Section 66e, finance act, 1994, such as renting of immovable property, temporary transfer of intellectual property rights, etc. A2z taxcorp llp is a professionally managed firm and having team of distinguished chartered accountants, company secretary, lawyer. Section 66ba of finance act, 1994 section 66 to be. In the negative list approach of taxation of services, the definition of service gains paramount importance. What is not service explanation to section 65b44 the word service has been defined for the first time in finance act,2012 under section 65b 44. This notification shall come into force from the 15th day of november, 2015.
Changes in the finance act, 1994 and rules except mega. Provisional attachment to protect revenue in certain cases. Service tax act chapter v of the finance act, 1994 cbic. Charge of service tax on services received from outside india. The negative list shall comprise of the following services, namely. Services under negative list and mega notification list dont have much difference. It is levied and collected under finance act, 1994. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts.
C after section 66b, the following section shall be inserted, namely. Section 67 of finance act 1994 is repealed from royal assent as it dealt with transitional rules for the introduction of ipt in 1994. There shall be levied a tax hereinafter referred to as the service tax at the rate of fourteen per cent on the value of. Section 66b, finance act, 1994, effective from july 2012.
So to level the field for both resident and nonresident and also to increase the tax revenue, government introduced section 66a through finance act, 2006. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial. Services in the exemption list are chargeable to tax. The words agreed to be provided are off prime importance. Revised legislation carried on this site may not be fully up to date. Directs the service tax payable under section 66b of the finance act, 1994, on the services by way of granting of right of way by local authorities, as defined in sub section 7 of section 3 of the indian telegraph act, 1885, in the period commencing on and from the lst day of july, 2012 and ending with the 30th day of june, 2017, but for the practice, shall not be required to be paid. It is an exhaustive definition and covers all the activities except the one excluded from the purview of service. There are currently no known outstanding effects for the finance act 1994, section 66b. Section 65b 44 of the finance act, 1994 tax on service. Recovery of service tax not levied or paid or shortlevied or shortpaid or erroneously refunded. Service tax was introduced in india in 1994 on 3 services with an. Section 87 was inserted by the finance act, 2006 with effect from 18.
What is the difference between mega exemption and negative. This section was introduced by finance act, 2006 w. Earlier, under the selective approach of taxation of services, the word service was nowhere defined in the finance act, 1994. From time to time, finance act is amended from time to time and changes are made under. Analysis section 66b is the charging section and holds a vital importance in understanding the service tax act. This section is applicable from the 1 st july 2012. Section 93 of the finance act also confers power to the central government to grant exemption from service tax.
Referencer a reference library for customs, excise. Service tax rules, 1994 in exercise of the powers conferred by sub section 1 read with sub section 2 of section 94 of the finance act, 1994 32 of 1994, the central government hereby makes the following rules for the purpose of the assessment and collection of service tax, namely. Section 66a of finance act, 1994 the reverse charge. The section 66d introduced in the finance act, 1994 states that the negative list would be comprising of the following. By the authority of this section, references to section 66 charging section under the positive list approach in chapter v of the finance act, 1994 or any other act, will be construed as reference to section 66b charging section under the negative list approach, with effect from the. Section 66ba of finance act, 1994 section 66 to be construed as section 66b by ca paras mehra background finance act, 1994 governs the service tax in india. Bare text of section 66b the bare text of section 66b is available in the annexure and the same can also be downloaded in the pdf version. Taxable territory is defined in section 65b of the finance act 1994.
Taxable territory means the territory to which the provisions of this chapter apply, or in other words, taxable territory means india excluding the state of jammu and kashmir. Penalty for contravention of rules and provisions of act for which no penalty is specified elsewhere. Insertion of explanation to section 66b of the finance act, 1994. Agreed to be provided means it also covers the cases where services are provided on credit. However, as per s 158 of the finance act, 2003, during the period commencing on and from the 16th day of july, 1997 and ending with the 16th day of october, 1998 the provisions of s 68 of the finance act, 1994 as modified by section 116 of the finance act, 2000, shall have effect and be deemed always to have had effect subject to the following. Finance act, 1994, such as services by government or local bodies. Charge of service tax on services received from outside india, 1. B and c of works contracts are merged into one single category, with. Kalimuthu under secretary to the government of india. Section 66a creates a charge on service recipient in some cases, basically in the cases of import. Finance act, 1994 or any other act for the time being in force, shall be construed as reference to section 66b thereof. Chapter v of finance act, 1994 tax management india. Section 66b of the finance act, 1994 prescribes the service tax rate. As per section 66d a services by government or a local authority excluding the following services to the extent they are not covered elsewhere are nontaxable negative list activity.
