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Service Tax Chapter V of the Finance Act, 1994 (Amendment)

Chapter V of the Finance Act, 1994

As amended by the Finance Act. 1997,1998,1999,2000 and 2001

Service Tax

[OLD - Chapter V of the Finance Act, 1994]

64. Extent, commencement and application:

65. In this Chapter, unless the context otherwise requires,– (1) "actuary" has the meaning assigned to it in clause ( 1) of section 2 of the Insurance Act, 1938;

(2) "advertisement" includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas;

(3) "advertising agency" means any person[OLD- commercial concern ] engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant;

(3a) "aircraft" has the meaning assigned to it in clause (1) of section 2 of the Aircraft Act, 1934;

(3b) “aircraft operator” means any person who provides the service of transport of goods or passengers by aircraft;

(In clause (3) the word "person" & clause (3b) has been substituted vide Union Budget 2006-2007 -Finance Bill)

[OLD- (3b) "aircraft operator" means any commercial concern which provides the service of transport of goods by aircraft; ]

(3c) "airport" has the meaning assigned to it in clause ( b) of section 2 of the Airports Authority of India Act, 1994;

(3d) "airports authority" means the Airports Authority of India constituted under section 3 of the Airports Authority of India Act, 1994 and also includes any person having the charge of management of an airport or a civil enclave;

(Clause (3a) to (3d) has been inserted vide Budget 2004-2005)

(4) "air travel agent" means any person engaged in providing any service connected with the booking of passage for travel by air;

(5) "Appellate Tribunal" means the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962;

(6) "architect" means any person whose name is, for the time being, entered in the register of architects maintained under section 23 of the Architects Act, 1972 and also includes any commercial concern engaged in any manner, whether directly or indirectly, in rendering services in the field of architecture;

(7) "assessee" means a person liable to pay the service tax and includes his agent;

(7a) “auction of property” includes calling the auction or providing a facility, advertising or illustrating services, pre-auction price estimates, short-term storage services, repair or restoration services in relation to auction of property;

(7b) “associated enterprise” has the meaning assigned to it in section 92A of the Incometax Act, 1961;

(Above clause (7a) has been inserted vide Finance Bill 2008)

(8) "authorised dealer of foreign exchange" has the meaning assigned to "authorised person" in clause ( c) of section 2 of the Foreign Exchange Management Act, 1999;

(9) "authorised service station" means any service station, or centre, authorised by any motor vehicle manufacturer, to carry out any service, repair, reconditioning or restoration * [OLD- service or repair ] of any motor car, maxicab or two wheeled motor vehicle manufactured by such manufacturer;

(9a) “automated teller machine” means an interactive automatic machine designed to dispense cash, accept deposit of cash, transfer money between bank accounts and facilitate other financial transactions;

(9b) “automated teller machine operations, maintenance or management service” means any service provided in relation to automated teller machines and includes site selection, contracting of location, acquisition, financing, installation, certification, connection, maintenance, transaction processing, cash forecasting, replenishment, reconciliation and value-added services;

(9c) “banker to an issue” means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934, carrying on the activities relating to an issue including acceptance of application, application money, allotment money and call money, refund of application money, payment of dividend and interest warrants;

(Clause (7a), (9a) to (9c) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(* Bold words has been substituted vide Finance Bill 2005-2006)

(10) "banking" has the meaning assigned to it in clause ( b) of section 5 of the Banking Regulation Act, 1949;

(11) " banking company" has the meaning assigned to it in clause ( a) of section 45A of the Reserve Bank of India Act, 1934;

(12) "banking and other financial services" means-

(Clause (12) has been substituted vide Budget 2004-2005)

[OLD -
(12) "banking and other financial service" means–

(13) "Board" means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963;

(14) "body corporate" has the meaning assigned to it in clause ( 7) of section 2 of the Companies Act, 1956;

(15) "broadcasting" has the meaning assigned to it in clause ( c) of section 2 of the Prasar Bharti (Broadcasting Corporation of India) Act, 1990 and also includes programme selection, scheduling or presentation of sound or visual matter on a radio or a television channel that is intended for public listening or viewing, as the case may be; and in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes the activity of selling of time slots or obtaining sponsorships for broadcasting of any programme or collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electro-magnetic waves through space or through cables, direct to home signals or by any other means to cable operator including multisystem operator or any other person on behalf of the said agency * [OLD- collecting the broadcasting charges on behalf of the said agency ] or organisation, by its branch office or subsidiary or representative in India or any agent appointed in India or by any person who acts on its behalf in any manner;

(* Bold words has been substituted vide Finance Bill 2005-2006)

(16) "broadcasting agency or organisation" means any agency or organisation engaged in providing service in relation to broadcasting in any manner and, in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes its branch office or subsidiary or representative in India or any agent appointed in India or any person who acts on its behalf in any manner, engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electromagnetic waves through space or through cables, direct to home signals or by any other means to cable operator, including multisystem operator or any other person on behalf of the said agency * [OLD- collecting the broadcasting charges on behalf of the said agency ] or organisation;

(* Bold words has been substituted vide Finance Bill 2005-2006)

(17) "beauty treatment" includes hair cutting, hair dyeing, hair dressing, face and beauty treatment, cosmetic treatment, manicure, pedicure or counselling services on beauty, face care or make-up or such other similar services;

(Clause (17) has been substituted vide Finance Bill 2005-2006)

[OLD-
(17) "beauty treatment" means face and beauty treatment, cosmetic treatment, manicure, pedicure or counselling services on beauty, face care or make-up;]

(18) "beauty parlour" means any establishment providing beauty treatment services;

(19) "business auxiliary service" means any service in relation to,-

NTF. NO. 08/2005-ST, DT.01/03/2005 related to sub-clause (v))

(vi) provision of service on behalf of the client; or

(vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision,
and includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods [OLD- but does not include [omitted - any information technology service and ] any activity that amounts to "manufacture" within the meaning of clause (f) of section 2 of the Central Excise Act, 1944. ]

(In above para the portion "but does not include any activity that amounts to manufacture of excisable goods" has been substituted vide Union Budget 2009-2010 - Finance Bill)

(In clause 19, the words "any information technology service and" has been omitted vide Finance Bill 2008)

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this clause,—

(a) "commission agent" means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person—

(i) deals with goods or services or documents of title to such goods or services; or

(ii) collects payment of sale price of such goods or services; or

(iii) guarantees for collection or payment for such goods or services; or

(iv) undertakes any activities relating to such sale or purchase of such goods or services;

(b) “excisable goods” has the meaning assigned to it in clause (d) of section 2 of the Central Excise Act, 1944;

(c) “manufacture” has the meaning assigned to it in clause (f) of section 2 of the Central Excise Act, 1944;

(Above clause (b) & (c) has been inserted vide Union Budget 2009-2010 - Finance Bill)

[OMITTED-
(b) "information technology service" means any service in relation to designing, or developing of computer software [OLD- developing or maintaining of computer software, or computerised data processing ] or system networking, or any other service primarily in relation to operation of computer systems;]

(Above (b) has been omitted vide Finance Bill 2008)

(In clause (b) the word "or developing of computer software" has been substituted vide Union Budget 2006-2007 -Finance Bill)

(Explanation has been substituted vide Finance Bill 2005-2006)

[OLD-
Explanation. -For the removal of doubts, it is hereby declared that for the purposes of this clause, Information technology service" means any service in relation to designing, developing or maintaining of computer software, or computerised data processing or system networking, or any other service primarily in relation to operation of computer systems; ]

(19a) "business exhibition" means an exhibition,-

any product or service, intended for the growth in business of the producer or provider of such product or service, as the case may be;

(Clause (19) has been substituted & (19a) has been inserted vide Budget 2004-2005)

[OLD-
(19) "business auxiliary service" means any service in relation to,–

and includes services as a commission agent, but does not include any information technology service.

