Digital signature exemption for non-taxable suppliers of online information services allows unsigned online invoices for limited transitional period.
A proviso to rule 4C(1) permits a person located in non-taxable territory providing online information and database access or retrieval services to a non-assesse online recipient in taxable territory to issue online invoices not authenticated by a digital signature for a transitional period ending 31st January, 2017; the amendment takes effect on publication in the Official Gazette.

Exemption for acquiring bank services: settlement of small-value card transactions exempt from service tax under amended notification.
Inserts Entry 64 into Notification No.25/2012-Service Tax to exempt services by an acquiring bank to any person in relation to settlement of a single payment card transaction up to a specified small-transaction threshold, and defines "acquiring bank" to include banking companies, financial institutions including non-banking financial companies, or any other person who makes payment to a card-accepting person.

Inclusion of online information and database access services alters place-of-provision classification under service tax rules.
The Place of Provision of Services (Second Amendment) Rules, 2016 insert the words "and online information and database access or retrieval" after "include broadcasting" in clause (q) of rule 2 of the Place of Provision of Services Rules, 2012, thereby expanding the definitional scope of that provision; the amendment is notified under the Finance Act and comes into force on 1 December 2016.

Exclusive jurisdiction for LTU-Bangalore over online information and database access services received by non assesse online recipients from non taxable territories.
The amendment restricts Chapter V enforcement powers for online information and database access or retrieval services provided from a non-taxable territory and received by a non-assesse online recipient to the officer specified against S.No (23) in Table 3 and his subordinates, excluding all other officers and their subordinates; it adopts the Service Tax Rules, 1994 definitions for the relevant service and recipient.

Notification corrigendum updates item numbering, replacing specified references to 5 and 5A with 6 and 6A in the service tax text.
Correction to Notification No. 38/2016 Service Tax replaces numeral 5 with 6, changes 5A to 6A in column 1 of the TABLE, and updates the reference "5A of the TABLE" to "6A of the TABLE" to correct the published Gazette entry.

Service tax compliance liability shifted to non-taxable territory service providers for online information and database access services to non-assesse recipients.
Reallocates service tax payment and procedural compliance for online information and database access or retrieval services so that where the recipient is a non-assesse online recipient, the recipient is excluded from the territorial reference and the compliance obligation is placed on the service provider located in the non-taxable territory; inserts an Explanation adopting the term as defined in the Service Tax Rules, 1994.

Tax liability for non-resident digital service providers: overseas suppliers must register and pay tax for services received in India.
Imposes service tax on persons located in non taxable territory supplying online information and database access or retrieval services received in India, defines non assesse online recipient, prescribes indicia to deem a recipient located in taxable territory, sets intermediary exclusion conditions, permits appointment of an Indian representative to discharge tax, and creates registration (Form ST 1A, ST 2A) and return (Form ST 3C) procedures including invoice and reporting requirements.

Online information and database access services excluded from exemption when supplied to government or local authorities for non business purposes.
The notification amends a prior service tax exemption so that the exemption does not apply to online information and database access or retrieval services received by the Government, local authority, governmental authority or an individual for non-business purposes, and it inserts a definition referencing clause (ccd) of sub-rule 1 of rule 2 of the Service Tax Rules, 1994.

Place of provision rules amended to redefine online information and database access services and clarify their tax treatment.
Amendment revises the Place of Provision of Services Rules, 2012 to substitute a new definition for online information and database access or retrieval services by aligning it with the Service Tax Rules, 1994, to exclude those services from the proviso in rule 3 that applies to other services, and to omit clause (b) of rule 9, thereby clarifying the scope and treatment of such online services for service tax purposes.

Service tax exemption for educational institution transportation suspends retrospective liability for the period of prior non-levy practice.
Central Government directs that service tax payable under section 66B on transportation services provided by educational institutions to students, faculty and staff during the specified prior period, which was not levied due to a generally prevalent practice, shall not be required to be paid, pursuant to powers under section 11C of the Central Excise Act read with section 83 of the Finance Act.

