1. BUDGET – SERVICE TAX CHANGES at Hotel Sicilia, Thodupuzha on 11th July, ERNAKULAM BRANCH OF SIRC OF ICAI by CA.M.P.Tony Thrissur

2. Budget 2009 – Service Tax Changes effective from………
Budget 2009 – Service Tax Changes effective from………. Retrospective effect for some changes 7th July, The Date on which Finance Act get passed The notified date

3. NEW SERVICES UNDER TAX NET……(From date to be notified) ………………………………………………… Transport of goods by rail. (abatement expected. Some goods may be exempted) Transport of coastal goods and transport of goods through inland waterways including national waterways (abatement expected. Some goods may be exempted)

4. NEW SERVICES UNDER TAX NET……(From date to be notified) …………………………………………………. Legal consultancy Service. (Theoretically included, practically excluded !!!) Cosmetic and plastic surgery service.

5. LEGAL CONSULTANCY SERVICE …………………………………………………
LEGAL CONSULTANCY SERVICE ………………………………………………… Business entity to business entity only taxable [ individual to individual – Exempt] [Individual to firm] _ Exempt] [Firm to individual _ Exempt] [Firm to firm _ Taxable] Exemption to legal service: Appearance before court,tribunal or authority excluded Exemption to CAs: Representing the client before any statutory authority in the course of proceedings initiated under any law for the time being in force, by way of issue of notice

6. SCOPE OF SOME EXISTING SERVICES EXPANDED/CHANGED (wef the date to be notified) ******
Business Auxiliary Service (Exemption only for manufacture of Excisable goods) Information Technology Software Service (the word ‘acquiring’ replaced with ‘providing’) - with retrospective effect from Excise Exemption to packaged software on the value representing “transfer of right to use”. ( )

7. SCOPE OF SOME EXISTING SERVICES EXPANDED/CHANGED (wef the date to be notified) ******
Stock Broker Service (Sub-brokers excluded both from Stock Broker service and BAS)

8. CHANGES IN THE FINANCE ACT, 1994 (wef the date of enactment of Finance Bill) ******
Revision procedures u/s 84 abolished (Department to file appeal to Commissioner (A))

9. CHANGES IN THE RULES AND EXISTING NOTIFICATIONS (wef 7.7.2009) ******
Service Tax made applicable to installations, structures and vessels in the entire Continental Shelf of India and Exclusive Economic Zones of India. (accordingly, Import rules amended, but export rules yet to be amended !! ) Service provider of both taxable and exempted services, who does not maintain separate accounts, shall pay 6% of exempted services (earlier it was 8%).

10. CHANGES IN THE RULES AND EXISTING NOTIFICATIONS (wef 7.7.2009) ******
Service provider shall pay back the credit taken on inputs/ CG fully w/off.
Work contract Service – Composition Scheme available only if entire value of materials and services included in the value of WC. (This applies only for fresh contracts !!!).

11. CHANGES IN THE RULES AND EXISTING NOTIFICATIONS (wef date of enactment of Finance Bill) ******
Specified taxable services provided to GTA – exemption under Notification 1/2009 made retrospective effect from

12. NEW EXEMPTIONS IN SERVICE TAX (wef 7.7.2009) ******
Tour operator Services – transportation of passengers in vehicles bearing ‘contract carriage permit’ exempt. (tourism, conducted tours, charter or hire service excluded)
Club or Association Service – Exemption to FIEO and specified export promotion councils. ( This exemption is valid only till )

13. NEW EXEMPTIONS IN SERVICE TAX (wef 7.7.2009) ******
Banking and other financial Service/Foreign exchange broker service – Inter-bank purchase and sale of foreign currency between scheduled banks exempted

14. REFUND TO EXPORTERS (wef 7.7.2009) ******
New Procedure to claim refund of tax. Exporter exempted from GTA and up to 10% for commission paid (under reverse charge). 16 taxable services – self certification if refund claim do not exceed 0.25% of FOB. Otherwise, as certified by CA.

15. CAs’ BUDGET !
Inclusion in special audits under section 14A and 14AA of CEA along with cost accountants. Certification in export refund of service tax.

16. GST – April, 2010 - Challenges. Broadbasing and removing exemptions
GST – April, Challenges! Broadbasing and removing exemptions. Common threshold Centre / State sharing Tax credit in states Electronic connectivity Constitutional amendments required Will all this be possible in next eight months??

17. GST – delayed delivery better than premature baby in the incubator At present, states have no right to levy tax on services and centre has no right to levy tax on goods produced beyond factory gate. (amendment to constitution require 2/3rd majority in both Houses of Parliament with not less than 50% of MPs attending.) Tax reforms should be introduced when economy is performing well, just like VAT in 2005.

18. THANKS by Tony & Associates Thrissur, Kerala
THANKS by Tony & Associates Thrissur, Kerala. Blog: Yahoo Group: