Valuation correction: service tax determination rules amend an example amount in prior notification to rectify a typographical error.
Corrigendum amends Example I of Notification No. 2/2011-Service Tax (dated 1 March 2011) by substituting the previously published monetary figure with the corrected figure, rectifying a typographical error in the illustrative example used for valuation of foreign currency and related service tax valuation guidance.

Point of taxation rules define when a service is treated as supplied, prioritising earlier invoice or payment as tax trigger.
These rules fix the point of taxation for service tax: service is treated as provided when performed, but if an invoice is issued or payment received earlier the earlier of those events becomes the point of taxation. Advances constitute points of taxation. Special provisions address change of tax rate, continuous supplies (separate taxable periods where payments are due), associated enterprises (earlier of payment, invoice or ledger entry), and royalties or intellectual property payments (tax point on receipt or invoice). Services first made taxable are not taxed for invoices/payments completed before taxability; rules exclude invoices issued before commencement.

Special Economic Zone services: service tax exempted for authorised operations via refund or ab initio non-levy, subject to conditions.
Exempts service tax and related cesses on taxable services received by SEZ Units or Developers for authorised operations, provided by refund subject to conditions: list of specified services approved by the Approval Committee; option for ab initio non-levy where services are wholly consumed in the SEZ (with definition); required declarations in Forms A-1/A-2/A-3; proof of payment and original invoices; prohibition on CENVAT credit; pro-rata refund where services are shared with DTA based on export turnover/total turnover; one-year claim period and recovery of erroneously refunded amounts.

Service tax rate applied to transport of coastal, inland and national waterway goods under amended notification.
Inserts a new Table entry in Notification No.1/2006-Service Tax prescribing an effective service tax rate for services related to transport of goods by coastal shipping, through national waterways, and through inland waters, effected by Notification No.16/2011 under section 93(1) of the Finance Act, 1994.

Interest rate for late payment under service tax increased, raising statutory interest rate for defaults effective April.
The Government, exercising statutory amendment power under the Finance Act provision, amends Notification No.8/2006-Service Tax by substituting the previously specified rate of interest for late payment with a higher rate; the substitution is effected by replacing the earlier wording with the new wording in the principal notification and the amendment is effective from the first day of April of the stated year.

Rate of interest for late payment amended to a higher rate under service tax notification, effective April.
The notification amends the principal service tax notification by substituting the previously stated interest rate with a higher rate, thereby increasing the rate of interest for late payment of service tax; the amendment takes effect from the stated commencement date so that the higher rate applies to late payment liabilities arising on or after that date.

Classification of services for import: specific service sub clauses designated as performed in India for tax treatment.
The amendment revises rule 3 of the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 by adding a new bracketed entry in clause (i) and substituting rule 3(ii) with a list of specified service sub clauses from clause (105) of section 65 which are to be treated as services performed in India for the purpose of import of services.

Export of Services classification: specified service categories treated as exported when provision occurs outside India under amended rules.
Amendment to Rule 3(1) of the Export of Services Rules substitutes clause (ii) with an enumerated list of sub clauses of clause (105) of section 65 of the Finance Act, 1994, declaring the services specified therein to be provision of such services as are performed outside India for export classification, and inserts an additional identifier into clause (i).

Service tax exemption for port-based works contracts: services for construction, repair or renovation of port structures excluded from levy.
Exempts services in relation to execution of works contracts provided wholly within a port for construction, repair, alteration or renovation of wharves, quays, docks, stages, jetties, piers and railways from the whole of service tax leviable thereon under the Finance Act; the exemption was later rescinded by a subsequent notification.

Service tax exemption for works contract services within airports removes service tax liability under the Finance Act.
Services in relation to works contracts provided wholly within an airport and classified under the specified sub clause of section 65 are exempted from the whole of the service tax leviable under section 66 of the Finance Act by central notification under section 93(1); the exemption instrument was later rescinded by a subsequent notification.