Adjudicatory limits for service tax notices updated to allocate notice-issuing authority by officer rank and value thresholds.
Replaces the Table in the Service Tax notification to allocate authority for issuing notices specifying amounts of service tax or CENVAT credit by officer rank: Superintendents up to a lower threshold (with exclusions), Assistant/Deputy Commissioners up to an intermediate threshold, Joint/Additional Commissioners for amounts above the intermediate threshold up to a higher cap, and Commissioners without limit.

Krishi Kalyan Cess reporting added to Form ST 3, requiring dedicated payment, adjustment and CENVAT credit entries in the return.
The Service Tax Rules amendment updates Form ST-3 to add Krishi Kalyan Cess reporting and payment lines across multiple parts, expands taxpayer categories, inserts Part DB to record modes of Krishi Kalyan Cess payment and adjustments, adds arrears/interest/penalty lines, and revises Parts I and J to require detailed monthly/quarterly disclosure of exempted/non-exempted activity and CENVAT credit balances including opening, receipt, utilisation and closing balances for Krishi Kalyan Cess.

Service tax non-levy on Yoga instruction by registered charitable entities suspends past liability for a defined historical period.
The Central Government directed that the service tax payable under section 66B on services by way of advancement of Yoga provided by entities registered under section 12AA for the period from 1 July 2012 to 20 October 2015 shall not be required to be paid, relying on powers under section 11C of the Central Excise Act read with section 83 of the Finance Act, noting a generally prevalent practice of non-levy during that period.

Service tax exemption for long-term industrial plot lease premiums removes levy on upfront consideration by public development corporations.
Exempts from levy under section 66B the taxable service provided by State Government Industrial Development Corporations/Undertakings to industrial units for granting long term leases of industrial plots where the tax is leviable on the one time upfront amount (described as premium, salami, cost, price, development charges or by any other name) payable for such lease.

Service tax amendment substitutes exemption clause to cover renting of religious precincts by specified charitable entities.
Substitutes clause (a) of entry 5 in the opening paragraph of Notification No.25/2012-Service Tax to provide that renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under the Income-tax Act, or a trust or institution registered under specified income tax provisions, or a body or authority covered under other specified income tax provisions, shall constitute the described category for service-tax purposes.

Temporal scope amendment to service tax notification narrows applicability to periods before 1 April 2016.
Amendment to Service Tax Notification No.25/2012 substitutes in entry 62 the words "during the financial year 2015-16" with "during the period prior to 1st April, 2016", thereby altering the temporal scope of the provision; the change is effected under section 93(1) of the Finance Act, 1994 by Notification No.39/2016-Service Tax.

Regional connectivity passenger transport concession grants temporary service tax abatement subject to no CENVAT credit.
A new concessional service-tax entry covers transport of passengers by air embarking from or terminating in a Regional Connectivity Scheme Airport, subject to an abatement on the taxable service and the mandatory condition that the service provider has not taken CENVAT credit on inputs, capital goods or input services used for providing that taxable service; the concession ceases one year after commencement of operations of the notified RCS airport.

Delegation of Chief Commissioner powers: Principal Commissioners with additional charge may exercise chief commissioner authority in service tax territory.
Notification No. 37/2016 invests Principal Commissioners given additional charge of a Chief Commissioner with the powers of a Chief Commissioner within the Service Tax jurisdiction specified in Notification No. 20/2014-Service Tax, under the Central Excise Act and the Finance Act and the corresponding Central Excise and Service Tax rules, thereby enabling those officers to exercise the statutory authorities of a Chief Commissioner for that jurisdiction.

Exemption for vessel-to-India goods transportation services when invoice and customs manifest conditions are satisfied for tax relief.
Exempts service tax on transportation of goods by vessel from outside India to an Indian customs station where the invoice was issued on or before the cut-off date, provided the import manifest or report was delivered by that date and a Customs-certified copy is produced by the service provider or recipient.

Krishi Kalyan Cess exemption for taxable services when invoice issued and service completed before the cut off, subject to condition.
Exemption from Krishi Kalyan Cess is granted for taxable services where the invoice was issued on or before the prescribed cut off and the provision of the service was completed on or before that cut off, covering the whole of the cess leviable on such services and subject to that single condition.