Taxability of software maintenance clarified: maintenance of computer software is not subject to service tax under existing exemptions.
Maintenance of installed computer software constitutes repair of an intangible program, falls within the exemption for maintenance or repair of computer systems under Notification No. 20/2003-ST, and services relating to computer software by consulting engineers are exempt under Notification No. 4/99-ST, therefore maintenance of software is not chargeable to service tax.

Service tax exemptions under Section 93 transferred to TRU from CX-4 by board circular.
Work concerning Service Tax exemptions under Section 93 of the Finance Act 1994 is reallocated from the CX-4 Section to the Tax Research Unit (TRU); the Board references an earlier circular and requests acknowledgement of receipt.

Clearing and Forwarding liability applies to coal merchants; their services are subject to service tax irrespective of buyer or seller
Services provided by coal merchants fall within the definition of Clearing and Forwarding Agents under the Finance Act and are therefore taxable as service. The classification depends on the merchants' mode of functioning, and it is immaterial whether they act as agents of buyers or sellers.

Event Management service: tax applies to services managing events, not to sponsor self organized events like trade fairs.
Service tax attaches to the Event Management service when an external event manager is engaged to organise an event at the behest of a sponsor; the tax is on the management service itself, not on the event, and does not apply where the sponsor organises and manages the event without hiring an event manager.

Service tax on ship repair: dry docking and ship chandler services are taxable, with applicable notification relief available.
Service tax applies to vessel repairs and services rendered during dry docking by ports or authorised persons, including removal and replacement of damaged parts and major works such as plating. Port services include any service by a port or its authorised agents in relation to vessels or goods; thus dry dock facilities, ship repairs and ship chandler services are taxable, subject to the benefit of Notification No. 12/2003-ST where applicable. The Board has issued a further clarification for field formations and trade.

Centralised accounting system permits single-premises registration when documentation and consolidated branch statements protect revenue interests.
Guidance permits single-premises registration where a taxpayer supplying taxable services from multiple premises maintains a centralised accounting system and obtains permission from the jurisdictional Commissioner, subject to safeguarding revenue. Applications with ST-I must include proof of address, PAN, branch list, accounting-system description, branch-wise invoice series and samples, audited balance sheets and branch trial balances, records maintained, and bank account details. The central office must file monthly branch-wise statements, a consolidated monthly service tax computation, and submit these with ST-3 returns and payment details to the Superintendent.

Service tax on mutual fund distribution commissions: commission income taxable as business auxiliary services, exemption for goods agents inapplicable.
Commission income from distribution and marketing of mutual fund units is characterised as services of a commission agent falling within Business Auxiliary Services, and therefore is liable to service tax. The exemption applicable to commission agents dealing in sale or purchase of goods does not extend to mutual fund distribution, so the goods-related exemption notification is inapplicable.

Service tax liability on advance payments requires pro rata allocation when services become taxable after payment.
When advance amounts are received for services rendered after those services become taxable, the service provider must pay tax on the portion of the value attributable to the taxable period; advance receipts are taxable only to the extent they have a nexus with services provided post commencement and should be allocated pro rata to the relevant month/quarter. A limited prior clarification exempted maintenance contracts invoiced and paid before the tax commencement date, but no general exemption for advance payments of other services exists.

Advertising agency scope: space-selling alone not taxable; canvassing with preparation or layout attracts service tax.
If canvassing is limited to space selling - contacting potential advertisers and procuring orders while leaving drafting and layout to the advertiser or publisher - such services are not liable to service tax. If canvassing includes receiving advertisement texts, estimating space, negotiating price, or forming the general layout that will appear in the publication, those activities are liable to service tax under Advertising Agency Services.

Service Tax payment deadline: statutory due date falling on a public holiday may be met on the next working day.
Service Tax obligations under Rules 6 and 7 require deposit by the statutory due date following receipt and, for proprietors and partnerships, quarterly deposit by the month immediately following the quarter. If the statutory due date for payment or return filing falls on a public holiday, payment and filing may be made on the next working day. Service providers should take precautions to meet deadlines; field formations are to be informed and a trade notice issued.

Service tax liability and compliance: provider liability, registration, payment, returns and input credit rules govern taxable services.
Service tax is an indirect levy on specified services charged on the value of taxable service, normally payable by the service provider but payable by the Indian recipient when the provider is non-resident or has no Indian establishment; services rendered within India are taxable while services consumed abroad are not. Registrants must obtain Central Excise registration (Form ST-1) within thirty days, pay tax through prescribed challans to designated banks by statutory due dates, file half-yearly returns (Form ST-3/ST-3A) or e-file where eligible, maintain documentary evidence for input tax credit under the Service Tax Credit Scheme, and follow notification-specific exemptions and appeal/refund procedures.

