SERVICE TAX Amendments proposed by the Finance Bill 2007 CA. Pankaj Agrwal B.Com(Hons), LL.B. FCA

2 Proposed New Services  Telecommunication Service  Services outsourced for mining or mineral, oil or gas  Renting of Immovable Property  Services in relation to Works Contract  Development and supply of content for use in  Telecommunication service,  Advertising agency services  On-line information and database access or retrieval services.

3 Proposed New Services  Asset management services  Design Services

4 Enlargement of Scope  To include sale of space in business directories, yellow pages and trade catalogues  Renting of motor vehicles capable of carrying more than 12 persons  Social function to include “Marriage”  Computer Hardware engineering consultancy.

5 Enlargement of Scope  Banking and financial services to include cash management services.  Financial Leasing defined.  Management consultancy to include business consultancy also.  Manpower recruitment service to include  Pre-recruitment screening  Verifying the credentials and antecedents of a candidate  Authenticity of documents.

6 Enlargement of Scope  Repair services to include computer software.

7 Exemption  Threshold limit enhanced from Rs lacs to 8.00 lacs  Accordingly, registration will be required if the annual turnover exceeds Rs lacs.  Resident Welfare associations where the monthly contribution does not exceed Rs. 3000/- per month exempted.  Services provided in relation to delivery of content of cinema in digital form after encryption, electronically.

8 Exemption  Technical testing and analysis services provided in relation to testing of new drugs, including vaccines and herbal remedies, on human participants by a Clinical Research Organisation(CRO)

9 Procedural Changes  Belated Return with Late Fees.  Cost Audit  To constitute of committee of commissioners for the purpose of reviewing the order passed by a commissioner of Central Excise (Appeals) or the adjudication orders passed by a Commissioner of Central Excise

10 Procedural Changes  Provision for Excess Service Tax paid  Rectification of mistakes and revision of return.  Enabling the provision for submission of self attested copy of original registration certificate.  Reverse charge method in case of sponsorship service to restrict where the recipient of service is located in India.