Service Tax Valuation: replacement of air travel agent with rail travel agent alters taxable service valuation scope and applicability.
Amendment to the Service Tax (Determination of Value) Rules substitutes "rail travel agent" for "air travel agent" in rule 6(2)(iii), effecting a change in terminology that governs the valuation of the specified travel agency service; the amendment takes effect on publication in the Official Gazette under the rule making authority granted by the Finance Act.

Business auxiliary service exemption for manufacture-related parts extends service tax relief where gross charges include input costs.
Exemption inserted for Business Auxiliary Services in respect of production or processing of parts and accessories used in manufacture of cycles, cycle rickshaws and hand-operated sewing machines, provided for or on behalf of the client; the gross amount charged is inclusive of the cost of inputs and input services whether or not supplied by the client.

Service tax exemption for central bank: taxable services to, by, and received by the bank are relieved from levy.
Exempts taxable services connected with the Reserve Bank of India from service tax: services provided to the Reserve Bank; services provided by any person to the Reserve Bank when the Reserve Bank is statutorily liable to pay the tax; and services received in India from outside India by the Reserve Bank. The exemption supersedes the earlier notification and was issued under the Finance Act as a public interest taxation exemption.

Service tax amendment expands definitions to include structures alongside plant, machinery and equipment in the notification.
Amendment expands the entry in Notification No. 1/2006-Service Tax by replacing "plant, machinery or equipment" with "plant, machinery, equipment or structures" in column (3), and replacing "plant, machinery, equipment" with "plant, machinery, equipment, structures" in column (4) of the Table against the specified serial number, thereby including structures within the notified terminology.

Transport of goods in containers by rail added to service tax notification, changing the taxation entry for such transport.
The Government amends Notification No. 1/2006-Service Tax by inserting S.No.11 entry (zzzp) Transport of goods in containers by rail into the Table of the principal notification, pursuant to powers conferred by the Finance Act, 1994, effective from the commencement date specified in the amendment.

Service tax amendment broadens liable entities by replacing 'commercial concern' with 'any person' effective now.
The Central Government directs that, with effect from 1st May 2006, specified service tax notifications are amended to replace references to "commercial concern" or "a commercial concern" with broader terms "any other person" or "any person", thereby expanding the class of persons captured by notifications 13/2004, 14/2004, 29/2004, 16/2005 and 21/2005.

Service Tax registration amendment expands the referenced sub rules to include an additional sub rule, widening the rule's scope.
Amends the Service Tax (Registration of Special Category of Persons) Rules, 2005 by substituting in rule 3(3) the reference to sub rules (2) to (7) with sub rules (2) to (8), formalised by a notification that sets the amendment's short title and commencement date under powers conferred by the Finance Act.

Service tax amendment: redefines providers, adds sponsorship recipient liability, and raises abatement rates under Finance Act reforms.
Amends the Service Tax Rules, 1994 via the Service Tax (Third Amendment) Rules, 2006 effective 1 May 2006. Substitutes and inserts sub-clauses in rule 2(d) to identify the insurer or reinsurer as the provider for general insurance services and to treat a body corporate or firm that receives sponsorship service as the relevant recipient-provider. Replaces "commercial concern" with "any other person" in rule 4A. Alters abatement/percentage figures in rule 6(7) by substituting previously prescribed percentages with higher rates, affecting calculation bases under that rule.

Sponsorship service inclusion: notification amended to cover sponsorship services provided to corporate or firm, effective May first.
Amendment inserts a new sub paragraph specifying that sponsorship service provided to any body corporate or firm is included in paragraph (A) of Notification No. 36/2004, effected under section 68(2) of the Finance Act, 1994 and operative from 1 May 2006.

Effective date set for Finance Act service tax amendments, bringing specified provisions of section 68 into force on May 1.
Prescribes the effective date for specified provisions of the Finance Act, 2006 that amend service tax law, by appointing the 1st day of May, 2006 as the date on which sub-section (A) and clause (2) of sub-section (B) of section 68 shall come into force, thereby commencing the amended service tax provisions and newly introduced services.