The bare text of section 66b is available in the annexure, and the same can also be downloaded in the pdf version. The word taxable territory has been defined in section 65b52 as territory to which the provisions of chapter v of finance act, 1994 as amended apply, i. Section 66b of finance act, 1994 charge of service tax. Definitions section 65b applicable from the date of enactment of the finance bill, 2015.
Section77 penalty for contravention of rules and provisions of act for which no penalty is specified elsewhere section78 penalty for suppressing value of taxable service section79 penalty for failure to comply with notice. Service tax amendments proposed in chapter v of the. Reverse charge section 682 of the finance act lawlex. As per section 119 5 of the finance act, 2015, the provisions of chapter v of the finance act, 1994, and the rules made thereunder are applicable to sbc also. For the removal of doubts, it is hereby clarified that the references to the provisions of section 66 in chapter v of the finance act, 1994 32 of 1994 or any other act, for the purpose of levy and collection of service tax, shall be construed as references to the provisions of section 66b. Service defined in section 65b 44 of the finance act, 1994, includes a declared service. Publication of information in respect of persons in certain cases.
The process of erection of pandal or shamiana is a reasonably specialized job and is carried out by the supplier with the help of his own labour. Subsections 78 of 66a ensure the rules apply correctly in line with or regardless of. Service tax act chapter v of the finance act, 1994. In case of reverse charge under section 682 of the finance act, 1994, the liability has been shifted from service provider to the service recipient. Activity by way of erection of pandal or shamiana is a declared service, under section 66e 8f. The provision of this section shall not apply on or after 1st july, 2012. This section is applicable from the 1st july, 2012. As per section 66b of the finance act, 1994, there shall be levied a tax hereinafter referred to as the service tax at the rate of fourteen per cent on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in. It has been amended by section 108 of the finance act, 2015.
But in special cases service receiver is liable to pay service tax but in special cases service receiver is liable to pay service tax which termed as reserve charge mechanism. In this chapter, unless the context otherwise requires, 1 actuary has the meaning assigned to it in clause 1 of section 2 of the insurance act. Finance act, 1994 32 of 1994 hereinafter referred to as the said act read with sub section 3 of section 95 of finance no. Section 66b is the charging section and holds a vital importance in understanding the service tax act.
Service tax chapter v of the finance act, 1994 amendment. Service tax chapterv of the finance act 1994 as amended service tax. Finance act 1994 complete act citation 50783 bare act. In exercise of the powers conferred by sub section 1 of section 93 of the finance act, 1994 32 of 1994 hereinafter referred to as the said finance act, and in supersession of the government of india in the ministry of finance department of revenue notification no. A2z taxcorp llp is a boutique indirect tax firm having professionals from multi disciplines which includes goods and services tax gst, central excise, custom, service tax, vat, dgft, foreign trade policy, sez, eou, export import laws, free trade policy etc. Service tax collected from any person to be deposited with central government. Service tax chapter v of the finance act, 1994 section 64. This section is also popularly known as reverse charge mechanism. Its just that services in the negative list are not chargeable at all as they are excluded from section 66b. As per section 66b of the act, there shall be tax levied on the value of service if provided or agreed to be provided in a taxable territory. Service tax act chapter v of the finance act, 1994 as on 142017 section 64. Section 66b of the finance act, 1994 envisages that there shall be a tax levied at the rate of 12 percent on the value of all services, other than those specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. According to section 68 2 of the finance act read with rule 2 1 a every person providing taxable services i.
Service tax act chapter v of the finance act, 1994 section. Section 66b of finance act 1994 plays a vital role in understanding the term service tax levy on services other than services enumerated in the negative list. Chapter ii service tax on commercial training or coaching. Section 87 prescribes the procedure for the recovery of amount due to the central government. The words amount due may be, in the context of finance act, 1994, as service tax due. B in section 66b, the explanation shall be omitted. Service tax chapterv of the finance act 1994 as amended. Section 66b is proposed to be amended by substituting the words twelve per cent with fourteen per cent.