Explanation.– For the removal of doubts, it is hereby declared that for the purposes of this clause "information technology service" means any service in relation to designing, developing or maintaining of computer software, or computerized data processing or system networking, or any other service primarily in relation to operation of computer systems; ]

(20) “cab” means—

(i) a motorcab, or

(ii) a maxicab, or

(iii) any motor vehicle constructed or adapted to carry more than twelve passengers, excluding the driver, for hire or reward:

Provided that the maxicab referred to in sub-clause (ii) or motor vehicle referred to in subclause (iii) which is rented for use by an educational body imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre, shall not be included within the meaning of cab;

(Clause (20) has been substituted vide Union Budget 2007 - 2008)

[OLD-
(20) "cab" means a motorcab or maxicab;]

(21) "cable operator" has the meaning assigned to it in clause ( aa) of section 2 of the Cable Television Networks (Regulation) Act, 1995;

(22) "cable service" has the meaning assigned to it in clause ( b) of section 2 of the Cable Television Networks (Regulation) Act, 1995;

(23) “cargo handling service” means loading, unloading, packing or unpacking of cargo and includes,—

(a) cargo handling services provided for freight in special containers or for noncontainerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and cargo handling service incidental to freight; and

(b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking,

but does not include, handling of export cargo or passenger baggage or mere transportation of goods;

(Above clause (23) has been substituted vide Finance Bill 2008)

[OLD-
(23) "cargo handling service" means loading, unloading, packing or unpacking of cargo and includes cargo handling services provided for freight in special containers or for non-containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport and cargo handling service incidental to freight, but does not include handling of export cargo or passenger baggage or mere transportation of goods; ]

(24) "caterer" means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose or occasion;

(24a) "civil enclave" has the meaning assigned to it in clause (i) of section 2 of the Airports Authority of India Act, 1994;

(Clause (24a) has been inserted vide Budget 2004-2005)

(24b) "cleaning activity" means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilising of objects or premises, of-

(i) commercial or industrial buildings and premises thereof; or

(ii) factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof,

but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying;

(Clause (24b) has been inserted vide Budget 2005-2006)

(25) "clearing and forwarding agent" means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operations in any manner to any other person and includes a consignment agent;

(25a) "club or association" means any person or body of persons providing services, facilities or advantages, for a subscription or any other amount, to its members, but does not include-

(i) any body established or constituted by or under any law for the time being in force; or

(ii) any person or body of persons engaged in the activities of trade unions, promotion of agriculture, horticulture or animal husbandry; or

(iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature; or

(iv) any person or body of persons associated with press or media;

(25b) "commercial or industrial construction service" means—

(a) construction of a new building or a civil structure or a part thereof; or

(b) construction of pipeline or conduit; or

(c) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or

(d) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit,

which is—

(i) used, or to be used, primarily for; or

(ii) occupied, or to be occupied, primarily with; or

(iii) engaged, or to be engaged, primarily in,

commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams;

(Clause (25a) & (25b) has been inserted vide Budget 2005-2006)

(26) "commercial training or coaching" means any training or coaching provided by a commercial training or coaching centre;

(27) "commercial training or coaching centre" means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes but does not include preschool coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or any educational qualification recognised by law for the time being in force;

[OMITTED-
(28) "commissioning or installation" means any service provided by a commissioning and installation agency in relation to commissioning or installation of plant, machinery or equipment; ]

(Clause (28) has been omitted vide Budget 2004-2005)

(29) "commissioning and installation agency" means any agency providing service in relation to erection, commissioning or installation [OLD- in relation to commissioning or installation ];

(In Clause (29) words "in relation to erection, commissioning or installation" has been substituted vide Budget 2004-2005)

(30) "computer network" has the meaning assigned to it in clause ( j) of sub-section ( 1) of section 2 of the Information Technology Act, 2000;

(30a) "construction of complex" means-

(a) construction of a new residential complex or a part thereof; or

(b) completion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or

(c) repair, alteration, renovation or restoration of, or similar services in relation to, residential complex; ’

(Clause (30a) has been substituted vide Finance Bill 2005-2006)

[OLD-
(30a) "construction service" means,-

commerce or industry, or work intended for commerce or industry, but does not include road, airport, railway, transport terminal, bridge, tunnel, long distance pipeline and dam; ]

(Clause (30a) has been inserted vide Budget 2004-2005)

(31) "consulting engineer" means any professionally qualified engineer or any body corporate or any other firm[OLD- an engineering firm ] who, either directly or indirectly, renders any advice, consultancy or technical assistance in any manner to any person [OLD- to a client] in one or more disciplines of engineering;

(In clause (31) the words "to any person" has been substituted vide Finance Bill 2008)

(32) "convention" means a formal meeting or assembly which is not open to the general public, but does not include a meeting or assembly, the principal purpose of which is to provide any type of amusement, entertainment or recreation;

(33) "courier agency" means any person [OLD- a commercial concern] engaged in the door-to-door transportation of time-sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles;

(33a) “credit card, debit card, charge card or other payment card service” includes any service provided,—

Explanation.—For the purposes of this sub-clause, an issuing bank and the owner of trade marks or brand name shall be treated as separate persons;

(In clause (31) the words "any body corporate or any other firm", clause (33) the words "any person" - substituted & clause (33a) - inserted vide Union Budget 2006-2007 -Finance Bill)

(34) "credit rating agency" means any person[OLD- commercial concern ] engaged in the business of credit rating of any debt obligation or of any project or programme requiring finance, whether in the form of debt or otherwise, and includes credit rating of any financial obligation, instrument or security, which has the purpose of providing a potential investor or any other person any information pertaining to the relative safety of timely payment of interest or principal;

(35) "custom house agent" means a person licensed, temporarily or otherwise, under the regulations made under sub-section ( 2) of section 146 of the Customs Act, 1962;

(35a) “customs airport” means an airport appointed as such under clause (a) of subsection (1) of section 7 of the Customs Act, 1962;

(In clause (34) the words "person" - substituted & clause (35a) - inserted vide Union Budget 2006-2007 -Finance Bill)

(36) "data" has the meaning assigned to it in clause ( o) of sub-section ( 1) of section 2 of the Information Technology Act, 2000;

(36a) "dredging" includes removal of material including, silt, sediments, rocks, sand, refuse, debris, plant or animal matter in any excavating, cleaning, deepening, widening or lengthening, either permanently or temporarily, of any river, port, harbour, backwater or estuary;

(Clause (36a) has been inserted vide Finance Bill 2005-2006)

(36b) “design services” includes services provided in relation to designing of furniture, consumer products, industrial products, packages, logos, graphics, websites and corporate identity designing and production of three dimensional models;

