&e& after ded$ction of ` 2,20,000)
'i) Calc$late the ser%ice tax liabilit* of [ . Co&
'ii) Can a m$ltiple ser%ice pro%ider $se a single challan for pa*ment of ser%ice tax for %ario$s ser%ices
rendered b* itQ
A+5>$'
()) C4;6:;4*)"+ "8 S$'#)6$ T49 L)4&);)*= "8 X A C"-:-
P4'*)6:;4'5 $
"mo$nt recei%ed ':et) 19,80,000&00
"dd- Tax ded$cted at so$rce $nder section 194G 2,20,000&00
(ross amo$nt 'incl$ding ser%ice tax) 22,00,000&00
Ser%ice Tax Hiabilit* X 22,00,000 x
31 & 112
31 & 12
2,42,00;&83
Ser%ice Tax Hiabilit* 'ro$nded off) 2,42,008&00

())) " m$ltiple ser%ice pro%ider 'a ser%ice pro%ider rendering more than one taxable ser%ice) can $se
single ("<2; challan for pa*ment of ser%ice tax on different ser%ices& >oe%er, amo$nts
attrib$table to each s$ch ser%ice along ith concerned acco$nting codes sho$ld be mentioned clearl*
in the col$mn pro%ided for this p$rpose in the ("<2; challan& "lternati%el*, separate ("<2;
challans ma* be $sed for pa*ment of ser%ice tax for each ser%ice pro%ided b* the ser%ice pro%ider&
:ote- ,t has been ass$med that [ . Co& is non SS+&
P4=%$+* "8 S$'#)6$ T49 110
EXERCISES
1& ?hat is the d$e date for pa*ment of ser%ice tax in case of a partnership firmQ
'a) 3th da* of the month immediatel* folloing e%er* month
'b) 23th da* of the month immediatel* folloing e%er* 7$arter
'c) 3th da* of the month immediatel* folloing e%er* 7$arter
'd) 23th da* of the month immediatel* folloing e%er* month
2& O[ Htd&P pro%ides management cons$ltanc* ser%ice to ORP for a consideration of ` 20,000& O[ Htd&P
raises the bill on ORP on 03&01&2012& O[ Htd&P recei%es the pa*ment from ORP on 13&0;&2012& ?hen
sho$ld O[ Htd&P pa* the ser%ice taxQ
'a) on or before 03&08&2012
'b) on or before 03&0;&2012
'c) on or before 31&0;&2012
'd) on or before 30&01&2012
3& Ser%ice tax is pa*able to the credit of the Central (o%ernment in-
'a) !orm ST23
'b) ("<2; challan
'c) !orm !
'd) none of the abo%e
4& O"P charges ` 10,000 from O4P toards the taxable ser%ices pro%ided b* him& >e does not charge
ser%ice tax from O4P& ,n this context, hich of the folloing statement is tr$eQ
'a) :o ser%ice tax is pa*able b* O"P&
'b) ` 1038 is pa*able b* O"P as ser%ice tax&
'c) ` 1100 is pa*able b* O"P as ser%ice tax&
'd) ` 1231 is pa*able b* O"P as ser%ice tax&
3& ?hat is the d$e date for pa*ment of ser%ice tax in case of a compan* for the month of !ebr$ar* and
0archQ
1& 'i) " pa*ment of ` 11,000 is made b* a client# c$stomer to an assessee after ded$cting income 2tax of
` 1,000 at so$rce& ,n s$ch a case, is ser%ice tax le%iable onl* on the amo$nt act$all* recei%ed b* the
assessee from his client#c$stomer or does it also extend to the amo$nt of income tax ded$cted at
so$rceQ
P4=%$+* "8 S$'#)6$ T49 111
'ii) ,n case of pa*ment of ser%ice tax b* che7$e, hich date is considered as date of pa*ment of
ser%ice taxQ ,s it the date on hich the che7$e for the same is deposited#tendered in the designated
4anC or the date on hich the amo$nt is creditedQ
;& ?rite a brief note on pro%isional pa*ment of ser%ice tax&
A+5>$'5
1&'c)K 2&'b)K 3&'b)K 4&'c)
F);)+? "8 R$*:'+5 112
FILING OF RETURNS
FILING OF RETURNS
L$4'+)+? "&J$6*)#$5
"fter reading this $nit *o$ ill be able to-
Y $nderstand the proced$re relating to filing of ser%ice tax ret$rns&
Y Cno the fre7$enc* of filing ret$rns&
Y be aare of the d$e date for filing ret$rns&
2-1 R$*:'+5 !S$6*)"+ 10. R:;$ 1. R:;$ 1B A R:;$ 1C "8 S$'#)6$ T49 R:;$5. 1334,
Section ;0'1) inter alia pro%ides that e%er* person liable to pa* the ser%ice tax shall himself assess the tax
d$e on the ser%ices pro%ided b* him and shall f$rnish to the S$perintendent of Central Excise, a ret$rn in
s$ch form and in s$ch manner and at s$ch fre7$enc* as ma* be prescribed& <$le ; of the Ser%ice Tax <$les,
1994 prescribes the form, manner and fre7$enc* of f$rnishing the ret$rn&
Section ;0'2) pro%ides that the person or class of persons notified $nder s$b2section '2) of section 19 shall
f$rnish to the S$perintendent of the Central Excise, a ret$rn in s$ch form and in s$ch manner and at s$ch
fre7$enc* as ma* be prescribed&
2-2 M4++$' "8 8);)+? '$*:'+
1& F"'% "8 '$*:'+ <et$rn#re%ised ret$rn has to be f$rnished in F"'% ST-3&
2& P$')"()6)*= "8 8);)+? '$*:'+ Ser%ice tax ret$rn has to be filed on a <4;8-=$4';= &45)5&
3& D$*4);5 *" &$ 8:'+)5<$( <et$rn m$st indicate inter a#ia, monthise-
'i) the %al$e of taxable ser%iceK
'ii) gross amo$nt chargedK
'iii) ser%ice tax pa*able etc&
4& E+6;"5:'$5 *" '$*:'+ >alf2*earl* ret$rn in !orm ST23 is re7$ired to be accompanied b*-2
'i) +hotocop* of co$nterfoil of ("<2; challan&
'ii) 0emorand$m in !orm ST23" 'here the assessment is
pro%isional)-
2-3 D:$ (4*$5 8"' 8);)+? "8 5$'#)6$ *49 '$*:'+5
The ser%ice tax ret$rn, in !orm ST23 sho$ld be filed on half *earl* basis b* the 23th of the month folloing
the partic$lar half *ear& The d$e dates on this basis are tab$lated as $nder-
I4;8 =$4' D:$ (4*$
1st "pril to 30th September 23th Bctober
1st Bctober to 31st 0arch 23th "pril
<$+ *<$ (:$ (4*$ 84;;5 "+ 7:&;)6 <";)(4=: ,n case the d$e date of the filing of ret$rn i&e&, either 23th
Bctober or 23th "pril falls on a p$blic holida*, the assessee can file the ret$rn on the immediatel*
s$cceeding orCing da*&
2-4 D$;4=$( '$*:'+
" dela*ed ret$rn can also be f$rnished b* pa*ing the prescribed late fee& Section ;0'1) inter alia pro%ides for
filing of periodical ret$rn after the d$e date ith the prescribed late fee of not more than `20,000&
L4*$ 8$$ 8"' ($;4=$( '$*:'+ !R:;$ 1C,
F);)+? "8 R$*:'+5 113
The prescribed late fee for f$rnishing a dela*ed ret$rn is gi%en in the folloing table-
S-
N"-
P$')"( "8 ($;4= L4*$ 8$$
'a) 13 da*s from the date prescribed for s$bmission of the
ret$rn
`300
'b) 4e*ond 13 da*s b$t not later than 30 da*s from the date
prescribed for s$bmission of the ret$rn
` 1,000
'c) 4e*ond 30 da*s from the date prescribed for s$bmission
of the ret$rn
"n amo$nt of `1,000 pl$s `100 for
e%er* da* from the 31st da* till the date
of f$rnishing the said ret$rn
M49)%:% ;4*$ 8$$5: Total late fee for dela*ed s$bmission of ret$rn shall not exceed `20,000&
!$rther, here the assessee has paid the prescribed late fee for dela*ed s$bmission of ret$rn, the
proceedings, if an*, in respect of s$ch dela*ed s$bmission of ret$rn shall be deemed to be concl$ded&
L4*$ 8$$ %4= &$ '$(:6$(/>4)#$( ><$'$ 5$'#)6$ *49 74=4&;$ )5 +); : ?here the gross amo$nt of ser%ice tax
pa*able is nil, the Central Excise Bfficer ma*, on being satisfied that there is s$fficient reason for not filling
the ret$rn, red$ce or ai%e the penalt* 'late fee) 6+ro%iso to r$le ;C8&
2-0 R$#)5$( '$*:'+ !R:;$ 1B,
"n assessee can s$bmit a re%ised ret$rn, in F"'% ST-3, in *')7;)64*$, to correct a mistaCe or omission,
ithin a period of 30 (4=5 from the date of s$bmission of the original ret$rn&
,t has been clarified that here an assessee s$bmits a re%ised ret$rn, the F'$;$#4+* (4*$G for the p$rpose of
reco%er* of ser%ice tax, if an*, $nder section ;3 of the "ct shall be the date of s$bmission of s$ch re%ised
ret$rn-
2-/ C"+*$+*5 "8 *<$ '$*:'+
(eneral details, liCe financial *ear, period of ret$rn, name of the assessee, registration n$mber and address
of the premises for hich ret$rn is being filed, categor* of ser%ices are re7$ired to be f$rnished& "part from
this, other significant details also need to be f$rnished&
!or instance-
'i) (ross amo$nt recei%ed in mone* against ser%ice pro%ided
'ii) (ross amo$nt recei%ed in mone* in ad%ance for ser%ice to be pro%ided
'iii) /al$e on hich ser%ice tax is exempt#not pa*able
'i%) ("<2; challan date and n$mber
'%) "batement amo$nt claimed
'%i) :otification n$mber of abatement and exemption
'%ii) Ser%ice tax pa*able
'%iii) Ed$cation cess pa*able
'ix) Credit details for ser%ice tax pro%ider#recipient
2-1 R$*:'+ &= )+7:* 5$'#)6$ ()5*')&:*"'
The inp$t ser%ice distrib$tor, shall f$rnish a half *earl* ret$rn in s$ch form as ma* be specified, b*
notification, b* C4EC, d$ring the said half *ear to the A$risdictional S$perintendent of Central Excise, not
later than the last da* of the month folloing the half *ear period&
2-2 S)+?;$ '$*:'+ 8"' %:;*)7;$ 5$'#)6$ 7'"#)($'5
F);)+? "8 R$*:'+5 114
!or an assesee ho pro%ides more than one taxable ser%ice, onl* a single ret$rn ill be s$fficient& >oe%er,
the details in each of the col$mns of the !orm ST23 ha%e to be f$rnished separatel* for each of the taxable
ser%ice rendered b* him&
2-3 N); '$*:'+
E%en if no ser%ice has been pro%ided d$ring a half *ear and no ser%ice tax is pa*ableK the assessee has to file
a :il ret$rn ithin the prescribed time limit&
2-10 F)'5* '$*:'+
E%er* assessee shall f$rnish to the S$perintendent of Central Excise at the time of filing of ret$rn for the
first time or the 31st da* of Gan$ar*, 2008, hiche%er is later, a list in d$plicate, of2
'i) all the records prepared or maintained b* the assessee for acco$nting of transactions in regard to,2
'a) pro%iding of an* ser%ice, hether taxable or exemptedK
'b) receipt or proc$rement of inp$t ser%ices and pa*ment for s$ch inp$t ser%icesK
'c) receipt, p$rchase, man$fact$re, storage, sale, or deli%er*, as the case ma* be, in regard of inp$ts and
capital goodsK
'd) other acti%ities, s$ch as man$fact$re and sale of goods, if an*&
'ii) all other financial records maintained b* him in the normal co$rse of b$siness&
2-11 E-8);)+? "8 '$*:'+5
.-&ilin$ o& returns is #andator% &or the assessees. :ith e&&ect &ro# 01.10.2011( ever% assessee will have to
sub#it hal&-%earl% service ta! return electronicall%( irres'ective o& the a#ount o& service ta! 'aid b% hi#
in the 'recedin$ &inancial %ear.
6t is convenient &or the assessee to &ile the service ta! returns &ro# his o&&ice( residence or an% other 'lace
o& choice( throu$h the 6nternet( b% usin$ a co#'uter.
;) S%ste#s" has issued co#'rehensive instructions outlinin$ the 'rocedure &or electronic &ilin$ o&
Central .!cise dut% and Service Ta! returns and electronic 'a%#ent o& ta!es under 8C.S. The said
instructions outline the re$istration 'rocess &or new assessees( e!istin$ assessees( non<assessees and &or
=ar$e Ta!'a%ers >nits( ste's &or 're'arin$ and &ilin$ o& return( use o& ?@= Sche#a &or &ilin$ dealerAs
return( 'rocedure &or obtainin$ ac,nowled$e#ent o& e-&iled return( 'rocedure &or e-'a%#ent etc.
2-12 S6<$%$ 8"' 5:&%)55)"+ "8 '$*:'+5 *<'":?< S$'#)6$ T49 R$*:'+ P'$74'$'5 !S$6*)"+ 11,
Section ;1 pro%ides for the scheme for s$bmission of ret$rns thro$gh Ser%ice Tax <et$rns +reparers& Section
;1 empoers the Central 4oard of Excise and C$stoms '4oard) to frame a Scheme for the p$rposes of
enabling an* person or class of persons to prepare and f$rnish a ret$rn $nder section ;0 and a$thorise a
Ser%ice Tax <et$rn +reparer to act as s$ch $nder the Scheme& >ence, C4EC has framed the Ser%ice Tax
<et$rn +reparer Scheme, 2009 notified thro$gh Notification $/2009 ST dated 03.02.2009.
" S$'#)6$ T49 R$*:'+ P'$74'$' shall assist the 7$'5"+ "' 6;455 "8 7$'5"+5 to prepare and f$rnish the ret$rn
in s$ch manner as ma* be specified in the Scheme framed $nder this section&
The Scheme framed b* the 4oard ma* pro%ide for the folloing, namel*-N
'a) the manner in hich and the period for hich the Ser%ice Tax <et$rn +reparer shall be a$thorised $nder
s$b2section '1)K
'b) the ed$cational and other 7$alifications to be possessed, and the training and other conditions re7$ired to
be f$lfilled, b* a person to act as a Ser%ice Tax <et$rn +reparerK
F);)+? "8 R$*:'+5 110
'c) the code of cond$ct for the Ser%ice Tax <et$rn +reparerK
'd) the d$ties and obligations of the Ser%ice Tax <et$rn +reparerK
'e) the circ$mstances $nder hich the a$thorisation gi%en to a Ser%ice Tax <et$rn +reparer ma* be
ithdranK
'f) an* other matter hich is re7$ired to be, or ma* be, specified b* the Scheme for the p$rposes of this
section&
M$4+)+? "8 S$'#)6$ T49 R$*:'+ P'$74'$'
BS$'#)6$ T49 R$*:'+ P'$74'$'C means an* indi%id$al, ho has been a$thorised to act as a Ser%ice Tax
<et$rn +reparer $nder the Scheme framed $nder this section&
M$4+)+? "8 7$'5"+ "' 6;455 "8 7$'5"+5
BP$'5"+ "' 6;455 "8 7$'5"+5C means s$ch person, as ma* be specified in the Scheme, ho is re7$ired to
f$rnish a ret$rn re7$ired to be filed $nder section ;0&
F);)+? "8 R$*:'+5 11/
PRACTICE MANUAL
R:$5*)"+ 1
"nser the folloing 7$estions-2
'a) ?hich are the doc$ments to be s$bmitted along ith ser%ice tax ret$rnQ
'b) ?ho are the persons liable to file ser%ice tax ret$rnsQ
'c) ?hether ser%ice tax ret$rn can be f$rnished after the d$e dateQ
'd) 0r& <aA$ is a m$ltiple ser%ice pro%ider and files onl* a single ret$rn& State ith reasons hether he
can do soQ
A+5>$'
(4) "long ith ser%ice tax 'ST23) ret$rn, the folloing doc$ments sho$ld be attached-
'i) copies of ("<2; challans hich indicate the pa*ment of ser%ice tax for the months#7$arter
co%ered in the half2*earl* ret$rn&
'ii) memorand$m in !orm ST23" gi%ing f$ll details of the difference beteen the amo$nt of
pro%isional amo$nt of tax deposited and the act$al amo$nt pa*able for each month& This
memorand$m '!orm ST23") is to be attached onl* hen the assessee opts for pro%isional
pa*ment of ser%ice tax&
'b) Section ;0'1) of the !inance "ct, 1994, inter alia, pro%ides that e%er* person liable to pa* ser%ice tax
shall himself assess the tax d$e on the ser%ices pro%ided b* him and shall f$rnish a ret$rn to the
S$perintendent of Central Excise&
S$b2section '2) of section ;0 stip$lates that certain notified person or class of persons shall also
f$rnish to the S$perintendent of the Central Excise, a ret$rn in s$ch form and in s$ch manner and at
s$ch fre7$enc* as ma* be prescribed&
'c) " dela*ed ret$rn can be f$rnished b* pa*ing the prescribed late fee& Section ;0'1) of the !inance "ct,
1994, inter alia, pro%ides for filing of periodical ret$rn after the d$e date ith the prescribed late fee
of not more than ` 20,000#2&
'd) Res, 0r& <aA$ can file a single ret$rn tho$gh he is a m$ltiple ser%ice pro%ider& >e has to f$rnish the
details in each of the col$mns of the !orm :o&ST23 separatel* for each of the taxable ser%ices
rendered b* him& Th$s, instead of shoing a l$mp s$m fig$re for all the ser%ices together, ser%ice2
ise details sho$ld be pro%ided in the ret$rn&
R:$5*)"+ 2
Hist the doc$ments to be s$bmitted alongith the first ser%ice tax ret$rn&
A+5>$'
E%er* assessee shall f$rnish to the S$perintendent of Central Excise at the time of filing the ret$rn for the
first time or 31st Gan$ar*, 2008 hiche%er is later, a list of folloing doc$ments in d$plicate-
'a) all the records prepared or maintained b* the assessee for acco$nting of transactions in regard to
'i) pro%iding of an* ser%ice, hether taxable or exemptedK
F);)+? "8 R$*:'+5 111
'ii) receipt or proc$rement of inp$t ser%ices and pa*ment for themK
'iii) receipt, p$rchase, man$fact$re, storage, sale or deli%er*, as the case ma* be, in regard to
inp$ts and capital goodsK
'i%) other acti%ities s$ch as man$fact$re and sale of goods, if an*&
'b) all other financial records maintained b* him in the normal co$rse of b$siness&
R:$5*)"+ 3
?hat do *o$ mean b* e2filing of ret$rnsQ ,s there an* facilit* of e2filing of ser%ice tax ret$rnsQ
A+5>$'
E2filing is a facilit* for the electronic filing of ser%ice tax ret$rns b* the assessee from his office, residence
or an* other place of choice, thro$gh the internet, b* $sing a comp$ter& E2filing of ret$rns is mandator* for
the assessees& )*< $88$6* 8'"% 01-10-2011. $#$'= 455$55$$ >);; <4#$ *" 5:&%)* <4;8-=$4';= 5$'#)6$ *49
'$*:'+ $;$6*'"+)64;;=. )''$57$6*)#$ "8 *<$ 4%":+* "8 5$'#)6$ *49 74)( &= <)% )+ *<$ 7'$6$()+? 8)+4+6)4;
=$4'-
C4EC has rolled o$t an application called "CES'"$tomation of Central Excise and Ser%ice Tax) for
a$tomation of maAor processes liCe ret$rns, registration, etc&
The assesses can electronicall* file stat$tor* ret$rns of Central Excise and Ser%ice Tax b* choosing one of
the to facilities being offered b* the 9epartment at present -
1& the* can file it online, or
2& donload the off2line ret$rn $tilities hich can be filled2in off2line and $ploaded to the s*stem
thro$gh the internet&
R:$5*)"+ 4
State the d$e dates for filing of ser%ice tax ret$rns& ?ill the dela*ed filing of ser%ice tax ret$rn res$lt in
pa*ment of an* late feeQ ,f so, ho m$chQ
A+5>$'
The ser%ice tax ret$rn 'in !orm ST23) sho$ld be filed on half *earl* basis b* the 23th of the month folloing
the partic$lar half2*ear& The d$e dates on this basis are as $nder-
I4;8 =$4' D:$ (4*$
1st "pril to 30th September 23th Bctober
1st Bctober to 31st 0arch 23th "pril
,n case the d$e date of filing of ret$rn falls on a p$blic holida*, the assessee can file the ret$rn on the
immediatel* s$cceeding orCing da*&
Res, late fee ill be le%ied for dela* in f$rnishing of the ser%ice tax ret$rn& The prescribes late is gi%en
here$nder-
S- N"-
P$')"( "8 ($;4= L4*$ 8$$
P4'*)6:;4'5 $
'a)
'b)
13 da*s from the date prescribed for s$bmission of the ret$rn
4e*ond 13 da*s b$t not later than 30 da*s from the date
prescribed for s$bmission of the ret$rn&
300
1,000
F);)+? "8 R$*:'+5 112
'c) 4e*ond 30 da*s from the date prescribed for s$bmission of the
ret$rn
"n amo$nt of ` 1,000 pl$s `100
for e%er* da* from the 31st da*
till the date of f$rnishing the
said ret$rn
>oe%er, the total late fee for dela*ed s$bmission sho$ld not exceed ` 20,000
R:$5*)"+ 0
?hat is the late fee pa*able for dela* in f$rnishing the ser%ice tax ret$rnQ Can the same be ai%edQ
A+5>$'
The late fee pa*able for dela* in s$bmitting the ser%ice tax ret$rn is f$rnished belo-
S- N"- P$')"( "8 ($;4= (N"- "8 (4=5 8'"% *<$ (:$
(4*$ "8 8);)+? *<$ '$*:'+)
L4*$ 8$$ ($ )
'a)
'b)
'c)
13 da*s
11 5 30 da*s
4e*ond 30 da*s
300
1000
` 1000 pl$s ` 100 for e%er*
da* of dela* be*ond 30 da*s&
>oe%er, the total late fee pa*able shall not exceed ` 20,000&
4)#$' "8 ;4*$ 8$$- ?here the gross amo$nt of ser%ice tax pa*able is nil, the Central Excise Bfficer ma*, on
being satisfied that there as s$fficient ca$se for the dela*, red$ce or ai%e the late fee&
R:$5*)"+ /
State the contents of Ser%ice tax ret$rn&
A+5>$'
(eneral details, liCe financial *ear, half *ear period '"pril2September or Bctober20arch), name of the
assessee, registration n$mber of the premises for hich ret$rn is being filed, categor* of taxable ser%ices are
re7$ired to be f$rnished& "part from this, some significant month2ise details also need to be f$rnished& !or
instance-
'i) amo$nt recei%ed toards taxable ser%ice
'ii) amo$nt recei%ed in ad%ance toards taxable ser%ice to be pro%ided
'iii) amo$nt billed for exempted ser%ices and ser%ices exported itho$t pa*ment of tax
'i%) amo$nt billed for ser%ices on hich tax is to be paid
'%) abatement claimed 2 %al$e
'%i) notification n$mber of abatement and exemption
'%ii) ser%ice tax pa*able
'%iii) ed$cation cess pa*able
'ix) ("<2; challan date and n$mber
F);)+? "8 R$*:'+5 113
'x) credit details for ser%ice tax pro%ider#recipient
R:$5*)"+ 1
'i) Can the ser%ice tax ret$rn be re%isedQ ,f so, state the rele%ant period before hich it can be doneQ
'ii) 0r& "marnath, a registered ser%ice pro%ider did not render an* taxable ser%ices d$ring the financial
*ear 2012213& ?hether he is re7$ired to file ser%ice tax ret$rnQ ,s he liable for penalt* for non2filingQ
,f so, ho m$chQ
A+5>$'
'i) Res, the ser%ice tax ret$rn can be re%ised b* an assessee& "n assessee can s$bmit a re%ised ret$rn,
in !orm ST23, in triplicate, to correct a mistaCe or omission&
The ser%ice tax ret$rn can be re%ised ithin a period of 90 da*s from the date of s$bmission of
the original ret$rn&
'ii) E%er* assessee has to file a half *earl* ret$rn in !orm ST23& E%en if no ser%ice is pro%ided d$ring
a half *ear, and no ser%ice tax is pa*ableK a :,H ret$rn has to be filed& Therefore, 0r& "marnath is
re7$ired to file a ser%ice tax ret$rn e%en if he did not render an* taxable ser%ices d$ring the
financial *ear 2012213&
Res, 0r& "marnath is liable for penalt* for non2filing of ret$rn& The maxim$m amo$nt of penalt*
hich can be le%ied for non2filing of ret$rn is ` 20,000& >oe%er, the Central Excise Bfficer ma*
red$ce or ai%e the penalt* if he is satisfied that there is s$fficient reason for not filing the ret$rn&
"s per <$le ;C of the Ser%ice Tax <$les, 1994, the prescribed late fee for f$rnishing a dela*ed
ret$rn is-
S- N"- P$')"( "8 ($;4= L4*$ 8$$ ($)
a)
b)
c)
13 da*s from the date prescribed for
s$bmission of the ret$rn&
4e*ond 13 da*s b$t not later than 30 da*s from
the date prescribed for s$bmission of the ret$rn&
4e*ond 30 da*s from the date prescribed for
s$bmission of the ret$rn&
300
1,000
"n amo$nt of ` 1,000 pl$s ` 100 for e%er* da*
from the 31st da* till the date of f$rnishing the
said ret$rn&
R:$5*)"+ 2
+S Htd& has paid ser%ice tax of ` 9 laCh d$ring the financial *ear 2011212&Ro$ are re7$ired to examine
hether it is re7$ired to file ser%ice tax ret$rn electronicall* for the half *ear ended September 30, 2012&
A+5>$'
Ser%ice Tax <$les, 1994 ha%e been amended to pro%ide that e%er* assessee ill ha%e to s$bmit half2*earl*
ser%ice tax ret$rn electronicall*, irrespecti%e of the amo$nt of ser%ice tax paid b* him in the preceding
financial *ear& The amendment o$ld be effecti%e from Bctober 1st, 2011& >ence, +S Htd& has to file ser%ice
tax ret$rn electronicall* for the half *ear ended September 30, 2012&
R:$5*)"+ 3
+rasad . Co& seeCs *o$r ad%ise for the folloing in the context of ser%ice tax-
,t ants to file re%ised ser%ice tax ret$rn e%en tho$gh the original ret$rn as filed belatedl*&
Ro$r anser m$st be ith reasons&
A+5>$'
<e%ised ser%ice tax ret$rns ma* be filed ithin 90 da*s from the date of filing original ret$rn& E%en if the
original ret$rn is filed belatedl*, the ret$rn co$ld be re%ised b* filing a re%ised ret$rn&
EXERCISES
F);)+? "8 R$*:'+5 120
1& ?hich of the folloing statement is tr$e ith regards to ser%ice tax ret$rnQ
'a) " half *earl* ret$rn is to be filed b* each assessee&
'b) " 7$arterl* ret$rn is to be filed b* each assessee&
'c) " monthl* ret$rn is to be filed b* each assessee&
'd) "n ann$al ret$rn is to be filed b* each assessee&
2& ?hat is the d$e date for filing ret$rnsQ
'a) 3
th
of the month folloing the partic$lar 7$arter
'b) 23
th
of the month folloing the partic$lar month
'c) 23
th
of the month folloing the partic$lar half *ear
'd) 3
th
of "pril each *ear&
3& The prescribed form for ser%ice tax ret$rn is-
'a) !orm 3C9
'b) !orm 2E
'c) !orm ST23
'd) !orm ("<2;
4& The contents of the ser%ice tax ret$rn do not incl$de-
'a) amo$nt billed for exempted ser%ices and ser%ices exported itho$t pa*ment of tax
'b) amo$nt recei%ed toards taxable ser%ice
'c) amo$nt recei%ed in ad%ance toards taxable ser%ice to be pro%ided
'd) the income or loss of the ser%ice pro%ider
3& !or an assessee ho pro%ides 3 taxable ser%ices-
'a) filing of ret$rn is not comp$lsor* at all
'b) filing of a single ret$rn is s$fficient
'c) filing of separate ret$rns for all 3 ser%ices is necessar*
1& ?hich doc$ments are to be s$bmitted along ith the first ret$rnQ
;& ?hen sho$ld the ret$rn be filed if the d$e date happens to be a p$blic holida*Q
F);)+? "8 R$*:'+5 121
8& O[P, an indi%id$al, has not pro%ided an* ser%ices in the half *ear period of "pril to September&
Sho$ld he file an* ret$rn for this periodQ (i%e *o$r opinion&
9& ?rite a note on the manner of pa*ment of ser%ice tax&
A+5>$'5
1&'a)K 2&'c)K 3&'c)K 4&'d)K 0-'b)
122
(SELF READING)
FORM ST-1
A77;)64*)"+ 8"'% 8"' '$?)5*'4*)"+ :+($' 5$6*)"+ /3 "8 *<$ F)+4+6$ A6*. 1334 (32 "8 1334)
'%#ease tic& a''ro'riate (o) (e#o*)
:e <egistration
"mendments to information declared b* the existing <egistrant&
<egistration :$mber in case of existing <egistrant seeCing "mendment &&&&&&&&&&&&&
1- 'a) :ame of applicant

