Service tax exemption on interest component of hire purchase installments reduces tax on interest while excluding other fees.
Exempts service tax on the portion of lease and hire purchase taxable service that represents interest in each installment - calculated as the difference between the installment paid and the principal component - while excluding non interest charges such as lease management, processing, documentation and administration fees; the exemption was later rescinded by a subsequent notification.

Service tax notification amendment removes specified items from the notified table, altering taxable services under the principal notification.
Notification No. 03/2006 ST dated 01.03.2006 amends Notification No. 3/94-Service Tax (30.06.1994) by omitting Sr. Nos. 9 and 10 and their related entries from the TABLE, thereby removing those items from the list of services notified under the principal notification.

Rescission of service tax notifications: specified prior notifications revoked, effective from the first of March, 2006.
The Central Government, invoking powers under the Finance Act, rescinds nineteen specified Service Tax notifications and their amendments, effective from the 1st day of March, 2006, while preserving the validity of actions done or omitted before that date; the rescinded instruments and their Gazette publication/amendment history are listed in an annexed table.

Service tax effective rate caps taxable value for specified services, conditioned on inclusive invoicing and credit exclusions.
The Notification exempts specified taxable services from service tax to the extent that tax in excess of the amount computed on a specified percentage of the gross amount charged is relieved. For each listed service the Table sets the percentage of gross amount to be treated as the taxable value and prescribes conditions-notably that invoices, bills or challans indicate inclusion of charges for catering, accommodation, transport or other inputs-and excludes cases where CENVAT credit has been availed or earlier specified notification benefits taken.

Service Tax registration: Form ST-1 specified to govern registration and amendment procedures for special category persons.
The notification prescribes Form ST-1 as the application for registration under the Service Tax (Registration of Special Category of Persons) Rules, 2005, requiring applicant identity, PAN details, constitution, registrant category (including input service distributor and threshold-based providers), nature of registration (single or centralized), full premises contact information, description of taxable services, authorized signatory declaration, and an acknowledgement format; the notification takes effect on publication in the Official Gazette.

Service tax registration forms updated; new registration, certificate and return formats required under Service Tax Rules.
The notification substitutes Forms ST-1, ST-2 and ST-3 in the Service Tax Rules, 1994, prescribing standardized formats: Form ST-1 for registration applications (including PAN, constitution, registrant category, premises and centralized registration/ISD details), Form ST-2 as the registration certificate (listing PAN, Service Tax Code, taxable services and premises with departmental premises code and non-transferability), and Form ST-3 as the half-yearly return format requiring itemised receipts, tax and education cess payments, cenvat and education cess credit particulars, ISD distribution records, unpaid amounts disclosure and a self-assessment declaration.

Adjudication power allocation for service tax penalties assigns adjudicative limits to officers by rank, with specified exceptions.
Adjudication power for penalties under Chapter V is delegated to Central Excise officers in graded bands by rank, with Superintendents, Assistant Commissioners/Deputy Commissioners, Joint/Additional Commissioners, and Commissioners allocated progressively greater authority to adjudge service tax or CENVAT credit specified in notices. The delegation excludes matters on taxability, valuation, and extended limitation cases, and does not apply where prior Chapter V decisions have been referred back for fresh adjudication. The notification takes effect on publication and has been subsequently amended to restructure banding and officer designations.

Exemption for air transport of export goods removes service tax liability for aircraft operators under specified statutory provision.
Exempts the taxable service provided by an aircraft operator in relation to transport of export goods by aircraft from the whole of the service tax leviable under section 66 of the Finance Act, the exemption being issued under the powers of section 93(1) and referring to the taxable service in sub-clause (zzn) of clause (105) of section 65.

Export of services: treatment allowed only where service is delivered and used outside India and paid in convertible foreign exchange.
The amendment expands listed service category references in rule 3 and inserts provisos in rule 3(1) and rule 3(2) that require, for a taxable service to be treated as export of services, that the service be delivered and used outside India and that payment be received by the service provider in convertible foreign exchange.

Service tax registration requires input service distributors and providers exceeding threshold to apply and file prescribed returns.
Rules require input service distributors and service providers exceeding the aggregate value threshold to apply for registration to the jurisdictional Superintendent of Central Excise within thirty days of commencement or of exceeding the threshold, in a form to be notified. Definitions include aggregate value of taxable service and adopt the CENVAT meaning of input service distributor. Sub-rules (2)-(7) of rule 4 of the Service Tax Rules, 1994 apply with Board-prescribed modifications, and input service distributors must file returns as per sub-rule (10) of rule 9 of the CENVAT Credit Rules, 2004.

