TaxTMI 
TaxTMI 
NOTES ON CLAUSES - SERVICE TAX
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....ance (No.2) Bill, 2014 receives the assent of the President. (ii) Review of general exemptions extended under Notification No. 25/2012-ST in exercise of powers conferred under section 93(1) of the Finance Act,1994: * Exemption extended to clinical research on human participants is being withdrawn. * Exemption extended to air-conditioned contract carriages like buses is being withdrawn. (iii) Rationalization of general exemptions extended under Notification No. 25/2012-ST in exercise of powers conferred under section 93(1): * Exemption in respect of services provided to Government or local authority or governmental authority, will be limited to services by way of water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation. * At present, all services provided by educational institutions [providing educational services specified in the negative list] to their students, faculty and staff does not attract servic....
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....40%. Effective service tax will decrease from the present 6.18% to 4.944%. This will come into force from 1st October 2014. IV. New exemptions * Life micro-insurance schemes for the poor, approved by IRDA, where sum assured does not exceed Rupees Fifty Thousand to be exempted from service tax. * Transport of organic manure by vessel, rail or road (by GTA) is being exempted. * Loading, unloading, packing, storage or warehousing, transport by vessel, rail or road (GTA), of cotton, ginned or baled, is being exempted. * Services provided by common bio-medical waste treatment facility operators to clinical establishments are being exempted. * Specialized financial services received by RBI from global financial institutions in the course of management of foreign exchange reserves, e.g., external asset management, custodial services, securities lending services, etc. are being exempted.  ....
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....e Central Excise Act is now being substituted with a new section which prescribes a mandatory fixed pre-deposit of 7.5% of the duty demanded or penalty imposed or both, for filing appeal before the Commissioner (Appeals) or the Tribunal at the first stage and 10% of the duty demanded or penalty imposed or both, for filing the second stage appeal before the Tribunal. The amount of pre-deposit payable would be subject to a ceiling of Rs. 10 Crore. All pending appeals/stay applications would be governed by the statutory provisions prevailing at the time of filing such stay applications/appeals. When the amended section 35F in the Central Excise Act comes into force, it would, mutatis mutandis, apply to service tax by virtue of section 83 of the Finance Act, 1994. (vii) Sub-section (6A) of section 86 proposed to be amended to omit the words "for grant of stay or". (viii) In section 87, power to recover dues of a predecessor from the assets of a successor purchased from the predecessor, is to be provided, as it is available in section 11 of the Central Excise A....
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....eceipt of payment [change to have immediate effect]. * Rent-a-cab operator and tour operator: service tax paid by sub-contractor in the same line of business would be allowed as eligible credit to the main service provider to avoid double taxation, subject to certain conditions [with effect from 1st October 2014]. Refer amendment in Notification No.26/2012-ST. * GTA service: service receiver may avail abatement, without having to obtain non-availment of Cenvat Credit certificate from service provider [change to have immediate effect]. Refer amendment in Notification No.26/2012- ST. * Time limit for taking credit on input and input services: credit shall be taken within six months from the date of the invoice or challans or other documents specified [change to have effect from 1st September, 2014]. X. Place of Provision of Services Rules: * Provision for prescribing conditions for determination of place of provision of repair service carried out on tem....