'() "ddress of the applicant



2- 9etails of +ermanent "cco$nt :$mber '+":) of the applicant
'a) ?hether +": has been iss$ed b* the ,ncome Tax 9epartment

Res :o
'() ,f Res, the +":

'c) :ame of the applicant 'as appearing in +":)

3- 'a) Constit$tion of applicant 'TicC as applicable)
'i) +roprietorship

'ii) +artnership

'iii) <egistered +$blic Himited Compan*

'iv) <egistered +ri%ate Himited Compan*

'v) <egistered Tr$st

'vi) Societ*#Cooperati%e Societ*

'vii) Bthers

'() :ame, "ddress and +hone :$mber of +roprietor#+artner#9irector
'i) :ame

'ii) "ddress

123
'iii) +hone :$mber

4- Categor* of <egistrant '+lease ticC appropriate box)
'a) +erson liable to pa* ser%ice tax
'i) Ser%ice pro%ider
'ii) Ser%ice recipient
'() Bther person#class of persons
'i) ,np$t ser%ice distrib$tor
'ii) "n* pro%ider of taxable ser%ice hose aggregate
%al$e of taxable ser%ice in a financial *ear
exceeds nine laCh r$pees

0- 'a) :at$re of <egistration 'TicC as applicable)
'i) <egistration of a single premise
'ii) Centralised <egistration for more than one
premises

'() "ddress of premises for hich <egistration is so$ght
'i) :ame of +remises#4$ilding

'ii) !lat#9oor#4locC :o&

'iii) <oad#Street#Hane

'iv) /illage#"rea#Hane

'v) 4locC#Tal$C#S$b29i%ision#Ton

'vi) +ost office

'vii) Cit*#9istrict

'viii)State#Enion Territor*

'i)) +,:

')) Telephone :os&

')i) !ax :o&

')ii) E2mail "ddress

'c) ,n case of application for Centralised <egistration, f$rnish address of all the premises from here
taxable ser%ices are pro%ided or intended to be pro%ided 6!ormat as per 3'() abo%e8
'd) ,n case of application for ,np$t Ser%ice 9istrib$tor, f$rnish address of all the premises to hich
credit of inp$t ser%ices is distrib$ted or intended to be distrib$ted 6!ormat as per 3'() abo%e8
124
/- "ddress of the premises or office pa*ing ser%ice tax $nder centralised billing or centralised acco$nting
$nder s$b2r$les '2) and '3") of r$le 4 of the Ser%ice Tax <$les, 1994&
"ddress



1- 9escription of taxable ser%ices pro%ided or to be pro%ided b* applicant
S& :o& 9escription of ser%ice <ele%ant cla$se of section 13 of the !inance "ct, 1994, to be
indicated, if possible
'1) '2) '3)
2- :ame, 9esignation and "ddress of the "$thori=ed Signator*#Signatories-



DECLARATION
,, &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&hereb* declare that the information gi%en in this application form is tr$e,
correct and complete in e%er* respect and that , am a$thori=ed to sign on behalf of the <egistrant&
'a)!or ne registration-
, o$ld liCe to recei%e the <egistration Certificate b* mail#b* hand#e2mail
'()!or amendments to information pertaining to existing <egistrant-
................................................
9ate from hich amendments are made- &&&&&&&&&&&&&&&
'Self certified photocop* of <egistration Certificate is re7$ired to be enclosed)

+Si,nat-re of t.e a''#icant/a-t.ori/ed 'erson *it. sta0'1
2ate ..............................
%#ace .............................
ACENOLEDGEMENT
'To be gi%en in the e%ent <egistration Certificate is not iss$ed at the time of receipt of application for
<egistration)
, hereb* acCnoledge the receipt of *o$r "pplication !orm
'a) !or ne <egistration
'"s desired, the :e <egistration Certificate ill be sent b* e2mail#mail#handed o%er to *o$ in person
on&&&&&&&&&&&&&&)
'() !or amendments to information in existing <egistration
Si,nat-re of t.e 3fficer of 4entra# E)cise
+*it. Na0e and 3fficia# Sea#1
2ate ..............................
120
FORM ST-2
C$'*)8)64*$ "8 '$?)5*'4*)"+ :+($' 5$6*)"+ /3 "8 *<$ F)+4+6$ A6*. 1334 (32 "8 1334)
Shri#0s& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 'name ith complete address of premises) ha%ing
$ndertaCen to compl* ith the conditions prescribed in Chapter / of the !inance "ct, 1994 read ith the
Ser%ice Tax <$les, 1994, and an* orders iss$ed there$nder is hereb* certified to ha%e been registered ith
the Central Excise 9epartment& The Ser%ice Tax Code and other details are mentioned here$nder&
1- +": :o&
2- Ser%ice Tax Code
'<egistration :$mber)
3- Taxable Ser%ices
4- "ddress of b$siness premises-
'i) :ame of +remises#4$ilding

'ii) !lat#9oor#4locC :o&

'iii) <oad#Street#Hane

'iv) /illage#"rea#Hane

'v) 4locC#Tal$C#S$b29i%ision#Ton

'vi) +ost office

'vii) Cit*#9istrict

'viii) State#Enion Territor*

'i)) +,: Telephone :os&

')) E2mail "ddress

0- +remises code

/- This certificate is iss$ed incorporating the changes intimated b* the applicant and the pre%io$s certificate
of registration bearing <egistration :$mber &&&&&&&&&&&&&&&& iss$ed on &&&&&&&& stand cancelled&
6Sl. Nos. 2( 3( 0 to be re'eated &or ever% 're#ises bein$ $ranted a re$istration under this certi&icate.
2re#ises code is $iven b% the de'art#ent based on the Co##issionerate B ;ivisionB 3an$e B Sl. No.8
N"*$5:
1. ,n case the registrant starts pro%iding an* other taxable ser%ice 'other than those mentioned abo%e), he
shall intimate the department&
2. ,n case the registrant starts billing from other premises 'other than those mentioned abo%e), he shall
intimate the department&
12/
3. These intimations and an* other information hich registrant ishes to bring to the notice of the
department can be s$bmitted on2line b* the registrant after logging on to ebsite&
4. This registration certificate is not transferable&
". Hist of "cco$nting Codes is enclosed& These ma* in%ariabl* be f$rnished in the challan at the time of
maCing pa*ment of ser%ice tax&
%#ace ....................... Na0e and si,nat-re of t.e 4entra# E)cise
2ate ....................... 3fficer *it. officia# sea#
CC- 'b* e2mail) ToN
'1) The +a* and "cco$nts Bfficer 'Commissionerate :ame)
'2) The S$perintendent of Central Excise '?here premises are located)&
121
FORM ST-3
'<et$rn $nder section ;0 of the !inance "ct, 1994 read ith r$le ; of Ser%ice Tax <$les,
1994)
'+lease see the instr$ctions caref$ll* before filling the !orm)

+"<T2" (E:E<"H ,:!B<0"T,B:
"1
B<,(,:"H <E/,SE9
'+lease ticC hiche%er is applicable)
"2 STC :$mber-

"3 :ame of the assessee-


"4
!inancial Rear 2
"3 <et$rn for the period '+lease ticC the appropriate period)
"pril 5 September

Bctober 2 0arch
"1
"1&1 >as the assessee opted to operate as IHarge Taxpa*erJ Enit 6ORP#P:P8+!s defined
-nder 5-#e 2+ea1 of t.e 4entra# E)cise 5-#es, 2002 read *it. 5-#e 2 +11 +cc1 of t.e
Service Ta) 5-#es, 19941
Res#:o
"1&2 ,f repl* to col$mn "1&1 is Res, name of Harge Taxpa*er Enit opted for 'choose from
Hist)
9ropdon
Hist of
HTEs
"; +remises Code :$mber-

"8 Constit$tion of the assessee '+lease ticC the appropriate categor*)
"8&1 ,ndi%id$al#+roprietar* "8&2 Himited liabilit* +artnership
"8&3 <egistered +$blic Htd& Compan* "8&4 <egistered +ri%ate Htd& Compan*
"&8&3 <egistered Tr$st "8&1 Societ*#Co2operati%e Societ*
" 8&; " firm "8&8 >ind$ Endi%ided !amil*
122
" 8&9 (o%ernment "8&10 "n association of persons or bod* of
indi%id$als, hether incorporated or not

"&8&11 " local a$thorit* "8&12 E%er* artificial A$ridical person, not
falling ithin an* of the preceding categories

"9 Taxable Ser%ice's) for hich tax is being paid

"10 "ssessee is liable to pa* ser%ice tax on this taxable ser%ice as 5
'+lease ticC the appropriate categor*)
"10&1 " Ser%ice +ro%ider $nder
Section 18'1)
"10&2 " Ser%ice <ecei%er $nder
Section 18'2)

" 10&3 " Ser%ice +ro%ider $nder
partial re%erse charge $nder pro%iso to
Section 18'2)

"10&4 " Ser%ice <ecei%er $nder
partial re%erse charge $nder pro%iso
to Section 18'2)

" 10&3 ,f co%ered b* "10&3 abo%e,
then the percentage of ser%ice tax
+a*able as pro%ider of ser%ice
"10&1 ,f co%ered b* "10&4 abo%e,
then the percentage of ser%ice tax
+a*able as recipient of ser%ice

"11 E[E0+T,B:S
"11&1>as the assessee a%ailed benefit of an* exemption notification 'ORP#O:P)
"11&2,f repl* to "11&1 is ORP, please f$rnish :otification :os& and Sl& :o& in the notification $nder
hich s$ch exemption is a%ailed

&
"12 "4"TE0E:TS
"12&1 >as an* abatement from the %al$e of ser%ices been claimed 'ORP#O:P)
"12&2 ,f repl* to "12&1 is ORP, please f$rnish :otification :os& and Sl& :o& in the notification
$nder hich s$ch abatement is a%ailed-

&
"13 +<B/,S,B:"H "SSESS0E:T
"13&1?hether pro%isionall* assessed 'ORP#O:P)
"13&2 ,f repl* to "13&1 is ORP, please f$rnish +ro%isional "ssessment Brder :o& .
9ate


+"<T24 /"HEE B! T"["4HE SE</,CE ":9 SE</,CE T"[ +"R"4HE
123
'TB 4E 9,S+H"RE9 SE</,CE2?,SE)
41 !B< SE</,CE +<B/,9E<
0onth # ^$arter "pr#Bct 0a*#:o% G$n#9ec G$l*#Gan "$g#!eb Sep#0ar
41&1 (ross amo$nt 'excl$ding amo$nts
recei%ed in ad%ance, amo$nts
taxable on receipt basis, for hich
bills#in%oices#challans or an* other
doc$ment ma* not ha%e been
iss$ed) for hich
bills#in%oices#challans or an* other
doc$ments are iss$ed relating to
ser%ice pro%ided or to be pro%ided
'incl$ding export of ser%ice and
exempted ser%ice)

41&2 "mo$nt recei%ed in ad%ance for
ser%ices for hich
bills#in%oices#challans or an* other
doc$ments ha%e not been iss$ed

41&3 "mo$nt taxable on receipt basis
$nder third pro%iso to r$le 1'1) of
Ser%ice Tax <$les, 1994 for hich
bills#in%oices#challans or an* other
doc$ments ha%e not been iss$ed

41&4 "mo$nt taxable for ser%ices
pro%ided for hich
bills#in%oices#challans or an* other
doc$ments ha%e not been iss$ed

41&3 0one* e7$i%alent of other
considerations charged, if an*, in a
form other than mone*

41&1 "mo$nt on hich ser%ice tax is
pa*able $nder partial re%erse
charge

41&; (ross Taxable "mo$nt
41&; X 41&1]41&2]41&3]41&4]
41&3]41&1

41&8 "mo$nt charged against export of
ser%ice pro%ided or to be pro%ided

41&9 "mo$nt charged for exempted
ser%ice pro%ided or to be pro%ided
'other than export of ser%ice gi%en
at 41&8 abo%e)

41&10 "mo$nt charged as p$re agent
41&11 "mo$nt claimed as abatement
41&12 "n* other amo$nt claimed as
ded$ction, please specif*&

41&13 Total "mo$nt claimed as
9ed$ction

130
41&13X41&8]41&9]41&10]41&11]
41&12
41&14 :ET T"["4HE /"HEE
41&14X41&; 2 41&13

41&13 Ser%ice tax rate ise breaC $p of
:ET T"["4HE /"HEE '41&14)-
"d2%alorem rate

41&11 Specific rate
'applicable as per r$le 1 of ST<)

41&1; Ser%ice tax pa*able
41&18 Hess <.9 cess pa*able
41&19 :et Ser%ice Tax pa*able
'41&19X41&1;241&18)

41&20 Ed$cation Cess pa*able
41&21 Secondar* . >igher Ed$cation
Cess pa*able

42 5 !B< SE</,CE <ECE,/E<
0onth # ^$arter "pr#Bct 0a*#:o% G$n#9ec G$l*#Gan "$g#!eb Sep#0ar
42&1 (ross amo$nt 'excl$ding
amo$nts paid in ad%ance,
amo$nts taxable on pa*ment
basis, for hich
bills#in%oices#challans or an*
other doc$ment ma* not
ha%e been iss$ed) for hich
bills#in%oices#challans or an*
other doc$ments are iss$ed
relating to ser%ice recei%ed
or to be recei%ed

42&2 "mo$nt paid in ad%ance for
ser%ices for hich
bills#in%oices#challans or an*
other doc$ments ha%e not
been iss$ed

42&3 "mo$nt taxable on receipt
basis $nder third pro%iso to
r$le 1'1) of Ser%ice Tax
<$les, 1994 for hich
bills#in%oices#challans or an*
other doc$ments ha%e not
been iss$ed

42&4 0one* e7$i%alent of other
considerations paid, if an*, in
a form other than mone*

42&3 "mo$nt paid for ser%ices
recei%ed from :on2Taxable
territor* 2 ,mports

42&1 "mo$nt paid for ser%ices
131
recei%ed from :on2Taxable
territor* 5 Bther than
,mports
42&; "mo$nt on hich ser%ice tax
is pa*able $nder partial
re%erse charge

42&8 (ross Taxable "mo$nt
42&8X
42&1]42&2]42&3]42&4]
42&3]42&1]42&;

42&9 "mo$nt paid for exempted
ser%ices recei%ed or to be
recei%ed

42&10 "mo$nt paid as p$re agent
42&11 "mo$nt claimed as
abatement

42&12 "n* other amo$nt claimed as
ded$ction, please specif*

42&13 Total "mo$nt claimed as
9ed$ction
42&13 X
42&9]42&10]42&11]42&12

42&14 :ET T"["4HE /"HEE
42&14 X 42&8242&13

42&13 Ser%ice tax rate ise breaC
$p of :ET T"["4HE
/"HEE '42&14)-
"d2%alorem rate

42&11 Specific rate 'applicable as
per r$le 1 of ST<)

42&1; Ser%ice tax pa*able
42&18 Hess <.9 cess pa*able
42&19 :et Ser%ice Tax pa*able
'42&19X42&1;242&18)

42&20 Ed$cation Cess pa*able
42&21 Secondar* . >igher
Ed$cation Cess pa*able


+"<T2C SE</,CE T"[ +",9 ,: "9/":CE
"mo$nt of Ser%ice Tax paid in ad%ance $nder s$b2r$le '1") of <$le 1 of ST <$les-
0onth # ^$arter "pr#Bct 0a*#:o% G$n#9ec G$l*#Gan "$g#!eb Sep#0ar
C1 "mo$nt of ser%ice tax
deposited in ad%ance

C2 "mo$nt of Ed$cation Cess
deposited in ad%ance

C3 " "mo$nt of Secondar* .
132
>igher Ed$cation
Cess deposited in
ad%ance
C4 Challan
:os&, date
. amo$nt
'i) :o&
9ate
"mo$nt
+"<T29 SE</,CE T"[ +",9 ,: C"S> ":9 T><BE(> CE:/"T C<E9,T
Ser%ice Tax, Ed$cation Cess, Secondar* . >igher Ed$cation Cess and other amo$nts paid
'To be filled b* a person liable to pa* ser%ice tax and not to be filled b* an ,np$t Ser%ice 9istrib$tor)-
0onth # ^$arter "pr#Bct 0a*#:o% G$n#9ec G$l*#Gan "$g#!eb Sep#0ar


