Service Tax - Finance Act 2010 - Government Issues New Notifications
SEVERAL Service Tax Notifications are issued in preparation for the new taxes and amendments effective 1st July 2010.
No Tax on Advances received prior to 1.7.2010
: Advance payment for new and expanded services, except commercial coaching and renting, exempted. - Notification No. Dated: June 28 2010 and Corrigendum dated June 29 2010
Services used for export of goods – exemption through refund:
Notification No , dated the 7th July, 2009, amended to include Service provided by airports authority or any other person in any airport in respect of the export of said goods. - Notification No. Dated: June 28 2010
Construction in ports exempted:
Service of commercial or industrial construction when provided wholly within the port or other port, for construction, repair, alteration and renovation of wharves, quays, docks, stages, jetties, piers and railways, exempted - Notification No. Dated: June 28 2010
Air Ticket – deemed Invoice:
Service Providers are required to issue an invoice, bill or challan. Now that air passengers are liable to service tax, the airlines are also supposed to issue an invoice, bill or challan, containing the Number, registration no. Etc,. Service tax Rules are amended to stipulate that the air ticket will be deemed to be an invoice. - Notification No. Dated: June 28 2010
Abatement – several Changes:
Abatement at the rates notified in Notification No. 1/2006 allowed for port services for rent a cab, Erection, Commissioning, GTA, Commercial or Industrial construction, construction of complex,transport of goods by rail - Notification No. Dated: June 28 2010
Certain Services provided in ports and airports exempted:
Cargo handling and storage and warehousing in relation to agricultural produce, transport of export goods in an aircraft, site formation, when performed wholly within a port or airport exempted. - Notification No. Dated: June 28 2010
Commercial Construction in airports exempted:
Commercial or industrial construction referred to in sub-clause (zzq) of clause 105 of section 65 of the Finance Act, when provided wholly within the airport,exempted from the whole of service tax leviable thereon - Notification No. Dated: June 28 2010