Determination of Service Value prescribes valuation rules for works contracts and catering services, fixing apportionment and exclusions.
The value of the service portion in execution of a works contract is the gross amount charged for the works contract less the value of property in goods transferred, excluding VAT or sales tax on such goods; includible service components are labour, sub-contractor payments, design fees, hired machinery, consumables, contractor establishment and attributable profit. Where VAT/sales tax has been paid on the actual value of goods, that value is to be used; where value cannot be determined, prescribed presumptive apportionments apply. CENVAT credit restrictions and related definitions are specified.

Cessation of section 66A: provisions cease from 1 July 2012, subject to a saving for prior acts.
The Central Government appoints the 1st day of July, 2012 as the date from which section 66A of the Finance Act, 1994 shall not apply, effected by notification under sub-section (3) of the Act, subject to a saving for acts or omissions occurring before that date.

Applicability of Section 66 suspended by government appointment, ceasing prospectively while preserving prior actions.
The Central Government appoints an effective date on which a specified provision of the finance statute shall cease to apply, declaring that the provision will not apply prospectively from that date while expressly preserving things done or omitted to be done before the provision ceases to apply.

Section 65A applicability suspended; provisions cease to apply while preserving actions and omissions occurring before cessation.
The Central Government, under sub section (3) of the Finance Act, 1994, appoints an effective date on which section 65A of the Finance Act, 1994 shall not apply, while expressly providing that the cessation does not affect things done or omitted to be done before that date.

Proviso to section 65 ceases to apply, effective 1 July 2012, changing temporal scope of service tax applicability.
The Proviso to section 65 of the Finance Act, 1994 ceases to apply with effect from 1 July 2012; the notification appoints that date as the commencement of non-application while preserving a savings provision for actions or omissions occurring before that date.

Effective date for specified Finance Act provisions set; named clauses of the Act commence on the appointed date.
The Central Government, under clauses (C), (F), (G) and (I) of section 143 of the Finance Act, 2012, appoints the 1st day of July, 2012 as the date from which those specified clauses shall come into force, thereby commencing the Finance Act, 2012 amendments concerning the negative list in service tax.

Power to withdraw the positive list under service tax now effective, enabling administrative withdrawal of listed services.
The Finance Act, 2012 amendments create statutory power to withdraw entries from the service tax positive list; the government has appointed 1 June 2012 as the commencement date for the enabling clauses by official notification so that the authority to remove listed services is operational from that date.

Compounding of service tax offences enables settlement with fixed or percentage compounding amounts and conditional immunity.
The rules permit eligible applicants to apply in a prescribed form to the designated compounding authority to compound specified service tax offences; the authority may request a report from the reporting authority, fix and order payment of a compounding amount based on prescribed scales, and grant conditional immunity from prosecution upon full disclosure and cooperation. Applications may be rejected after hearing; payment and proof are required within specified timeframes, compounding amounts are generally non refundable except where a court denies immunity, and immunity may be withdrawn for non payment, non compliance, concealment or false evidence.

Settlement Procedure for Service Tax cases requires standardized application, admission of liability, prescribed payment and inventory procedures.
The rules implement a settlement mechanism for service tax disputes: applications must be filed in Form SC(ST)-1 in quintuplicate, signed by authorised persons, accompanied by a prescribed fee, and disclose show cause notice details, admitted service tax and interest with calculations and payment particulars. The Settlement Commission forwards applications to the appropriate Commissioner for report. Where provisional attachment is ordered, the Commissioner may authorise an officer to attach property, prepare an inventory, provide a copy to the applicant, and send inventories to the Commissioner and the Commission. A per page fee applies for obtaining report copies.

Service tax rate correction updates a previously notified percentage to a lower published figure for the levy.
Corrigendum to Notification No. 3/2012-Service Tax (17 March 2012) directs that in the Gazette entry, at line 22, the text "0.12 per cent." shall be read as "0.012 per cent.", thereby substituting the corrected percentage figure in the original notification.

Reverse charge service tax: recipient bears tax liability for specified services including transport, manpower, and works contracts.
Notification prescribes a reverse charge mechanism for specified services whereby the service recipient bears the service tax liability wholly or partially. Covered services include insurance agent services to insurers; goods transport agency services for road transport to specified consignors/consignees; sponsorship to corporate/partnership recipients; arbitral tribunal and individual advocate services; government/local authority support services to business entities; renting/hiring of passenger motor vehicles (abated and non abated valuation); supply of manpower; works contracts; and services received from non taxable territory providers. The notification sets the provider/recipient tax shares and treats the freight payer for road carriage as the recipient.