91 ,n cash
92 4* CE:/"T credit
'not applicable here the ser%ice tax is liable to
be paid b* the <ecipient of Ser%ice)

93 4* adA$stment of amo$nt paid as ser%ice tax in
ad%ance $nder <$le 1'1") of the ST <$les

94 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax and adA$sted, b* taCing credit of s$ch
excess ser%ice tax paid, in this period $nder <$le
1'3) of the ST <$les

93 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax and adA$sted in this period $nder <$le
1'4") of the ST <$les

91 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax in respect of ser%ice of <enting of
,mmo%able +ropert*, on acco$nt of non2
a%ailment of ded$ction of propert* tax paid and
adA$sted in this period $nder <$le 1'4C) of the
ST <$les

9; 4* booC adA$stment in the case of specified
(o%ernment departments

98 Total Tax paid
98 X 91]92]93]94]93]91]9;

+"<T2E E9EC"T,B: CESS +",9 ,: C"S> ":9 T><BE(> CE:/"T C<E9,T
E1 ,n cash
E2 4* CE:/"T credit 'not applicable here the
ser%ice tax is liable to be paid b* the recipient of
ser%ice)

E3 4* adA$stment of amo$nt paid as ser%ice tax in
ad%ance $nder <$le 1'1") of the ST <$les

E4 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax and adA$sted, b* taCing credit of s$ch
excess ser%ice tax paid, in this period $nder <$le

133
1'3) of the ST <$les
E3 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax and adA$sted in this period $nder <$le
1'4") of the ST <$les

E1 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax in respect of ser%ice of <enting of
,mmo%able +ropert*, on acco$nt of non2
a%ailment of ded$ction of propert* tax paid and
adA$sted in this period $nder <$le 1'4C) of the
ST <$les

E; 4* booC adA$stment in the case of specified
(o%ernment departments

E8 Total Ed$cation Cess paid
E8XE1]E2]E3]E4]E3]E1]E;

+"<T2! SECB:9"<R. >,(>E< E9EC"T,B: CESS +",9 ,: C"S> ":9 T><BE(> CE:/"T
C<E9,T
!1 ,n cash
!2 4* CE:/"T credit 'not applicable here the
ser%ice tax is liable to be paid b* the recipient of
ser%ice)

!3 4* adA$stment of amo$nt paid as ser%ice tax in
ad%ance $nder <$le 1'1") of the ST <$les

!4 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax and adA$sted, b* taCing credit of s$ch
excess ser%ice tax paid, in this period $nder <$le
1'3) of the ST <$les

!3 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax and adA$sted in this period $nder <$le
1'4") of the ST <$les

!1 4* adA$stment of excess amo$nt paid earlier as
ser%ice tax in respect of ser%ice of <enting of
,mmo%able +ropert*, on acco$nt of non2
a%ailment of ded$ction of propert* tax paid and
adA$sted in this period $nder <$le 1'4C) of the
ST <$les

!; 4* booC adA$stment in the case of specified
(o%ernment departments

!8 Total Tax paid
!8X!1]!2]!3]!4]!3]!1]!;

+"<T ( 2 "<<E"<S, ,:TE<EST, +E:"HTR, ":R BT>E< "0BE:T ETC& +",9
(1 "rrears of re%en$e 'Tax amo$nt) paid in cash
(2 "rrears of re%en$e 'Tax amo$nt) paid b* $tilising
CE:/"T credit

(3 "rrears of Ed$cation Cess paid in cash
(4 "rrears of Ed$cation Cess paid b* $tilising CE:/"T
credit

(3 "rrears of Secondar* . >igher Ed$cation Cess paid in
cash

134
(1 "rrears of Secondar* . >igher Ed$cation Cess paid b*
$tilising CE:/"T credit

(; "mo$nt paid in terms of section ;3" of !inance "ct,
1994

(8 ,nterest paid 'in cash onl*)
(9 +enalt* paid 'in cash onl*)
(10 "mo$nt of Hate fee paid, if an*&
(11 "n* other amo$nt paid 'please specif*)
(12 Total pa*ment of arrears, interest, penalt* and an* other
amo$nt, etc& made
(12X'(1](2](3](4](3](1](;](8](9](10](11)

+"<T2>
>1 9ET",HS B! C>"HH": '%ide hich ser%ice tax ed$cation cess, secondar* and higher ed$cation cess
and other amo$nts ha%e been paid in cash)
Challan :os& ith date and amo$nt


'i) :o&
9ate
"mt&
'ii) :o&
9ate
"mt&
>2 So$rce doc$ments details for pa*ments made in ad%ance # adA$stment, for entries made at col$mns
93, 94, 93, 91, 9;K E3, E4, E3, E1, E;K !3, !4, !3, !1, !;K . (1 to (11
S& :o& and
description of
pa*ment entr* in
this ret$rn
0onth#
^$arter
Challan # 9oc$ment # Credit Entr*
<eference :$mber etc&
Challan #
9oc$ment 9ate
"mo$nt




66 +!ssessee #ia(#e to 'a7 service ta) on 8-arter#7 (asis 0a7 f-rnis. detai#s 8-arter *ise i.e. !'r-9-n, 9-#-
Se', 3ct-2ec, 9an-:ar1
+"<T2,
9ET",HS B! ,:+ET ST"(E CE:/"T C<E9,T
'To be filled b* a taxable ser%ice pro%ider onl* and not to be filled b* Ser%ice
<ecei%er liable to pa* ser%ice tax or ,np$t Ser%ice 9istrib$tor)-
,1 9ET",HS "4BET T>E "SSESSEE +<B/,9,:( E[E0+TE9 ":9 :B:2T"["4HE SE</,CE
B<
130
0":E!"CTE<,:( E[E0+TE9 E[C,S"4HE (BB9S-

,1&1 ?hether pro%iding an* exempted ser%ice or non2taxable ser%ice 'ORP#O:P)
,1&2 ?hether man$fact$ring an* exempted excisable goods 'ORP#O:P)
,1&3 ,f repl* to an* one of the abo%e is ORP, hether maintaining separate
acco$nt for receipt or cons$mption of inp$t ser%ice and inp$t goods 6refer
to <$le 1 '2) of CE:/"T Credit <$les, 20048'ORP#O:P)

,1&4

,f repl* to an* one of the col$mns ,1&1.,1&2 abo%e is ORP and ,1&3 is O:P,
hich option, from the belo mentioned options, is being a%ailed $nder
<$le 1'3) of the CE:/"T Credit <$les, 2004

,1&4&1 ?hether pa*ing an amo$nt e7$al to 1D of the %al$e of the exempted
goods and exempted ser%ices 6refer to <$le 1'3)'i) of CE:/"T Credit
<$les, 20048'ORP#O:P)K or

,1&4&2 ?hether pa*ing an amo$nt e7$i%alent to CE:/"T Credit attrib$table to
inp$ts and inp$t ser%ices $sed in or in relation to man$fact$re of exempted
goods or pro%ision of exempted ser%ices 6refer to <$le 1'3)'ii) of
CE:/"T Credit <$les, 20048'ORP#O:P)Kor

,1&4&3 ?hether maintaining separate acco$nt for receipt or cons$mption of inp$t
goods, taCing CE:/"T credit onl* on inp$ts '$sed in or in relation to the
man$fact$re of d$tiable final prod$cts excl$ding exempted goods and for
the pro%ision of o$tp$t ser%ices excl$ding exempted ser%ices) and pa*ing
an amo$nt e7$i%alent to CE:/"T Credit attrib$table to inp$t ser%ices
$sed in or in relation to man$fact$re of exempted goods or pro%ision of
exempted ser%ices 6refer to <$le 1'3)'iii) of CE:/"T Credit <$les, 20048
'ORP#O:P)

,2& "0BE:T +"R"4HE E:9E< <EHE 1'3) B! T>E CE:/"T C<E9,T <EHES,2004-
Sl&
:o&
0onth#^$arter "pr#
Bct
0a*#
:o%
G$n#
9ec
G$l*#
Gan
"$g#
!eb
Sep#
0ar
,2&1 /al$e of exempted goods cleared
,2&2 /al$e of exempted ser%ices pro%ided
,2&3 "mo$nt paid $nder <$le 1'3) of
CE:/"T Credit <$les, 2004, b*
debiting CE:/"T Credit acco$nt

,2&4 "mo$nt paid $nder <$le 1'3) of
CE:/"T Credit <$les, 2004, b*
cash

,2&3 Total amo$nt paid $nder <$le 1'3)
of CE:/"T Credit <$les, 2004
,2&3 X ,2&3 ] ,2&4

,3 CE:/"T C<E9,T T"ME: ":9 ET,H,SE9-
Sl&
:o&
0onth#^$arter "pr#
Bct
0a*#
:o%
G$n#
9ec
G$l*#
Gan
"$g#
!eb
Sep#
0ar

,3&1 9ET",HS B! CE:/"T C<E9,T B! SE</,CE T"[ ":9 CE:T<"H E[C,SE 9ETR
T"ME: ":9 ET,H,S"T,B: T>E<EB! 5

13/
,3&1&1 Bpening 4alance
,3&1&2 Credit taCen
,3&1&2&1 on inp$ts
,3&1&2&2 on capital goods
,3&1&2&3 on inp$t ser%ices recei%ed directl*
,3&1&2&4 as recei%ed from ,np$t Ser%ice 9istrib$tor
,3&1&2&3 from inter2$nit transfer b* a HTE
,3&1&2&1 "n* other credit taCen 'please specif*)
,3&1&2&; TBT"H C<E9,T T"ME: X
,3&1&2&;X ',3&1&2&1],3&1&2&2],3&1&2&3],3&1&2&4]
,3&1&2&3],3&1&2&1)

,3&1&3 Credit Etilised
,3&1&3&1 for pa*ment of ser%ice tax
,3&1&3&2 for pa*ment of Ed$cation Cess on taxable
ser%ices

,3&1&3&3 for pa*ment of Secondar* and >igher Ed$cation
Cess on taxable ser%ices

,3&1&3&4 for pa*ment of excise d$t* or an* other d$t*
,3&1&3&3 toards clearance of inp$t goods and capital
goods remo%ed as s$ch or after $se

,3&1&3&1 toards inter $nit transfer to HTE
,3&1&3&; for pa*ment of an amo$nt $nder r$le 1'3) of
CE:/"T Credit <$les, 2004

,3&1&3&8 for an* other pa*ments#adA$stments#re%ersal
'+lease specif*)

,3&1&3&9 TBT"H C<E9,T ET,H,SE9
,3&1&3&9X',3&1&3&1],3&1&3&2],3&1&3&3],3&1&3&4]
,3&1&3&3],3&1&3&1],3&1&3&;],3&1&3&8)

,3&1&4 Closing 4alance of CE:/"T credit
,3&1&4 X a',3&1&1 ] ,3&1&2&;) 5 ,3&1&3&9b


,3&2 9ET",HS B! CE:/"T C<E9,T B! E9EC"T,B: CESS T"ME: . ET,H,S"T,B:
T>E<EB! 5
,3&2&1 Bpening 4alance of Ed$cation Cess
,3&2&2 Credit of Ed$cation Cess taCen
,3&2&2&1 on inp$ts
,3&2&2&2 on capital goods
,3&2&2&3 on inp$t ser%ices recei%ed directl*
,3&2&2&4 as recei%ed from ,np$t Ser%ice 9istrib$tor
,3&2&2&3 from inter $nit transfer b* a HTE
,3&2&2&1 "n* other credit taCen 'please specif*)
,3&2&2&; Total credit of Ed$cation Cess taCen
,3&2&2&;X
',3&2&2&1],3&2&2&2],3&2&2&3],3&2&2&4]
,3&2&2&3],3&2&2&1)

,3&2&3 Credit of Ed$cation Cess $tilised
,3&2&3&1 for pa*ment of Ed$cation Cess on goods .
ser%ices

131
,3&2&3&2 toards pa*ment of Ed$cation Cess on
clearance of inp$t goods and capital goods
remo%ed as s$ch or after $se

,3&2&3&3 toards inter $nit transfer to HTE
,3&2&3&4 for an* other pa*ments#adA$stments#
re%ersal 'please specif*)

,3&2&3&3 Total credit of Ed$cation Cess $tilised
,3&2&3&3X
',3&2&3&1],3&2&3&2],3&2&3&3],3&2&3&4)

,3&2&4 Closing 4alance of Ed$cation Cess
,3&2&4Xa',3&2&1],3&2&2&;)2,3&2&3&3b


,3&3 9ET",HS B! CE:/"T C<E9,T B! SECB:9"<R ":9 >,(>E< E9EC"T,B: CESS
T"ME: . ET,H,S"T,B: T>E<EB! 5
,3&3&1 Bpening 4alance of S>EC
,3&3&2 Credit of S>EC taCen
,3&3&2&1 on inp$ts
,3&3&2&2 on capital goods
,3&3&2&3 on inp$t ser%ices recei%ed directl*
,3&3&2&4 as recei%ed from ,np$t Ser%ice 9istrib$tor
,3&3&2&3 from inter $nit transfer b* a HTE
,3&3&2&1 "n* other credit taCen 'please specif*)
,3&3&2&; Total credit of S>EC taCen ,3&3&2&;X
',3&3&2&1],3&3&2&2],3&3&2&3],3&3&2&4],3&3&2&3],3&3&2&1)

,3&3&3 Credit of S>EC $tilised
,3&3&3&1 for pa*ment of S>EC on goods . ser%ices
,3&3&3&2 toards pa*ment of S>EC on clearance of inp$t goods and
capital goods remo%ed as s$ch or after $se

,3&3&3&3 toards inter $nit transfer to HTE
,3&3&3&4 for an* other pa*ments#adA$stments#re%ersal 'please specif*)
,3&3&3&3 Total credit of S>EC $tilised ,3&3&3&3X
',3&3&3&1],3&3&3&2],3&3&3&3],3&3&3&4)

,3&3&4 Closing 4alance of S>EC ,3&3&4 X a',3&3&1],3&3&2&;)2,3&3&3&3b

+"<T G
C<E9,T 9ET",HS !B< ,:+ET SE</,CE 9,ST<,4ETB<
'TB 4E !,HHE9 B:HR 4R ": ,:+ET SE</,CE 9,ST<,4ETB<)-
Sl&
:o&
0onth#^$arter "pr#
Bct
0a*#
:o%
G$ne#
9ec
G$l*#
Gan
"$g#
!eb
Sep#
0ar

G1 9ET",HS B! CE:/"T C<E9,T B! SE</,CE T"[ . CE:T<"H E[C,SE 9ETR T"ME: ":9
9,ST<,4ET,B: T>E<EB! 5
G1&1 Bpening 4alance of CE:/"T credit
132
G1&2 Credit taCen 'for distrib$tion) on
inp$t ser%ices

G1&3 Credit distrib$ted
G1&4 Credit not eligible for distrib$tion in
terms of r$le ;'b) of CE:/"T Credit
<$les, 2004

G1&3 Closing 4alance of CE:/"T credit
G1&3 X a'G1&1]G1&2) 5 'G1&3]G1&4)b

G2 9ET",HS B! CE:/"T C<E9,T B! E9EC"T,B: CESS T"ME: ":9 9,ST<,4ET,B: T>E<EB!5
G2&1 Bpening balance of CE:/"T credit
of Ed$cation Cess

G2&2 Credit of Ed$cation Cess taCen 'for
distrib$tion) on inp$t ser%ices

G2&3 Credit of Ed$cation Cess distrib$ted
G2&4 Credit of Ed$cation Cess not eligible
for distrib$tion in terms of r$le ;'b)
of CE:/"T Credit <$les, 2004

G2&3 Closing 4alance of CE:/"T credit
of EC X G2&3Xa'G2&1]G2&2) 5
'G2&3]G2&4)b

G3 9ET",HS B! CE:/"T C<E9,T B! SECB:9"<R ":9 >,(>E< E9EC"T,B: CESS T"ME:
":9 9,ST<,4ET,B: T>E<EB! 5
G3&1 Bpening balance of CE:/"T credit
of S>EC

G3&2 Credit of S>EC taCen 'for
distrib$tion) on inp$t ser%ices

G3&3 Credit of S>EC distrib$ted
G3&4 Credit of S>EC not eligible for
distrib$tion in terms of r$le ;'b) of
CE:/"T Credit <$les, 2004

G3&3 Closing 4alance of CE:/"T credit
of S>EC X G3&3 Xa'G3&1]G3&2) 5
'G3&3]G3&4)b

+"<T M
SEH! "SSESS0E:T 0E0B<":9E0-
'a) ,#?e declare that the abo%e partic$lars are in accordance ith the records and booCs
maintained b* me#$s and are correctl* stated&
'b) ,#?e ha%e assessed and paid the ser%ice tax and#or a%ailed and distrib$ted CE:/"T credit
correctl* as per the pro%isions of the !inance "ct, 1994 and the r$les made there$nder&
(c) I/We have paid duty within the specified time limit and in case of dela*, I/We have deposited the
interest leviable thereon.
(d) I have been authorised as the person to file the return on behalf of the person providing the taxable
service/recipient of service, as the case may be.
+lace-
133
9ate-
':ame and Signat$re of "ssessee or "$thorised Signator*)
+"<T H
,f the ret$rn has been prepared b* a Ser%ice Tax <et$rn +reparer or Certified !acilitation Centre
'hereinafter referred to as OST<+P#PC!CP), f$rnish f$rther details as belo-
'a) ,dentification
:o& of
ST<+#C!C

'b) :ame of
ST<+#C!C



'Signat$re of ST<+#C!C)
UUUUU
,:ST<ECT,B:S TB !,HH E+ !B<0 ST23-

"& (eneral ,nstr$ctions
'i) ,f there is a change in the address or an* other information as pro%ided b* the assessee in !orm ST21 or
as contained in !orm ST22 'Certificate of <egistration iss$ed b* the 9epartment), the assessee sho$ld
file amendment to ST1 application online in "CES for getting the "mended ST2 iss$ed b* the
departmental officer& ,f the assessee has pro%ided # recei%ed an* additional ser%ice for hich he is not
registered, he has to first file the amendment to ST1 application and after the appro%al of the same b*
the departmental officer, he sho$ld file the ret$rn&
'ii) +lease indicate O:"P against entries hich are not applicable&
'iii) +lease indicate O:ilP here the information to be f$rnished is nil&
'i%) +lease fill ORP for Res, or O:P for :o here%er it is ritten as 'ORP#P:P) in the !B<0&

4& ,nstr$ctions to fill $p !B<0 ST23
Col$mn
:o& in
!orm ST2
3
,nstr$ctions
140
"2 STC :o& is 13 digit +": based ser%ice tax code n$mber iss$ed to assessee in the !B<0 ST22
'Certificate of <egistration iss$ed b* the 9epartment)&
"3 :ame of the assessee sho$ld be filled as mentioned in !B<0 ST22 'Certificate of <egistration
iss$ed b* the 9epartment)&
"3 The rele%ant period for hich ret$rn is being filed is to be selected&
"9 .
"10
Tho$gh ith effect from 1
st
G$l* 2012, classification of ser%ices has been dispensed ith, the
assessee is re7$ired to mention the names of taxable ser%ice's) as per "::E[E<E enclosed
ith this ret$rn&
"11&1 .
"11&2
,f assessee has a%ailed benefit of an* exemption notification, the notification n$mber and Serial
n$mber 'in the notification), if an*, against hich s$ch exemption has been a%ailed, has to be
entered
"12&1 .
"12&2
,f assessee has a%ailed abatement from the %al$e of ser%ices, he has to f$rnish the notification
n$mber and Serial n$mber 'in the notification), if an*, against hich s$ch abatement has been
a%ailed&
4 'i) "n assessee liable to pa* ser%ice tax on 7$arterl* basis ma* f$rnish details 7$arter2ise
i&e& "pr2G$n, G$l2Sep, Bct29ec . Gan20arK
'ii) The recipient of ser%ice liable to pa* ser%ice tax sho$ld indicate the amo$nt paid b* him to
ser%ice pro%ider&
41&1 (ross amo$nt for hich bills#in%oices#challans are iss$ed against taxable ser%ice pro%ided or
agreed to be pro%ided or recei%ed#agreed to be recei%ed 'in case of ser%ice recei%er), hich are
taxable on accr$al basis, as per the +oint of Taxation <$les is to be mentioned in this col$mn
'") it incl$des,2
'a) amo$nt charged toards exported ser%ice,
'b) amo$nt charged toards exempted ser%ice 'other than export of ser%ice),
'c) amo$nt charged as a p$re agent, and
'd) amo$nt incl$dible in terms of <$les 3'1) . 1'1) of the Ser%ice Tax '9etermination of
/al$e) <$les, 2001
'4) it excl$des
'a) amo$nt recei%ed in ad%ance i&e& before pro%ision of ser%ices for hich bills or in%oices
or challans or an* other doc$ments ma* not ha%e been iss$ed, beca$se it has to be shon
in col$mn 41&2K
'b) amo$nt taxable on receipt basis, hich is applicable to indi%id$als and partnership firms
hose aggregate %al$e of taxable ser%ices d$ring pre%io$s financial *ear as less than
or e7$al to r$pees fift* laCh and he opts to pa* tax at the time hen pa*ment is recei%ed
b* him in respect of taxable %al$e of r$pees fift* laCh in the financial *ear to hich
ret$rn relates as per third pro%iso to <$le 1'1) of Ser%ice Tax <$les, 1994, for hich bills
or in%oices or challans or an* other doc$ments ma* not ha%e been iss$ed, beca$se it has
to be shon in col$mn 41&3K
'c) "mo$nt taxable for the ser%ices pro%ided for hich bills or in%oices or challans or an*
other doc$ments ma* not ha%e been iss$ed, 'this amo$nt has to be entered in col$mn
41&4&)
'd) Ser%ice taxK
'e) Ed$cation cessK and
'f) Secondar* and higher ed$cation cess
41&2 (ross amo$nt recei%ed 'or paid in case of ser%ice recei%er) in ad%ance is the total amo$nt
recei%ed 'or paid in case of ser%ice recei%er) for the partic$lar taxable ser%ice before pro%ision of
141
ser%ice 'incl$ding an* amo$nt recei%ed for contin$o$s ser%ice), and
'") it incl$des,2
'a) amo$nt recei%ed toards exported ser%ice,
'b) amo$nt recei%ed toards exempted ser%ice 'other than export of ser%ice),
'c) amo$nt recei%ed as p$re agent, and
'd) amo$nt recei%ed hich is liable to be incl$ded in the %al$e in terms of <$les 3'1) . 1'1)
of the Ser%ice Tax '9etermination of /al$e) <$les, 2001
'e) "mo$nt paid for ser%ices recei%ed from :on2Taxable territor* 5 ,mports or other than
,mports $nder col$mn :os& 42&3 and 42&1&
'4) it excl$des
'a) Ser%ice tax,
'b) Ed$cation cess, and
'c) Secondar* and higher ed$cation cess
41&3 This is applicable to indi%id$als and partnership firms hose aggregate %al$e of taxable ser%ices
d$ring pre%io$s financial *ear is less than or e7$al to r$pees fift* laCh and he opts to pa* tax at
the time hen pa*ment is recei%ed b* him in respect of taxable %al$e of r$pees fift* laCh in the
financial *ear to hich ret$rn relates&
41&3 .
42&4


