Clause 71 - Amendment of Act 32 of 1994- Penalty for suppressing, etc, of value of taxable service- Liability under Act to be first charge- Offences and penalties- Special exemption from service tax in certain cases

Finance Bill 2011: Service Tax Expanded to New Sectors, Adjusts Penalties, Retrospective Exemptions for Club Fees 2005-2008.

Clause 71 of the Finance Bill, 2011 amends the Finance Act, 1994, concerning service tax. Key changes include redefining 'clinical establishment' and expanding taxable services to cover motor vehicle repairs, life insurance, club services, legal consultancy, arbitration, clinical services, and services by air-conditioned restaurants and short-term accommodations. Penalties for non-compliance are adjusted, with increased late fees and reduced penalties for certain offenses. New provisions establish liability as the first charge and outline offenses and penalties for service tax evasion. Retrospective exemptions are provided for certain club membership fees collected between 2005 and 2008.