TaxTMI 
TaxTMI 
Budgetary changes - new services and amendments to the existing services - levy of service tax explained
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....zw) of section 65(105) of the Finance Act, 1994 and amendments to the existing clauses of the same section are being operationalized w.e.f. May 1, 2011. The scope of these services was explained in my D.O. letter of even number dated February 28, 2011. In accordance with the budget announcements certain changes are necessitated and the related clarifications are given as follows: Services provide....
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.... short-term accommodation with a declared tariff of Rs. 1,000 per day or above. A suitable exemption has been given below this amount vide notification No. 31/2011-ST, dated April 25, 2011. Declared tariff has been defined within the notification as charges for all amenities provided in the unit of accommodation. Thus it will include cost of all electronic gadgets installed in the room and any oth....
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....il 25, 2011. The assessee will have the option to pay tax on that portion of the premium which is not invested, when such break-up is given to the policyholder. Where the break-up is not so provided, tax amount shall be 1.5% of the gross premium. However, where the entire premium is only for the risk portion the same shall constitute the taxable value of the service. Health Services 5. The new l....
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....ril 25, 2011. Legal Services 7. With the amendments coming into force, exemption provided to CAs, CWAs and CSs vide notification No. 25/2006-ST, dated 13-7-2006 for similar services is being withdrawn by notification No. 32/2011-ST, dated April 25, 2011. Other Services 8. Changes have also been made in other services namely club or association, business support services and service centre for ....