'i) The %al$e of consideration charged 'or paid in case of ser%ice recei%er), other than mone*, is to
be estimated in e7$i%alent mone* %al$e of s$ch consideration in terms of the Ser%ice Tax
'9etermination of /al$e) <$les, 2001
'ii) OConsiderationP incl$des an* amo$nt that is pa*able for the taxable ser%ices pro%ided or to be
pro%ided, as defined in Explanation to Section 1; of the "ct&
41&1,
42&3,
42&1 .
42&;
,n case of some ser%ices, as notified $nder :otification :o& 30#20122ST, dated 20
th
G$ne, 2012 'as
amended), the liabilit* to pa* ser%ice tax has been placed on the recipient of ser%ice in terms of
s$b2section '2) of section 18 of the !inance "ct, 1994 read ith r$le 2'1)'d)'i) of the Ser%ice Tax
<$les, 1994& ,n respect of s$ch ser%ices, the amo$nt on hich ser%ice tax is pa*able has to be
shon as calc$lated in terms of <$le ; of +oint of Taxation <$les, 2011&
41&8 ?ith effect from 01&0;&2012, exports of ser%ices are not to be taxed $nder ser%ice tax, as per
+lace of +ro%ision of Ser%ices <$les, 2012& ,f the assessee has incl$ded the amo$nt of export of
ser%ice in col$mn 41&1, he has to fill $p said amo$nt in col$mn 41&; also for claiming ded$ction
of said amo$nt from the gross amo$nt& >oe%er, there ma* be cases here ST23 ret$rn for the
period prior to 01&0;&2012 is to be filed b* ser%ice pro%iders or recipient of ser%ice, as the case
ma* be& The* are also re7$ired to fill $p this col$mn for f$rnishing the amo$nt charged against
the export of ser%ices made before 01&0;&2012&
41&9 OExempted Ser%iceP refers to the taxable ser%ice hich is exempt, for the time being, from
pa*ment of ser%ice tax $nder a notification, other than b* a* of abatement&
41&10 O+$re "gentP has been defined in Explanation 1 to <$le 3 of the Ser%ice Tax '9etermination of
/al$e) <$les, 2001
41&11 O"batementP refers to the part of %al$e of taxable ser%ice hich is not incl$dible in the taxable
%al$e for pa*ment of ser%ice tax thro$gh notification, s$ch as :otification :o& 21#20122ST,
dated 20&01&2012 iss$ed $nder Section 114 of the !inance "ct, 1994&
142
41&12


"n* ded$ctions, hich is not mentioned in an* other cla$se, from gross %al$e of taxable ser%ice
has to be pro%ided '!or example, ded$ction of propert* tax paid in respect of the taxable ser%ice
of renting of an immo%able propert* in terms of <$le 1'4C) of Ser%ice Tax <$les, 1994 read
ith :otification :o& 29#20122ST, dated 20
th
G$ne, 2012)&
41&13 .
42&13
,f an assessee is pa*ing tax at the rate of 12D or other than 12D, then he has to mention the
details of taxable %al$e in this col$mn b* entering the tax rate applicable to him& This is also
applicable to the assessees ho ant to file their ret$rn pertaining to the period prior to
01&04&2012 hen tax rate as 10D, 8D or 3D, as the case ma* be& This can be done b* inserting
additional ros for s$ch entries&
41&11 .
42&11
"s per <$le 1 of the Ser%ice Tax <$les, 1994, the ser%ice +ro%iders#<ecipients in respect of
ser%ices of O4ooCing of ticCets for "ir Tra%el pro%ided b* "ir Tra%el "gentsPK O,ns$rer carr*ing
on life ins$rance b$sinessPK O+$rchase or sale of foreign c$rrenc* incl$ding mone* changingPK
and O9istrib$tors and selling agents or persons assisting in organi=ing lotter*P ha%e been gi%en
option to pa* ser%ice tax at either specific rate or a combination of specific and ad %alorem rate&
S$ch assessees ha%e to mention the details of s$ch taxable %al$e in these col$mns b* selecting
the appropriate tax rate's) as applicable to them&
41&18 .
42&18
9ed$ction of <. 9 cess paid, if applicable, from tax pa*able can be shon here separatel* for
the rele%ant ser%ices, s$ch as the ser%ice of import of technolog*, applicable&
42&3 .
42&1
"mo$nt paid for ser%ices recei%ed from non taxable territor* is be entered in this col$mn& This
incl$des %al$e of import of ser%ices& To separate ros ha%e been pro%ided to enter the
42&3 2 "mo$nt charged for ser%ices recei%ed from :on2Taxable territor* 5 ,mports andK
42&1 2 "mo$nt charged for ser%ices recei%ed from :on2Taxable territor* 5 Bther than ,mports
93, E3 .
!3
,f an* amo$nt has been paid in ad%ance as ser%ice tax in terms of r$le 1'1") of Ser%ice Tax
<$les, 1994 and the assessee has adA$sted that amo$nt against his ser%ice tax liabilit*, s$ch
adA$stment has to be shon here&
94, E4 .
!4
<$le 1 '3) of Ser%ice Tax <$les, 1994 allos adA$stment of ser%ice tax amo$nt hich as paid
earlier in respect of taxable ser%ice not pro%ided holl* or partiall* b* the ser%ice pro%ider or
here the amo$nt of in%oice is re2negotiated& S$ch adA$stment is to be shon here&
Example- " ser%ice pro%ider recei%es an ad%ance of <s 1000#2 on hich he pa*s a ser%ice tax of
<s 120#2&>oe%er, later on he does not pro%ide this ser%ice and ref$nds the amo$nt to the person
from hom the ad%ance as recei%ed& >e can, in this case, adA$st the amo$nt of <s 120#2 for
an* of his f$t$re liabilit* of ser%ice tax&
93, E3 .
!3

<$le 1 '4") of Ser%ice Tax <$les, 1994 allos adA$stment of ser%ice tax amo$nt paid in
preceding months or 7$arter, hich is in excess of the ser%ice tax liabilit* for s$ch month or
7$arter& S$ch adA$stment is to be shon here&
Example- " ser%ice pro%ider ha%ing centrali=ed registration pa*s an amo$nt of <s 1000#2 as
ser%ice tax for ser%ices pro%ided b* him from his fi%e branches& >oe%er, on receipt of
information from these branches, the ser%ice tax liabilit* is comp$ted as <s 900#2& ,n this case he
has paid an excess amo$nt of <s 100#2 as ser%ice tax& >e can adA$st this excess amo$nt of <s
100#2 against ser%ice tax liabilit* for s$cceeding month#7$arter&
91, E1 .
!1
<$le 1 '4C) of Ser%ice Tax <$les, 1994 allos adA$stment of ser%ice tax amo$nt paid in
preceding months or 7$arter, hich is in excess of the amo$nt re7$ired to be paid toards
ser%ice tax liabilit* for s$ch month or 7$arter on acco$nt of non2a%ailment of ded$ction of
propert* tax paid in terms of :otification :o& 29#20122ST, dated 20
th
G$ne, 2012 from the gross
amo$nt of rent charged for the immo%able propert*& S$ch adA$stment is to be shon here&
9;, E; .
!;
Some department of Central (o%ernment collect ser%ice tax for the ser%ices pro%ided#recei%ed b*
them and the pa*ment of said tax to the Enion of ,ndia is made thro$gh booC adA$stment or booC
transfer& S$ch booC adA$stment or transfer in the case of specified (o%ernment departments is to
be shon here&
(1 to (1 "rrears of re%en$e incl$des,2
143
'a) amo$nt that as pa*able earlier b$t not paidK
'b) amo$nt pending reco%er* on finali=ation of adA$dication or appellant stage, as the case
ma* beK
'c) amo$nt pending in appeals itho$t ha%ing an* sta* for reco%er*K or
'd) amo$nt arising on finali=ation of pro%isional assessment etc&
(; "n* amo$nt collected in excess of the ser%ice tax assessed or determined and paid on an* taxable
ser%ice from the recipient of taxable ser%ice in an* manner, has to be paid to the credit of the
Central (o%ernment as per the pro%isions of section ;3" of the !inance "ct, 1994& "ssessee ma*
f$rnish s$ch amo$nt here&
(10 "mo$nt of late fee paid for an* dela*ed filing of ret$rn has to be entered here as prescribed
$nder <$le ;C of Ser%ice Tax <$les, 1994
(11 "n* other amo$nt paid ma* be specified& ',t ma* incl$de amo$nt paid in terms of an*
adA$dication order, an* appellate order, etc&)
>2 "gainst so$rce doc$ments, folloing details ma* be f$rnished,2
'i) !or adA$stment $nder r$le 1'3) of Ser%ice Tax <$les, 1994, f$rnish details of earlier ret$rn,
from here excess amo$nt is deri%ed
'ii) !or adA$stment $nder r$le 1'4"), f$rnish details of acCnoledgement :o& of intimation to
S$perintendent as re7$ired to be f$rnished in the r$lesK
'iii) !or arrears, interest and penalt*, the so$rce doc$ment#period is as follos,2
'a) in case these are paid s-o0oto b* the assessee, the period for hich s$ch amo$nt is
paid ma* be f$rnished
'b) if paid conse7$ent to a sho ca$se notice 'SC:) or order, the so$rce doc$ment is
rele%ant SC: :o&#9emand :otice :o&, Brder2in2Briginal :o& or Brder2in2"ppeal :o&, or
an* other order , etc&K
'i%) !or adA$stment of excess amo$nt of ser%ice tax paid on the ser%ice of O<enting of
,mmo%able +ropert*P in case the taxpa*er has not a%ailed the ded$ction of propert* tax paid in
terms of <$le 1'4C) of the Ser%ice Tax <$les, 1994 read ith :otification :o& 29#20122ST, dated
20
th
G$ne, 2012 and he opts to a%ail s$ch ded$ction against his ser%ice tax liabilit* ithin 1 *ear
from the date of pa*ment of s$ch propert* tax, the so$rce doc$ment is original receipt iss$ed b*
the concerned department of State (o%ernment shoing the pa*ment of s$ch propert* tax&
,3&1&2 'i) The terms I inp$tJ, Icapital goodsJ, Iinp$t ser%icesJ and I inp$t ser%ice distrib$torJ ma* be
$nderstood as defined in the CE:/"T Credit <$les, 2004K
'ii) "gainst S& :o& ,3&1&2&1, ,3&1&2&2 .,3&1&2&3, the details of CE:/"T credit a%ailed on inp$t#
inp$t ser%ices# capital goods, recei%ed directl* b* the assessee, are to be shon& ,n other ords,
these fig$res o$ld not incl$de the ser%ice tax credit recei%ed from inp$t ser%ice distrib$tor 'i&e&,
office of the man$fact$rer or o$tp$t ser%ice pro%ider, hich recei%es in%oices toards p$rchases
of inp$t ser%ices and iss$es in%oices##bills #challans for distrib$tion of s$ch credit, in terms of
<$le ; of CE:/"T Credit <$les, 2004)&
'iii) "gainst S& :o& ,3&1&2&4, f$rnish the details of ser%ice tax credit as recei%ed from Oinp$t
ser%ice distrib$torP&
144
'i%) "gainst S& :o& ,3&1&2&3, details ha%e to be filled onl* b* Harge Taxpa*er Enit ho has opted
to operate as HTE&&
,3&1&3&4 This has to be filled onl* b* the assessees ho are engaged in both, pro%iding taxable ser%ice as
ell as man$fact$ring and clearance of excisable goods& This entr* o$ld also incl$de excise
d$t* paid on capital goods and inp$ts remo%ed as aste and scrap, in terms of r$le 3'3") of CC<,
2004
,3&1&3&; ,f the assessee has $tilised CE:/"T credit for maCing an* pa*ment, adA$stment or re%ersal s$ch
as in the case of rite off of %al$e of inp$ts or capital goods as per r$le 3'34) of CC<, 2004K
re%ersal of CE:/"T credit on the inp$ts $sed in the man$fact$re of goods hich ha%e been
ordered to be remitted as per r$le 3'3C) of CC<, 2004K the pa*ment of arrears of re%en$e etc&,
s$ch details ma* be mentioned here&
,3&3 . G3 9etails of credit taCen and $tilised in respect of Secondar* and >igher Ed$cation cess has to be
shon separatel* in these col$mns
G This information has to be f$rnished b* an inp$t ser%ice distrib$tor onl*&
G1&4, G2&4
. G3&4
This information has to be f$rnished b* an inp$t ser%ice distrib$tor ho has a%ailed CE:/"T
credit of the ser%ice tax paid on the ser%ices $sed in a $nit hich is excl$si%el* engaged in
man$fact$ring of exempted excisable goods or pro%iding exempted ser%ices, as s$ch credit is not
liable to be distrib$ted in terms of <$le ;'b) of the CE:/"T Credit <$les, 2004


"::E[E<E TB ,:ST<ECT,B:S B! ST23 <ETE<:
9ESC<,+T,B: B! T"["4HE SE</,CES !B< !,HH,:( E+ SE</,CE T"[
<ETE<: 'ST23)
Sl&
:o&
9escription of Taxable Ser%ices
'1) '2)
1 StocCbroCer ser%ice
2 (eneral ins$rance ser%ice
3 "d%ertising agenc* ser%ices
4 Co$rier agenc* ser%ice
3 Cons$lting engineer ser%ices
1 C$stom >o$se "gent ser%ice
; Steamer agent ser%ices
8 Clearing and forarding agent ser%ices
9 0anpoer recr$itment # s$ppl* agenc* ser%ice
10 "ir tra%el agent ser%ices
11 0andap Ceeper ser%ice
12 To$r operator ser%ices
13 <ent2a2cab scheme operator ser%ices
14 "rchitect ser%ices
140
Sl&
:o&
9escription of Taxable Ser%ices
'1) '2)
13 ,nterior decoration # 9esigner ser%ices
11 0anagement or b$siness cons$ltant ser%ice
1; Chartered acco$ntant ser%ices
18 Cost acco$ntant ser%ice
19 Compan* secretar* ser%ice
20 <eal estate agent ser%ice
21 Sec$rit* # detecti%e agenc* ser%ice
22 Credit rating agenc* ser%ice
23 0arCet research agenc* ser%ice
24 Enderriter ser%ice
23 Scientific . technical cons$ltanc* ser%ices
21 +hotograph* ser%ice
2; Con%ention ser%ice
28 Bnline information and database access ser%ice and # or retrie%al ser%ice thro$gh comp$ter
netorC
29 /ideo prod$ction agenc* # %ideo tape prod$ction ser%ice
30 So$nd recording st$dio or agenc* ser%ices
31 4roadcasting ser%ice
32 ,ns$rance a$xiliar* ser%ice in relation to general ins$rance
33 4anCing and other !inancial ser%ices
34 +ort ser%ice 'maAor ports)
33 Ser%ice for repair, reconditioning, restoration, or decoration or an* other similar ser%ices, of
an* motor %ehicle
31 4ea$t* parlo$rs # bea$t* treatment
3; Cargo handling ser%ice
38 Cable operators
39 9r* cleaning ser%ice
40 E%ent management
41 !ashion design
42 >ealth cl$b and fitness centre ser%ice
43 Hife ins$rance ser%ice
44 ,ns$rance a$xiliar* ser%ice concerning life ins$rance b$siness
43 <ail tra%el agentPs ser%ice
41 Storage and areho$sing ser%ices
4; 4$siness a$xiliar* ser%ice
48 Commercial training or coaching
49 Erection, commissioning and installation
30 !ranchise ser%ice
31 ,nternet cafc
32 0aintenance or repair ser%ice
33 Technical testing and anal*sis ser%ice
34 Technical inspection and certification agenc* ser%ice
33 !oreign exchange broCer ser%ice
31 Bther port 'minor port) ser%ice
3; "irport ser%ices b* airport a$thorit*
38 Transport of goods b* air
14/
Sl&
:o&
9escription of Taxable Ser%ices
'1) '2)
39 4$siness exhibition ser%ice
10 Transport of goods b* road # goods transport agenc* ser%ice
11 Constr$ction ser%ices other than residential complex, incl$ding commercial # ind$strial
b$ildings or ci%il str$ct$res
12 Ser%ices b* holder of intellect$al propert* right pro%iding intellect$al propert* ser%ices other
than cop*right
13 Bpinion poll agenc* ser%ice
14 B$tdoor catering
13 Ser%ices b* a programme prod$cer
11 S$r%e* and exploration of mineral
1; +andal or shamiana ser%ice
18 Tra%el agent for booCing of passage 'other than air # rail tra%el agents)
19 Ser%ices pro%ided b* recognised # registered associations in relation to forard contracts
;0 Transport of goods thro$gh pipeline or other cond$it
;1 Site formation and clearance, exca%ation, earth mo%ing and demolition ser%ices
;2 9redging of ri%ers, ports harbo$rs, bacCaters, est$aries, etc&
;3 S$r%e* and map maCing ser%ice
;4 Cleaning ser%ices
;3 Cl$b or association ser%ice
;1 +acCaging ser%ice
;; 0ailing list compilation and mailing ser%ice
;8 Constr$ction of residential complex ser%ice
;9 Ser%ice pro%ided b* a registrar to an iss$e
80 Ser%ice pro%ided b* a share transfer agent
81 "$tomated Teller 0achine operations, maintenance or management ser%ice
82 Ser%ice pro%ided b* a reco%er* agent
83 Selling of space or time slots for ad%ertisements
84 Sponsorship ser%ice pro%ided to bod*2corporate or firm incl$ding sports sponsorships
83 Transport of passengers embarCing on domestic # international Ao$rne* b* air
81 Transport of goods b* rail incl$ding transport of goods in containers b* rail 'for the present,
transport of passengers b* rail in air2conditioned class#first class also ma* be paid $nder this
description#acco$nting code)
8; 4$siness s$pport ser%ice
88 "$ction ser%ice
89 +$blic relation management ser%ice
90 Ship management ser%ice
91 ,nternet telecomm$nication ser%ices 'incl$des internet telephon* Ser%ice hich became
taxable from 01&03&2001)
92 Transport of persons b* cr$ise ship
93 Credit card, debit card, charge card or other pa*ment card related ser%ices
94 Ser%ices of telegraph a$thorit* in relation to telecomm$nication ser%ice
93 0ining of mineral, oil or gas ser%ice
91 <enting of immo%able propert* ser%ices
9; ?orCs contract ser%ice
98 9e%elopment and s$ppl* of content for $se in telecom ser%ices, ad%ertising agenc*, etc&
99 "sset management incl$ding portfolio management and f$nd management
141
Sl&
:o&
9escription of Taxable Ser%ices
'1) '2)
100 9esign ser%ice other than interior decoration and fashion designing
101 ,nformation technolog* softare ser%ice
102 Ser%ices pro%ided b* an ins$rer of life ins$rance $nder Enit HinCed ,ns$rance +lan 'EH,+)
103 Ser%ices pro%ided b* a recogni=ed stocC exchange in relation to transaction in sec$rities
104 Ser%ices pro%ided b* recognised # registered associations in relation to clearance or settlement
of transactions in goods or forard contracts
103 Ser%ices pro%ided b* a processing and clearing ho$se in relation to sec$rities, goods and
forard contracts
101 Ser%ices pro%ided b* an* person in relation to s$ppl* of tangible goods
10; Cosmetic and plastic s$rger* ser%ice
108 Transport of goods b* coastal shipping 'ser%ices b* a* of transportation of goods b* inland
atera*s is placed in the negati%e list)
109 Hegal cons$ltanc* ser%ice
110 +romotion, marCeting, organi=ing or assisting in organi=ing games of chance incl$ding
lotter*, etc&
111 >ealth ser%ices b* a clinical establishment, health checC2$p # diagnosis , etc&
112 0aintenance of medical records
113 Ser%ice of promotion or marCeting of brand of goods # ser%ices # e%ents
114 Ser%ice of permitting commercial $se or exploitation of e%ents
113 Electricit* exchange ser%ice
111 Cop*right ser%ice 5 transfer temporaril* # permit $se or enAo*ment
11; Special ser%ices pro%ided b* b$ilders
118 <esta$rant ser%ice
119 Ser%ice of pro%iding accommodation in hotels, inn, g$est ho$se, cl$b or campsite hate%er
name called&
120 Bther taxable ser%ices 'ser%ices other than the 119 listed abo%e)
142
(SELF READING)
POST OFFICE
S7$$( P"5* ---$ ($;)#$' E96$;;$+6$
Speed +ost, the marCet leader in the domestic express ind$str*, as started b* 9epartment of +osts in
"$g$st 1981 for pro%iding time2bo$nd and express deli%er* of letters P doc$ments and parcels across the
nation and aro$nd the orld& ,n the past 20 *ears , it contin$es to be the marCet leader in the express
ind$str* ith monthl* %ol$mes exceeding 1&4 crores& h monthl* %ol$mes exceeding 1&4 crores& so:ormalF
Speed +ost $shered in a ne era hen OBne ,ndia, Bne <ateP scheme as la$nched S ,:< 23 for all
destinations across ,ndia, from Mashmir to Man*aC$mari& :o, Speed +ost deli%ers O/al$e for mone*P to
e%er* one e%er* here, deli%ering local Speed +ost $pto 30 grams S ,:< 12, incl$si%e of Ser%ice Tax& ?alC
into an* of the Speed +ost booCing centres across the co$ntr* and experience the OAo* of comm$nicationP&
!or corporate c$stomers and to reg$lar $sers, Speed +ost pro%ides O>ome collectionP, credit facilities, on2
line tracCing, acco$nt management and personalised ser%ices& Call *o$r Speed +ost Centre toda*&
G)#$+ &$;"> 4'$ *<$ '$#)5$( S7$$( P"5* '4*$5 $88$6*)#$ 15* O6*"&$' 2012
$)?<*
L"64; (>)*<)+
%:+)6)74;
;)%)*5) U7*" 200 E%5-
201 *" 1000
E%5-
1001 *" 2000
E%5-
A&"#$ 2000
E%5-
Epto 30 grams ,:< 13 ,:< 33 ,:< 33 ,:< 33 ,:< 33
31 grams to 200 grams ,:< 23 ,:< 33 ,:< 40 ,:< 10 ,:< ;0
201 grams to 300 grams ,:< 30 ,:< 30 ,:< 10 ,:< 80 ,:< 90
"dditional 300 grams or
part thereof ,:< 10 ,:< 13 ,:< 30 ,:< 40 ,:< 30
143
The abo%e tariff ill be excl$si%e of taxes& The taxes ill ha%e to be paid extra as notified b* the Central
(o%ernment from time to time&
S7$$( P"5*-- *<$ <)?< 57$$( P"5*4; S$'#)6$
Speed +ost linCs more than 1200 tons in ,ndia, ith 290 Speed +ost Centres in the national netorC and
aro$nd 1000 Speed +ost Centres in the state netorC& !or reg$lar $sers, Speed +ost pro%ides deli%er*
Oan*here in ,ndiaP $nder contract$al ser%ice& Speed +ost offers mone*2bacC g$arantee, $nder hich Speed
+ost fee ill be ref$nded if the consignment is not deli%ered ithin the p$blished deli%er* norms&
S7$$( P"5* )+8"'%4*)"+. C"%7;4)+*5 4+( *'46@)+? 7'"&;$%5
Sho$ld *o$ face an* problem relating to Speed +ost deli%er* or Speed +ost tracCing, Cindl* call *o$r Speed
+ost Centre or send email and a professional team of c$stomer ser%ice exec$ti%es ill assist *o$&
C)*= Telephone :o T$; N" -M4+4?$' E%4); )(
9elhi 1800 119888 98180 21828 spc&delhiSindiapost&go%&in
0$mbai 022 2113 1123 022 2113 1093 spc&m$mbaiSindiapost&go%&in
Chennai 044 2829 2001 94441 30011 spc&chennaiSindiapost&go%&in
MolCata 033 2212 04;1 033 2212 1110 spc&ColCataSindiapost&go%&in
4angalore 080 2281 ;302 080 2289 2043 spc&bangaloreSindiapost&go%&in
>*derabad 040 2341 3922 040 2341 3929 spc&h*derabadSindiapost&go%&in
"hmedabad 1800 233 ;999 0;9 2;34 0419 spc&ahmedabadSindiapost&go%&in
+$ne 020 2112 13;0 020 2112 1328 spc&p$neSindiapost&go%&in

