1. BUDGET – 2010 - SERVICE TAX CHANGES at ICAI, Kollam Branch on 6 th March, 2010 by CA.TONY.M.P. THRISSUR

2. Budget 2010 – Service Tax Changes effective from………. Retrospective effect for some changes 27 th Feb, 2010 The Date on which Finance Act get passed The notified date

3. NEW SERVICES UNDER TAX NET……(From date to be notified) …………………………………………………. Health Services – hospitals providing service to business entities or on health insurance policies. Maintenance of medical Records – of employees of business Entities

4. NEW SERVICES UNDER TAX NET……(From date to be notified) …………………………………………………. Electricity Exchange Service. Additional Services by builders

5. NEW SERVICES UNDER TAX NET……(From date to be notified) …………………………………………………. Games of Chance Service. Brand promotion Service

6. NEW SERVICES UNDER TAX NET……(From date to be notified) …………………………………………………. P ermitting commercial use of any event Service. Copyrights on Cinematographic film and sound Recording Service

7. SCOPE OF SOME EXISTING SERVICES EXPANDED/CHANGED (wef the date to be notified) ****** Air travel ( domestic and international journey in any class) Information Technology Software Service ( Use of software for purposes other than business also included)

8. SCOPE OF SOME EXISTING SERVICES EXPANDED/CHANGED (with retrospective effect) ****** Commercial Training or coaching service (“Commercial” means training provided for consideration and with or without profit motive. W.r.e.f 1-7-03) Renting of Immovable property Service (‘renting’ itself a taxable service. Vacant land for building for business also included) - with retrospective effect from 01-06-2007

9. SCOPE OF SOME EXISTING SERVICES EXPANDED/CHANGED ( from a date to be notified) …………………………………………………. Sponsorship Service. (sports included) Airport / Port Service. ( all services provided within airport/ port made taxable.)

10. SCOPE OF SOME EXISTING SERVICES EXPANDED/CHANGED ( from a date to be notified) …………………………………………………. Construction Service. (builder who receive any payment before getting completion certificate liable for tax.) Auctioneer’s Service. ( ‘auction by Govt’ means an auction involving sale of Govt propoerty by any person and not when the Govt act as an auctioneer.)

11. SCOPE OF SOME EXISTING SERVICES EXPANDED/CHANGED ( from a date to be notified) M anagement of ULIP Service. ( To substitute the amount on which service tax to be paid.)

12. NEW EXEMPTIONS IN SERVICE TAX (wef 27.2.2010) ****** Air travel Service – statutory taxes levied by any Govt in ticket. Erection, Commissioning or Installation Service– for cold storage, food grain handling system, agriculture, etc.. Information Technology Software Service- packaged software for single use, subject to certain conditions.

13. NEW EXEMPTIONS IN SERVICE TAX (wef 27.2.2010) ****** Goods Transport Agency Service – transportation of food grain and Pulses exempted. Online Information and Data base access– Indian News Paper Agency, subject to certain conditions Technical Testing and Certification Service- Central and State seed testing laboratories and certifying agencies

14. CHANGES IN EXISTING EXEMPTIONS Transport of Goods by Rail – made taxable from 01-04-2010 Commercial Training or Coaching Service– NCVT regd institutes offering specified courses are only eligible for exemption. (wef 27-02-2010)

15. OTHER CHANGES IN THE FINANCE ACT, 1994 ****** “Business entity” excludes individuals. No Penalty if tax paid along with interest before issue of SCN.

16. CHANGES IN EXPORT/IMPORT OF SERVICES RULES (wef 27.02.2010) CA,CS,CWA services treated as export if the service recipient is located outside India. ( earlier services were to be rendered outside India at least partly) To qualify for export, the condition of “such service is provided from India and used outside India” is now removed.