Combined annual return suspension: 2015 16 filing for Central Excise and Service Tax not required pending GST.
Combined filing obligations for Central Excise and Service Tax annual returns have been suspended for the financial year 2015 16; the Board declared that the combined Annual Return due for that year need not be filed in view of impending GST implementation, and indicated a post GST Annual Return may be required only for non GST goods pending consultations with trade.

Reopening of past indirect tax assessments: not triggered solely by increased turnover from digital payments.
The instruction clarifies that, for purposes of indirect taxation, past assessments will not be reopened solely on the ground that turnover increased as a consequence of shifting transactions to digital payment methods; mere emergence of previously undisclosed receipts through digital channels is not a standalone basis for reopening historical indirect tax assessments.

Annual return requirement suspended for central excise and service tax pending GST implementation; future rules to follow.
The Board has suspended the requirement to file the combined Annual Return for Central Excise and Service Tax for 2015-16 in view of impending GST implementation; a future Annual Return may be required solely for non GST goods, with a final decision to follow after consultation with trade. Trade associations are requested to notify members accordingly.

Refund claims under CENVAT Credit rules: submit only prescribed documents for export services; authorities may request more evidence.
Refund claims under the CENVAT credit framework must comply with Notification 27/2012 CE (NT); required enclosures include Customs certified ARE I with shipping bill and bill of lading for goods, Bank Realization Certificates for services, and an Annexure A I auditor's certificate. Trade must submit only these documents with Form A, while Assistant or Deputy Commissioners retain the power to request additional documents where claim information appears incorrect or insufficient before sanctioning refund.

Cenvat credit: principal manufacturers may claim credit when job workers charge service tax on intermediate processes.
Where the principal manufacturer clears goods on payment of Central Excise duty, job work activities that are intermediate production processes are exempt from service tax and the job worker need not charge service tax; however, if a job worker does charge service tax on such intermediate processes, the principal manufacturer is entitled to take Cenvat credit of that service tax. A Central Excise Act stipulation mandating non-payment of excise on exempted goods does not by itself apply to service tax law.

PAN mandatory for registration: convert temporary non PAN registrations to PAN based profiles or face cancellation and loss of GST migration.
PAN is required for Service Tax registration and existing non PAN temporary registrations must be converted to PAN based registrations by the specified deadline; failure to comply will lead to cancellation of temporary registrations and non migration of data to the GSTN. Registrants must also update valid email and phone contact details in their registration profiles to ensure complete migration to the GST database.

Exemption withdrawal for cross-border OIDAR services requires providers to register and pay service tax from the effective date.
Providers of Cross Border B2C OIDAR services supplied online or electronically from a non-taxable territory to consumers in the taxable territory are required to obtain Service Tax registration and pay Service Tax from the announced effective date. Administrative oversight for these suppliers has been allocated to a specified Large Taxpayer Unit, registration is available via the designated electronic portal, and published contact points provide assistance for compliance.

Taxation of cross-border OIDAR services: non-resident suppliers or liable intermediaries must collect and remit service tax.
Cross-border OIDAR services supplied from non-taxable territory to non-assesse online recipients in India are taxable from 1 December 2016: PoPSR amendments make the place of provision the recipient's location for OIDAR, redefining OIDAR and removing prior exceptions. Non-resident suppliers (or appointed Indian agents) must register, collect and remit service tax on supplies to non-assesse recipients under forward charge; cross-border B2B OIDAR supplies remain subject to reverse charge. Intermediary/deeming rules and indicia to determine recipient location are provided, with LTU Bengaluru as administrative authority.

Power of arrest in service tax limited to deliberate collection and nonremittance cases where arrest may protect investigation and evidence.
The circular limits the power of arrest for Service Tax to cases where a person clearly collected amounts as service tax, failed to remit them to the Central Government beyond six months from the due date, and the amount exceeds rupees two crore, requiring file notings and documentary evidence (invoices, ST3 returns) establishing collection, non payment, the time lapse and the monetary threshold before arrest; arrest remains discretionary and depends on risks to investigation, evidence tampering or witness intimidation.

Goods and Services Tax implementation requires administrative reorganisation and strengthened IT and training for effective rollout.
Implementation of the Goods and Services Tax requires administrative reorganisation, extensive training, stakeholder engagement and upgraded IT infrastructure. The board will continue to administer central components of indirect taxation while integrating excise and service tax functions into the GST framework; selected central duties on specified commodities remain outside GST. Operational steps include strengthening systems capacity, inter agency personnel secondment, and prioritising training and outreach to ensure compliance and effective rollout.

Precincts of religious place: exemption covers immovable property within outer boundary and adjacent property under same management.
The circular clarifies that precincts in Notification No. 25/2012-Service Tax should be given a broad meaning: all immovable property of a religious place located within the outer boundary walls of the complex, and immovable property in the immediate vicinity owned by or under the same management, may be regarded as within the precincts and eligible for the renting exemption. Field formations are instructed not to take a restricted view and to publicize this interpretive guidance, reporting implementation difficulties to the Tax Research Unit.