!or other centres, please get in to$ch ith the Speed +ost Centre concerned&
S7$$( P"5* I"%$ C";;$6*)"+
?ith a %ie to pro%ide con%enience for the c$stomers, Speed +ost pro%ides collection from the premises of
the c$stomers thro$gh on2call collection and reg$lar collection at some of the tons& Call *o$r Speed +ost
Centre toda* for collection facilities&
S7$$( P"5* P4557"'* S$'#)6$
,n a $ni7$e partnership, 9epartment of +osts and 0E" ha%e come together to pro%ide con%enience in
getting passports& "pplicants need to b$* the +assport application form a%ailable ith the Speed +ost
Centre, fill it and s$bmit it along ith the fee& Speed +ost Centres ill checC the forms , send them to the
designated +assport Bffice for f$rther processing and iss$e of +assport& The ser%ice is a%ailable onl* for
iss$e of ne passports and not for the reneal of passports&
S7$$( P"5* I+*$'+4*)"+4; S$'#)6$
4acCed b* Eni%ersal +ostal Enion, E0S Speed +ost offers economical and faster ser%ice to 9; foreign
co$ntries& 4e it an important letter or Eni%ersit* application form, be it an export consignment or a b$siness
sample, Speed +ost ill taCe it across ith care& !or international Speed +ost tariff and destinations&
S7$$( P"5* I+*$'+4*)"+4; )+8"'%4*)"+. C"%7;4)+*5 4+( *'46@)+? 7'"&;$%5
!or complaints relating to Speed +ost ,nternational, please get in to$ch ith the (atea* centres at 9elhi,
0$mbai, MolCata and Chennai&
100
C)*= Telephone :o T$; N"- - M4+4?$' E%4); )(
9elhi 1800 119888 98180 21828 spc&delhiSindiapost&go%&in
0$mbai 022 2113 1123 022 2113 1093 spc&m$mbaiSindiapost&go%&in
Chennai 044 2231 3282 94441 30011 spc&chennaiSindiapost&go%&in
MolCata 033 2212 04;1 033 2212 1110 spc&ColCataSindiapost&go%&in
C"%7$+54*)"+
*" &$ 74)( )+ '$57$6* "8 D"%$5*)6 S7$$( P"5* 4'*)6;$5
!or dela* 2 Speed +ost charges
!or loss # total theft # total damage 2 9o$ble of the Speed +ost charges or ,:<& 1000 hiche%er is less&
*" &$ 74)( )+ '$57$6* "8 I+*$'+4*)"+4; EMS 4'*)6;$5
Compensation to be paid in respect of ,nternational E0S articles booCed in +ost Bffices in ,ndia in case of
loss # total theft # total damage are as $nder -2
!or dela* 2 Speed +ost charges
!or loss # total theft # total damage 2 30 S9< '1 S9< X ,:< 13&8222 for 2009)
O7$+)+? 4 SPEED POST ACCOUNT
!or corporate c$stomers and reg$lar $sers , Speed +ost pro%ides man* %al$e added ser%ices incl$ding picC2
$p from the premises, con%enient monthl* billings, acco$nt management facilities, assistance in import #
export proced$res of shipments, corporate tracCing facilities, %ol$me disco$nts etc& ?hen *o$ open a Speed
+ost acco$nt, *o$ open the door to con%enience and c$stomi=ed sol$tions, as per *o$r re7$irements& "s an
acco$nt holder of Speed +ost, *o$ ill ha%e the assistance of a 0arCeting Exec$ti%e in managing *o$r
acco$nts in all respects&
BUSINESS POST
B:5)+$55 P"5* - M4);)+? 5";:*)"+5 8"' &:5)+$55$5
,f *o$ are a corporate c$stomer looCing for mailing sol$tions, 4$siness +ost ser%ices ill maCe *o$r tasC
eas* and con%enient& 4$siness +ost demonstrates o$r responsi%eness to marCet demands in pro%iding %al$e
additions to mail ser%ices, ith the best possible deli%er* at the loest possible price&
B$r c$stomers are the reason for o$r existence& Their satisfaction in o$r prod$cts and ser%ices is of
paramo$nt importance to $s& <ealising this, e are impro%ing o$r ser%ices at all le%els and e foc$s on
contin$al impro%ement&
$;6"%$ *" B:5)+$55 P"5*
T"*4; M4);)+? 5";:*)"+5:
4$siness +ost pro%ides Ototal mailing sol$tionsP to the b$sinesses from mail preparation to mail deli%er*& ,t
is a one2stop shop ser%ice that manages entire mail2o$t process, for small b$sinesses as ell as large
companies& C$stomers can choose from a range of cost2effecti%e and professional mailing ser%ices,
incl$ding printing, collating, inserting, sealing, and addressing to meet their specific b$siness needs& ,n order
to speed $p the mail deli%er*, special despatch direct to destination post office and special deli%er*
arrangements can also be made $nder 4$siness +ost&
B:5)+$55 %4); 7'"6$55)+? %4($ $4';=:
4$siness +ost handles all b$siness mail processing to maCe the tasC eas* and con%enient for the c$stomer&
B$tso$rcing the b$siness mail processing needs to ,ndia +ost means that the compan* can redirect precio$s
reso$rces to its core b$siness acti%ities& ,t maCes so$nd b$siness sense&
101
B:5)+$55 P"5* C$+*'$5:
4$siness +ost ser%ices are a%ailable in O4$siness +ost CentresP hich ha%e been established in maAor tons&
4$siness +ost Centres are a%ailable at maAor post offices& 4$siness +ost Centres deal ith the processing of
the 4$siness +ost consignments& 4$siness +ost centres can also be set $p at the premises of the c$stomers,
speciall* at 4anC >ead 7$arters or compan* >ead7$arters here the b$siness %ol$mes are %er* large& Ender
4$siness +ost, the amo$nt pa*able for 4$siness +ost ser%ices is recei%ed in ad%ance&
R4+?$ "8 5$'#)6$5:
4$siness +ost has enormo$s b$siness potential as it can pro%ide a range of ser%ices to the S0Es and large
corporate, ho are in need of comm$nication and distrib$tion ser%ices&
S$'#)6$ D$*4);5
0ail <oom ser%ices >ome collection
,nsertion
Sealing
"ddressing
!ranCing
9oc$mentation and special despatch
Special deli%er* ser%ices Special deli%er*
Bther %al$e additions as per c$stomerPs re7$irements of the c$stomer
B:5)+$55 P"5* '4*$5:
!or pro%iding the 0ail room ser%ices, the rates are as follos and this ill be in addition to the postage
rates&
S$'#)6$ B:5)+$55 P"5* '4*$5 ()+ INR) $88$6*)#$ 14-12-2003
En2<egistered <egistered
Collection from premises 0&20 0&30
!ranCing 0&20 0&40
"ddressing 0&30 0&30
Sealing 0&10 0&10
,nserting 'per insertion) 0&10 0&20
Special handling charges 0&10 0&30
E97'$55 P4'6$; P"5* - P'"(:6* I+8"'%4*)"+
S4;)$+* 8$4*:'$5
F45* 4+( '$;)4&;$ ($;)#$'= "8 74'6$;5: Express +arcel +ost is an ideal ser%ice for sending the parcels $pto
33 Cg ithin ,ndia& ,tPs fast and reliabled
D""'-*"-(""' 5$'#)6$: pro%ides con%enience to the c$stomers& +icC2$p from c$stomerPs premises and
deli%er* to consignee for parcels $pto 33 Cg are pro%ided free of cost&
V4;:$ 8"' %"+$=: Express +arcel +ost is all abo$t %al$e for mone*& ,t costs A$st ,:< 23 ithin the cit* for 2
Cg parcels and ,:< 40 for tons ithin 300 Cm& The tariff is based on eight slab and distance& The first
eight slab is 2 Cg and the s$bse7$ent eight slab 1 Cg& ?e ha%e fi%e distance slabs- Hocal, $pto 300 Cm,
3012 1000 Cm, 1001 5 2000 Cm and abo%e 2000 Cm
M"+$= B46@ G:4'4+*$$: ,n case of loss or damage of the parcel, compensation is paid $pto a maxim$m of
,:< 300&
102
U+)O:$ )($+*)8)64*)"+ +:%&$': Each consignment is gi%en a $ni7$e barcode n$mber for identification
starting ith [+& ,t enables $s to tracC the consignments easil* at e%er* stage from booCing till deli%er*&
B:5)+$55 P4'6$;5: Express +arcel +ost is all abo$t pro%iding total distrib$tion sol$tions to the c$stomers
This is a contract$al ser%ice based on b$siness agreement beteen the 9epartment of +osts and the
c$stomer& "s one of the leading pla*ers for deli%er* sol$tions in ,ndia, Express +arcel +ost helps the
b$sinesses b* pro%iding on2time and %al$e2for mone* ser%ices&
R$*4); P4'6$;5: Express +arcel +ost ser%ices are also a%ailable for the retail c$stomers at <etail +arcel rates&
The express parcels can be booCed at an* of the Speed +ost booCing centres across the co$ntr*& ?hen *o$
ant to send *o$r parcels or gifts to *o$r friends or relati%es, Express +arcel +ost <etail pro%ides ideal
sol$tion& ,tPs fastd ,tPs reliabled
V45* +$*>"'@: Express +arcel +ost consignments can be sent to all Express +ost Centres in the co$ntr*, th$s
pro%iding a %er* %ast netorC, spanning maAor tons&
Bptional Ser%ices at additional cost-
VPP 5$'#)6$ (C45< O+ D$;)#$'=): C$stomers can a%ail /++ ser%ice along ith Express +arcel +ost on
pa*ment of /++ charges& Cash ill be collected on deli%er* and ill be paid bacC to the consignor&
I+5:'4+6$ 846);)*)$5: /al$able consignments can be ins$red on pa*ment of ins$rance charges&
P'""8 "8 D$;)#$'=: C$stomers can also get +roof of 9eli%er* along ith the signat$re of the consignee, on
pa*ment of ,:< 10 as +B9 charges&
+a*ment options for c$stomers -
C45<: C$stomers can pa* the amo$nt b* cash at the time of booCing&
S*4%75 4+( 8'4+@5: C$stomers can also $se stamps or franCs for pa*ment&
D$7"5)* 466":+*: 4ased on the monthl* booCing, c$stomers can deposit the re7$ired amo$nt $nder Express
"cco$nt and the bill ill be debited to the acco$nt& "t the end of the month 'or as soon as the deposit
amo$nt comes near =ero) , the monthl* in%oice ill be sent to the c$stomer&
C'$()*: Credit facilities are pro%ided $nder 4ooC :o +a* Hater Scheme, $nder specific terms and
conditions for 4$siness +arcels&
R4*$ 5*':6*:'$ 8"' B:5)+$55 P4'6$;:
Categor*
<ate $pto 2Cg
,:<
!or e%er* additional M(
3Cg to 10 Cg
,:<
!or e%er* additional M(
be*ond 10 Cg
,:<
Hocal 23 3 2
Epto 300 Cm 40 3 4
301 5 1000 Cm 30 10 8
100122000 Cm 10 20 13
"bo%e 2000 Cm 80 23 20
+l$s ser%ices tax and ed$cation cess as applicable
0axim$m eight limit 33 Cg
103
9istance beteen stations ill be calc$lated as per the <aila* Time Table
L"64; refers to the localities ser%ed b* all Ton 9eli%er* offices ithin the cit*
R4*$ 5*':6*:'$ 8"' R$*4); P4'6$;:
!or <etail +arcels, the rate str$ct$re ill be as follos-2
9istance Categor*
<ate $pto 2 Mg&
,:<
!or e%er* additional M(
,:<
Hocal 33 3
Epto 300 Mms 30 8
30121000 Mms 10 12
100122000 Mms ;0 23
"bo%e 2000 Mms 90 33
P;:5 5$'#)6$5 *49 4+( $(:64*)"+ 6$55 45 477;)64&;$
MEDIA POST
,ndia +ost offers an $ni7$e %$()4 6"+6$7* to help the ,ndian corporate and the (o%ernment organi=ations
reach
+otential c$stomers thro$gh 0edia +ost& Creati%e, cost2effecti%e and personali=ed, it is o%er pacCed&
"bsol$tel* no other media can match the sheer expanse of ,ndia +ost in terms of %ol$me and reach&
M$()4 P"5* 2 an inno%ati%e . effecti%e %ehicle for 4rand and 0arCeting managers to comm$nicate
their corporate messages across the nation&