Exemption for air freight: service tax on air transportation of goods relieved to the extent air freight is included in customs value.
Exempts service tax on air transportation of goods insofar as the value attributable to air freight is included in the customs value determined under the Customs Act; the exemption limits relief to an amount equal to the air freight so included and is enacted under the Finance Act's enabling provision.

Exemption for exported transportation-related services: services for goods carried entirely outside India are exempt from service tax.
Services mentioned in sub-clauses (zzn), (zzp) and (zzzp) of clause (105) of section 65, when provided to a person in India in respect of goods transported from a place outside India to a final destination outside India, are exempt from the whole of service tax leviable under section 66; the exemption was notified under the Finance Act and later rescinded by a subsequent notification.

Exemption for insurer services under Rashtriya Swasthya Bima Yojana removes service tax liability on specified insurance services.
Exemption applies to taxable services provided by an insurer carrying on General Insurance Business for providing insurance under the Rashtriya Swasthya Bima Yojana, exempting the specified service in sub-clause (d) of clause (105) of section 65 from the whole of service tax leviable under section 66 of the Finance Act by notification under section 93(1); the 2011 notification was later rescinded by a 2012 notification.

Service tax exemption for works contracts applies to construction and finishing of residential complexes under urban renewal and housing schemes.
Exemption is granted for the taxable service of execution of a works contract referred to in sub-clause (zzzza) of clause (105) of section 65 of the Finance Act, when provided for construction of a new residential complex or for completion and finishing services of a new residential complex under the Jawaharlal Nehru National Urban Renewal Mission and the Rajiv Awaas Yojana, exempting the whole of the service tax leviable under section 66 of the Finance Act.

Exemption for exhibition organiser services abroad removes service tax liability under applicable service tax provisions.
Notification No. 5/2011 exempts the taxable service provided by an organiser of business exhibition for holding a business exhibition outside India from the whole of the service tax leviable thereon, on the exercise of the Central Government's power under the Finance Act; this exemption was subsequently rescinded by Notification No. 34/2012.

Service tax rate adjustment increases passenger air service levies and limits applicability to economy class, effective from April 1, 2011.
Amendment revises the effective service tax charges for passenger air service by increasing specified monetary thresholds and restricting the scope in clause (a) from any class to economy class; clause (b) also substitutes a higher amount. The changes amend Notification No. 26/2010-Service Tax and take effect on 1 April 2011.

Date for determination of rate: service tax rate applies when service is deemed provided under applicable rules, affecting chargeability.
Amendments reframe chargeability to the provision of services and insert Rule 5B that fixes the applicable tax rate as that prevailing when services are deemed provided. Rule 6 is amended to replace payment-based triggers with deeming provisions, sets a March payment deadline for services deemed in March or the March quarter, allows credit where services are not provided upon refund or credit note issuance, makes unpaid self-assessed tax recoverable with interest, and adjusts specified monetary thresholds and percentage rates.

Valuation of money changing services: taxable value based on deviation from RBI reference rate or a prescribed fallback.
The amendment prescribes that for money changing involving Indian Rupees the taxable value equals the difference between the provider's buying or selling rate and the RBI reference rate for that currency multiplied by the units exchanged; if the RBI reference rate is unavailable, a prescribed fallback percentage of the gross INR amount applies; where neither currency is INR the taxable value is a prescribed fraction of the lesser of the two amounts obtained by converting either currency into INR at the RBI reference rate.

CENVAT credit restriction: limited credit available for specified services when service tax is paid after availing input credit.
The amendment inserts a sub-rule in the Works Contract composition rules restricting CENVAT credit for specified taxable services: credit is available only to a limited extent when service tax is paid on the full value of the service after availing CENVAT credit on inputs. The provision modifies rule 3 of the principal rules and takes effect upon publication in the Official Gazette, changing credit entitlement under the composition scheme where input credit has been utilized.