1. Empower Through Knowledge Introduction to Service Tax
Madhukar N Hiregange FCA

2. Coverage Today Overview of Service Tax: Where levy applicable?
Place & Point of Taxation
What is Service?
Negative List + Few Illustrations
How to claim set off? Cenvat Credit
Whether to claim exemption?- CA Sai Prasad
What is the Value? – CA Sai Prasad
How to Determine Liability-CA Sai Prasad
Aids for Further Learning
Question/ Answer

3. Levy
Services In India
Not in Negative List – 17 not blanket - Strictly
Exemption – 42 – Strictly- Optional?
Deemed Time of Service
Deemed Place of Service [ Export]
Payable by SP + SR
After Credit + Abatement

4. Applicability of Levy What is a service?
Can it cover activities covered in State List?
Can Both excise duty and service tax be applicable on same transaction?
Can both VAT and ST be applicable on same transaction? – Software, WCT
Can Luxury Tax and ST be applicable on same transaction? Hotel

5. Levy on Whom?
Defined Service Provider providing taxable services over the basic exemption
Reverse charge on service receiver where specified: GTA, sponsorship, Import of Services.
Joint Charge

6. Place of Provision of service Rules, 2012
Service Tax leviable on services provided in India
The ‘Place of Provision of Services Rules, 2012′ specify the manner to determine the taxing jurisdiction for a service.
Service Provided in J&K + Outside India
= Not liable

7. Point of Taxation
The time when the invoice for the service provided or to be provided is issued: 3(a)
Service Completed, but invoice not issued within 30 days - Date of Completion of Service
Advance Received before completion -Date of receipt to the extent of advance.
9/20/2018 7 7 7

8. Definition of Service – Sec 65B(44)
"Service" means any activity carried out by a person for another for consideration.
Essential requirements:
Any activity
For consideration
Carried out by a person
For another

9. Specific exclusions from the definition of service
Shall not include
Any activity which constitutes merely
Transfer of title in goods or immovable property
Transaction of deemed sales
Transaction in money pr actionable claim
Providing of service by employee to employer
Fees taken by Court or Tribunal

10. Negative List
Basically covers services provided by the Government, except for where those services are in competition with the private sector;
Education sector;
Agriculture sector.
Activities where State levy applicable except…

11. Negative List (17) – 66D
Services by the Government or Local Authority;
Services by RBI;
Services by a Foreign Diplomatic Mission in India ;
Services relating to agriculture and agriculture produce
Trading of goods ;
Any process amounting to manufacture or production of goods;
Renting of residential dwelling for use as residence ;

12. Negative List (17) – 66D
Selling of space or time slots for advertisements other than broadcast by radio or television ;
Services by way of access to road or a bridge on payment of toll charges ;
Betting, gambling, lottery;
Admission to entertainment events or access to amusement facilities ;
Transmission or distribution of electricity by an electricity transmission or distribution facility ;

13. Negative List (17) – 66D Education
Pre-school education + higher secondary school or its equivalent
Education as a part of curriculum for obtaining qualification recognised by law
Education as a part of approved vocational education course
Banking
Extending deposits, loans or advances in so far as the consideration is represented by way of interest/discount
Inter se sale or purchase of foreign currency amongst banks or authorised dealers of FE or amongst banks and such dealers

14. Negative List (17) – 66D
Transportation of passengers with or without accompanied belongings by Stage Carriage, Railways, metro, monorail or tramway, inland waters, public transport, metered cabs, radio taxis or auto rickshaws ;
Transportation of goods by road (except GTA & courier agency), aircraft or vessel from a place outside India to the first customs station of landing in India, inland waters ;
Funeral, burial, crematorium or mortuary services including transportation of the deceased.

15. Few entries in Negative List
Agriculture
Services relating to agriculture or agricultural produce by way of—
Agricultural operations directly related to production of any agricultural
Supply of farm labour;
Loading, unloading, packing, storage or warehousing of agricultural produce;
Agricultural extension services;
Services by any APMC or APMB or
Services provided by a commission agent for sale or purchase of agricultural produce;
Renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;

16. Manufacture
Any process amounting to manufacture or production of goods;
Sec. 65B(40)-
"process amounting to manufacture or production of goods" means
a process on which duties of Central Excise duty is leviable under CEA or MTPA or
any process amounting to manufacture of alcoholic liquors for human consumption, opium, Indian hemp and other narcotic drugs and narcotics on which State Excise duty is leviable;
This entry, therefore, covers manufacturing activity carried out on contract or job work basis provided duties of excise are leviable on such processes under the Central Excise Act, 1944 or any of the State Acts.

17. Education Services by way of—
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course;

18. Renting of residence
Services by way of renting of residential dwelling for use as residence;
As per e-guide – hostels are covered here
Hotels, inn, guest house, campsites which are meant for temporary occupation are not covered
Commercial use of residence is not covered

19. Passenger Transportation
Service of transportation of passengers, with or without accompanied belongings, by—
a stage carriage;
railways in a class other than— first class; or AC coach
metro, monorail or tramway, or inland waterways;
public transport, other than predominantly for tourism purpose, in a vessel, between places located in India; and metered cabs, radio taxis or auto rickshaws;
Services by way of transportation of goods by –
by road except the services of— a goods transportation agency; or a courier agency;
by an aircraft or a vessel from a place outside India upto the customs station of clearance ; or
by inland waterways;

20. Set – Off/ Credits What set – off would be available?
Capital Goods – 50% in yr of receipt, Balance subsequent yrs, no depreciation on credit.- if not fully used in exempted.
Inputs – on receipt + invoice
Input services - as above
Inputs + Services Proportionate

21. Knowledge input on ST Bare Act Ashok Batra/ SS Gupta
Practical Guide to Service Tax + hiregangeacademy.com
Online – caclub, tmi…- Browse, ask, answer, contribute articles, join debate..
Google

22. Wish all the Teachers a Joyful Year 2015
QUESTIONS??
Wish all the Teachers a Joyful Year 2015