1. By: A. Saiprasad B.Com, LL.B, ACA, DISA, AMIMA Advocate
Service Tax – Administration, Exemption, Determination of Tax Liability
By:
A. Saiprasad
B.Com, LL.B, ACA, DISA, AMIMA
Advocate

2. Administration of Service Tax
Central Board of Excise & Customs,
Central Board of Revenue Act, 1963.
Power to issue Clarifications in the form of Board Circulars
Chief Commissioner of Central Excise
Central Excise Zones
Supervision, Co-ordination and Control of the various Commissionerates
Not an Adjudicating Authority
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3. Administration of Service Tax - I
Commissioners
Highest Adjudicating Authority
Specific Service Tax Commissioners only in:
Delhi
Mumbai
Kolkata
Chennai
Bangalore
Ahmedabad
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4. Administration of Service Tax - II
Commissioners Contd..
Rest of the Commissionerates ?
Commissioner of Central Excise
Commissioner Appeals
Appellate Authority
Orders passed by adjudicating authority below Commissioner
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5. Administration of Service Tax - III
Director General of Service Tax
Co-ordinates b/w CBEC & Commissioners
Ensure proper establishment and infrastructure for Commissionerates
Study staff and field requirements
Collate Database regarding collection of service tax
Streamline procedures, implement directions of CBEC
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6. Notification No.25/2012 - I Exempted from whole of service tax
Services provided to UN or Specified International Organizations
Specified International Organisation – 2(zf)
UN (Privileges and Immunities) Act, 1947
23 organizations listed thereunder
Examples: WHO, ILO, UNESCO, IMF, ADB
Previously Notification No.16/2002 ST dt

7. Notification No.25/2012 - II Health Care Services by:
A Clinical Establishment
An Authorised Medical Practioner or
Paramedics
Health care services means
any service by way of diagnosis or treatment or
care for illness, injury, deformity, abnormality or pregnancy
in any recognised system of medicines in India and
includes services by way of transportation of the patient
to and from a clinical establishment,

8. Notification No.25/2012 - II Recognized System of Medicines
Following are recognized systems:
Allopathy
Yoga
Naturopathy
Ayurveda
Homeopathy
Siddha
Unani
Any other system of medicine that may be recognized by central government

9. Notification No.25/2012 - IV Service provided by Entity
Registration U/s 12AA of IT Act, 1961
By way of Charitable Activities – defined In Para 2(k)
Following Activities exempt:
1. Public Health – Care of Counselling of:
Terminally ill persons
HIV/ AIDS patients
Addicted to dependence forming substances
Public awareness of family planning/
Prevention of HIV

10. Notification No.25/2012 - IV Following Activities exempt:
2. Advancement of Religion or Spirituality
3. Educational programmes or skill development to:
Abandoned, orphaned or homeless children
Physically or mentally abused/ traumatized persons
Prisoners
Persons > 65 yrs in rural area
4.Preservation of Environment including watershed, forests, wildlife

11. Notification No.25/2012 – VI Services of Arbitral Tribunal
To any person other than business entity
To business entity with T/o less than 10 lakhs
Services of an Indvl Adv or a PF of advocates by way of legal services to,-
an advocate or partnership firm of advocates providing legal services ;
any person other than a business entity; or
a business entity with a turnover up to rupees ten lakh in the preceding financial year; or
A person represented on an arbitral tribunal to an arbitral tribunal;

12. Notification No.25/2012 - VIII
Training or Coaching in
Recreational Activities relating to
Art
Culture
Sports
Whether training in drawing/ painting/ cricket / singing/ dancing as part of school curriculum is exempt?
Whether training provided by training institutes to professional in cricket/ dancing/ painting is exempt?

13. Notification No.25/2012 - IX Services provided,-
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Government;
(iii) security or cleaning or house-keeping services performed in such educational institution;
(iv) services relating to admission to, or conduct of examination by, such institution;
“educational institution” means an institution providing services specified in clause (l) of section 66D of the Finance Act,1994 (32 of 1994)
Budget Amendment 2014

14. Notification No.25/2012 - XII Services provided to By way of
Government,
A local authority or
A governmental authority
By way of
Construction,
Erection, Commissioning, Installation,
Completion, Fitting out,
Repair, Maintenance,
Renovation, or Alteration of -

15. Exemptions – Ntfn 25/12 ST Clause (a) A civil structure or
Any other original works
Meant predominantly for use other than
Commerce, Industry, or Any other business or profession;
Building of Government Office, Bus-stand, Complex, Bus- stand with Complex for the Government – Liable to tax?
Civil Structures predominantly not for commerce, industry for non governmental purpose

16. Exemptions – Ntfn 25/12 ST A historical monument,
Clause (b)
A historical monument,
Archaeological site or
Remains of national importance,
Archaeological excavation, or
Antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);
Hauz Khas Complex and Lake