:o, *o$r brand co$ld taCe the fast tracC and reach the masses at a lo cost ith 0edia +ost&
E9*$+5)#$ R$46<
,ndia +ost deli%ers 1,3;3 crore mails e%er* *ear linCing e%er* nooC and corner of the co$ntr* thro$gh a
netorC of 1,34,149 post offices and 3,14,;01 Hetter 4oxes& Ro$ can $se the folloing for *o$r branding
exercise&
"d%ertisement on postcards, letters, aerogrammes, postal stationar* etc&
Space sponsorship options on letter boxes&
V";:%$
,ndia +ost handles more than 3000 million pieces of $nregistered mail e%er* *ear, reaching o$t to million of
ho$seholds in the co$ntr* and the orld& E%er* time a person sends or recei%es a postcard, an inland letter or
an en%elope, he gets to see *o$r logo or *o$r message& The "erogramme e%en gi%es *o$ the opport$nit* to
maCe a global impact&
L4+?:4?$ +" B4'')$'
+ostcards, ,nland Hetters and 0one* Brder !orms can carr* *o$r message in an* ,ndian lang$age or in
English& "erogramme ill carr* *o$r message in English onl*&
Colo$rs of Ro$r Choice
104
Bn "erogramme and +ostcards, the printing can be done in fo$r colors of *o$r choice&
GREETING POST
I++"#4*)#$ P'"(:6*
?elcome to the orld of (reeting +ost ,a ne range of delightf$l greeting cards, bro$ght to *o$ b* ,ndia
+ost& These cards come read* ith pre2paid postage en%elopes thereb* eliminating the need to affix stamps-
a $ni7$e concept for the first time in ,ndia& ?hatPs more fascinating, the postage stamps are an exact replica
of the cards inside&
A(#4+*4?$ G'$$*)+? P"5*
"nd itPs not onl* con%enience that these cards offer, b$t a lot more& Thro$gh (reeting +ost *o$ can express
*o$rself perfectl* on e%er* occasion, festi%al or e%ent& !e o$ld miss the armth reflected in their
bea$tif$l designs and pleasing colo$rs ?hich $ndo$btedl* maCes them an absol$te Ao* to recei%e&
<$'$ =": 64+ G$*
The cards are being sold thro$gh the pri%ate distrib$tors of the (reeting Cards and the stationar* shops& The
Cards and the en%elopes ith the embossed stamp ill be sold together& (reeting cards are a%ailable at all
maAor +ost Bffices&
F$4*:'$5
(reeting +ost is *et another inno%ati%e prod$ct of ,ndia +ost comprises of a card ith en%elop ith pre2
printed postage stamp $pon the en%elope& The en%elope contains m$lti colo$red embossed stamp 'hich is a
miniat$re replica of the design that appears $pon the card) of 3 cm x 4 cm x 3 cm of the denomination of
,:< 3#2 ritten on the stamp & Th$s *o$ need not affix postage stamps on the en%elope th$s sa%ing *o$r time
of going to post offices and standing in the 7$ep$e& The (reeting Card also has in b$ilt a ro$nd stamp in
gra* bl$e on the bacC of the card precisel* on the flap& "ll the r$les and reg$lations for the postage d$es ill
be applicable to the (reeting +ost& "s per the c$rrent r$les, ,:< 3#2 postage entitles the sender to send the
article to an* part of the co$ntr* $p to 20 grams& The same r$le ill be applicable for the (reeting +ost also&
D)%$+5)"+ 4+( T=7$5
?e ha%e to t*pes of %ar*ing Si=e&
Small si=e card 10&3 cm x 11&3 cm
Harge si=e card 12 cm x 18&3 cm
There are 31 designs a%ailable right no&
P')6)+?
Small si=e card ,:< 14#2 per card incl$si%e of ,:< 3#2 postage&
Harge si=e card ,:< 1;#2 per card incl$si%e of ,:< 3#2 postage&
L"?)5*)65 P"5* - B2B E97'$55 D)5*')&:*)"+
,f *o$ are a corporate c$stomer looCing for logistics sol$tions, Hogistics +ost ser%ices ill pro%ide *o$ cost2
effecti%e and efficient distrib$tion across the co$ntr*&
Hogistics +ost manages the entire distrib$tion side of the logistics infrastr$ct$re from collection to
distrib$tion, from storage to carriage,from order preparation to order f$lfillment at the loest possible price&
$;6"%$ *" L"?)5*)65 P"5*. =":' '$;)4&;$ 74'*+$' )+ $97'$55 ()5*')&:*)"+
100
D)5*')&:*)"+ 5";:*)"+5: ?ith a high groth ,ndian econom* in ,ndia, transport and logistics taCe on a ne
dimension in an* b$siness& Hogistics +ost can cater to an* demand for mo%ing goods, parcels and
consignments in terms of deli%er* deadline and 7$alit* of ser%ice& !$rther, it offers the possibilit* of
monitoring the deli%er* progress at all times& ?hether *o$ ant to distrib$te *o$r comp$ters across the
nation or to send *o$r a$to parts to the distrib$tors, Hogistics +ost pro%ides *o$ a tailor2made sol$tion&
FTL 4+( LTS 5$'#)6$5: Ender this ser%ice, c$stomers can send their consignments either in f$ll tr$cC load
'!TH) or Hess than a Tr$cC Hoad 'HTH) , one parcel or m$lti2parcels, based on their re7$irements& ,t is
flexible and con%enient& Hogistics +ost $ses a special netorC for carr*ing and deli%ering pacCages and
consignments across the nation& ,t mo%es the shipments b* road, rail and air and ens$res safe and timel*
deli%er*&
L"?)5*)65 P"5* C$+*'$5: ?e ha%e established Hogistics +ost Centres across the co$ntr* to taCe *o$r
consignments& G$st get in to$ch ith an* of the Hogistics +ost Centres&
D)5*4+6$ 4+( >$)?<*-&45$( *4')88: The tariff is based on eight, %ol$me and distance& The eight slab is
30 Cg& !or each consignment, a docCet fee of ,:<100 is pa*able in addition to other charges based on
eight, %ol$me and distance&
M:;*)-%"(4; *'4+57"'*: 4ased on the specific re7$irements of the c$stomers, the consignments are sent b*
road, rail or air& ,ndia +ost has a fleet of excl$si%e aircraft to carr* Hogistics +ost air consignments& !$rther,
e ha%e a fleet of %ehicles to transport the consignments b* road&
4'$<":5)+? 5$'#)6$5: To maCe logistics operations cost effecti%e and efficient, Hogistics +ost pro%ides
areho$sing options 'storage of goods before dispatch# deli%er*) to the c$stomers, on pa*ment of
areho$sing charges& This enables *o$ to bring *o$r prod$cts closer to *o$r c$stomers& Het $s Cno *o$r
re7$irements and e shall pro%ide *o$ the areho$sing sol$tions&
O'($' 7'"6$55)+? A 8:;8);;%$+* 5$'#)6$5: "long ith areho$sing ser%ices, e pro%ide *o$ an order
processing and order management sol$tion that taCes a Fhole of b$sinessF approach& Hogistics +ost ill
maCe the entire Hogistics operations smooth b* pro%iding OpicC and pacCP facilities based on specific
re7$irements of the c$stomers& Each consignment ill be pacCed ith the specific goods, as desired b* the
c$stomer&
R$*:'+ L"?)5*)65: 4$sinesses re7$iring O<et$rn ser%icesP ill find Hogistics +ost the ideal sol$tion& G$st
sign a b$siness agreement ith $s for O<e%erse logisticsP and e shall maCe the re7$ired arrangements&
A?$+*5 '$O:)'$(: ?e are also looCing for o$tso$rced agents for Hogistics +ost ser%ices, ho ill collect
and booC the consignments as agents, on commission basis&
!or f$rther details, please contact Hogistics +ost Centre or the C+0( in *o$r +ostal Circle
Cit* Contact +hone Cit* Contact +hone
9elhi 098;3420084 4angalore 09449001;33
0$mbai 09;19933;11 >*derabad 09441242;2;
Chennai 09840114883 "hmedabad 098238;3302
MolCata 09831120301 +$ne 09881813814
I+()4 P"5* )5 7;4++)+? *" 5*4'* L"?)5*)65 S$'#)6$ 8"' B<:*4+ )+ 455"6)4*)"+ >)*< B<:*4+ P"5*, those ho
are interested to send b$lC material irrespecti%e of eight and %ol$me ma* Cindl* send their details
on 4?%-&((T?%4);-6"% or the* ma* contact on telephone no& 31-11-2303 /110&
10/
INSURANCE
"rticles ma* be ins$red at all post offices& ,ns$rance co%ers all risCs in co$rse of transmission b* post& The
prepa*ment of all charges on ins$red articles namel* postage, registration and ins$rance fee is
comp$lsor*& +ostage stamps affixed to an ins$red article m$st be placed apart from one another so that
the* ma* not ser%e to conceal inA$ries to the co%er of the letter or parcel&
<4* 4'*)6;$ 64+ &$ )+5:'$(H L)%)* :7 *" ><)6< Y": 64+ I+5:'$
R$?)5*$'$( ;$**$'5.
V4;:$ P4=4&;$ R$?)5*$'$( L$**$'5.
R$?)5*$'$( P4'6$;5.
V4;:$-P4=4&;$ R$?)5*$'$( P4'6$;5.
:7 *" *<$ #4;:$ "8 INR /00 4* &'4+6< 7"5* "88)6$5.
:7 *" *<$ #4;:$ "8 INR 1.00.000 )+ "*<$' 7"5*
"88)6$5
I+5:'$( #4;:$ 5<4;; +"* $96$$( *<$ '$4; #4;:$ "8
*<$ 6"+*$+*5 "8 *<$ 4'*)6;$ )+5:'$(-
T<$ 4'*)6;$5 6"+*4)+)+? ?";(. 6")+ "' &:;;)"+
?"#$'+%$+* 6:''$+6= +"*$5 "' &4+@ +"*$5 "' 4+=
6"%&)+4*)"+ "8 *<$5$ 5<4;; &$ )+5:'$( 8"' *<$
46*:4; #4;:$ "8 *<$ 6"+*$+*5-
C45$5 )+ ><)6< I+5:'4+6$ )5 6"%7:;5"'=
,ns$rance is also comp$lsor* for at least the amo$nt specified for reco%er* from the addressee in the case of
all %al$e pa*able articles on hich the amo$nt specified for reco%er* exceeds ,:< 100& 'other than %al$e
pa*able letters containing <aila* receipt, bills in%oices, doc$ments etc of no intrinsic %al$e and %al$e
pa*able pacCets containing printed papers, booCs etc sent $nder booC pacCet rates&)
Coin, b$llion, platin$m, precio$s stones, Aeeller*, go%ernment c$rrenc* notes or banC notes and articles of
gold or sil%er ma* be sent b* post onl* in ins$red letters, ins$red parcels&
P46@)+? S)N$ 4+( "*<$' 6"+()*)"+5
E%er* letter tendered for ins$rance m$st be enclosed in a strong co%er hich m$st be sec$rel* fastened and
sealed b* means of identical seals in fine ax reprod$cing a pri%ate marC and affixed in s$fficient n$mber
so that it cannot be opened itho$t either breaCing the seal or lea%ing ob%io$s traces of %iolation&
:o label of an* Cind sho$ld be affixed b* the sender to s$ch a co%er b$t c$t o$t labels the maxim$m si=e of
hich is 121#222x3J '3&8 cb x ;&1cb&) ith franC impressions as postage stamps on the co%er of an ins$red
articles ma* be accepted&
"n en%elope ith blacC or colo$red border or a transparent panel m$st not be $sed&
The seals m$st be placed o%er each flap or seam of the co%er and if the co%er is tied ro$nd ith string or
tape a seal m$st be placed on the ends here the* are tied&
"s an additional preca$tion 'if the contents admit of it) a thread sho$ld be passed thro$gh the co%er and its
contents and tied the Cnot being placed $nder the Central seal&
,f a parcel contains gold or sil%er b$llion or coins it m$st be pacCed in a strong case of ood or metal ith
an o$ter co%ering of cloth or sto$t paper&
101
"ll the seals affixed to an ins$red article m$st be of the same Cind of ax and m$st bear distinct impressions
of the same pri%ate de%ice& The de%ice m$st not be that of a c$rrent coin or merel* a serried of straight
c$r%ed, or crossed lines&
:BTE-2 ,t is recommended that registration en%elopes 'sold at all post offices) be $sed for ins$red letters&
,t sho$ld not be so small or so co%ered ith riting or sealing ax on the address side, or otherise made
$p in s$ch a manner, as to render it impracticable to affix to the article the prescribed official labels of the
+ost Bffice&
I+5:'4+6$ P'"6$(:'$
"n article intended for ins$rance m$st be presented at the indo of the +ost Bffice&
?rite clearl* in ords and fig$res, the ins$rance %al$e itho$t eras$re or correction, on the top of the
address side of the co%er&
The name and address of the sender m$st also be ritten on the co%er in the loer left2hand corner, or on a
separate slip of paper, to be presented ith the article sho$ld there be no room for his name and address on
the co%er&
" receipt ill be gi%en to the person ho presents an article for ins$rance at the post office indo d$ring
the ho$rs prescribed for posting ins$red articles&
"n* error or mistaCes sho$ld be pointed o$t at once b* the sender otherise the +ost Bffice ill not be
liable for an* damages or compensation&
The sender of the ins$red article is entitled to obtain free of charge an acCnoledgement of its deli%er*
signed b* the addressee or his a$thori=ed agent& The sender ma* himself fill $p the form of
acCnoledgement to be signed b* the addressee and is recommended to do so&
R$57"+5)&);)*= "8 *<$ P"5* O88)6$
Compensation ill be pa*able one month after the date on hich intimation of loss is gi%en b* the sender to
the +ost Bffice, except in cases in hich the >ead of the Circle ma* consider that the circ$mstances demand
the ithholding of pa*ment pending en7$ir*&
,n the e%ent of the loss of the postal article, or an* of its contents, or for an* damage ca$sed to it in co$rse
of transmission b* post the compensation ill be paid to the sender and the compensation in no case
exceeds the %al$e of the article or an* of its contents lost or the amo$nt of the damage ca$sed&
,n the case of loss, the sender f$rnishes f$ll partic$lars of the contents of the postal article and their %al$es&
:o compensation ill be pa*able
?here there has been mis2deli%er* arising o$t of incorrectness or incompleteness of the address ritten b*
the sender&
?here there has been fra$d on the part of the sender or addressee,
?here the ins$red article has been deli%ered to the addressee, and he has signed and ret$rned the receipt
therefore,
?here the sender has not gi%en intimation of the loss ithin three months from the date of posting,
?here the loss or damage as d$e to improper or insec$re pacCing,
102
?here there is no %isible damage to the co%er or seals it being $nderstood that the sender m$st so pacC the
letter or parcel that its contents cannot be to$ched itho$t %isible damage as aforesaid being ca$sed, ?here
the ins$red article contains (o%ernment c$rrenc* notes, banC notes, gold coin or b$llion or an* combination
of these, and has not been ins$red for the act$al %al$e of the contents,
,n the case of the loss of hal%es of c$rrenc* notes,
,n the case of damage arising from the nat$re of the article ins$red or
?here the ins$red article contained an*thing the transmission of hich b* post is prohibited&
,f after compensation has been paid for the loss of a postal article or an* portion of its contents, the contents
or an* portion thereof are s$bse7$entl* reco%ered, the reco%ered contents ill be dealt ith as follos
namel*
,f the %al$e of the reco%ered contents added to the amo$nt of compensation paid is not in excess of the
amo$nt of loss, the reco%ered contents ill be restored to the sender&
,f the %al$e of the reco%ered contents added to the amo$nt of compensation paid is in excess of the amo$nt
of the loss, the +ost Bffice ill be entitled either to restore the reco%ered contents to the sender on his
repa*ing the amo$nt of s$ch excess or to retain and dispose of so m$ch of the reco%ered contents as ma* be
held b* the >ead of the Circle to represent s$ch excess and restore the rest of the reco%ered contents, if an*,
to the sender&
MAIL PRODUCTS
L$**$': The comm$nication is enclosed in an en%elope and addressed&
M49)%:% >$)?<* 2 E);"?'4%5
S)N$ P'$56')&$( M)+)%:% M49)%:%
I8 *<$ ;$**$' )5 )+ '";; 8"'%
"n* Single diameter 10 cm 80 cm
Hength ] tice the diameter 1; cm 100 cm
I8 *<$ ;$**$' )5 +"* )+ '";; 8"'%
"n* Single dimension 11 x ; cm 10 cm
Hength ] tice the diameter 90 cm
I+;4+( L$**$' C4'(: Comm$nication is contained on a sheet of paper ith prescribed si=e . folding& ,nland
letter card is $sed for transmission ithin ,ndia onl*&
M49)%:% >$)?<* 0 G'4%5
S)N$ P'$56')&$( M)+)%:% M49)%:%
T<$ ()%$+5)"+5 "8 *<$ ;$**$' 64'( )+6;:()+? )*5 8;475 ><$+ :+8";($( "' 8";($( 5<4;; '$57$6*)#$;= &$ 45
8";;">5:
U+8";($(
0axim$m 30 cm x 21 cm
0inim$m 28&2 cm x 18&2 cm
!lap
Hetter Card ill ha%e three flaps, one each one on the left and right side not exceeding 1&3 cm b* 10 cm and
another on the top side not exceeding 1&3 cm b* 21 cm& !laps are not re7$ired if the ,nland Hetter Card can
be closed b* an* other effecti%e process&
103
F";($(
0axim$m 21 cm x 10 cm
0inim$m 13&2 cm x 9 cm
,nland letter card shall be paper of minim$m ;0 (S0
Hetter Cards of pri%ate man$fact$re s$itabl* folded and closed on all sides thro$gh g$mming or an* other
effecti%e process, ma* be con%e*ed b* post, pro%ided the dimensions and other conditions mentioned in this
r$le are complied ith&
P"5* C4'(: Bpen comm$nication on a card of prescribed si=e& "%ailable in to %arieties- Single . repl*
post card& +ost cards are for transmission ithin ,ndia onl*& 9imensions 14 cm T 9 cm 'length and breadth)&
+ri%atel* man$fact$red post cards shall not be thinner or more flexible than an embossed post card, and ill
ha%e the same si=e and thicCness of embossed post card& There are other %arieties of +ost cards also s$ch as&
P')+*$( P"5* C4'(
+ost cards containing comm$nication recorded b* printing, c*clost*ling or b* an* other mechanical process
are classified as @+rinted +ost Cards@& +rinted matter incl$des printed pict$res also&
M$?<(""* P"5* C4'(
The portion next to the address is a%ailable for ad%ertisement in fo$r colo$rs&
B""@ P46@$*
M49)%:% >$)?<*
0 E);"?'4%5
S)N$ P'$56')&$( M)+)%:% M49)%:%
,n roll form length 10 cm 80 cm
Total Hength ] 2 diameters 1; cm 100 cm
Bther than roll form 10 cm x ; cm 10 cm x 30 cm x 30 cm
N"*$: 4ooC +acCet hen sent in card form hether folded or not, shall be neither thinner nor more flexible
than ,nland +ost Cards&
P'"<)&)*)"+5:
There shall be no personal comm$nication enclosed or ritten $p on a booC pacCet
,t shall not contain an* paper mone*, postage or other stamps, che7$es etc Exception-
,t ma* contain stamped self addressed post card or letter or rapper
B""@ P46@$* 6"+*4)+)+? P')+*$( B""@5:
S7$6)8)64*)"+5 4'$ 54%$ 45 8"' &""@ 746@$*-
,t shall not contain an* p$blication p$blished in reg$lar inter%als& :o ad%ertisements permitted&
B""@ P46@$* 6"+*4)+)+? 7$')"()64;5:
S7$6)8)64*)"+5 4'$ 54%$ 45 8"' &""@ 746@$*5 C"+()*)"+5:
The contents shall be periodicals registered ith the @<egistrar of :espapers in ,ndia@& The first or last page
of the periodical shall ha%e the s$perscription F<egistered ith the <egistrar of :espapers in ,ndia $nder
serial :o&&&&&&&&&&F printed on it&
R$?)5*$'$( N$>5 747$':
1/0
" :es paper is a p$blication consisting holl* or in great part of political or other nes, ith or itho$t
ad%ertisement& ,t is p$blished in large n$mbers at inter%als of not more than 31 da*s&
,t sho$ld ha%e a bonafide list of s$bscribers&
,f s$ch nes paper is registered in the office of the S$perintendent or Senior S$perintendent of +ost offices
of the area here :es paper is to be p$blished, it ill be treated as @<egistered :es paper@ for
concessional rates of postage& There is no fee for registration&
The registration n$mber allotted to the paper sho$ld be printed on the top of the front page of the :es
paper preceded b* the ord @<egisteredF&
B;)+( L)*$'4*:'$ P46@$*:
,ndia +ost allos free transmission of blind literat$re pacCets $p to ; Cilograms& +apers of an* Cind,
periodicals and booCs impressed in F4railleF or other special t*pe for the $se of blind are alloed to be
transmitted b* post as 4lind literat$re pacCets&
Si=e and pacCing is same as for booC pacCets&
C"+()*)"+5:
,t m$st be sent b* or to a blind person& :o ritten or printed comm$nication sho$ld be enclosed except-
the title and table of contents
the Ce* or instr$ctions
a label for ret$rn of the pacCet
P4**$'+ 4+( S4%7;$ P46@$*:
,t ma* contain bona fide trade patterns or samples of merchandise not ha%ing an* saleable %al$e together
ith or itho$t an* matter hich ma* be sent as a booC pacCet&
S7$6)8)64*)"+5 54%$ 45 )+ *<$ 645$ "8 &""@ 746@$*5-
0axim$m eight 2 Cilograms&
P4'6$;:
"n*thing can be sent in a parcel excepting articles hose transmission is prohibited& ,t can contain single
comm$nication to the addressee of the parcel& ,f the parcel is s$spected to contain other than the permitted
comm$nication, it ill be opened in the presence of the addressee or his a$thori=ed agent, and each ritten
comm$nication ill be charged on deli%er* ith do$ble the letter postage& ,f the addressee ref$ses to pa* the
charges, the parcel ill be ret$rned to the sender from hom the charge ill not be reco%ered&
S)N$ M)+)%:% M49)%:%
Hength as per letter 100 cm
Hength ] (irth combined as per letter 180 cm
'100T30T10)

0axim$m eight- $nregistered parcel- 4 Cgs, registered parcel 20 Cgs
R$?)5*'4*)"+:
The postal article that is registered is gi%en identification and is recorded at e%er* stage of handling& Hetters,
letter cards, 4ooC and +attern +acCets, +arcels, :espapers prepaid ith postage ma* be registered at an*
1/1
post office for transmission at an* post office& The registered postal article is deli%ered specificall* to the
addressee&
V4;:$ P4=4&;$ L$**$'5 4+( P4'6$;5:
The /+H or /++ is paid for at the time of receipt&
<egistered parcels, letters, booC pacCets and nespapers ma* be sent as /+H#/++& "n article hich has no
intrinsic %al$e can also be sent as %al$e pa*able article&
I+5:'4+6$:
,ns$rance co%ers all risCs d$ring the co$rse of transmission b* post& T<$ 8";;">)+? *=7$5 "8 4'*)6;$5 64+ &$
)+5:'$(:
<egistered letters
/al$e +a*able Hetters
<egistered +arcels
/al$e +a*able +arcels
Himits
4ranch offices are alloed to booC $p to the %al$e of ,:< 100
Bther offices can booC $p to the %al$e of ,:< 100000
,ns$red %al$e sho$ld not exceed the %al$e of the articles ins$red
?hen articles ha%ing intrinsic %al$e s$ch as gold and c$rrenc* notes are sent the* sho$ld be ins$red
for the act$al %al$e of the contents
The article to be enclosed in a strong co%er sealed b* means of identical seals, so that it cannot be tampered
itho$t breaCing the seals or in a special ater tear resistant and tamper e%ident special co%er&
FINANCIAL SERVICES
The !inancial ser%ice offered b* +ost office incl$des Sa%ings and +ostal Hife ,ns$rance '+H,) # <$ral +ostal
Hife ,ns$rance '<+H,)& The +ost Bffice small sa%ings scheme pro%ides a sec$re, risC free and attracti%e
in%estment option for the small in%estors and offers the sa%ings prod$cts across its 133000 +ost offices&
The +ost Bffice sa%ings banC is the oldest and b* far the largest banCing s*stem in the co$ntr*, ser%ing the
in%estment need of both $rban and r$ral clientele& These ser%ices are offered as an agenc* ser%ice for the
0inistr* of !inance, (o%ernment of ,ndia& Se%eral prod$cts on offer ser%e %ario$s in%estment re7$irements
of the c$stomers&
S4#)+?5 B4+@ 466":+* (SB): Ser%es the need of reg$lar deposits and ithdraals& Che7$e facilit* is
also a%ailable&
R$6:'')+? D$7"5)* 466":+* (RD): Bffers a monthl* in%estment option ith a handsome ret$rn at
the end of fi%e *ears ith option to extend the acco$nt period& ,ns$rance co%er facilit* is also a%ailable
ith some conditions&
M"+*<;= I+6"%$ S6<$%$ (MIS): offers a fixed in%estment option for fi%e *ears ith monthl*
interest pa*ment facilit*& The facilit* of a$tomatic credit of interest to S4 acco$nt a%ailable&
P:&;)6 P'"#)($+* F:+( (PPF): Bffers intermittent deposits s$bAect to certain limits for a 13 *ear
period co$pled ith income tax exemptions s$bAect to certain conditions, on the in%estment& Hoan and
ithdraal facilities also a%ailable&
T)%$ D$7"5)* (TD): !ixed deposit option for periods ranging from one, to, three to fi%e *ears ith
facilit* to dra *earl* interest offered at compo$nded rates& "$tomatic credit facilit* of interest to S4
acco$nt&
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S$+)"' C)*)N$+5 S4#)+?5 S6<$%$ (SCSS): Bffers fixed in%estment option for senior citi=ens for a
period of fi%e *ears, hich can be extended, at a higher rate of interest that are paid in 7$arterl*
installments&
N4*)"+4; 54#)+?5 6$'*)8)64*$5 (NSC) (VIII) )55:$: ith a fixed in%estment for 3 *ears on certificates
of %aried denominations& +ledging facilit* a%ailable for a%ailing loan from 4anCs&
N4*)"+4; S4#)+?5 6$'*)8)64*$5 (IX) )55:$: !ixed in%estment ten$re of 10 *ears&
+ost Bffice also offers ,ns$rance prod$ct thro$gh +ostal Hife ,ns$rance '+H,) and <$ral +ostal Hife
,ns$rance '<+H,) schemes ith lo premi$m and high bon$s&
P"5*4; L)8$ I+5:'4+6$ (PLI)
E;)?)&);)*=: "ll (o%ernment ser%ants and emplo*ees of (o%ernment aided instit$tions ith certain
conditions&
?hole Hife "ss$rance 'S$raCsha)
Endoment "ss$rance 'Santhosh)
Con%ertible ?hole Hife "ss$rance 'S$%idha)
Goint Hife ,ns$rance 'R$galas$raCsha)
"nticipated Endoment "ss$rance 'S$mangala)
ChildrenPs +olic*
R:'4; P"5*4; L)8$ I+5:'4+6$ (RPLI)
E;)?)&);)*=: !or people residing in r$ral areas&
?hole Hife ,ns$rance '(rama S$raCsha)
Endoment "ss$rance '(rama Santhosh)
Con%ertible ?hole Hife '(rama S$%idha)
"nticipated Endoment '(rama S$mangala)
10 *ear <$ral +H, '(rama +ri*a)
Children +olic*
4esides its on prod$cts, 9epartment of +ost also pro%ide ne pension scheme to the citi=ens of the
co$ntr*&
RETAIL SERVICES
Thro$gh its %ast netorC of +ost Bffices across the co$ntr*, ,ndia +ost offers the facilit* to collect cons$mer
bills for ser%ice ind$stries liCe telephone # electricit* # mobile phone $sers etc for (o%ernment and pri%ate
organi=ations thro$gh <etail +ost& +ost Bffices also sell forms for p$blic bodies across co$nter of +ost
Bffice& 4esides this, facilit* of reser%ation of <aila* TicCets thro$gh comp$teri=ed passenger reser%ation
s*stem terminals has been commenced from ;&10&200; in selected +ost Bffices& <etail +ost le%erages the
%ast netorC of +ost Bffices for sale of prod$cts across the co$nter on behalf of other organi=ations& ,t
proAects ,ndia +ost as a @Bne Stop Sol$tion +ro%ider@ for %ario$s $tilit* ser%ices and it is in a position to offer
the retail ser%ices to the c$stomers of an* agenc*& Some of the agenc* ser%ices that <etail +ost offers are as
follos-
Telephone re%en$e collection
e2TicCeting for <oad Transport Corporations and "irlines
Sale of E+SC forms, Eni%ersit* applications, etc
Sale of +assport application forms
Sale of (old Coins, !orex Ser%ices
Sale of S,0 and recharge co$pons
Sale of ,ndia Telephone cards
e2TicCeting of <aila* ticCets
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The >eads of Circles ha%e also been empoered to pro%ide %ario$s area specific b$siness pacCages $nder
<etail +ost in their Circles&
TRACE CONSIGNMENTS
I+()4 P"5* O+;)+$ T'46@)+? 846);)*=
,ndia +ostPs online tracCing allos *o$ to access tracCing information and confirm the deli%er* of *o$r item
b* $sing the tracCing n$mber assigned to *o$ at the time of 4ooCing& Ro$ can find the tracCing n$mber on
the +ostal receipt handed o%er to *o$ at the +ost office Co$nter at the time of booCing&
<4* 64+ &$ T'46@$(
Speed post '9omestic E0S)
,nternational E0S
Electronic 0one* Brder 'e0B)
<egistered 0ail
Express +arcel
Electronic /al$e +a*able +arcel 'e/++)
I"> )* >"'@5
The tracCing s*stem is $pdated periodicall* to pro%ide *o$ ith the most c$rrent information a%ailable
abo$t the location and stat$s of *o$r item& Ro$@ll be able to find o$t the folloing-
?hen *o$r item as booCed
?hen *o$r item as dispatched and recei%ed at %ario$s locations d$ring its Go$rne*
?hen *o$r item as deli%ered, or-
?hen a 9eli%er* ,ntimation :otice as iss$ed to notif* the recipient that the item is a%ailable for
deli%er*
I"> C4+ I T'46@H
1& Enter the +ostal "rticle :$mber ,n the TracCing :$mber's) box,
2& Select the (o b$tton to %ie *o$r res$lts&
T'46@)+? N:%&$' F"'%4*5
C4*$?"'= F"'%4*
N"- "8
()?)*5
Speed +ost 'E0S) 9omestic EE123431;89,: 13
,nternational E0S "rtilces to be
deli%ered in ,ndia EE123431;89[[ 13
Electronic 0one* Brder 'e0B) 00000000000000000018
<egistered 0ail <[123431;89,: 13
Express +arcel +ost [[000000000[[ 13
C"%%"+ C"+6$'+5
<4* )8 %= *'46@)+? )+8"'%4*)"+ )5 :+4#4);4&;$H
,f *o$ recei%e a message telling *o$ that *o$r tracCing information is $na%ailable, it doesn@t mean that *o$r
item hasn@t been mailed&
There ma* be a dela* beteen scanning e%ents and the a%ailabilit* of tracCing information related to
those scanning e%ents&
9epending on ho recentl* *o$r item as mailed, tracCing information ma* not be immediatel*
a%ailable 'this is most liCel* to occ$r in r$ral locations, or hen information is pro%ided b* foreign
postal administrations)&
1/4
SMS 5*4*:5 '$7"'*)+? 8"' S7$$( P"5* A $MO
?e are happ* to la$nch S0S tracCing facilit* as an initiati%e to pro%ide better ser%ice to o$r c$stomers&
,nitiall*, the ser%ice is a%ailable for Speed +ost and e0B 'electronic mone* order)&
T<$ 5*$75 )+#";#$(:
1) Ro$ need to send S0S to 00302 in the folloing format-
F"' S7$$( P"5*:

