Taxability of services

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....f section 65 of the Act. The implications of this phrase are- ♦ Services which have only been agreed to be provided but are yet to be provided are taxable ♦ Receipt of advances for services agreed to be provided become taxable before the actual provision of service ♦ Advances that are retained by the service provider in the event of cancellation of contract of service by the service receiver become taxable as these represent consideration for a service that was agreed to be provided. 3.1.2 Does the liability to pay the service tax on a taxable service arise the moment it is agreed to be provided without actual provision of service? No. The point of taxation is determined in terms of the Point of Taxation Rules, 201....

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....tions structures and vessels located in the continental shelf of India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof. ♦ Detailed rules called the Place of Provision of Service Rules, 2012 have been made which determine the place of provision of service depending on the nature and description of service. ♦ Please refer to Guidance Note 5 relating to the Place of Provision of Service Rules, 2012. 3.3 Service should not be specified in the negative list As per section 66B, to be taxable a service should not be specified in the negative list. The negative list of services has been specified in section 66D of the Act. For t....

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....ified in Explanation 1 or Explanation 2 to clause (44) of section 65B of the Act No [*if you are a person doing business through an establishment located in the taxable territory and another establishment located in non taxable territory OR a association or body of persons or a member thereof then please see Explanation 3 to clause (44) of section 65B of the Act before answering this question] If the answer to the above questions is as per the answers indicated in column 2 of the table above THEN you are providing a service. Step 2 To determine whether service provided by you is taxable If you are providing a 'service' (Step 1) and then pose the following Questions to yourself- S.NO. QUESTION ANSWER 1 2 1. Have I provid....