Service tax exemption for commercial construction services related to ports removes tax liability where provided by any other person.
The Central Government exempts commercial or industrial construction services relating to construction of a port or other port from the whole of service tax leviable under the Finance Act when such services are provided to any person by any other person, effective from 16th June, 2005; the notification was later amended to substitute wording and subsequently rescinded by a later notification.

Commencement of Finance Act provisions: government appoints a formal effective date for specified service tax clauses.
The Central Government, exercising powers under clauses (a) and (b) of section 88 of the Finance Act, 2005, issues a notification appointing the 16th day of June, 2005 as the date on which those clauses shall come into force, thereby formally designating the effective date for the operative service tax provisions.

Statutory reference amendment: replaces Finance Bill clause references with Finance Act section references in export-of-services notification.
Pursuant to rule 5 of the Export of Services Rules, 2005, Notification No. 12/2005-Service Tax is amended in Explanation 2: item (d) substitutes the phrase referencing "clause 123 of the Finance Bill, 2005" and its terminal reference to the Provisional Collection of Taxes Act, 1931 with "section 123 of the Finance Act, 2005 (18 of 2005)", and item (h) substitutes the phrase referencing "clause 85 of the Finance Bill, 2005" and its terminal reference to the Provisional Collection of Taxes Act, 1931 with "section 85 of the Finance Act, 2005 (18 of 2005)".

Service tax exemption for Farm Income Insurance Scheme inserted into existing notification to exclude it from levy.
The Central Government amended Notification No. 3/2000-Service Tax by inserting the words "or the Farm Income Insurance Scheme" after "Seed Crop Insurance", thereby extending the notification's exclusion to provide a Service Tax exemption for the Farm Income Insurance Scheme under the statutory power to notify exemptions.

Rebate of input duties and service tax on exported services allowed where inputs were taxed and payment received in convertible foreign exchange.
Rebate of duty on excisable inputs and of service tax and cess on input services used for exported taxable services is available where the service is exported and payment is received in convertible foreign exchange, the duties and taxes claimed have been paid, no CENVAT credit has been availed on those inputs or services, and the aggregate rebate meets the minimum threshold. Claimants must file a pre export declaration, procure inputs and input services with prescribed invoices, and submit post export claims with invoices and proof of payment; authorities verify declarations and may sanction rebate in whole or in part.

Export rebate for service tax and cess: full refund permitted when services are exported and payment received in convertible foreign exchange.
Rebate of the whole of the service tax and cess on exported taxable services to countries other than Nepal and Bhutan is granted where the service is exported under the Export of Service Rules and payment for the service is received in India in convertible foreign exchange; rebateable tax and cess must have been paid, minimum admissible rebate conditions apply, and erroneously paid rebates are recoverable with interest under the statutory recovery provisions.

Rescission of notifications: specified service tax notifications are rescinded, effective as of a forthcoming mid-month date.
The Central Government, invoking statutory power under the Finance Act, rescinds two specified service tax notifications published in the Gazette, except as respects acts done or omissions committed before rescission, and sets an operative commencement date for this rescission, thereby removing those notifications from future application while preserving prior legal effects.

Export of services: qualifying services may be supplied without service tax and may attract rebate subject to conditions.
Export of taxable services are defined by location of performance, use and recipient: services in relation to immoveable property outside India and services performed outside India for specified categories qualify as exports; other services qualify when provided and used in commerce or industry for a recipient located outside India provided the order originates outside India, the service is delivered and used outside India, and payment is received in convertible foreign exchange. Exported taxable services may be supplied without payment of service tax and may be eligible for rebate subject to notification conditions.

Exemption for job work services where client-supplied materials returned for use in manufacture if excise duty payable.
Exempts the taxable service of production or processing of goods as job work from service tax when goods are processed using client-supplied raw or semi-finished materials and returned to the client for use in manufacture of other goods on which excise duty (other than nil-rate or wholly exempt duty) is payable; defines production or processing as working on inputs to complete part or whole of production provided it does not constitute "manufacture" under the Central Excise Act.

Centralized billing registration and expedited invoicing introduced, with revised service tax payment timelines and recipient clarification.
Amendments clarify that where a mutual fund distributor obtains distribution services, the mutual fund or asset management company receiving the service is the recipient for service tax. Assessess with centralized billing or accounting may elect registration at premises housing those centralized systems; registrations are granted by the authority in whose jurisdiction the providing premises and centralized systems are located, with prior registrations preserved. Assessess without centralized systems must seek separate registration for each premises. Providers must act within fourteen days from completion of service or receipt of payment, and service tax payment timing is set with a monthly deadline and a quarterly option for certain small taxpayers; tax is not chargeable for services provided during non-taxable periods.