S+`space_Speed +ost n$mber
OR
E0S`space_Speed +ost n$mber
F"' $MO:

0B`space_e0B +:< :o
OR
E0B`space_e0B +:< :o
2) MINM 4* *<$ $+( "8 S7$$( P"5* +:%&$' +$$( +"* &$ ?)#$+- E?- )8 *<$ S7$$( P"5* +:%&$' )5
EE12340/123)+L =": +$$( *" 5$+( *<$ %$554?$ 45: SP EE12340/123
The ser%ice is not case sensiti%e 2 *o$ ma* $se capitals or loer case or a mix of both&
3) The data ill be retained $pto 3 months from the date of booCing for the p$rpose of S0S tracCing&
4) The ser%ice is a%ailable across all ser%ice pro%iders in the co$ntr*& <ates charged b* the ser%ice pro%ider
are applicable&
(NOT COVERED IN TIE SYLLABUS)
(S$;8 R$4()+?)
MEGA EXEMPTIONS
N"*)8)64*)"+ N"- 20/2012-ST. (4*$( 20-/-2012
,n exercise of the poers conferred b* s$b2section '1) of section 93 of the !inance "ct, 1994 '32 of 1994)
'hereinafter referred to as the said "ct) and in s$persession of notification n$mber 12#20122 Ser%ice Tax,
dated the 1;th 0arch, 2012, p$blished in the (a=ette of ,ndia, Extraordinar*, +art ,,, Section 3, S$b2section
'i) vide n$mber (&S&<& 210 'E), dated the 1;th 0arch, 2012, the Central (o%ernment, being satisfied that it
is necessar* in the p$blic interest so to do, hereb* exempts the folloing taxable ser%ices from the hole of
the ser%ice tax le%iable thereon $nder section 114 of the said "ct, namel*-N
1& Ser%ices pro%ided to the Enited :ations or a specified international organi=ationK
2& >ealth care ser%ices b* a clinical establishment, an a$thorised medical practitioner or para2medicsK
3& Ser%ices b* a %eterinar* clinic in relation to health care of animals or birdsK
4& Ser%ices b* an entit* registered $nder section 12"" of the ,ncome tax "ct, 1911 '43 of 1911) b* a* of
charitable acti%itiesK
3& Ser%ices b* a person b* a* of N
'a) renting of precincts of a religio$s place meant for general p$blicK or
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'() cond$ct of an* religio$s ceremon*K
1& Ser%ices pro%ided b* N
'a) an arbitral trib$nal to 2
'i) an* person other than a b$siness entit*K or
'ii) a b$siness entit* ith a t$rno%er $p to r$pees ten laCh in the preceding financial *earK
'() an indi%id$al as an ad%ocate or a partnership firm of ad%ocates b* a* of legal ser%ices to,2
'i) an ad%ocate or partnership firm of ad%ocates pro%iding legal ser%ices K
'ii) an* person other than a b$siness entit*K or
'iii) a b$siness entit* ith a t$rno%er $p to r$pees ten laCh in the preceding financial *earK or
'c) a person represented on an arbitral trib$nal to an arbitral trib$nalK
;& Ser%ices b* a* of technical testing or anal*sis of nel* de%eloped dr$gs, incl$ding %accines and herbal
remedies, on h$man participants b* a clinical research organisation appro%ed to cond$ct clinical trials b* the
9r$g Controller (eneral of ,ndiaK
8& Ser%ices b* a* of training or coaching in recreational acti%ities relating to arts, c$lt$re or sportsK
9& Ser%ices pro%ided to or b* an ed$cational instit$tion in respect of ed$cation exempted from ser%ice tax,
b* a* of,2
'a) a$xiliar* ed$cational ser%icesK or
'() renting of immo%able propert*K
10& Ser%ices pro%ided to a recognised sports bod* b*2
'a) an indi%id$al as a pla*er, referee, $mpire, coach or team manager for participation in a sporting
e%ent organi=ed b* a recogni=ed sports bod*K
'() another recognised sports bod*K
11& Ser%ices b* a* of sponsorship of sporting e%ents organised,2
'a) b* a national sports federation, or its affiliated federations, here the participating teams or
indi%id$als represent an* district, state or =oneK
'() b* "ssociation of ,ndian Eni%ersities, ,nter2Eni%ersit* Sports 4oard, School (ames !ederation
of ,ndia, "ll ,ndia Sports Co$ncil for the 9eaf, +aral*mpic Committee of ,ndia or Special Bl*mpics
4haratK
'c) b* Central Ci%il Ser%ices C$lt$ral and Sports 4oardK
'd) as part of national games, b* ,ndian Bl*mpic "ssociationK or
1//
'e) $nder +ancha*at R$%a Mreeda "$r Mhel "bhi*aan '+RMM") SchemeK
12& Ser%ices pro%ided to the (o%ernment, a local a$thorit* or a go%ernmental a$thorit* b* a* of
constr$ction. erection, commissioning, installation, completion, fitting o$t, repair, maintenance, reno%ation,
or alteration of 2
'a) a ci%il str$ct$re or an* other original orCs meant predominantl* for $se other than for
commerce, ind$str*, or an* other b$siness or professionK
'() a historical mon$ment, archaeological site or remains of national importance, archaeological
exca%ation, or anti7$it* specified $nder the "ncient 0on$ments and "rchaeological Sites and
<emains "ct, 1938 '24 of 1938)K
'c) a str$ct$re meant predominantl* for $se as 'i) an ed$cational, 'ii) a clinical, or 'iii) an art or
c$lt$ral establishmentK
'd) canal, dam or other irrigation orCsK
'e) pipeline, cond$it or plant for 'i) ater s$ppl* 'ii) ater treatment, or 'iii) seerage treatment or
disposalK or
'f) a residential complex predominantl* meant for self2$se or the $se of their emplo*ees or other
persons specified in the E)'#anation 1 to cla$se 44 of section 13 4 of the said "ctK
13& Ser%ices pro%ided b* a* of constr$ction. erection, commissioning, installation, completion, fitting o$t,
repair, maintenance, reno%ation, or alteration of,2
'a) a road, bridge, t$nnel, or terminal for road transportation for $se b* general p$blicK
'() a ci%il str$ct$re or an* other original orCs pertaining to a scheme $nder Gaaharlal :ehr$
:ational Erban <eneal 0ission or <aAi% "aas RoAanaK
'c) a b$ilding oned b* an entit* registered $nder section 12 "" of the ,ncome tax "ct, 1911'43 of
1911) and meant predominantl* for religio$s $se b* general p$blicK
'd) a poll$tion control or effl$ent treatment plant, except located as a part of a factor*K or a str$ct$re
meant for f$neral, b$rial or cremation of deceasedK
14& Ser%ices b* a* of constr$ction, erection, commissioning, or installation of original orCs pertaining
to,2
'a) an airport, port or raila*s, incl$ding monorail or metroK
'() a single residential $nit otherise than as a part of a residential complexK
'c) lo2 cost ho$ses $p to a carpet area of 10 s7$are metres per ho$se in a ho$sing proAect appro%ed
b* competent a$thorit* empoered $nder the @Scheme of "ffordable >o$sing in +artnership@ framed
b* the 0inistr* of >o$sing and Erban +o%ert* "lle%iation, (o%ernment of ,ndiaK
'd) post2har%est storage infrastr$ct$re for agric$lt$ral prod$ce incl$ding a cold storages for s$ch
p$rposesK or
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'e) mechanised food grain handling s*stem, machiner* or e7$ipment for $nits processing
agric$lt$ral prod$ce as food st$ff excl$ding alcoholic be%eragesK
13& Temporar* transfer or permitting the $se or enAo*ment of a cop*right co%ered $nder cla$ses 'a) or 'b) of
s$b2section '1) of section 13 of the ,ndian Cop*right "ct, 193; '14 of 193;), relating to original literar*,
dramatic, m$sical, artistic orCs or cinematograph filmsK
11& Ser%ices b* a performing artist in folC or classical art forms of 'i) m$sic, or 'ii) dance, or 'iii) theatre,
excl$ding ser%ices pro%ided b* s$ch artist as a brand ambassadorK
1;& Ser%ices b* a* of collecting or pro%iding nes b* an independent Ao$rnalist, +ress Tr$st of ,ndia or
Enited :es of ,ndiaK
18& Ser%ices b* a* of renting of a hotel, inn, g$est ho$se, cl$b, campsite or other commercial places meant
for residential or lodging p$rposes, ha%ing declared tariff of a $nit of accommodation belo r$pees one
tho$sand per da* or e7$i%alentK
19& Ser%ices pro%ided in relation to ser%ing of food or be%erages b* a resta$rant, eating Aoint or a mess,
other than those ha%ing 'i) the facilit* of air2conditioning or central air2heating in an* part of the
establishment, at an* time d$ring the *ear, and 'ii) a licence to ser%e alcoholic be%eragesK
20& Ser%ices b* a* of transportation b* rail or a %essel from one place in ,ndia to another of the folloing
goods 2
'a) petrole$m and petrole$m prod$cts falling $nder Chapter heading 2;10 and 2;11 of the !irst
Sched$le to the Central Excise Tariff "ct, 1983 '3 of 1981)K
'() relief materials meant for %ictims of nat$ral or man2made disasters, calamities, accidents or
mishapK
'c) defence or militar* e7$ipmentsK
'd) postal mail or mail bagsK
'e) ho$sehold effectsK
'f) nespaper or maga=ines registered ith the <egistrar of :espapersK
',) raila* e7$ipments or materialsK
'.) agric$lt$ral prod$ceK
'i) foodst$ff incl$ding flo$rs, tea, coffee, Aagger*, s$gar, milC prod$cts, salt and edible oil, excl$ding
alcoholic be%eragesK or
';) chemical fertili=er and oilcaCesK
21& Ser%ices pro%ided b* a goods transport agenc* b* a* of transportation of 2
'a) fr$its, %egetables, eggs, milC, food grains or p$lses in a goods carriageK
'() goods here gross amo$nt charged for the transportation of goods on a consignment transported
in a single goods carriage does not exceed one tho$sand fi%e h$ndred r$peesK or
1/2
'c) goods, here gross amo$nt charged for transportation of all s$ch goods for a single consignee in
the goods carriage does not exceed r$pees se%en h$ndred fift*K
22& Ser%ices b* a* of gi%ing on hire 2
'a) to a state transport $ndertaCing, a motor %ehicle meant to carr* more than tel%e passengersK or
'() to a goods transport agenc*, a means of transportation of goodsK
23& Transport of passengers, ith or itho$t accompanied belongings, b* 2
'a) air, embarCing from or terminating in an airport located in the state of "r$nachal +radesh,
"ssam, 0anip$r, 0eghala*a, 0i=oram, :agaland, SiCCim, or Trip$ra or at 4agdogra located in ?est
4engalK
'() a contract carriage for the transportation of passengers, excl$ding to$rism, cond$cted to$r,
charter or hireK or
'c) ropea*, cable car or aerial trama*K
24& Ser%ices b* a* of %ehicle parCing to general p$blic excl$ding leasing of space to an entit* for
pro%iding s$ch parCing facilit*K
23& Ser%ices pro%ided to (o%ernment, a local a$thorit* or a go%ernmental a$thorit* b* a* of 2
'a) carr*ing o$t an* acti%it* in relation to an* f$nction ordinaril* entr$sted to a m$nicipalit* in
relation to ater s$ppl*, p$blic health, sanitation conser%anc*, solid aste management or sl$m
impro%ement and $pgradationK or
'() repair or maintenance of a %essel or an aircraftK
21& Ser%ices of general ins$rance b$siness pro%ided $nder folloing schemes 2
'a) >$t ,ns$rance SchemeK
'() Cattle ,ns$rance $nder SarnaAa*nti (ram Saro=gar RoAna 'earlier Cnon as ,ntegrated <$ral
9e%elopment +rogramme)K
'c) Scheme for ,ns$rance of TribalsK
'd) Ganata +ersonal "ccident +olic* and (ramin "ccident +olic*K
'e) (ro$p +ersonal "ccident +olic* for Self2Emplo*ed ?omenK
'f) "gric$lt$ral +$mpset and !ailed ?ell ,ns$ranceK
',) premia collected on export credit ins$ranceK
'.) ?eather 4ased Crop ,ns$rance Scheme or the 0odified :ational "gric$lt$ral ,ns$rance Scheme,
appro%ed b* the (o%ernment of ,ndia and implemented b* the 0inistr* of "gric$lt$reK
'i) Gan "rog*a 4ima +olic*K
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';) :ational "gric$lt$ral ,ns$rance Scheme '<ashtri*a Mrishi 4ima RoAana)K
'&) +ilot Scheme on Seed Crop ,ns$ranceK
'#) Central Sector Scheme on Cattle ,ns$ranceK
'0) Eni%ersal >ealth ,ns$rance SchemeK
'n) <ashtri*a Sasth*a 4ima RoAanaK or
'o) Cocon$t +alm ,ns$rance SchemeK
21"& Ser%ice of life ins$rance b$siness pro%ided $nder folloing schemes 2
'a) Ganashree 4ima RoAana 'G4R)K or
'b) "am "admi 4ima RoAana 'G4R)K
2;& Ser%ices pro%ided b* an inc$batee $p to a total t$rno%er of fift* laCh r$pees in a financial *ear s$bAect to
the folloing conditions, namel*-2
'a) the total t$rno%er had not exceeded fift* laCh r$pees d$ring the preceding financial *earK and
'() a period of three *ears has not been elapsed from the date of entering into an agreement as an
inc$bateeK
28& Ser%ice b* an $nincorporated bod* or a non2 profit entit* registered $nder an* la for the time being in
force, to its on members b* a* of reimb$rsement of charges or share of contrib$tion 2
'a) as a trade $nionK
'() for the pro%ision of carr*ing o$t an* acti%it* hich is exempt from the le%* of ser%ice taxK or
'c) $p to an amo$nt of fi%e tho$sand r$pees per month per member for so$rcing of goods or ser%ices
from a third person for the common $se of its members in a ho$sing societ* or a residential complexK
29& Ser%ices b* the folloing persons in respecti%e capacities 2
'a) s$b2broCer or an a$thorised person to a stocC broCerK
'() a$thorised person to a member of a commodit* exchangeK
'c) m$t$al f$nd agent to a m$t$al f$nd or asset management compan*K
'd) distrib$tor to a m$t$al f$nd or asset management compan*K
'e) selling or marCeting agent of lotter* ticCets to a distrib$ter or a selling agentK
'f) selling agent or a distrib$ter of S,0 cards or recharge co$pon %o$chersK
',) b$siness facilitator or a b$siness correspondent to a banCing compan* or an ins$rance compan*,
in a r$ral areaK or
110
'.) s$b2contractor pro%iding ser%ices b* a* of orCs contract to another contractor pro%iding
orCs contract ser%ices hich are exemptK
30& Carr*ing o$t an intermediate prod$ction process as Aob orC in relation to 2
'a) agric$lt$re, printing or textile processingK
'() c$t and polished diamonds and gemstonesK or plain and st$dded Aeeller* of gold and other
precio$s metals, falling $nder Chapter ;1 of the Central Excise Tariff "ct ,1983 '3 of 1981)K
'c) an* goods on hich appropriate d$t* is pa*able b* the principal man$fact$rerK or
'd) processes of electroplating, =inc plating, anodi=ing, heat treatment, poder coating, painting
incl$ding spra* painting or a$to blacC, d$ring the co$rse of man$fact$re of parts of c*cles or seing
machines $pto an aggregate %al$e of taxable ser%ice of the specified processes of one h$ndred and
fift* laCh r$pees in a financial *ear s$bAect to the condition that s$ch aggregate %al$e had not
exceeded one h$ndred and fift* laCh r$pees d$ring the preceding financial *earK
31& Ser%ices b* an organiser to an* person in respect of a b$siness exhibition held o$tside ,ndiaK
32& Ser%ices b* a* of maCing telephone calls from 2
'a) departmentall* r$n p$blic telephoneK
'() g$aranteed p$blic telephone operating onl* for local callsK or
'c) free telephone at airport and hospital here no bills are being iss$edK
33& Ser%ices b* a* of sla$ghtering of
1
!UUU, animalsK
34& Ser%ices recei%ed from a pro%ider of ser%ice located in a non2 taxable territor* b* 2
'a) (o%ernment, a local a$thorit*, a go%ernmental a$thorit* or an indi%id$al in relation to an*
p$rpose other than commerce, ind$str* or an* other b$siness or professionK
'() an entit* registered $nder section 12"" of the ,ncome tax "ct, 1911 '43 of 1911) for the
p$rposes of pro%iding charitable acti%itiesK or
'c) a person located in a non2taxable territor*K
33& Ser%ices of p$blic libraries b* a* of lending of booCs, p$blications or an* other Cnoledge2 enhancing
content or materialK
31& Ser%ices b* Emplo*ees@ State ,ns$rance Corporation to persons go%erned $nder the Emplo*ees@
,ns$rance "ct, 1948 '34 of 1948)K
3;& Ser%ices b* a* of transfer of a going concern, as a hole or an independent part thereofK
38& Ser%ices b* a* of p$blic con%eniences s$ch as pro%ision of facilities of bathroom, ashrooms,
la%atories, $rinal or toiletsK
39& Ser%ices b* a go%ernmental a$thorit* b* a* of an* acti%it* in relation to an* f$nction entr$sted to a
m$nicipalit* $nder article 243? of the Constit$tion&
111
2- 9efinitions& 2 !or the p$rpose of this notification, $nless the context otherise re7$ires, efI
'a) F"d%ocateF has the meaning assigned to it in cla$se 'a) of s$b2section '1) of section 2 of the "d%ocates
"ct, 1911 ' 23 of 1911)K
'() Fappropriate d$t*F means d$t* pa*able on man$fact$re or prod$ction $nder a Central "ct or a State "ct,
b$t shall not incl$de @:il@ rate of d$t* or d$t* holl* exemptK
'c) Farbitral trib$nalF has the meaning assigned to it in cla$se 'd) of section 2 of the "rbitration and
Conciliation "ct, 1991 '21 of 1991)K
'd) Fa$thorised medical practitionerF means a medical practitioner registered ith an* of the co$ncils of the
recognised s*stem of medicines established or recogni=ed b* la in ,ndia and incl$des a medical
professional ha%ing the re7$isite 7$alification to practice in an* recognised s*stem of medicines in ,ndia as
per an* la for the time being in forceK
'e) Fa$thorised personF means an* person ho is appointed as s$ch either b* a stocC broCer 'incl$ding
trading member) or b* a member of a commodit* exchange and ho pro%ides access to trading platform of a
stocC exchange or a commodit* exchange as an agent of s$ch stocC broCer or member of a commodit*
exchangeK
'f) Fa$xiliar* ed$cational ser%icesF means an* ser%ices relating to imparting an* sCill, Cnoledge, ed$cation
or de%elopment of co$rse content or an* other Cnoledge efI enhancement acti%it*, hether for the st$dents
or the fac$lt*, or an* other ser%ices hich ed$cational instit$tions ordinaril* carr* o$t themsel%es b$t ma*
obtain as o$tso$rced ser%ices from an* other person, incl$ding ser%ices relating to admission to s$ch
instit$tion, cond$ct of examination, catering for the st$dents $nder an* mid2da* meals scheme sponsored b*
(o%ernment, or transportation of st$dents, fac$lt* or staff of s$ch instit$tionK
',) FbanCing compan*F has the meaning assigned to it in cla$se 'a) of section 43" of the <eser%e 4anC of
,ndia "ct,1934'2 of 1934)K
'.) Fbrand ambassadorF means a person engaged for promotion or marCeting of a brand of goods, ser%ice,
propert* or actionable claim, e%ent or endorsement of name, incl$ding a trade name, logo or ho$se marC of
an* personK
'i) Fb$siness facilitator or b$siness correspondentF means an intermediar* appointed $nder the b$siness
facilitator model or the b$siness correspondent model b* a banCing compan* or an ins$rance compan*
$nder the g$idelines iss$ed b* <eser%e 4anC of ,ndiaK
';) Fclinical establishmentF means a hospital, n$rsing home, clinic, sanatori$m or an* other instit$tion b*,
hate%er name called, that offers ser%ices or facilities re7$iring diagnosis or treatment or care for illness,
inA$r*, deformit*, abnormalit* or pregnanc* in an* recognised s*stem of medicines in ,ndia, or a place
established as an independent entit* or a part of an establishment to carr* o$t diagnostic or in%estigati%e
ser%ices of diseasesK
'&) Fcharitable acti%itiesF means acti%ities relating to 2
'i) p$blic health b* a* of 2
'a) care or co$nseling of 'i) terminall* ill persons or persons ith se%ere ph*sical or mental
disabilit*, 'ii) persons afflicted ith >,/ or ",9S, or 'iii) persons addicted to a dependence2
forming s$bstance s$ch as narcotics dr$gs or alcoholK or
112
'() p$blic aareness of pre%enti%e health, famil* planning or pre%ention of >,/ infectionK
'ii) ad%ancement of religion or spirit$alit*K
'iii) ad%ancement of ed$cational programmes or sCill de%elopment relating to,2
'a) abandoned, orphaned or homeless childrenK
'() ph*sicall* or mentall* ab$sed and tra$mati=ed personsK
'c) prisonersK or
'd) persons o%er the age of 13 *ears residing in a r$ral areaK
'iv) preser%ation of en%ironment incl$ding atershed, forests and ildlifeK or
'v) ad%ancement of an* other obAect of general p$blic $tilit* $p to a %al$e of,2
'a) eighteen laCh and se%ent* fi%e tho$sand r$pees for the *ear 2012213 s$bAect to the
condition that total %al$e of s$ch acti%ities had not exceeded tent* fi%e laChs r$pees d$ring
2011212K
'() tent* fi%e laCh r$pees in an* other financial *ear s$bAect to the condition that total %al$e
of s$ch acti%ities had not exceeded tent* fi%e laChs r$pees d$ring the preceding financial
*earK
'#) Fcommodit* exchangeF means an association as defined in section 2 'A) and recogni=ed $nder section 1
of the !orard Contracts '<eg$lation) "ct,1932 ';4 of 1932)K
'0) Fcontract carriageF has the meaning assigned to it in cla$se ';) of section 2 of the 0otor /ehicles "ct,