(36c) “development and supply of content” includes development and supply of mobile value added services, music, movie clips, ring tones, wall paper, mobile games, data, whether or not aggregated, information, news and animation films;

(Clause (36b) & (36c) been inserted vide Union Budget 2007 - 2008)

(37) "dry cleaning" includes dry cleaning of apparels, garments or other textile, fur or leather articles;

(38) "dry cleaner" means any person [OLD- commercial concern ] providing service in relation to dry cleaning;

(39) "electronic form" has the meaning assigned to it in clause (r) of sub-section ( 1) of section 2 of the Information Technology Act, 2000;

(39a) "erection, commissioning or installation" means any service provided by a commissioning and installation agency, in relation to,-

(i) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise [OLD- machinery or equipment ]; or

(In clause (38) the word "person" & clause (39a)(i) the words "machinery, equipment or structures, whether pre-fabricated or otherwise" - has been substituted vide Union Budget 2006-2007 -Finance Bill)

(ii) installation of—

(a) electrical and electronic devices, including wirings or fittings therefor; or
(b) plumbing, drain laying or other installations for transport of fluids; or
(c) heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work; or
(d) thermal insulation, sound insulation, fire proofing or water proofing; or
(e) lift and escalator, fire escape staircases or travelators; or
(f) such other similar services;

(Clause (39a) has been substituted vide Finance Bill 2005-2006)

[OLD-
(39a) "erection, commissioning or installation" means any service provided by a commissioning and installation agency in relation to erection, commissioning or installation of plant, machinery or equipment; ]

(Clause (39a) has been inserted vide Budget 2004-2005)

(40) "event management" means any service provided in relation to planning, promotion, organising or presentation of any arts, entertainment, business, sports, marriage or any other event [OLD- sports or any other event] and includes any consultation provided in this regard;

(In clause (40) the words "sports, marriage or any other event" has been substituted vide Union Budget 2007 - 2008)

(41) "event manager" means any person who is engaged in providing any service in relation to event management in any manner;

(42) "facsimile ( FAX)" means a form of telecommunication by which fixed graphic images, such as printed texts and pictures are scanned and the information converted into electrical signals for transmission over the telecommunication system;

(43) "fashion designing" includes any activity relating to conceptualising, outlining, creating the designs and preparing patterns for costumes, apparels, garments, clothing accessories, jewellery or any other articles intended to be worn by human beings and any other service incidental thereto;

(44) "fashion designer" means any person engaged in providing service in relation to fashion designing;

(45) "financial institution" has the meaning assigned to it in clause ( c) of section 45-I of the Reserve Bank of India Act, 1934;

(46) "foreign exchange broker" includes any authorised dealer of foreign exchange;

(46a) "forward contract" has the meaning assigned to it in clause (c) of section 2 of the Forward Contracts (Regulation) Act, 1952;

(Clause (46a) has been inserted vide Budget 2004-2005)

(47) "franchise" means an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified with franchisor, whether or not a trade mark, service mark, trade name or logo or any such symbol, as the case may be, is involved;

(Clause (47) has been substituted vide Finance Bill 2005-2006)

[OLD-
(47) "franchise" means an agreement by which–

(48) "franchisor" means any person who enters into franchise with a franchisee and includes any associate of franchisor or a person designated by franchisor to enter into franchise on his behalf and the term "franchisee" shall be construed accordingly;

(49) "general insurance business" has the meaning assigned to it in clause (g) of section 3 of the General Insurance Business (Nationalisation) Act, 1972;

(50) "goods" has the meaning assigned to it in clause (7) of section 2 of the Sale of Goods Act,1930;

(50a) "goods carriage" has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988;

(50b) "goods transport agency" means any person who [OLD- commercial concern which ] provides service in relation to transport of goods by road and issues consignment note, by whatever name called;

(In clause (50b) the words "person who" - substituted vide Union Budget 2006-2007 -Finance Bill)

(Clause (50a) & (50b) has been inserted vide Budget 2004-2005)

(51) "health and fitness service" means service for physical well being such as, sauna and steam bath, turkish bath, solarium, spas, reducing or slimming salons, gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any other like service;

(52) "health club and fitness centre" means any establishment, including a hotel or a resort, providing health and fitness service;

(53) "information" has the meaning assigned to it in clause ( v) of sub-section ( 1) of section 2 of the Information Technology Act, 2000;

(53a) “information technology software” means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of a computer or an automatic data processing machine or any other device or equipment;

(Above Clause (53a) has been inserted vide Finance Bill 2008)

(54) "insurance agent" has the meaning assigned to it in clause ( 10) of section 2 of the Insurance Act, 1938;

(55) "insurance auxiliary service" means any service provided by an actuary, an intermediary or insurance intermediary or an insurance agent in relation to general insurance business or life insurance business and includes risk assessment, claim settlement, survey and loss assessment;

(55a) "intellectual property right" means any right to intangible property, namely, trade marks, designs, patents or any other similar intangible property, under any law for the time being in force, but does not include copyright;

(55b) "intellectual property service" means,-

any intellectual property right;

(Clause (55a) & (55b) has been inserted vide Budget 2004-2005)

(56) "intermediary or insurance intermediary" has the meaning assigned to it in clause (f) of sub-section ( 1) of section 2 of the Insurance Regulatory and Development Authority Act, 1999;

(56a) “international journey”, in relation to a passenger, means his journey from any customs airport on board any aircraft to a place outside India;

(56b) “internet” means a global information system which is logically linked together by a globally unique address, based on Internet Protocol or its subsequent enhancements or upgradations and is able to support communications using the Transmission Control Protocol or Internet Protocol suite or its subsequent enhancements or upgradations and all other Internet Protocol compatible protocols;

(57) "internet cafe" means a commercial establishment providing facility for accessing internet;

(57a) “internet telecommunication service” includes,—

(i) internet backbone services, including carrier services of internet traffic by one Internet Service Provider to another Internet Service Provider,

(ii) internet access services, including provision of a direct connection to the internet and space for the customer’s web page,

(iii) provision of telecommunication services, including fax, telephony, audio conferencing and video conferencing, over the internet;

(Above Clause (57a) has been substituted vide Finance Bill 2008)

[OLD-
(57a) “internet telephony” means telecommunication service through internet and includes fax, audio conferencing and video conferencing;]

(Clause (56a), (56b) & (57a) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(58) "insurer" means any person carrying on the general insurance business or life insurance business and includes a re-insurer [OLD- in India];

(59) "interior decorator" means any person engaged, whether directly or indirectly, in the business of providing by way of advice, consultancy, technical assistance or in any other manner, services related to planning, design or beautification of spaces, whether man-made or otherwise and includes a landscape designer;

(59a) “issue” means an offer of sale or purchase of securities to, or from, the public or the holder of securities;

(In clause (58) the words "and includes a re-insurer" - substituted & clause (59a) - inserted vide Union Budget 2006-2007 -Finance Bill)

[OMITTED-
(60) "leased circuit" means a dedicated link provided between two fixed locations for exclusive use of the subscriber and includes a speech circuit, a data circuit or a telegraph circuit; ]

(Clause (60) has been omitted vide Union Budget 2007 - 2008)

(61) "life insurance business" has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938;