Registration requirement for input service distributors and large service providers applies when aggregate taxable receipts cross the statutory threshold.
Registration is required for input service distributors and service providers whose aggregate value of taxable services in a financial year exceeds the prescribed threshold; aggregate value is the sum of first consecutive receipts for gross charges across all services and premises, excluding receipts wholly exempt under the Finance Act (subject to specified notification exceptions), and input service distributor is as defined in rule 2(m) of the CENVAT Credit Rules, 2004.

Exemption for foreign consumed services by individuals shields such services from service tax when not linked to business.
The Central Government exempts from service tax any taxable service provided to an individual that is received and consumed outside India, where such services are not received in the course or furtherance of commerce, industry or any other business; the exemption removes the whole of service tax otherwise leviable on such services.

Service tax territorial nexus clarified: foreign suppliers with no office in India subject to charge when fixed establishment or residence exists.
The amendment substitutes "formed or registered under" for the previous entity description language and replaces the territorial nexus provision to provide that any taxable service provided by a person who has a business, a fixed establishment, or whose permanent address or usual residence is outside India, and who does not have any office in India, falls within the notification.

Place of taxation for cross-border services clarified: Indian recipient treated as liable; invoicing and excess-payment adjustments specified.
The amendment treats the Indian recipient of a service from a non resident service provider (with no office in India) as the relevant person for service tax; it replaces "established by or under" with "formed or registered under"; requires issuance of an invoice, bill or challan within fourteen days after the end of the relevant period where payment for a continuously provided taxable service is not received; and allows adjustment of excess tax paid against subsequent liability with intimation to the jurisdictional Superintendent within fifteen days.

Service tax exemption for maritime services provided by non-residents and consumed outside India during sailing of ship.
Exemption from service tax applies to specified taxable services provided by a non-resident person outside India and consumed outside India in the course of sailing of a ship, where services relate to handling of ships or goods in a port outside India. Qualifying ships include those registered or chartered under relevant shipping laws, and ownership or charter must be by an Indian citizen, a statutory entity with principal place of business in India, or a registered co-operative society.

Service tax exemption: production of cut and polished diamonds, gemstones and plain and studded jewellery exempt from service tax.
Exempts the taxable service of production or processing of goods provided in the course of manufacture of cut and polished diamonds and gem stones, and plain and studded jewellery of gold and other precious metals, from the whole of service tax leviable under the Finance Act; the exemption covers goods under Chapter 71 and was amended to substitute "any person" for "a commercial concern".

Rescission of service tax notifications withdraws specified earlier notifications, terminating their effect except for prior actions.
The Central Government, invoking statutory authority, rescinds four specified service tax notifications listed by number and date and declares that the rescission applies prospectively from the notified commencement date while preserving effects of things done or omitted before rescission.

Service tax amendments expand "production" to include processing, refine construction service scope, and exclude computer training institutes.
Amendments revise scope and definitions in multiple service tax notifications by substituting "production of goods" with "production or processing of goods", omitting a specified explanatory clause, narrowing "construction service" to "commercial or industrial construction service" with a revised proviso recognising past notification benefits or services limited to completion and finishing, and inserting an exclusion and definition for commercial training or coaching by a "computer training institute." The textual changes to explanations and provisos ensure consistency and take effect on the notification's commencement date.

Service tax exemption for residential construction limits taxable value; exceptions include CENVAT credit, prior notification benefit, finishing services.
Exempts a portion of service tax on taxable services for construction of residential complexes by restricting tax to that calculated on a value equivalent to thirty-three percent of the gross amount charged; the exemption excludes cases where CENVAT credit has been taken, where benefit under an earlier notification has been availed, or where services are only completion and finishing services. The notification defines gross amount charged to include the value of goods and materials supplied or used by the service provider and states the effective commencement date.

Service tax exemption for site formation, excavation and demolition services in construction of transport and water infrastructure.
Exempts site formation and clearance, excavation, earthmoving, demolition and similar activities provided by any person to any other in the course of constructing roads, airports, railways, transport terminals, bridges, tunnels, dams and ports from the whole of service tax leviable under section 66 of the Finance Act; effective 16 June 2005 and notified as Notification No. 17/2005-Service Tax dated 7 June 2005 (rescinded by Notification No. 34/2012).