Service tax registration number on invoices required to enable verification of provider registration and proper remittance of tax.
Service providers must include the Service Tax Registration Number on invoices so service recipients can verify provider registration and confirm collected service tax is being remitted; field formations are directed to enforce this requirement by issuing Trade Notices or instructions and to report action taken to the Directorate.

Service Tax Audit Manual strengthens audit methodology and prescribes selection, planning, techniques and reporting requirements for service tax audits.
Issuance of a comprehensive Service Tax Audit Manual consolidating legal provisions and prescribing an audit methodology for service tax. The Manual prescribes risk-based selection of taxpayers, preparation of audit plans, specific techniques such as walk-throughs, ABC analysis, revenue risk analysis and trend analysis, formats for data collection and Master Files, a checklist for audits, and detailed profiles for telephone, non-life insurance and stock broker services to ensure uniform conduct, reporting and follow-up by departmental officers.

Service tax administrative cells centralise registration, assessment, surveys and enforcement to improve compliance and coordination.
Establishes an administrative structure for collection and enforcement of Service Tax by requiring each divisional office to constitute a Service Tax cell headed by a Superintendent with two Inspectors under the Deputy/Assistant Commissioner, and assigns that cell responsibility for surveys, registration issuance, return scrutiny and assessment, register and revenue data maintenance, periodic reporting, coercive actions including show cause notices, and replies to audit objections; jurisdictional range officers assist by identifying providers and a Headquarters Service Tax Cell coordinates Commissionerate-wide work.

Taxability of installation services clarified: machinery installation is taxable while routine fittings and exempt individual providers are excluded.
Commissioning or installation of machinery or equipment that makes the item operational is taxable, while routine residential fittings are not. Installation services by individuals are exempt. For combined supply and installation contracts an optional composite valuation allows charging service tax on one third of the gross contract value including supplied parts, subject to non application of other exemptions. IT services are excluded only when the service is primarily in relation to computer system operation; incidental use of computers in business processing does not qualify for exclusion. Maintenance or repair rendered before the levy date is not taxable; certain computer maintenance is exempt. Foreign exchange broking by authorized dealers is taxable. If a service is supplied free, tax applies only if value is assigned.

Broadcasting services taxability: Prasar Bharati now liable for service tax as provider; registration required for its units.
The omission of section 22 removed the statutory protection previously available to Prasar Bharati (Doordarshan and All India Radio), and consequently Prasar Bharati is liable as the provider of Broadcasting Services to pay service tax. Departmental instructions are modified to require immediate registration of all Prasar Bharati units as service providers for service tax compliance.

Service tax on storage of empty containers confirmed as within storage and warehousing services scope.
Handling, storage and warehousing of empty containers are within the scope of storage and warehousing services because empty containers are treated as goods under section 65(87) of the Finance Act, 1994; accordingly service tax is leviable and prior clarification excluding empty containers from cargo handling services is not relevant to this classification.

Service tax accounting heads require notification of assigned codes and issuance of trade notices to inform assessees.
Accounting heads under Major Head "0044 Service Tax" were opened for seven newly taxable services with distinct 8 digit codes for Tax Collection, Other Receipts, and Deduct Refunds; Commissioners must be notified of the codes and advised to issue a Trade Notice. "Other Receipts" covers interest and penalties on delayed payment; "Deduct Refunds" is reserved for the Excise Department when granting refunds and is not for use by assessees.

Service tax applicability clarified: repairs of motor cars, light motor vehicles and two wheelers by authorized stations are taxable.
Corrigendum amends the Circular's phrasing to state that light motor vehicles like maxi cabs were not covered. It clarifies that service tax is not leviable on services or repairs of buses or trucks, and that only services or repairs of motor cars, light motor vehicles or two wheelers performed by an authorized service station are chargeable to service tax.

Service tax expansion: new service categories taxed with specified exemptions and detailed valuation and scope clarifications.
Service tax is extended to newly specified services and to expanded classes of existing services from the date appointed by the Central Government. The circular sets out category-specific exemptions and clarifications: call centers and medical transcription centers are exempt; commission agents are exempt but consignment agents remain taxable; vocational and certain training institutes are exempt or conditionally exempt; maintenance, commissioning and technical certification services are taxable with rules on valuation and invoicing; sale value of goods separately invoiced may be excluded; non-resident service receipts paid by recipients permit registration and credit on documentary proof.