Rescission of tax notifications under Finance Act authority withdraws specified service tax notifications, subject to prior acts.
The Central Government, exercising powers under sub section (1) of the Finance Act, 1994, rescinds specified service tax notifications issued by the Ministry of Finance in the public interest, while expressly preserving the validity of actions done or omitted before such rescission; the rescission targets two earlier service tax notifications published in the Gazette.

Export of taxable services now requires delivery and use outside India and payment in convertible foreign exchange.
The amendment redefines export of taxable services by specifying that services relating to immovable property outside India, services performed outside India (including partly performed outside India), and services provided to recipients located outside India qualify as export where the service is delivered and used outside India and payment is received in convertible foreign exchange; it excludes specified sub clauses and treats services ordered from an Indian commercial establishment as non export unless ordered from an establishment outside India. "India" includes designated Continental Shelf and EEZ areas.

Determination of Value rules define valuation for non monetary consideration and set pure agent exclusions for service tax liability.
Where consideration for a taxable service is not in money, value is the gross amount ordinarily charged for similar services or an equivalent money value not less than the cost of provision; the Central Excise Officer may verify and fix value after notice and hearing. Expenditure incurred by the provider is included in value unless all pure agent conditions are met (contractual agency, no title or use, separate invoice indication, recovery of actual amounts, recipient liability and authorization, and procurement being additional to provider's services). Certain commissions and reimbursements are included, while specified collections are excluded. Services from outside India are valued at actual consideration, including partly performed services.

Taxation of cross-border services: inbound services taxable by place of performance or use; recipient registration and CENVAT exclusions apply.
Services provided from outside India and received in India are taxable based on place of performance or use: services related to immovable property situated in India; services performed in India (with partly performed services treated as performed in India and valued under section 67); and other listed services received by a recipient in India for business use. The recipient must register and pay under section 69, and such inbound services are not treated as output services for claiming CENVAT credit.

Recipient liability for cross-border services: Indian recipient made liable for service tax on imported taxable services.
The amendment designates the recipient in India as the person liable for service tax on taxable services provided from a country other than India and received in India under section 66A, and omits sub rules (8) and (9) of rule 6 of the Service Tax Rules, 1994; it comes into force on publication in the Official Gazette.

Recipient liable to pay service tax for taxable services provided from abroad and received in India under reverse charge.
Amendment designates the recipient of services as liable under the service tax reverse charge framework where a taxable service is provided from a country other than India and received in India, replacing the earlier text of paragraph (B) in the principal notification.

Rate of interest set under section 73B establishes statutory interest for recovery of excess service tax liabilities.
The Central Government, under Section 73B of the Finance Act, 1994, by Notification No. 8/2006-Service Tax dated 19 April 2006, fixes the statutory rate of interest at fifteen per cent per annum for recovery of excess service tax amounts; subsequent notifications have substituted the rate at different points in time.

Service tax exemption for RBI services removes service tax liability on taxable services provided by the Reserve Bank.
The Central Government issued Notification No. 07/2006 ST dated 01.03.2006 exempting taxable services provided or to be provided to any person by the Reserve Bank of India from the whole of service tax leviable under the Finance Act, on the basis of public interest, and invoking the statutory power to grant such an exemption; the notification was later superseded by a subsequent notification.

Service tax exemption for government state and district laboratories: testing and analysis of water quality relieved from service tax.
Exempts from service tax testing and analysis of water quality when provided by Government owned State or District level laboratories, the Central Government invoking powers under the Finance Act and granting a notification based exemption in the public interest that relieves the whole of service tax leviable for the specified taxable service.

Service tax registration change notification required; records retention and inspection enable cancellation following verification of dues.
Rule 4 now requires assessees to notify in writing changes or additions to information in Form ST-1 to the jurisdictional Assistant Commissioner or Deputy Commissioner within thirty days; the Superintendent of Central Excise, on receiving the certificate, must verify payment of all monies due under the Act, rules and notifications and may cancel the registration. Rule 5 requires assessees to preserve records for at least five years after the relevant financial year and to make them available at the registered premises for inspection by an authorised Central Excise Officer; "registered premises" includes all premises or offices providing taxable services.