Small service provider exemption: limited-value taxable services exempt from service tax subject to opt-in and CENVAT restrictions.
Service tax exemption applies to taxable services of small service providers whose aggregate value in a financial year does not exceed the prescribed threshold, excluding services under another's brand and amounts subject to reverse charge. The exemption is optional for a financial year and, if availed, prohibits taking CENVAT credit on input services or capital goods during the exemption period; any CENVAT credit on inputs in stock or in process must be paid up and remaining unutilised credit lapses. Aggregation is across all premises and services; goods transport agency receipts under reverse charge are excluded for threshold computation.

Service Tax amendment expands business auxiliary service coverage to include mutual fund distribution by distributors or agents.
Amendment adds a provision specifying that business auxiliary service of distribution of mutual fund by a mutual fund distributor or an agent is included within the service tax notification, with the amendment taking effect on the first day of April, 2005.

Gross amount charged includes goods provided by construction service providers, expanding taxable service value base.
The amendment inserts an Explanation to Notification No. 15/2004-Service Tax clarifying that for the purposes of that notification the gross amount charged in respect of a construction service shall include the value of goods and materials supplied, provided, or used by the provider of the construction service, thereby incorporating such values into the taxable service amount.

Service tax rule amendment extends the compliance deadline by substituting a later date in the rule provision.
The instrument substitutes a later calendar date in the proviso to Rule 4(1) of the Service Tax Rules, 1994, thereby extending the period for the specified compliance or transitional effect; it is named the Service Tax (Third Amendment) Rules 2005 and commences on publication in the Official Gazette.

Service tax registration extension allows liable persons for specified taxable services to apply for registration by prescribed deadline.
The amendment to rule 4(1) of the Service Tax Rules, 1994 adds a proviso allowing a person liable for service tax in respect of the taxable services specified in sub-clause (zzp) of clause (105) of section 65 to make an application for registration within a prescribed final period, thereby providing a limited window for registration for those liable for the specified services.

Service tax payment deadline: tax on services received in March must be deposited by the end of March.
Service tax on the value of taxable services received during the month of March or the quarter ending March shall be paid to the credit of the Central Government by the 31st day of March; the amendment inserts a further proviso in rule 6 prescribing this payment deadline and comes into force on publication in the official Gazette.

Service tax liability shift: specified recipients are made liable to pay tax instead of service providers for listed services.
Persons notified under section 68(2) are liable to pay service tax instead of the service provider for specified services, including telecommunication service, general insurance, insurance auxiliary services by agents, transport of goods by road where consignor or consignee are specified entities (factories, companies, corporations, societies, co-operatives, registered excise dealers, bodies corporate or partnership firms), business auxiliary distribution of mutual funds, sponsorship services to bodies corporate or firms, and taxable services provided from abroad and received in India under section 66A; effective from the first day of January, 2005.

Consignment note requirement: GTAs must issue detailed consignment notes and specified documents qualify as invoices for service tax purposes.
Amendments require goods transport agencies providing taxable road transport services to issue a serially numbered consignment note on receipt of goods, containing consignor and consignee names, vehicle registration, goods details, origin and destination and the person liable to pay service tax. The amendments also treat any document containing consignment note number and date, gross weight and prescribed particulars as an invoice/bill/challan for GTA-provided services, and clarify persons (consignor, consignee or specified commercial entities) in relation to which liability for freight exists.

Service tax exemption for goods transport agency services when gross charges fall below specified thresholds, effective from January 2005.
Exemption from service tax is provided for taxable services by a Goods Transport Agency for transport of goods by road in a goods carriage where the gross amount charged falls below specified thresholds; an "individual consignment" means all goods transported for a consignee. The exemption was effective from January 1, 2005, was amended to substitute the beneficiary wording, and was later rescinded by a 2012 notification.

Service tax exemption for goods transport agency services carrying fruits, vegetables, eggs, milk and food grains by road.
Service tax exemption was granted for taxable services provided by a goods transport agency in relation to the road transport of fruits, vegetables, eggs, milk and, as later amended, food grains and pulses, effective from the first day of January 2005.