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.

Cenvat Credit amendment expands Rule 9(1)(e) to include an additional sub-clause, altering prescribed document references.
The CENVAT Credit Rules are amended by substituting in Rule 9(1)(e) the words "sub-clauses (iii), (iv) and (v)" with "sub-clauses (iii), (iv), (v) and (vii)", thereby including sub-clause (vii) among the prescribed document and account references for CENVAT credit compliance.

Composition scheme for bullion trading: dealers may pay composition tax instead of regular VAT subject to compliance and record retention.
The notification provides a composition tax scheme for registered dealers exclusively trading in bullion, fixing composition at 0.1% of aggregate bullion sales within Delhi and imposing conditions: dealers shall not collect tax, issue tax invoices, calculate net tax under regular provisions, or claim input tax credit, and must retain purchase and retail invoice records. Applicants must file prescribed forms, pay tax on opening stock purchased in Delhi at statutory rates with proof, and comply with specified entry, exit, and default rules; noncompliance attracts regular tax liability and forfeiture.

Cenvat credit amendment updates notification reference and expands credit eligibility, clarifying scope of inputs.
Amendment revises the reference to applicable notifications governing CENVAT credit eligibility by substituting an additional notification into the operative clause so that claimants must consider either the earlier notification or the newly inserted notification, as applicable; the change becomes effective upon publication in the Official Gazette.

Anti-dumping duty on pentaerythritol imposed, differential producer and exporter rates apply, payable in Indian currency until extension.
Imposition of anti-dumping duty on pentaerythritol from China PR and Sweden following findings of dumping and material injury; the Central Government, under section 9A and relevant rules, prescribes producer and exporter specific duty rates per metric tonne as set out in the notification Table. Duties are payable in Indian currency, with conversion at the Government notified exchange rate determined on the bill of entry date, and the notification specifies an effective enforcement period subject to extension or earlier revocation.

Anti-dumping duty revised for Borax Decahydrate; Turkish imports delisted after mid-term review, targeted duties retained for Chinese suppliers.
Central Government amended the 2004 anti-dumping notification for Borax Decahydrate (heading 2840) under section 9A(1) of the Customs Tariff Act and rule 23, substituting a table that sets specified anti-dumping duty rates per metric tonne in US Dollars for defined producer and exporter combinations-separating a named Chinese producer and exporter, other Chinese producers, and imports from countries other than China-after a mid-term review found no dumping margin or likelihood of continued dumping from Turkey and recommended discontinuation of duties on Turkish-origin imports.

Special Economic Zone notified for petroleum and petrochemicals; specified villages and survey parcels designated under SEZ Act.
Under section 4 of the Special Economic Zones Act, 2005, the Central Government notified specified survey numbers in Padana and Kanalus, Taluka Lalpur, District Jamnagar, Gujarat, as a Special Economic Zone following grant of a letter of approval to M/s. Reliance Infrastructure Limited for a sector specific petroleum and petrochemicals SEZ; the notification lists parcel level extents in hectares, provides group and total area aggregates, and records issuance under the SEZ Rules, 2006.

Rescission of customs notification: government revokes prior customs notification under powers of the Customs Act.
The Central Government, exercising powers under sub section (1) of section 25 of the Customs Act, rescinds Notification No.13/2006 Customs (published as G.S.R.85(E), dated 1 March 2006), thereby removing the prior exemption from the customs regulatory framework by formal notification dated 19 April 2006.

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.

Taxation of cross-border services: inbound services taxable by place of performance or use; recipient registration and CENVAT exclusions apply.
Services provided from outside India and received in India are taxable based on place of performance or use: services related to immovable property situated in India; services performed in India (with partly performed services treated as performed in India and valued under section 67); and other listed services received by a recipient in India for business use. The recipient must register and pay under section 69, and such inbound services are not treated as output services for claiming CENVAT credit.

Recipient liability for cross-border services: Indian recipient made liable for service tax on imported taxable services.
The amendment designates the recipient in India as the person liable for service tax on taxable services provided from a country other than India and received in India under section 66A, and omits sub rules (8) and (9) of rule 6 of the Service Tax Rules, 1994; it comes into force on publication in the Official Gazette.

Recipient liable to pay service tax for taxable services provided from abroad and received in India under reverse charge.
Amendment designates the recipient of services as liable under the service tax reverse charge framework where a taxable service is provided from a country other than India and received in India, replacing the earlier text of paragraph (B) in the principal notification.

Rate of interest set under section 73B establishes statutory interest for recovery of excess service tax liabilities.
The Central Government, under Section 73B of the Finance Act, 1994, by Notification No. 8/2006-Service Tax dated 19 April 2006, fixes the statutory rate of interest at fifteen per cent per annum for recovery of excess service tax amounts; subsequent notifications have substituted the rate at different points in time.

Cenvat Credit amendment removes the Explanation to rule 2 clause (p), effective on publication in the Official Gazette.
Notification No. 8/2006-Central Excise (N.T.) (CENVAT Credit (Third Amendment) Rules, 2006) omits the Explanation to clause (p) of rule 2 of the CENVAT Credit Rules, 2004. The amendment is made under the Central Excise Act and the Finance Act and takes effect on publication in the Official Gazette.

Income exemption for donations received on behalf of a religious institution, subject to application, investment and reporting conditions.
Notification exempts income received by any person on behalf of Shree Gokarn Parthagali Jeevotham Math, Mumbai from inclusion in the recipient's total income for the specified assessment years, subject to conditions requiring application or limited accumulation of income to institutional objects, permitted modes of investment under section 11(5), exclusion of business profits except when incidental with separate accounts, regular filing of returns, and transfer of surplus on dissolution to a similarly purposed organization.

Income exemption for donations received on behalf of a charitable institution subject to specified operational and compliance conditions.
Income received by any person on behalf of Indo US Science & Technology Forum is exempt from inclusion in the recipient's total income for the assessment years 2001-2002 to 2003-2004, subject to conditions: application or limited accumulation of income for institutional objects, restricted modes of investment per section 11(5), exclusion of business income unless incidental with separate books, regular filing of returns, and transfer of surplus and assets on dissolution to a like-minded organization. The exemption covers only receipts made on behalf of the Institution.