Section & clause

Name of taxable service

Proposed amendment

Effect of amendment

65(19)

(ii)

Business Auxiliary Service (BAS) - Promotion or Marketing of services provided by the client

Explanation under clause (ii) shall be omitted.

Promotion or Marketing of games of chances organized or conducted is excluded from the scope being made taxable as separate category.

It is consequential amendment to introduction of separate new entry

65(25b)

Commercial or Industrial Construction

The name of "Commercial or Industrial Construction Service" is  replaced with "Commercial or Industrial Construction"

The word "service" has been removed from the name.

65(82)

Port Service

Port Service has been redefined.

Definition has widened to include any service rendered within a port in any manner.

65(105)

(zn)

Taxable Service of Port

Taxable Service means any services provided to any person by any other person in relation to port services in a port, in any manner.

Any service when the same is rendered wholly within the port is covered by the new definition.

65(105)

(zzc)

Commercial Training or Coaching Center

Explanation inserted w.e.f. 1/7/2003 to clarify that any center or institute who is providing coaching for consideration is included, irrespective of the fact that such center or institute is trust or society not having any motive of earning profit. 

Scope is widened to include even a trust or society with or without profit motive.

To nullify various decision in which it was held that charitable society or trust are not taxable.

65(105)

(zzm)

Airport Services

Services provided by any other person in any airport is covered.

Person providing service need not to be authorized by the airport authority.

65(105)

(zzq)

Commercial or Industrial construction

Explanation inserted: Construction of a new building by the builder which is intended for sale shall be deemed to be service provided to the buyer. Except where no sum is received from the buyer before completion of the building.

Builders who are taking payment from the buyers linked with the construction are covered under the definition and they have to pay service tax on entire value.

65(105)

(zzzh)

Construction of complex

Explanation inserted: Construction of a new building by the builder which is intended for sale shall be deemed to be service provided to the buyer. Except where no sum is received from the buyer before completion of the building.

Builders who are taking payment from the buyer linked with the construction are covered under the definition and they have to pay service tax on entire value.

65(105)

(zzzn)

Sponsorship service 

Recipient of service substituted to any person in place of „any body corporate or firm‟. 

1) Scope of Sponsorship service widened to include any person.

2) Sponsorship of sports is also covered now.

65(105)

(zzzo)

Airport Service

1) Service provided for domestic journey is covered.

2) All classes are covered. Earlier economy class was excluded.

Corresponding change in Section 65(77c) is required to be made

65(105)

(zzzr)

Auction of Property service

Expl. inserted to define "auction by the govt."

Clarificatory in nature

65(105)

(zzzz)

Renting of Immovable Property

Definition of taxable service amended w.r.e.f 1/06/2007. Any service provided to any person by any other person „by renting of immovable property‟ or any other service „in relation to such renting‟.

Clause (v) inserted in Expl. 1. to include vacant land in definition of immovable property.

Judgment of Delhi High Court overruled.

Renting of immovable property or any other service in relation to such renting is taxable w.r.e. from 1/06/2007.

Vacant land given for construction of building or temporary structure is included in the definition of immovable property.

65(105)

(zzzze)

Information Technology Software Service

Definition amended - the words "for use in the course, or furtherance of business or commerce" are omitted.

All information technology software service is taxable whether or not used for business or commerce.

65(105)

(zzzzf)

Insurance Auxiliary Service

Clause (ii) & (iii) of the Expl. has been substituted by clause (ii).

Amount on which service tax is leviable shall be higher of :

(a) Max. amt. fixed by IRDA 

(b) Fund Mgt. charges charged by the insurer.

The calculation of the amount on which service tax is leviable is simplified.