(62) "light motor vehicle" means any motor vehicle constructed or adapted to carry more than six passengers, but not more than twelve passengers, excluding the driver;

(63) "magnetic storage device" includes wax blanks, discs or blanks, strips or films for the purpose of original sound recording;

(63a) "mailing list compilation and mailing" means any service in relation to-

(i) compiling and providing list of name, address and any other information from any source; or

(ii) sending document, information, goods or any other material in a packet, by whatever name called, by addressing, stuffing, sealing, metering or mailing,

for, or on behalf of, the client;

(Clause (63a) has been inserted vide Finance Bill 2005-2006)

(64) “management, maintenance or repair” means any service provided by—

(i) any person under a contract or an agreement; or

(ii) a manufacturer or any person authorised by him, in relation to,—

(a) management of properties, whether immovable or not;

(b) maintenance or repair of properties, whether immovable or not; or

(c) maintenance or repair including reconditioning or restoration, or servicing of any goods, excluding a motor vehicle;

Explanation.— For the removal of doubts, it is hereby declared that for the purposes of this clause,—

(a) “goods” includes computer software;

(b) “properties” includes information technology software;

(Above Explanation has been substituted vide Finance Bill 2008)

[OLD-

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this clause, “goods” includes computer software;]

(Above Explanation has been inserted vide Union Budget 2007 - 2008)

(Clause (64) has been substituted vide Union Budget 2006-2007 -Finance Bill)

[OLD-
(64) "maintenance or repair" means any service provided by–

in relation to maintenance or repair or servicing of any goods or equipment, excluding motor vehicle;

(64) "maintenance or repair" means any service provided by-

(i) any person under a contract or an agreement; or

(ii) a manufacturer or any person authorised by him,

in relation to,—

(a) maintenance or repair including reconditioning or restoration, or servicing of any goods or equipment, excluding motor vehicle; or

(b) maintenance or management of immovable property;

(Clause (64) has been substituted vide Finance Bill 2005-2006)

(64) "management consultant" means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation in any manner and includes any person who renders any advice, consultancy or technical assistance, relating to conceptualising, devising, development, modification, rectification or upgradation of any working system of any organisation; ]

(65) “management or business consultant” means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation or business in any manner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management;

(Clause (65) has been substituted vide Union Budget 2007 - 2008)

[OLD-
(65) "management consultant" means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation in any manner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management[OLD- relating to conceptualizing, devising, development, modification, rectification or upgradation of any working system of any organization.] ]

(66) "mandap" means any immovable property as defined in section 3 of the Transfer of Property Act, 1882 and includes any furniture, fixtures, light fittings and floor coverings therein let out for a consideration for organising any official, social or business function;

Explanation.—For the purposes of this clause, social function includes marriage;

(Above Explanation has been inserted vide Union Budget 2007 - 2008)

(67) "mandap keeper" means a person who allows temporary occupation of a mandap for a consideration for organising any official, social or business function;

Explanation.—For the purposes of this clause, “social function” includes marriage;

(Above Explanation has been inserted vide Union Budget 2007 - 2008)

[OLD- (67) "manpower recruitment agency" means any commercial concern engaged in providing any service, directly or indirectly, in any manner for recruitment of manpower, to a client; ]

(68) "manpower recruitment or supply agency" means any person [OLD- commercial concern ] engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person [OLD-
to a client ] ;

(In Clause (68) the words "to any other person" has been substituted vide Finance Bill 2008)

(Clause (68) has been substituted vide Finance Bill 2005-2006)

(69) "market research agency" means any person [OLD- commercial concern ] engaged in conducting market research in any manner, in relation to any product, service or utility, including all types of customised and syndicated research services;

(In clause (68) & (69) the word "person" has been substituted vide Union Budget 2006-2007 -Finance Bill)

(70) "maxicab" has the meaning assigned to it in clause ( 22) of section 2 of the Motor Vehicles Act, 1988;

(71) "motorcab" has the meaning assigned to it in clause ( 25) of section 2 of the Motor Vehicles Act, 1988;

(72) "motor car" has the meaning assigned to it in clause ( 26) of section 2 of the Motor Vehicles Act, 1988;

(73) "motor vehicle" has the meaning assigned to it in clause ( 28) of section 2 of the Motor Vehicles Act, 1988;

(74) "non-banking financial company" has the meaning assigned to it in clause ( f) of section 45-I of the Reserve Bank of India Act, 1934;

(75) "on-line information and database access or retrieval" means providing data or information, retrievable or otherwise, to any person [OLD- to a customer ], in electronic form through a computer network;

(In Clause (68) the words "to any person" has been substituted vide Finance Bill 2008)

(75a) "opinion poll" means any service designed to secure information on public opinion regarding social, economic, political or other issues;

(75b) "opinion poll agency" means any person engaged in providing any service in relation to opinion poll;

(Clause (75a) & (75b) has been inserted vide Budget 2004-2005)

(76) "other port" has the meaning assigned to "port" in clause ( 4) of section 3 of the Indian Ports Act, 1908, but does not include the port defined in clause ( 80);

(76a) "outdoor caterer" means a caterer engaged in providing services in connection with catering at a place other than his own, * but including a place provided by way of tenancy or otherwise by the person receiving such services;

(76b) "packaging activity" means packaging of goods including pouch filling, bottling, labelling or imprinting of the package, but does not include any packaging activity that amounts to "manufacture" within the meaning of clause ( f) of section 2 of the Central Excise Act, 1944;

(In Clause (76a) bold words * & Clause (76b) has been inserted vide Budget 2004-2005)

(77) "pager" means an instrument, apparatus or appliance which is a non-speech, one way personal calling system with alert and has the capability of receiving, storing and displaying numeric or alpha-numeric messages;

(77a) "pandal or shamiana" means a place specially prepared or arranged for organising an official, social or business function;

Explanation.—For the purposes of this clause, “social function” includes marriage;

(Above Explanation has been inserted vide Union Budget 2007 - 2008)

(77b) "pandal or shamiana contractor" means a person engaged in providing any service, either directly or indirectly, in connection with the preparation, arrangement, erection or decoration of a pandal or shamiana and includes the supply of furniture, fixtures, lights and lighting fittings, floor coverings and other articles for use therein;";

(Clause (77a) & (77b) has been inserted vide Budget 2004-2005)

(77c) “passenger” means any person boarding, at any customs airport, an aircraft for performing an international journey, but does not include—

(i) a person who has arrived at such customs airport from a place outside India and is in transit through India, provided that he does not pass through immigration and does not leave customs area and continues his journey to a place outside India; and

(ii) a person employed or engaged by the aircraft operator in any capacity on board the aircraft;

(Clause (77c) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(78) "photography" includes still photography, motion picture photography, laser photography, aerial photography or fluorescent photography;

(79) "photography studio or agency" means any professional photographer or any person[OLD-a commercial concern] engaged in the business of rendering service relating to photography;

(In clause (79) the words "any person" has been substituted vide Union Budget 2006-2007 -Finance Bill)

(80) "policy holder" has the meaning assigned to it in clause ( 2) of section 2 of the Insurance Act, 1938;

(81) "port" has the meaning assigned to it in clause ( q) of section 2 of the Major Port Trusts Act, 1963;