1988 '39 of 1988)K
'n) Fdeclared tariffF incl$des charges for all amenities pro%ided in the $nit of accommodation 'gi%en on rent
for sta*) liCe f$rnit$re, air2conditioner, refrigerators or an* other amenities, b$t itho$t excl$ding an*
disco$nt offered on the p$blished charges for s$ch $nitK
'o) Fdistrib$tor or selling agentF has the meaning assigned to them in cla$se 'c) of the r$le 2 of the Hotter*
'<eg$lation) <$les, 2010 notified b* the (o%ernment of ,ndia in the 0inistr* of >ome "ffairs, p$blished in
the (a=ette of ,ndia, Extraordinar*, +art2,,, Section 3, S$b2section 'i), vide n$mber (&S&<& 2;8'E), dated the
1st "pril, 2010 and shall incl$de distrib$tor or selling agent a$thorised b* the lotter*2 organising StateK
'') Fgeneral ins$rance b$sinessF has the meaning assigned to it in cla$se 'g) of section 3 of (eneral
,ns$rance 4$siness ':ationalisation) "ct, 19;2 '3; of 19;2)K
'8) Fgeneral p$blicF means the bod* of people at large s$fficientl* defined b* some common 7$alit* of
p$blic or impersonal nat$reK
'r) Fgoods carriageF has the meaning assigned to it in cla$se '14) of section 2 of the 0otor /ehicles "ct,
1988 '39 of 1988)K
's) Fgo%ernmental a$thorit*@@ means a board, or an a$thorit* or an* other bod* established ith 90D or
more participation b* a* of e7$it* or control b* (o%ernment and set $p b* an "ct of the +arliament or a
113
State Hegislat$re to carr* o$t an* f$nction entr$sted to a m$nicipalit* $nder article 243? of the
Constit$tionK
't) Fhealth care ser%icesF means an* ser%ice b* a* of diagnosis or treatment or care for illness, inA$r*,
deformit*, abnormalit* or pregnanc* in an* recognised s*stem of medicines in ,ndia and incl$des ser%ices
b* a* of transportation of the patient to and from a clinical establishment, b$t does not incl$de hair
transplant or cosmetic or plastic s$rger*, except hen $ndertaCen to restore or to reconstr$ct anatom* or
f$nctions of bod* affected d$e to congenital defects, de%elopmental abnormalities, inA$r* or tra$maK
'-) Finc$bateeF means an entreprene$r located ithin the premises of a Technolog* 4$siness ,nc$bator
'T4,) or Science and Technolog* Entreprene$rship +arC 'STE+) recognised b* the :ational Science and
Technolog* Entreprene$rship 9e%elopment 4oard ':STE94) of the 9epartment of Science and
Technolog*, (o%ernment of ,ndia and ho has entered into an agreement ith the T4, or the STE+ to
enable himself to de%elop and prod$ce hi2tech and inno%ati%e prod$ctsK
'v) Fins$rance compan*F means a compan* carr*ing on life ins$rance b$siness or general ins$rance
b$sinessK
'*) Flegal ser%iceF means an* ser%ice pro%ided in relation to ad%ice, cons$ltanc* or assistance in an* branch
of la, in an* manner and incl$des representational ser%ices before an* co$rt, trib$nal or a$thorit*K
')) Flife ins$rance b$sinessF has the meaning assigned to it in cla$se '11) of section 2 of the ,ns$rance "ct,
1938 '4 of 1938)K
'7) Foriginal orCsF means has the meaning assigned to it in <$le 2" of the Ser%ice Tax '9etermination of
/al$e) <$les, 2001K
'/) Fprincipal man$fact$rerF means an* person ho gets goods man$fact$red or processed on his acco$nt
from another personK
'/a) Frecogni=ed sports bod*F means 2 'i) the ,ndian Bl*mpic "ssociation, 'ii) Sports "$thorit* of ,ndia,
'iii) a national sports federation recognised b* the 0inistr* of Sports and Ro$th "ffairs of the Central
(o%ernment, and its affiliate federations, 'i%) national sports promotion organisations recognised b* the
0inistr* of Sports and Ro$th "ffairs of the Central (o%ernment, '%) the ,nternational Bl*mpic "ssociation
or a federation recognised b* the ,nternational Bl*mpic "ssociation or '%i) a federation or a bod* hich
reg$lates a sport at international le%el and its affiliated federations or bodies reg$lating a sport in ,ndiaK
'/() Freligio$s placeF means a place hich is primaril* meant for cond$ct of pra*ers or orship pertaining
to a religion, meditation, or spirit$alit*K
'/c) Fresidential complexF means an* complex comprising of a b$ilding or b$ildings, ha%ing more than one
single residential $nitK
'/d) Fr$ral areaF means the area comprised in a %illage as defined in land re%en$e records, excl$ding2
the area $nder an* m$nicipal committee, m$nicipal corporation, ton area committee, cantonment board or
notified area committeeK or
an* area that ma* be notified as an $rban area b* the Central (o%ernment or a State (o%ernmentK
'/e) Fsingle residential $nitF means a self2contained residential $nit hich is designed for $se, holl* or
principall*, for residential p$rposes for one famil*K
114
'/f) Fspecified international organi=ationF means an international organi=ation declared b* the Central
(o%ernment in p$rs$ance of section 3 of the Enited :ations '+ri%ileges and ,mm$nities) "ct, 194; '41 of
194;), to hich the pro%isions of the Sched$le to the said "ct appl*K
'/,) Fstate transport $ndertaCingF has the meaning assigned to it in cla$se '42) of section 2 of the 0otor
/ehicles "ct, 1988 '39 of 1988)K
'/.) Fs$b2broCerF has the meaning assigned to it in s$b2cla$se 'gc) of cla$se 2 of the Sec$rities and
Exchange 4oard of ,ndia 'StocC 4roCers and S$b2broCers) <eg$lations, 1992K
'/i) Ftrade $nionF has the meaning assigned to it in cla$se 'h) of section 2 of the Trade Enions "ct,1921'11
of 1921)&
3- This notification shall come into force on the 1st da* of G$l*, 2012&
(NOT COVERED IN TIE SYLLABUS)
(S$;8 R$4()+?)
REVERSE CIARGE
N"*)8)64*)"+ N"- 30/2012-ST. (4*$( 20-/-2012
,n exercise of the poers conferred b* s$b2section '2) of section 18 of the !inance "ct, 1994 '32 of 1994),
and in s$persession of 'i) notification of the (o%ernment of ,ndia in the 0inistr* of !inance '9epartment of
<e%en$e), :o& 13#20122Ser%ice Tax, dated the 1;th 0arch, 2012, p$blished in the (a=ette of ,ndia,
Extraordinar*, +art ,,, Section 3, S$b2section 'i),vide n$mber (&S&< 213'E), dated the 1;th 0arch, 2012, and
'ii) notification of the (o%ernment of ,ndia in the 0inistr* of !inance '9epartment of <e%en$e), :o&
31#20042Ser%ice Tax, dated the 31st 9ecember, 2004, p$blished in the (a=ette of ,ndia, Extraordinar*, +art
,,, Section 3, S$b2section 'i), vide n$mber (&S&< 849 'E), dated the 31st 9ecember, 2004, except as respects
things done or omitted to be done before s$ch s$persession, the Central (o%ernment hereb* notifies the
folloing taxable ser%ices and the extent of ser%ice tax pa*able thereon b* the person liable to pa* ser%ice
tax for the p$rposes of the said s$b2section, namel*-2
,& The taxable ser%ices,2
'") 'i) pro%ided or agreed to be pro%ided b* an ins$rance agent to an* person carr*ing on the ins$rance
b$sinessK
'ii) pro%ided or agreed to be pro%ided b* a goods transport agenc* in respect of transportation of goods b*
road, here the person liable to pa* freight is,2
110
'a) an* factor* registered $nder or go%erned b* the !actories "ct, 1948 '13 of 1948)K
'() an* societ* registered $nder the Societies <egistration "ct, 1810 '21 of 1810) or $nder an*
other la for the time being in force in an* part of ,ndiaK
'c) an* co2operati%e societ* established b* or $nder an* laK
'd) an* dealer of excisable goods, ho is registered $nder the Central Excise "ct, 1944 '1 of 1944)
or the r$les made there$nderK
'e) an* bod* corporate established, b* or $nder an* laK or
'f) an* partnership firm hether registered or not $nder an* la incl$ding association of personsK
'iii) pro%ided or agreed to be pro%ided b* a* of sponsorship to an*bod* corporate or partnership firm
located in the taxable territor*K
'iv) pro%ided or agreed to be pro%ided b*,2
'") an arbitral trib$nal, or
'4) an indi%id$al ad%ocate or a firm of ad%ocates b* a* of legal ser%ices, or
'C) (o%ernment or local a$thorit* b* a* of s$pport ser%ices excl$ding,2
'1) renting of immo%able propert*, and
'2) ser%ices specified in s$b2cla$ses 'i), 'ii) and 'iii) of cla$se 'a) of section 119 of the
!inance "ct, 1994,
to an* b$siness entit* located in the taxable territor*K
'i%a) pro%ided or agreed to be pro%ided b* a director of a compan* to the said compan*K
'v) pro%ided or agreed to be pro%ided b* a* of renting of a motor %ehicle designed to carr* passengers to
an* person ho is not in the similar line of b$siness or s$ppl* of manpoer for an* p$rpose or sec$rit*
ser%ices or ser%ice portion in exec$tion of orCs contract b* an* indi%id$al, >ind$ Endi%ided !amil* or
partnership firm, hether registered or not, incl$ding association of persons, located in the taxable territor*
to a b$siness entit* registered as bod* corporate, located in the taxable territor*K
(B) pro%ided or agreed to be pro%ided b* an* person hich is located in a non2taxable territor* and recei%ed
b* an* person located in the taxable territor*K
(II) The extent of ser%ice tax pa*able thereon b* the person ho pro%ides the ser%ice and the person ho
recei%es the ser%ice for the taxable ser%ices specified in ',) shall be as specified in the folloing Table,
namel*-2
TABLE
S;- N"- D$56')7*)"+ "8 4 5$'#)6$ P$'6$+*4?$ "8
5$'#)6$ *49 74=4&;$
&= *<$ 7$'5"+
7'"#)()+? 5$'#)6$
P$'6$+*4?$ "8
5$'#)6$ *49 74=4&;$
&= *<$ 7$'5"+
'$6$)#)+? *<$
11/
5$'#)6$
1& in respect of ser%ices pro%ided or agreed to be
pro%ided b* an ins$rance agent to an* person carr*ing
on ins$rance b$siness
:il 100D
2& in respect of ser%ices pro%ided or agreed to be
pro%ided b* a goods transport agenc* in respect of
transportation of goods b* road
:il 100D
3& in respect of ser%ices pro%ided or agreed to be
pro%ided b* a* of sponsorship
:il 100D
4& in respect of ser%ices pro%ided or agreed to be
pro%ided b* an arbitral trib$nal
:il 100D
3& in respect of ser%ices pro%ided or agreed to be
pro%ided b* indi%id$al ad%ocate or a firm of ad%ocates
b* a* of legal ser%ices
:il 100D
3"& in respect of ser%ices pro%ided or agreed to be
pro%ided b* a director of a compan* to the said
compan*
:il 100D,
1& in respect of ser%ices pro%ided or agreed to be
pro%ided b* (o%ernment or local a$thorit* b* a* of
s$pport ser%ices excl$ding,2 '1) renting of immo%able
propert*, and '2) ser%ices specified in s$b2cla$ses 'i),
'ii) and 'iii) of cla$se 'a) of section 119 of the !inance
"ct,1994
:il 100D
;& 'a) in respect of ser%ices pro%ided or agreed to be
pro%ided b* a* of renting of a motor %ehicle
designed to carr* passengers on abated %al$e to an*
person ho is not engaged in the similar line of
b$siness
:il 100 D
'b) in respect of ser%ices pro%ided or agreed to be
pro%ided b* a* of renting of a motor %ehicle
designed to carr* passengers on non abated %al$e to
an* person ho is not engaged in the similar line of
b$siness
10D 40D
8& in respect of ser%ices pro%ided or agreed to be
pro%ided b* a* of s$ppl* of manpoer for an*
p$rpose or sec$rit* ser%ices
23D ;3 D
9& in respect of ser%ices pro%ided or agreed to be
pro%ided in ser%ice portion in exec$tion of orCs
contract
30D 30D
10& in respect of an* taxable ser%ices pro%ided or agreed to
be pro%ided b* an* person ho is located in a non2
taxable territor* and recei%ed b* an* person located in
the taxable territor*
:il 100D
E)'#anation-<. 2 The person ho pa*s or is liable to pa* freight for the transportation of goods b* road in
goods carriage, located in the taxable territor* shall be treated as the person ho recei%es the ser%ice for the
p$rpose of this notification&
111
E)'#anation-<<. 2 ,n orCs contract ser%ices, here both ser%ice pro%ider and ser%ice recipient is the persons
liable to pa* tax, the ser%ice recipient has the option of choosing the %al$ation method as per choice,
independent of %al$ation method adopted b* the pro%ider of ser%ice&
2- This notification shall come into force on the 1st da* of G$l*, 2012&
(NOT COVERED IN TIE SYLLABUS)
(S$;8 R$4()+?)
ABATEMENT
NOTIFICATION NO 2!"2012#ST, $ATE$ 20#!#2012
,n exercise of the poers conferred b* s$b2section '1) of section 93 of the !inance "ct, 1994 '32 of 1994)
'hereinafter referred to as the said "ct), and in s$persession of notification n$mber 13#20122 Ser%ice Tax,
dated the 1;th 0arch, 2012, p$blished in the (a=ette of ,ndia, Extraordinar*, +art ,,, Section 3, S$b2section
'i) vide n$mber (&S&<& 211 'E), dated the 1;th 0arch, 2012, the Central (o%ernment, being satisfied that it
is necessar* in the p$blic interest so to do, hereb* exempts the taxable ser%ice of the description specified
in col$mn '2) of the Table belo, from so m$ch of the ser%ice tax le%iable thereon $nder section 114 of the
said "ct, as is in excess of the ser%ice tax calc$lated on a %al$e hich is e7$i%alent to a percentage
specified in the corresponding entr* in col$mn '3) of the said Table, of the amo$nt charged b* s$ch ser%ice
pro%ider for pro%iding the said taxable ser%ice, $nless specified otherise, s$bAect to the rele%ant
conditions specified in the corresponding entr* in col$mn '4) of the said Table, namel*KN
TABLE
S#.
No.
2escri'tion of ta)a(#e service %ercenta,e 4onditions
+11 +21 +31 +41
1& Ser%ices in relation to financial leasing 10 :il&
112
incl$ding hire p$rchase
2& Transport of goods b* rail 30 :il&
3& Transport of passengers, ith or itho$t
accompanied belongings b* rail
30 :il&
4& 4$ndled ser%ice b* a* of s$ppl* of food or
an* other article of h$man cons$mption or an*
drinC, in a premises 'incl$ding hotel,
con%ention center, cl$b, pandal, shamiana or
an* other place, speciall* arranged for
organi=ing a f$nction) together ith renting of
s$ch premises
;0 'i) CE:/"T credit on an* goods
classifiable $nder Chapters 1 to 22 of
the Central Excise Tariff "ct, 1983 '3 of
1981) $sed for pro%iding the taxable
ser%ice, has not been taCen $nder the
pro%isions of the CE:/"T Credit
<$les, 2004&
3& Transport of passengers b* air, ith or itho$t
accompanied belongings
40 CE:/"T credit on inp$ts and capital
goods, $sed for pro%iding the taxable
ser%ice, has not been taCen $nder the
pro%isions of the CE:/"T Credit
<$les, 2004&
1& <enting of hotels, inns, g$est ho$ses, cl$bs,
campsites or other commercial places meant
for residential or lodging p$rposes&
10 Same as abo%e&
;& Ser%ices of goods transport agenc* in relation
to transportation of goods&
23 CE:/"T credit on inp$ts, capital goods
and inp$t ser%ices, $sed for pro%iding
the taxable ser%ice, has not been taCen
$nder the pro%isions of the CE:/"T
Credit <$les, 2004&
8& Ser%ices pro%ided in relation to chit ;0 Same as abo%e&
9& <enting of an* motor %ehicle designed to
carr* passengers
40 Same as abo%e&
10& Transport of goods in a %essel 30 Same as abo%e&
11& Ser%ices b* a to$r operator in relation to,2
'i) a pacCage to$r
23
'i) CE:/"T credit on inp$ts, capital
goods and inp$t ser%ices, $sed for
pro%iding the taxable ser%ice, has not
been taCen $nder the pro%isions of the
CE:/"T Credit <$les, 2004&
'ii) The bill iss$ed for this p$rpose
indicates that it is incl$si%e of charges
for s$ch a to$r&
'ii) a to$r, if the to$r operator is pro%iding
ser%ices solel* of arranging or booCing
accommodation for an* person in relation to a
to$r
10 'i) CE:/"T credit on inp$ts, capital
goods and inp$t ser%ices, $sed for
pro%iding the taxable ser%ice, has not
been taCen $nder the pro%isions of the
CE:/"T Credit <$les, 2004&
'ii) The in%oice, bill or challan iss$ed
indicates that it is toards the charges
for s$ch accommodation&
'iii) This exemption shall not appl* in
113
s$ch cases here the in%oice, bill or
challan iss$ed b* the to$r operator, in
relation to a to$r, onl* incl$des the
ser%ice charges for arranging or booCing
accommodation for an* person and does
not incl$de the cost of s$ch
accommodation&
'iii) an* ser%ices other than specified at 'i) and
'ii) abo%e&
40 'i) CE:/"T credit on inp$ts, capital
goods and inp$t ser%ices, $sed for
pro%iding the taxable ser%ice, has not
been taCen $nder the pro%isions of the
CE:/"T Credit <$les, 2004&
'ii) The bill iss$ed indicates that the
amo$nt charged in the bill is the gross
amo$nt charged for s$ch a to$r&
12& Constr$ction of a complex, b$ilding, ci%il
str$ct$re or a part thereof, intended for a sale
to a b$*er, holl* or partl* except here
entire consideration is recei%ed after iss$ance
of completion certificate b* the competent
a$thorit*,N
'i) CE:/"T credit on inp$ts $sed for
pro%iding the taxable ser%ice has not
been taCen $nder the pro%isions of the
CE:/"T Credit <$les, 2004K
'i) for residential $nit ha%ing carpet area $pto
2000 s7$are feet or here the amo$nt charged
is less than r$pees one croreK
23 'ii) The %al$e of land is incl$ded in the
amo$nt charged from the ser%ice
recei%er&
'ii) for other than the 'i) abo%e& 30
E)'#anation. -
"& !or the p$rposes of exemption at Serial n$mber 1 2
'i) The amo$nt charged shall be an amo$nt, forming or representing as interest, i&e& the difference
beteen the installments paid toards repa*ment of the lease amo$nt and the principal amo$nt
contained in s$ch installmentsK
'ii) the exemption shall not appl* to an amo$nt, other than an amo$nt forming or representing as
interest, charged b* the ser%ice pro%ider s$ch as lease management fee, processing fee,
doc$mentation charges and administrati%e fee, hich shall be added to the amo$nt calc$lated in
terms of 'i) abo%e&
4& !or the p$rposes of exemption at Serial n$mber 4 2
The amo$nt charged shall be the s$m total of the gross amo$nt charged and the fair marCet %al$e of all
goods and ser%ices s$pplied in or in relation to the s$ppl* of food or an* other article of h$man
cons$mption or an* drinC 'hether or not intoxicating) and hether or not s$pplied $nder the same
contract or an* other contract, after ded$cting2
'i) the amo$nt charged for s$ch goods or ser%ices s$pplied to the ser%ice pro%ider, if an*K and
'ii) the %al$e added tax or sales tax, if an*, le%ied thereon-
P'"#)($( that the fair marCet %al$e of goods and ser%ices so s$pplied ma* be determined in accordance
ith the generall* accepted acco$nting principles&
C& !or the p$rposes of exemption at Serial n$mber 12 2
The amo$nt charged shall be the s$m total of the amo$nt charged for the ser%ice incl$ding the fair marCet
%al$e of all goods and ser%ices s$pplied b* the recipient's) in or in relation to the ser%ice, hether or not
s$pplied $nder the same contract or an* other contract, after ded$cting2
120
'i) the amo$nt charged for s$ch goods or ser%ices s$pplied to the ser%ice pro%ider, if an*K and
'ii) the %al$e added tax or sales tax, if an*, le%ied thereon-
P'"#)($( that the fair marCet %al$e of goods and ser%ices so s$pplied ma* be determined in accordance
ith the generall* accepted acco$nting principles&
2- !or the p$rposes of this notification, $nless the context otherise re7$ires,2
a. FchitF means a transaction hether called chit, chit f$nd, chitt*, C$ri, or b* hate%er name b* or
$nder hich a person enters into an agreement ith a specified n$mber of persons that e%er* one
of them shall s$bscribe a certain s$m of mone* 'or a certain 7$antit* of grain instead) b* a* of
periodical installments o%er a definite period and that each s$bscriber shall, in his t$rn, as
determined b* lot or b* a$ction or b* tender or in s$ch other manner as ma* be specified in the
chit agreement, be entitled to a pri=e amo$nt,
(. FpacCage to$rF means a to$r herein transportation, accommodation for sta*, food, to$rist g$ide,
entr* to mon$ments and other similar ser%ices in relation to to$r are pro%ided b* the to$r operator
as part of the pacCage to$r to the person $ndertaCing the to$r,
c. Fto$r operatorF means an* person engaged in the b$siness of planning, sched$ling, organi=ing,
arranging to$rs 'hich ma* incl$de arrangements for accommodation, sightseeing or other similar
ser%ices) b* an* mode of transport, and incl$des an* person engaged in the b$siness of operating
to$rs,
3- This notification shall come into force on the 1st da* of G$l*, 2012&