Service tax amendments expand negative list coverage and strengthen enforcement, including director liability and arrest powers.
Amendments to Chapter V of the Finance Act, 1994 expand the negative list, revise definitions to include specified vocational courses and excisable processes, and add a section treating prior references to the positive-list charging provision as references to the negative-list charging provision from 1 July 2012. The changes introduce officer and director-level penalty liability, cap registration penalty, clarify appellate procedure for cross objections, create distinct offence categories with arrest powers, and authorize removal of difficulties. The package also includes retrospective exemption for Indian Railways, abatement rationalization for construction services, exemption reviews, an amnesty scheme, and extension of advance ruling to resident public limited companies.

Lokpal powers expanded to order investigations and grant prosecution sanction, with procedural safeguards and CBI coordination.
Amendments define the Lokpal Selection Committee composition with presidential nomination of an eminent jurist on recommendation, permit the Lokpal to order investigations after seeking a public servant's explanation upon a prima facie finding, retain the requirement to afford opportunity to be heard at preliminary stages, shift sanctioning power for prosecution to Lokpal with comments from competent authorities, narrow exclusions from Lokpal jurisdiction to statutory public religious or charitable bodies, and accept multiple measures to strengthen CBI while rejecting Lokpal approval for transfers of CBI officers.

KYC simplification allows inter-branch account transfers on self-declaration of address with subsequent proof submission within specified period.
Banks may treat existing KYC as valid for intra-bank transfers where full KYC was done; transferee branches must obtain fresh address proof but may accept a self-declaration with a six-month period to submit documentary proof. Registered rent agreements are acceptable as address proof. Customers must notify address changes within a prescribed period and provide undertakings when opening accounts or updating KYC; banks should revise KYC policies accordingly.