(82) "port service" means any service rendered by a port or other port or any person authorised by such port or other port, in any manner, in relation to a vessel or goods;

(83) "practising chartered accountant" means a person who is a member of the Institute of Chartered Accountants of India and is holding a certificate of practice granted under the provisions of the Chartered Accountants Act, 1949 and includes any concern engaged in rendering services in the field of chartered accountancy;

(84) "practising cost accountant" means a person who is a member of the Institute of Cost and Works Accountants of India and is holding a certificate of practice granted under the provisions of the Cost and Works Accountants Act, 1959 and includes any concern engaged in rendering services in the field of cost accountancy;

(85) "practising company secretary" means a person who is a member of the Institute of Company Secretaries of India and is holding a certificate of practice granted under the provisions of the Company Secretaries Act, 1980 and includes any concern engaged in rendering services in the field of company secretaryship;

(86) "prescribed" means prescribed by rules made under this Chapter;

(86a) "programme" means any audio or visual matter, live or recorded, which is intended to be disseminated by transmission of electro-magnetic waves through space or through cables intended to be received by the general public either directly or indirectly through the medium of relay stations;

(86b) "programme producer" means any person who[OLD- a commercial concern ] which produces a programme on behalf of another person;

(Clause (86a) & (86b) has been inserted vide Budget 2004-2005)

(86c) “public relations” includes strategic counselling based on industry, media and perception research, corporate image management, media relations, media training, press release, press conference, financial public relations, brand support, brand launch, retail support and promotions, events and communications and crisis communications;

(Clause (86c) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(86d) “processing and clearing house” means any person including the clearing corporation authorised or assigned by a recognised stock exchange, recognised association or a registered association to perform the duties and functions of a clearing house in relation to,—

(i) the periodical settlement of contracts for, or relating to, the sale or purchase of securities, goods or forward contracts and differences thereunder;

(ii) the delivery of, and payment for, securities, goods or forward contracts;

(iii) any other matter incidental to, or connected with, securities, goods and forward contracts;

(Above clause (86d) has been inserted vide Finance Bill 2008)

(87) "rail travel agent" means any person engaged in providing any service connected with booking of passage for travel by rail;

(88) "real estate agent" means a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting, of real estate and includes a real estate consultant;

(89) "real estate consultant" means a person who renders in any manner, either directly or indirectly, advice, consultancy or technical assistance, in relation to evaluation, conception, design, development, construction, implementation, supervision, maintenance, marketing, acquisition or management, of real estate;

(89a) "recognised association" has the meaning assigned to it in clause (j) of section 2 of the Forward Contracts (Regulation) Act, 1952;

(89b) "registered association" has the meaning assigned to it in clause(jj) of section 2 of the 74 of 1952. Forward Contracts (Regulation) Act, 1952;

(Clause (89a) & (89b) has been inserted vide Budget 2004-2005)

(89c) “registrar to an issue” means any person carrying on the activities in relation to an issue including collecting application forms from investors, keeping a record of applications and money received from investors or paid to the seller of securities, assisting in determining the basis of allotment of securities, finalising the list of persons entitled to allotment of securities and processing and despatching allotment letters, refund orders or certificates and other related documents;

(Clause (89c) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(90) "recognised stock exchange" has the meaning assigned to it in clause ( f) of section 2 of the Securities Contracts (Regulation) Act, 1956;

(90a) “renting of immovable property” includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include —

(i) renting of immovable property by a religious body or to a religious body; or

(ii) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching centre;

Explanation 1.—For the purposes of this clause, “for use in the course or furtherance of business or commerce” includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings;

(Above clause (90a) has been inserted vide Union Budget 2007 - 2008)

Explanation 2.— For the removal of doubts, it is hereby declared that for the purposes of this clause “renting of immovable property” includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the said immovable property;

(Above Explanation 2 has been inserted vide Finance Bill 2008)

(91) "rent-a-cab scheme operator" means any person engaged in the business of renting of cabs;

(91a) "residential complex" means any complex comprising of-

(i) a building or buildings, having more than twelve residential units;

(ii) a common area; and

(iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system,

located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this clause,-

(a) "personal use" includes permitting the complex for use as residence by another person on rent or without consideration;

(b) "residential unit" means a single house or a single apartment intended for use as a place of residence;

(Clause (91a) has been inserted vide Finance Bill 2005-2006)

(92) "scientific or technical consultancy" means any advice, consultancy, or scientific or technical assistance, rendered in any manner, either directly or indirectly, by a scientist or a technocrat, or any science or technology institution or organisation, to any person [OLD- to a client ], in one or more disciplines of science or technology;

(In clause (92) the words "to any person" has been substituted vide Finance Bill 2008)

(93) "securities" has the meaning assigned to it in clause ( h) of section 2 of the Securities Contracts (Regulation) Act, 1956;

(94) "security agency" means any person [OLD- commercial concern ] engaged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel;

(95) "service tax" means tax leviable under the provisions of this Chapter;

(95a) “share transfer agent” means any person who maintains the record of holders of securities and deals with all matters connected with the transfer or redemption of securities or activities incidental thereto;

(In clause (94) the word "person" -substituted & clause (95a) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(96) "ship" means a sea-going vessel and includes a sailing vessel;

(96a) “ship management service” includes,—

(i) the supervision of the maintenance, survey and repair of ship;

(ii) engagement or providing of crews;

(iii) receiving the hire or freight charges on behalf of the owner;

(iv) arrangements for loading and unloading;

(v) providing for victualling or storing of ship;

(vi) negotiating contracts for bunker fuel and lubricating oil;

(vii) payment, on behalf of the owner, of expenses incurred in providing services or in relation to the management of ship;

(viii) the entry of ship in a protection or indemnity association;

(ix) dealing with insurance, salvage and other claims; and

(x) arranging of insurance in relation to ship;

(Clause (95a) & (96a) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(97) "shipping line" means any person who owns or charters a ship and includes an enterprise which operates or manages the business of shipping;

(97a) "site formation and clearance, excavation and earthmoving and demolition" includes,-

(i) drilling, boring and core extraction services for construction, geophysical, geological or similar purposes; or

(ii) soil stabilization; or

(iii) horizontal drilling for the passage of cables or drain pipes; or

(iv) land reclamation work; or

(v) contaminated top soil stripping work; or

(vi) demolition and wrecking of building, structure or road,

but does not include such services provided in relation to agriculture, irrigation, watershed development and drilling, digging, repairing, renovating or restoring of water sources or water bodies;

(Clause (97a) has been inserted vide Finance Bill 2005-2006)

(98) "sound recording" means recording of sound on any media or device including magnetic storage device, and includes services relating to recording of sound in any manner such as sound cataloguing, storing of sound and sound mixing or re-mixing or any audio post-production activity;

(Clause (98) has been substituted vide Finance Bill 2005-2006)

[OLD-
(98) "sound recording" means recording of sound on a magnetic storage device and includes editing thereof, in any manner; ]

(99) "sound recording studio or agency" means any person[ commercial concern ] engaged in the business of rendering any service relating to sound recording;

(99a) “sponsorship” includes naming an event after the sponsor, displaying the sponsor’s company logo or trading name, giving the sponsor exclusive or priority booking rights, sponsoring prizes or trophies for competition; but does not include any financial or other support in the form of donations or gifts, given by the donors subject to the condition that the service provider is under no obligation to provide anything in return to such donors;

