Service tax on restaurant services: the service element is taxable while manufacture of food is assessed under excise classification.
Central indirect taxation in the food sector distinguishes excise on manufacture-defined as a process producing a new, distinct article-from service tax on declared services. Services relating to agriculture that do not alter essential characteristics are excluded from service tax, while processing that effects manufacture falls under excise. Restaurants and caterers face specific valuation and abatement rules to segregate service and goods portions, MRP exclusions, and Cenvat credit limits, with notifications and circulars defining exemptions and credit eligibility for inputs, transport and canteen services. (AI Summary)

Service portion in works contracts taxable: valuation, exemptions, reverse charge and transitional point of taxation clarified.
Service portion in execution of works contracts is a declared service; valuation under Rule 2A treats the service value as gross contract price less the value of goods when VAT is on actual value, and prescribes deemed percentages where VAT is under composition. The service portion includes labour, subcontractor labour/services, design fees, hire of machinery, consumables, establishment costs and profit attributable to labour/services. Cenvat credit on inputs used in works contracts is disallowed to the provider. Notification exemptions, subcontractor continuity of exemption, reverse charge split liability for certain providers, and point of taxation transitional rules govern tax incidence. (AI Summary)

Tariff value for excise on precious metal jewellery set as portion of transaction value; duty covers branded and unbranded items.
Excise duty on precious metal jewellery now applies to both branded and unbranded articles (subject to specified exceptions), charged on a prescribed tariff value equal to a portion of the transaction value declared on the invoice; duty is payable without cenvat credit and SSI exemption eligibility and threshold computations are to be made on the tariff value basis with transitional provisions and reporting requirements. Amendments also clarify registration and job work treatment and define when a trade/brand name affixed to articles attracts the levy. (AI Summary)

Point of taxation: invoice or payment timing fixes service tax liability; special rules apply for continuous supply, exports, reverse charge.
Point of taxation rules deem the point of taxation to be the earlier of invoice issue or receipt of payment, with a mandatory invoice within fourteen days of service completion; advances are taxed on receipt. Special rules govern change in effective tax rate, continuous supply (periodic completion or invoicing), export treatment contingent on foreign exchange realization, reverse charge timing (payment date, with six month exception), and cash basis continuation for specified professional services. Input tax credit is allowed on invoice receipt if payment occurs within three months, otherwise credit must be reversed. (AI Summary)