17. Exemptions – Ntfn 25/12 ST Clause (c)
a structure meant predominantly for use as
(i) an educational,
(ii) a clinical, or
(iii) an art or cultural establishment;
Govt Hospital, School V. Private Hospital, School – Liability to Service Tax

18. Exemptions – Ntfn 25/12 ST (d) canal, dam or other irrigation works;
(e) pipeline, conduit or plant for
(i) water supply
(ii) water treatment, or
(iii) sewerage treatment or disposal; or
(f) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause 44 of section 65B of the said Act;
Entry No.12

19. Exemptions – Ntfn 25/12 ST Services provided by way of
construction, erection, commissioning,
installation, completion, fitting out,
repair, maintenance, renovation, or alteration of,-
(a) a road, bridge, tunnel, or terminal for road transportation for use by general public;
(b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;

20. Exemptions – Ntfn 25/12 ST
(c) a building owned by an entity registered under section 12AA of the Income tax Act, 1961(43 of 1961) and meant predominantly for religious use by general public;
What if construction provided to aforesaid entity for educational, health and charitable purposes?
(d) a pollution control or effluent treatment plant, except located as a part of a factory; or
(e) a structure meant for funeral, burial or cremation of deceased
Entry 13

21. Exemptions – Ntfn 25/12 ST Services by way of construction,
Erection, commissioning, or installation of
Original works pertaining to,-
(a) an airport, port or railways, including monorail or metro;
(b) a single residential unit otherwise than as a part of a residential complex;

22. Exemptions – Ntfn 25/12 ST
Sub-contractor providing services by way of works contract to another contractor providing works contract services which are exempt;
Entry No.29(h)

23. Notification No.25/2012 – XVI Services by Artist Performing
Folk or Classical Art forms of
Music, Dance, Theatre
Whether Shabana Azmi liable to pay Service Tax for Ankur movie/ working in theater/ longines watch?
Excluding Services performed above as Brand Ambassador

24. Notification No.25/2012 – XVII & XVIII
Services by way of Collecting or Providing News by
Independent Journalist
Press Trust of India (PTI)
United News India (UNI)
Services by way of Renting
Hotel, Inn, Guest House, club or campsite or other commercial place
Meant for residential or lodging purpose
Declared Tariff < Rs.1,000/- per day

25. Notification No.25/2012 – IX & IXA
Service provided in relation to serving of food or beverages
By a Restaurant, Eating Joint or a Mess
No A/c facility/ Central Air Heating
In any part of the establishment
At any time during the year
Services provided in relation to serving of food or beverages
By a Canteen maintained in a factory
Covered under Factories Act, 1948
having the facility of A/c or Air heating
Exemption W.e.f

26. Small Service Provider
Taxable service whose Aggregate Value < Rs. 10 Lakhs
What about services provided under brand name of another person
What about cases where service tax has to be paid by service receivers u/s 68(2)
Aggregate Value
Is it computed on accrual basis or receipt basis
Whether exempt services is to be counted for Rs. 10 lakhs?

27. Determination of Service Tax Liability
1 Am I doing an activity (including, but not limited to, an activity specified in section 66E of the Act) for another person*? Yes
2 Am I doing such activity for a consideration? Yes
3 Does this activity consist only of transfer of title in goods or immovable property by way of sale, gift or in any other manner? No
4. Does this activity constitute only a transfer, delivery or supply of goods which is deemed to be a sale of goods within the meaning of clause (29A) of article 366 of the Constitution? No

28. Determination of Service Tax Liability
5 Does this activity consist only of a transaction in money or actionable claim? No
6 Is the consideration for the activity in the nature of court fees for a court or a tribunal? No
7 Is such an activity in the nature of a service provided by an employee of such person in the course of employment? No
8 Is the activity covered in any of the categories specified in Explanation 1 or Explanation 2 to clause (44) of section 65B of the Act? No
If answers as above – amounts to provision of service

29. Determination whether service provided is taxable ?
1 Have I provided or agreed to provide the service? Yes
2 Have I provided or agreed to provide the service in the taxable territory? Yes
3 Is this activity entirely covered in any of the services described in the negative list specified in section 66D of the Act? No
If answers as above – amounts to provision of taxable service

30. Practical Problems
Mr. X, is providing CA services. During the year , his turnover was Rs. 60 Lakhs.
In the month of April 2015, 10 Clients joined for Statutory Audit. Statutory Audit conducted in the month of May. Fee per Client is 30,000 (inclusive of Service tax), invoice raised in the month of July paid by all clients in the month of August Service paid on 5th September 2015.
Calculate the following:
(a) Point of Taxation
(b) Due Date
(c) Service Tax liability

31. Open House