(In clause (99) the word "person" - substituted & (99a) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(100) "steamer agent" means any person who undertakes, either directly or indirectly,–

(101) "stock-broker" means a person, who has either made an application for registration or is registered as a stock-broker {OMITTED - or sub-broker, as the case may be ], in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992;

(In above clause (101) the words "or sub-broker, as the case may be" has been omitted vide Union Budget 2009-2010 - Finance Bill)

(Clause (101) has been substituted vide Budget 2004-2005)

[OLD-
(101) "stock-broker" means a stock-broker who has either made an application for registration or is registered as a stock-broker in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992;]

(102) "storage and warehousing " includes storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce or any service provided by a cold storage;

[OMITTED
(103) "sub-broker" means a sub-broker who has either made an application for registration or is registered as a sub-broker in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992;]

(Clause (103) has been omitted vide Budget 2004-2005)

[OMITTED
(104) "subscriber" means a person to whom any service of a telephone connection or a facsimile (FAX) or a leased circuit or a pager or a telegraph or a telex has been provided by the telegraph authority; ]

(Above clause (104) has been omitted vide Union Budget 2007 - 2008)

(104a) "survey and exploration of mineral" means geological, geophysical or other prospecting, surface or sub-surface surveying or map making service, in relation to location or exploration of deposits of mineral, oil or gas;

(Clause (104a) has been inserted vide Budget 2004-2005)

(104b) "survey and map-making" means geological, geophysical or any other prospecting, surface, sub-surface or aerial surveying or map-making of any kind, but does not include survey and exploration of mineral;

(Clause (104b) has been inserted vide Finance Bill 2005-2006)

(104c) “support services of business or commerce” means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation of customer service and pricing policies, infrastructural support services and other transaction processing.

Explanation.—For the purposes of this clause, the expression “infrastructural support services” includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom facilities, pantry and security;

(Clause (104c) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(105) "taxable service" means any service provided,–

(a) to any person, by a stock-broker in connection with the sale or purchase of securities listed on a recognised stock exchange;

(Vide Budget 2004-2005)

[OMITTED
(b) to a subscriber, by the telegraph authority in relation to a telephone connection;

(c) to a subscriber, by the telegraph authority in relation to a pager; ]

(Above sub-clause (b) & (c) has been omitted vide Union Budget 2007 - 2008)

(d) to a policy holder or any person [OLD- policy holder ], by an insurer, including re-insurer [OLD- insurer ] carrying on general insurance business in relation to general insurance business;

(e) to any person [OLD- to a client], by an advertising agency in relation to advertisement, in any manner;

(f) to any person [OLD- to a customer], by a courier agency in relation to door-to-door transportation of time-sensitive documents, goods or articles;

(g) to any person, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering including the discipline of computer hardware engineering.

Explanation.— For the purposes of this sub-clause, it is hereby declared that services provided by a consulting engineer in relation to advice, consultancy or technical assistance in the disciplines of both computer hardware engineering and computer software engineering shall also be classifiable under this sub-clause;

(Above sub-clause (g) has been substituted vide Finance Bill 2008)

[OLD-
(g) to a client, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering including the discipline of computer hardware engineering but excluding the discipline of computer software engineering[OLD- but not in the discipline of computer hardware engineering or computer software engineering];]

(h) to any person [OLD- to a client], by a custom house agent in relation to the entry or departure of conveyances or the import or export of goods;

(i) to a shipping line, by a steamer agent in relation to a ship"s husbandry or dispatch or any administrative work related thereto as well as the booking, advertising or canvassing of cargo, including container feeder services;

(j) to any person [OLD- to a client], by a clearing and forwarding agent in relation to clearing and forwarding operations, in any manner;

(k) to any person [OLD- to a client], by a manpower recruitment or supply agency in relation to the recruitment or supply of manpower, temporarily or otherwose, in any manner;

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, recruitment or supply of manpower includes services in relation to prerecruitment screening, verification of the credentials and antecedents of the candidate and authenticity of documents submitted by the candidate;

(l) to any person [OLD- to a customer], by an air travel agent in relation to the booking of passage for travel by air;

(m) to any person [OLD- a client], by a mandap keeper in relation to the use of mandap in any manner including the facilities provided or to be provided to such person [OLD- the client] in relation to such use and also the services, if any, provided or to be provided as a caterer;

(In sub-clause (m) the words "any person" & "such person" has been substituted vide Finance Bill 2008)

(n) to any person, by a tour operator in relation to a tour;

(o) to any person, by a rent-a-cab scheme operator in relation to the renting of a cab;

(p) to any person [OLD- to a client], by an architect in his professional capacity, in any manner;

(q) to any person [OLD- to a client], by an interior decorator in relation to planning, design or beautification of spaces, whether man-made or otherwise, in any manner;

(r) to any person [OLD- to a client], by a management or business consultant in connection with the management of any organisation or business, in any manner;

[OLD- (r) to a client, by a management consultant in connection with the management of any organisation, in any manner; ]

(s) to any person [OLD- to a client], by a practising chartered accountant in his professional capacity, in any manner;

(t) to any person [OLD- to a client], by a practising cost accountant in his professional capacity, in any manner;

(u) to any person [OLD- to a client], by a practising company secretary in his professional capacity, in any manner;

(v) to any person [OLD- to a client], by a real estate agent in relation to real estate;

(w) to any person [OLD- to a client], by a security agency in relation to the security of any property or person, by providing security personnel or otherwise and includes the provision of services of investigation, detection or verification of any fact or activity;

(x) to any person [OLD- to a client], by a credit rating agency in relation to credit rating of any financial obligation, instrument or security;

(y) to any person [OLD- to a client], by a market research agency in relation to market research of any product, service or utility, in any manner;

(z) to any person [OLD- to a client], by an underwriter in relation to underwriting, in any manner;

(za) to any person [OLD- to a client], by a scientist or a technocrat, or any science or technology institution or organisation, in relation to scientific or technical consultancy;

(zb) to any person [OLD- to a customer], by a photography studio or agency in relation to photography, in any manner ;

(zc) to any person [OLD- to a client], by any person [OLD- commercial concern ] in relation to holding of a convention, in any manner;

[OMITTED-
(zd) to a subscriber, by the telegraph authority in relation to a leased circuit;

(ze) to a subscriber, by the telegraph authority in relation to a communication through telegraph;

(zf) to a subscriber, by the telegraph authority in relation to a communication through telex;

(zg) to a subscriber, by the telegraph authority in relation to a facsimile (FAX) communication; ]

(zh) to any person [OLD- to a customer], by any person [OLD- a commercial concern ], in relation to on-line information and database access or retrieval or both in electronic form through computer network, in any manner;

(zi) to any person [OLD- to a client], by a video production agency in relation to video-tape production, in any manner;

(zj) to any person [OLD- to a client], by a sound recording studio or agency in relation to any kind of sound recording;

(zk) to a client, by a broadcasting agency or organisation in relation to broadcasting in any manner and, in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes service provided by its branch office or subsidiary or representative in India or any agent appointed in India or by any person who acts on its behalf in any manner, engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electro-magnetic waves through space or through cables, direct to home signals or by any other means to cable operator, including multisystem operator or any other person on behalf of the said agency or organisation.

