Exemption of insurance services for sheep from service tax, relieving insurers and policyholders of the tax levy on those policies.
Exempts taxable general insurance services for the insurance of sheep from the whole of service tax, relieving insurers carrying on general insurance business from charging service tax on policies issued to policyholders for sheep insurance under powers conferred by the Finance Act.

Appointment of Special Adjudicator: Commissioner of Service Tax Mumbai vested with Central Excise Officer powers to adjudicate show cause notices.
The Central Board of Excise and Customs appoints the Commissioner of Service Tax, Mumbai, as special adjudicating authority and vests in him all powers of a Central Excise Officer throughout India for the sole purpose of adjudicating show cause notices issued to M/s Tata Consultancy Services Ltd. by the Mumbai Zonal Unit of the intelligence directorate, on the statutory basis provided by the Finance Act and the Service Tax Rules.

Centralized registration allows taxpayers with centralized billing or accounting to register at billing premises for service tax compliance.
Amendment permits taxpayers with a centralised billing or centralised accounting system to opt for registration at the premises where those centralised functions are located; such registration is to be granted by the Commissioner of Central Excise having jurisdiction over those premises, without affecting registrations granted prior to the amendment. The amendment also allows audits to be conducted by an audit party deputed by the national audit office.

Large taxpayer provisions allow consolidated returns, electronic record submission on demand and unit-based notice transfer.
Amendment inserts a definition of large taxpayer by reference to the Central Excise Rules, 2002 and adds a rule requiring returns per registered premise with a consolidated return option under centralized registration; permits electronic production of financial, stores and CENVAT credit records on demand; allows opt-out with advance notice effective from the following financial year; deems pre-existing notices to be issued by the Large Taxpayer Unit after acceptance; and maintains that other rules apply mutatis mutandis where consistent.

Electronic deposit requirement for service tax payments when a high-payment threshold is reached; payment must use internet banking.
An amendment to the Service Tax Rules imposes a mandatory electronic deposit obligation: an assessee who paid service tax of fifty lakh or more in the preceding financial year, or has already paid that amount in the current financial year, must deposit service tax due electronically through internet banking.

Jurisdictional appointment empowers Commissioner of Service Tax Mumbai with nationwide Central Excise Officer powers to investigate First Flight Courier cases.
The Commissioner of Service Tax, Mumbai is appointed and vested with all powers of a Central Excise Officer throughout India for investigation and adjudication of cases being investigated against M/s First Flight Courier Ltd, pursuant to Section 83A of the Finance Act, 1994 read with Rule 3 of the Service Tax Rules, 1994.

Exemption for professional representation removes service tax on accountants' and secretaries' statutory authority appearances, later rescinded.
Exempts taxable services provided by practicing chartered accountants, cost accountants and company secretaries in their professional capacity when representing a client before any statutory authority in proceedings initiated by issuance of a notice, relieving such services from the whole of service tax leviable under section 66, by Notification No. 25/2006-Service Tax.

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.