Education service tax exclusion applies to curriculum-based courses leading to recognized qualifications; ancillary services often remain taxable.
Exclusion from service tax covers pre school to higher secondary education, curriculum based education leading to a qualification recognized by law, and specified approved vocational courses. The exemption is limited to services delivered as part of the prescribed curriculum; private coaching and stand alone training not leading to recognized qualifications remain taxable. Bundled supplies are treated by dominant service test, dual qualifications are assessed separately, admission tests for recognized qualification institutions are covered, while placement and employer recruitment services are taxable. (AI Summary)

Service tax scope: only amounts constituting consideration for taxable services are includible; unrelated receipts excluded.
Service tax applies only to amounts that are consideration for a taxable service; receipts lacking nexus with the service-such as cash discounts, media incentives to an agency, separate mess charges, donations/grants for courses, and principal-paid incentives not billed to clients-are not includible in the assessable value. Conversely, charges billed to customers as part of the service transaction may form part of the taxable gross value even if redistributed as tips. (AI Summary)

Consideration for service tax: monetary and non-monetary receipts must be valued to determine taxable service liability.
Consideration for service tax includes monetary and non-monetary forms; non-monetary consideration must be valued in money terms under the Service Tax valuation framework. Valuation uses equivalent money value, comparable gross charges for similar services, or failing that, an amount not less than the cost of provision. Consideration may be provided by a third party if linked to the service. Gratuitous acts like donations are not consideration unless the recipient is obliged to provide a return benefit, in which case the activity may be taxable. (AI Summary)

Consideration for service tax: monetary and non monetary payments determine taxable value and valuation rules apply.
The note defines consideration for service tax to include monetary and non monetary (including deferred) compensation, prescribes valuation of non monetary consideration by equivalent money value under the valuation rules-firstly by reference to gross amounts charged for similar services and, if not ascertainable, by a value not less than the cost of provision-and explains that consideration may be paid by third parties where a nexus exists, while gratuitous acts and unconditional donations are not consideration unless an obligation to provide a return exists. (AI Summary)

Services exempted under the negative list: specified advertising, copyright, inland water transport and intermediary services exempt from service tax.
Introduction of the negative list rendered specified services exempt from service tax w.e.f. 01.07.2012, including sale of advertising space/time (excluding radio/television broadcasts), copyright services for original works and films, transport of goods by inland waterways, and specified financial intermediary services such as sub-brokers, authorised persons to exchange members, mutual fund agents and distributors, lottery selling/marketing agents, SIM card selling agents or distributors, and rural business facilitators or correspondents to banks and insurance companies. (AI Summary)

Service tax on directors' remuneration now payable by companies under reverse charge, increasing company cost and compliance obligations.
Companies must pay service tax under reverse charge on all remuneration to directors (money or otherwise), the recipient-company bearing 100% of the tax and the usual threshold exemption not applying; service tax paid by the company is treated as part of remuneration and may affect Companies Act remuneration limits, trading companies will incur cost while eligible non trading companies may claim input service credit, and the amendment is effective from its gazette publication leaving an earlier short period where directors remained directly liable. (AI Summary)

Service tax on foreign remittances clarified as not applicable; transfer and receiving fees generally fall outside tax liability.
There is no service tax per se on the amount of foreign currency remitted to India; fees or conversion charges levied by banks or financial institutions outside India are treated as services provided outside India under the Place of Provision of Services Rules, 2012, and are not taxable. Similarly, receiving-end charges by Indian banks or agents are not liable to service tax where the Place of Provision rules treat those services as outside the taxable ambit. (AI Summary)

Penalty waiver for renting of immovable property service available where outstanding tax and interest are paid within prescribed period.
The Finance Bill, 2012 introduced a penalty waiver provision for the renting of immovable property service that permits taxpayers to avoid penalty and litigation if they pay the service tax due on such renting in full with interest within the prescribed six month period; failure to avail the relief leaves the taxpayer subject to normal penalty rules, including show cause notices issuable within five years for non payment arising from fraud, collusion, willful misstatement, suppression of facts or contravention of the Act or rules. (AI Summary)