Explanation.– For the removal of doubts, it is hereby declared that so long as the radio or television programme broadcast is received in India and intended for listening or viewing, as the case may be, by the public, such service shall be a taxable service in relation to broadcasting, even if the encryption of signals or beaming thereof through the satellite might have taken place outside India;

(zl) to a policy holder or any person [OLD- policy holder ] or insurer, including re-insurer [OLD- insurer ], by an actuary, or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services concerning general insurance business;

(zm) to any person [OLD- to a customer], by a banking company or a financial institution including a non-banking financial company, or any other body corporate or commercial concern [OLD- or any other person ] [OLD-commercial concern ], in relation to banking and other financial services;

(zn) to any person, by a port or any person authorised by the port, in relation to port services, in any manner;

(zo) to any person [OLD- to a customer], by an authorised service station, in relation to any service, repair, reconditioning or restoration of motor cars, light motor vehicles or two wheeled motor vehicles, in any manner;

[OMITTED
(zp) to a customer, by a body corporate other than the body corporate referred to in sub-clause ( zm), in relation to banking and other financial services;]

(Vide Budget 2004-2005)

(zq) to any person [OLD- to a customer]c, by a beauty parlour in relation to beauty treatment;

(zr ) to any person, by a cargo handling agency in relation to cargo handling services;

(zs) to any person, by a cable operator, including a multisystem operator in relation to cable services;

(Vide Budget 2004-2005)

(zt) to any person [OLD- to a customer], by a dry cleaner in relation to dry cleaning;

(zu) to any person [OLD- to a client], by an event manager in relation to event management;

(zv) to any person, by a fashion designer in relation to fashion designing;

(zw) to any person, by a health club and fitness centre in relation to health and fitness services;

(zx) to a policy holder or any person [OLD- policy holder ], by an insurer, including re-insurer [OLD- insurer ] carrying on life insurance business in relation to the risk cover in life insurance;

(Vide Budget 2004-2005)

(zy) to a policy holder or any person [OLD- policy holder ] or insurer, including re-insurer [OLD- insurer ] by an actuary, or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services concerning life insurance business;

(zz) to any person [OLD- to a customer], by a rail travel agent in relation to booking of passage for travel by rail;

(zza) to any person, by a storage or warehouse keeper in relation to storage and warehousing of goods;

(zzb) to a client, by any person [OLD-a commercial concern ] in relation to business auxiliary service;

(zzc) to any person, by a commercial training or coaching centre in relation to commercial training or coaching;

(zzd) to any person [OLD- to a customer], by a erection, commissioning and installation agency in relation to commissioning or installation;

(Vide Budget 2004-2005)

(zze) to a franchisee, by the franchisor in relation to franchise;

(zzf) to any person, by an internet café in relation to access of internet;

(zzg) to any person [OLD- to a customer], by any person in relation to management, maintenance or repair [OLD-maintenance or repair ];

(zzh) to any person, by a technical testing and analysis agency, in relation to technical testing and analysis;

(zzi) to any person, by a technical inspection and certification agency, in relation to technical inspection and certification;

[OMITTED
(zzj) to a customer, by an authorised service station, in relation to any service or repair of any maxicab;

(Vide Budget 2004-2005)

(zzk) to any person, by a foreign exchange broker, including an authorised dealer in foreign exchange or an authorised money changer, other than a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern referred to in sub-clause (zm);

(Sub-clause (zzk) has been substituted vide Finance Bill 2008)

[OLD-
(zzk) to a customer, by a foreign exchange broker other than those brokers in relation to banking and other financial services referred to in sub-clauses (zm);]

(zzl) to any person, by other port or any person authorised by that port in relation to port services, in any manner;

(zzm) to any person, by airports authority or any person authorised by it, in an airport or a civil enclave;

(zzn) to any person, by an aircraft operator, in relation to transport of goods by aircraft;

(zzo) to an exhibitor, by the organizer of a business exhibition, in relation to business exhibition;

(zzp) to any person [OLD- to a customer], by a goods transport agency, in relation to transport of goods by road in a goods carriage;

(zzq) to any person, by any other person [OLD- a commercial concern], in relation to commercial or industrial construction service;

(zzr) to any person, by the holder of intellectual property right, in relation to intellectual property service;

(zzs) to any person, by an opinion poll agency, in relation to opinion poll;

(zzt) to any person [OLD- to a client], by an outdoor caterer;

(zzu) to any person, by a programme producer, in relation to a programme;

(zzv) to any person [OLD- to a customer], by any person, in relation to survey and exploration of mineral;

(zzw) to any person [OLD- to a client], by pandal or shamiana contractor in relation to a pandal or shamiana in any manner and also includes the services, if any, provided or to be provided as a caterer;

(zzx) to any person [OLD- to a customer], by a travel agent, in relation to booking of passage for travel;

(zzy) to any person, by a member of a recognised association or a registered association, in relation to a forward contract;

(zzz) to any person, by any other person, in relation to transport of goods other than water, through pipeline or other conduit;

(zzza) to any person, by any other person, in relation to site formation and clearance, excavation and earthmoving and demolition and such other similar activities;

(zzzb) to any person, by any other person, in relation to dredging;

(zzzc) to any person, by any other person, other than by an agency under the control of, or authorised by, the Government, in relation to survey and map-making;

(zzzd) to any person, by any other person, in relation to cleaning activity;

(zzze) to its members, by any club or association in relation to provision of services, facilities or advantages for a subscription or any other amount;

(zzzf) to any person, by any other person, in relation to packaging activity;

(zzzg) to any person, by any other person, in relation to mailing list compilation and mailing;

(zzzh) to any person, by any other person, in relation to construction of complex;

(In Clause (105) the words "policy holder or any person", "insurer, including re-insurer", (zc)- "person", (zh)-"any person", (zm)-"any other person", (zzb)-"any person", (zzg)- "management, maintenance or repair" & (zzq)- "any other person" has been substituted vide Union Budget 2006-2007 -Finance Bill)

(Bold words * in Clause (105) has been substituted vide Finance Bill 2005-2006)

(zzzi) to any person, by a registrar to an issue, in relation to sale or purchase of securities;

(zzzj) to any person, by a share transfer agent, in relation to securities;

(zzzk) to any person, by any other person, in relation to automated teller machine operations, maintenance or management service, in any manner;

(zzzl) to a banking company or a financial institution including a non-banking financial company or any other body corporate or a firm, by any person, in relation to recovery of any sums due to such banking company or financial institution, including a non-banking financial company, or any other body corporate or a firm, in any manner;

(zzzm) to any person, by any other person, in relation to sale of space or time for advertisement, in any manner; but does not include sale of space for advertisement in print media and sale of time slots by a broadcasting agency or organisation.

Explanation 1.—For the purposes of this sub-clause, “sale of space or time for advertisement” includes,—

(i) providing space or time, as the case may be, for display, advertising, showcasing of any product or service in video programmes, television programmes or motion pictures or music albums, or on billboards, public places, buildings, conveyances, cell phones, automated teller machines, internet;

(ii) selling of time slots on radio or television by a person, other than a broadcasting agency or organisation; and

(iii) aerial advertising.

