TaxTMI 
TaxTMI 
TaxTMI 
EXPLANATORY NOTES - SERVICE TAX-BUDGET 2007
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....telecommunication services; (ii) mining services; (iii) services provided in relation to renting of immovable property, other than residential properties and vacant land, for use in the course or furtherance of business or commerce; (iv) services component of a works contract, other than works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams; (v) development and supply of content service for use in telecommunication services, advertising agency services and on-line information and database access or retrieval services; (vi) asset management including portfolio management and all forms of fund management service provided by any person, except a banking company or a financial institution in....
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....nd authenticity of documents submitted by the candidates; (g) Banking and other financial services, • to replace the words "any other person" with "commercial concern" in the definition of taxable service of banking and other financial services [section 65(105)(zm)] and definition of banking and other financial services [section 65(12)], • to delete reference to the exclusion of cash management, and • to clarify that a transaction shall be treated as a financial lease, if the following conditions are fulfilled:- (i) a contract for leasing of a specific asset is entered into between two parties, (ii) the contract is for use and occupation of the specific asset, (iii) the lease payments are calculated so as to cover the ....
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....on 65 will come into effect from a date to be notified after the enactment of the Finance Bill, 2007. (III) Exemptions from service tax: (1) The threshold level of service tax exemption for small service providers has been increased from the present level of Rs.4 lakh to Rs.8 lakh with effect from 01.04.2007, provided that the aggregate value of taxable services rendered by such provider of taxable service from one or more premises, does not exceed Rs. 8 lakh in the preceding financial year. [refer notification No. 4/2007-Service Tax dated 01.03.2007] Consequent upon increase in threshold limit of exemption from Rs. 4 lakh to Rs. 8 lakh, notification No.26/2005-Service Tax dated 07.06.05 and notification No.27/2005-Service Tax dated 07.....
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....rom 1st April, 2007. (4) Exemption from service tax is being provided to technical testing and analysis services provided in relation to testing of newly developed drugs including vaccines and herbal remedies on human participants by a clinical research organisation approved to conduct clinical trials by the Drugs Controller General of India. [refer notification No. 11/2007-Service Tax dated 01.03.2007] (5) Exemption from service tax is being provided to services provided in relation to delivery of content of cinema in digital form after encryption, electronically. [refer notification No. 12/2007-Service Tax dated 01.03.2007] The above exemptions [except (1) and (3)] will come into effect from 1st March, 2007. (IV) Other Changes in th....
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....ing delayed return; and (5) Section 95 is being amended to empower the Central Government to issue orders for removal of difficulty in respect of implementing, classifying or assessing the value of any taxable service incorporated by the Finance Act, 2007 upto one year from the date of enactment of the Finance Bill, 2007. (6) Section 96A is being amended to insert an Explanation in clause (b) of section 96A relating to definition of 'applicant' so as to clarify that in the 'joint venture in India' at least one of the participants or partners or equity holders shall be a non-resident. The changes mentioned above [except (1)] will come into force from the date of enactment of the Finance Bill, 2007. (V) Changes in the Service Tax Rules, 19....