Rectification of wrong remittances: procedure allows correction of payments made under incorrect accounting codes or registration numbers.
A procedure permits ratification of remittances made under incorrect accounting heads or registration numbers where genuine mistakes occurred. Eligible cases include payments posted to a wrong service under the same registration, to incorrect minor heads, or against a Central Excise registration instead of a Service Tax code. Assessees must submit representations with certified remittance challans, relevant returns and supporting documents through Range and Division; field formations will verify returns, payment authenticity, ledger corrections and attach a Range Officer verification before forwarding to the appropriate e-PAO or Principal Chief Controller of Accounts for adjustment.

Exemption for water supply services: construction and transmission works for government entities fall within service tax exemption.
Exemption applies to services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of pipeline, conduit or plant for water supply or water treatment, and to services by way of water supply, public health, sanitation conservancy, solid waste management or slum improvement and up-gradation; the scope of "water supply" includes construction of artificial sources and transmission works, therefore construction of tube wells is covered.

Transfer of right to use determines tax character: contract terms must show exclusive right to use to attract service tax.
Service tax liability for hiring, leasing or licensing of goods hinges on whether the contract effects a transfer of the right to use goods; if not, such supply is a declared service. Apply the Supreme Court criteria: goods available for delivery, consensus on identity, transferee's legal right to use (with permissions), exclusivity of that right vis-a -vis the transferor for the period, and inability of the owner to re-transfer the same right. Distinguish financial versus operating leases and dry versus wet leases as factual indicators; examine contract terms rather than assume generalisations.

Place of provision rules: freight forwarders' services taxable when acting as intermediaries; transportation to abroad not taxable.
Transportation of goods by air/sea to a destination outside India is treated as provided outside the taxable territory under Rule 10 POPS and not liable to service tax; a freight forwarder acting only as an intermediary under Rule 2(f)/Rule 9 is taxable for the facilitation service, whereas a freight forwarder acting as principal who assumes contractual liability and invoices as principal provides the transport service on his own account and such export transportation is not subject to service tax.

Expeditious refund processing requires complete claims, prescribed Cenvat credit statement and invoices only on request.
Claimants must file complete refund claims with an attached checklist and required records as mandated by Rule 9(6) of the Cenvat Credit Rules; Cenvat credit ledgers or statements should supply vendor, service, invoice value and tax details. A soft copy of the Cenvat credit statement in the prescribed format must be submitted at filing; physical invoices need not be filed unless specifically called for. Officers are to verify eligibility of CENVAT credit under Rule 2(1) and ensure compliance with the checklist to expedite disposal.

Outdoor catering service classification: onboard private caterers liable for service tax; operator taxed only on retained remuneration.
Catering services provided on board trains are classifiable as outdoor catering service, with private onboard contractors liable to pay service tax on amounts they bill for food and catering. Amounts retained by the principal operator as its commission or facilitation fee are taxable under the service head reflecting that remuneration. Expenses incurred as a pure agent do not form part of taxable value if the conditions of the Service Tax (Determination of Value) Rules are satisfied.

Provisional attachment of property requires prior notice and Commissioner initiation, non-compliance invites legal challenge.
Attachment under Section 73C and the 2008 Rules requires issuance of a notice affording the assessee time to reply before attachment; non-compliance with Rule 3 and paragraph 2(iii) of the July 2008 Circular invalidates attachment actions. Attachment linked to ongoing show cause proceedings should be initiated by the Commissioner, and Chief Commissioners must issue standing orders to ensure careful exercise of attachment powers and compliance with procedural safeguards.

Permission to pay service tax non-electronically: discretion must be exercised to allow cheque payments when electronic payment is impossible.
The Service Tax Rules, 1994 mandate electronic payment but allow the jurisdictional Deputy/Assistant Commissioner to permit other payment modes for reasons recorded in writing. Where electronic payment is infeasible, including for government departments unable to open current accounts, officers should judiciously and rationally exercise that discretion to allow cheque or other non-electronic payments, and supervisors should periodically review such decisions to prevent unwarranted refusals.

Service tax refunds will be paid by direct NEFT/RTGS to exporters' bank accounts; one time authorization required.
Service tax refunds will be paid by direct electronic credit to exporters' bank accounts via NEFT/RTGS from 1 July 2016; claimants must submit a one time original authorization by 30 June 2016. Divisions will send weekly consolidated statements and a hard copy to the designated bank with the consolidated cheque; the bank will make NEFT/RTGS transfers after deducting applicable charges and send a weekly scroll to the divisions, which will record the transfers, deface original claim documents and forward files to Headquarters Audit. Pre audit procedures remain unchanged.