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<h1>Service tax expansion: new and broadened taxable services, reverse charge and payment-on-receipt rules now govern liability.</h1> The Finance Act, 2005 expands service tax coverage by adding specified new taxable services and broadening existing categories, ties tax liability to receipt of payment including advance receipts, and clarifies taxability of services received from non residents under a reverse charge mechanism; the amendments include definitional inclusions and exclusions, notification based exemptions and abatement options, and procedural changes for registration and centralized accounting.
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