Exemption for import of technology: service tax relieved to extent of R&D cess when cess paid and records maintained.
Service tax on import-of-technology services is exempt to the extent of the Research and Development Cess payable on that import, provided the R&D Cess is paid within six months of the invoice or, for associated enterprises, within six months of the credit entry, payment occurs at or before payment for the service, and records linking the invoice or credit entry to the R&D Cess payment challan are maintained; the exemption takes effect when the relevant service tax provision comes into force.

Service tax abatement reduces taxable value for specified services, subject to CENVAT credit and invoice conditions.
Notification grants abatements by allowing service tax to be calculated on a specified percentage of the gross amount charged for listed services, thereby reducing the taxable value; abatements are subject to conditions such as non-availability of CENVAT credit, invoice/bill specifications that charges are inclusive or indicate gross amount, and exclusion of non-interest receipts in financial leasing. Key services covered include various transport services, hotel and food supply, renting, renting of vehicles, chit services, tour-operator services, and financial leasing, with definitions and valuation rules provided.

Service tax exemption: broad sectoral relief for health, education, sports, construction and charitable services under section 66B.
Notification exempts specified taxable services from the whole of service tax under section 66B of the Finance Act, 1994, listing sectoral categories: services to international organisations and the UN; healthcare, veterinary and charitable services by entities registered under section 12AA; religious and certain legal and arbitral services to non-business persons; clinical research testing; educational catering and transport tied to exempt education; sports participation and sponsorships; extensive construction and public-infrastructure services for government or public use; transport and goods carriage exemptions; specified insurance schemes; incubatee services subject to turnover and tenure conditions; and various intermediary, exhibition, telephone, slaughtering and non-taxable-territory receipt exemptions, with accompanying definitions and an effective date linked to section 66B.

Determination of value of works contract services prescribes valuation methods and specified service portions for contracts and catering.
Amendment prescribes that value of works contract service equals gross amount charged less value of transfer of property in goods, and lists service components (labour, sub-contractor payments, planning/design, hired machinery, consumables, establishment costs, related expenses and profit). Where segregation is not made, presumptive valuation applies: 40% of total for original works (25% if land included) and 60% for other works. For food and drinks supply, service value is 40% for restaurant supply and 60% for outdoor catering of the total amount; goods for human consumption under chapters 1-22 are not inputs for the service portion.

Composition scheme rate increase for works contracts under service tax takes effect, raising the prescribed composition rate.
Amends the Works Contract composition scheme for payment of service tax by substituting the description of the prescribed rate in rule 3(1) of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007; the amendment is titled Works Contract (Composition Scheme for Payment of Service Tax) Amendment Rules 2012 and shall come into force on the first day of April, 2012 under the powers conferred by sections 93 and 94 of the Finance Act, 1994.

Service tax notification amendment: substitution of 'April' with 'July' in para 3 altering exemption timing.
The Central Government, invoking powers under the Finance Act, amends Notification No.9/2010 Service Tax by substituting the word April with July in paragraph 3, thereby changing the month referenced for the service tax exemption applicable to rail transport services; the amendment is issued as Notification No.9/2012 Service Tax and cites the principal notification and its prior amendment in the Gazette.

Amendment to service tax notification: substitution of April with July changes the effective timing of an exemption provision.
Amendment replaces the word 'April' with 'July' in paragraph 2 of Notification No.8/2010-Service Tax, altering the effective timing of an exemption-related provision under the executive power of section 93(1) of the Finance Act, 1994 and referencing the principal notification and its latest amendment in the Gazette.

Exemption of rail transport services: notification amends prior service-tax provision by substituting 'April' with 'July'.
Notification No.7/2012 amends Notification No.7/2010 by substituting the word 'April' with the word 'July' in paragraph 2 of the principal service-tax notification relating to exemption of services in relation to transport services by rail, effectuating a change in the month specified in that provision.

Service tax exemption for air passenger transport limits taxable base to a fraction of service value, excluding CENVAT credit cases.
The notification limits service tax on transport of passengers by air to an amount not exceeding the tax computed on a value equal to forty per cent of the taxable service provider's value for that service, and excludes cases where CENVAT credit on inputs or capital goods used in providing the service has been taken.