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<h1>Finance Act 2010: New Service Tax Rules Effective July 1, Including Air Transport and Construction Exemptions.</h1> The circular discusses the implementation of the Finance Act, 2010, focusing on service tax changes effective from July 1, 2010. It introduces new taxable services and modifies existing ones, detailing exemptions for advance payments made before this date. Key changes include service tax on air passenger transport, with specific exemptions for journeys involving North-Eastern states. The circular also addresses port and airport service classifications, sponsorship services, and construction services, including exemptions for specific projects. Additionally, it outlines service tax on goods transport by rail, effective January 2011, and exemptions for electricity distribution services. Feedback on unresolved issues is invited.