Explanation 2.—For the purposes of this sub-clause, "print media" means,— (i) "newspaper" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867;

(ii) "book" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867, but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes;

[OLD-
Explanation 2.—For the purposes of this sub-clause, “print media” means “book” and “newspaper” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867;]

(zzzn) to any body corporate or firm, by any person receiving sponsorship, in relation to such sponsorship, in any manner, but does not include services in relation to sponsorship of sports events;

(zzzo) to any passenger, by an aircraft operator, in relation to scheduled or non-scheduled air transport of such passenger embarking in India for international journey, in any class other than economy class.

Explanation 1.—For the purposes of this sub-clause, economy class in an aircraft meant for scheduled air transport of passengers means,—

(i) where there is more than one class of travel, the class attracting the lowest standard fare; or

(ii) where there is only one class of travel, that class.

Explanation 2.—For the purposes of this sub-clause, in an aircraft meant for nonscheduled air transport of passengers, no class of travel shall be treated as economy class;

(zzzp) to any person, by any other person, in relation to transport of goods by rail, in any manner;

(Above sub-clause (zzzp) has been substituted vide Union Budget 2009-2010 - Finance Bill)

[OLD-
(zzzp) to any person, by any other person other than Government railway as defined in clause (20) of section 2 of the Railways Act, 1989, in relation to transport of goods in containers by rail, in any manner;]

(zzzq) to any person, by any other person, in relation to support services of business or commerce, in any manner;

(zzzr) to any person, by any other person, in relation to auction of property, movable or immovable, tangible or intangible, in any manner, but does not include auction of property under the directions or orders of a court of law or auction by the Government;

(zzzs) to any person, by any other person, in relation to managing the public relations of such person, in any manner;

(zzzt) to any person, under a contract or an agreement, by any other person, in relation to ship management service;

(zzzu) to any person, by any other person, in relation to internet telecommunication service [OLD-internet telephony];

(In sub-clause (zzzu) the words "internet telecommunication service" has been substituted vide Finance Bill 2008)

(zzzv) to any person, by any other person, in relation to transport of such person embarking from any port or other port in India, by a cruise ship.

Explanation.—For the purposes of this sub-clause, “cruise ship” means a ship or vessel used for providing recreational or pleasure trips, but does not include a ship or vessel used for private purposes or a ship or vessel of, or less than, fifteen net tonnage;

(zzzw) to any person, by any other person, in relation to credit card, debit card, charge card or other payment card service, in any manner;

(zzzx) to any person, by the telegraph authority in relation to telecommunication service;

(zzzy) to any person, by any other person in relation to mining of mineral, oil or gas;

(zzzz) to any person, by any other person in relation to renting of immovable property for use in the course or furtherance of business or commerce.

Explanation 1.—For the purposes of this sub-clause, “immovable property” includes—

(i) building and part of a building, and the land appurtenant thereto;

(ii) land incidental to the use of such building or part of a building;

(iii) the common or shared areas and facilities relating thereto; and

(iv) in case of a building located in a complex or an industrial estate, all common areas and facilities relating thereto, within such complex or estate, but does not include-

(a) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes;

(b) vacant land, whether or not having facilities clearly incidental to the use of such vacant land;

(c) land used for educational, sports, circus, entertainment and parking purposes; and

(d) building used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities.

Explanation 2.—For the purposes of this sub-clause, an immovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purposes shall be deemed to be immovable property for use in the course or furtherance of business or commerce;

(zzzza) to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams.

Explanation.—For the purposes of this sub-clause, “works contract” means a contract wherein,—

(i) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and

(ii) such contract is for the purposes of carrying out,—

(a) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or

(b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or

(c) construction of a new residential complex or a part thereof; or

(d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or

(e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;

(zzzzb) to any person, by any other person in relation to development and supply of content for use in telecommunication services, advertising agency services and on-line information and database access or retrieval services;

(zzzzc) to any person, by any other person, except a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern referred to in sub-clause (zm), in relation to asset management including portfolio management and all forms of fund management;

(zzzzd) to any person, by any other person in relation to design services, but does not include service provided by-

(i) an interior decorator referred to in sub-clause (q); and

(ii) a fashion designer in relation to fashion designing referred to in sub-clause (zv);

(zzzze) to any person, by any other person in relation to information technology software for use in the course, or furtherance, of business or commerce, including,—

(i) development of information technology software,

(ii) study, analysis, design and programming of information technology software,

(iii) adaptation, upgradation, enhancement, implementation and other similar services related to information technology software,

(iv) providing advice, consultancy and assistance on matters related to information technology software, including conducting feasibility studies on implementation of a system, specifications for a database design, guidance and assistance during the startup phase of a new system, specifications to secure a database, advice on proprietary information technology software,

(v) providing [OLD- acquiring ] the right to use information technology software for commercial exploitation including right to reproduce, distribute and sell information technology software and right to use software components for the creation of and inclusion in other information technology software products,

(vi) providing [OLD- acquiring ] the right to use information technology software supplied electronically;

(In above sub-clause (zzzze), in items (v) & (vi) the word "providing" has been substituted vide Union Budget 2009-2010 - Finance Bill w.e.f. 16/05/2008)

(zzzzf) to a policy holder, by an insurer carrying on life insurance business, in relation to management of investment, under unit linked insurance business, commonly known as Unit Linked Insurance Plan (ULIP) scheme.

Explanation.— For the purposes of this sub-clause,—

(i) management of segregated fund of unit linked insurance business by the insurer shall be deemed to be the service provided by the insurer to the policy holder in relation to management of investment under unit linked insurance business; and

(ii) the gross amount charged by the insurer from the policy holder for the said services provided or to be provided shall be equivalent to the difference between,—

(a) premium paid by the policy holder for the Unit Linked Insurance Plan policy; and

(b) the sum of premium paid for or attributable to risk cover, whether for life, health or other specified purposes, and the amount segregated for actual investment.

Illustration

Total premium paid for the Unit Linked Insurance Plan policy = Rs.100

Risk premium = Rs. 10

Amount actually invested = Rs. 85

Gross amount charged for the service provided = Rs. 5 [100-(10+85)];

(iii) in addition to the amount referred to in clause (ii), the gross amount charged shall include any amount charged subsequently, whether or not periodically, by the insurer from the policy holder in relation to management of investment under unit linked insurance business;

(zzzzg) to any person, by a recognised stock exchange in relation to assisting, regulating or controlling the business of buying, selling or dealing in securities and includes services provided in relation to trading, processing, clearing and settlement of transactions in securities;

(zzzzh) to any person, by a recognised association or a registered association in relation to assisting, regulating or controlling the business of the sale or purchase of any goods or forward contracts and includes services provided in relation to trading, processing, clearing and settlement of transactions in goods or forward contracts;

(zzzzi) to any person, by a processing and clearinghouse in relation to processing, clearing and settlement of transactions in securities, goods or forward contracts including any other matter incidental to, or connected with, such securities, goods and forward contracts;

(zzzzj) to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances;

(zzzzk) to any person, by any other person, in relation to cosmetic surgery or plastic surgery, but does not include any surgery undertaken to restore or reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, degenerative diseases, injury or trauma;

(zzzzl) to any person, by any other person, in relation to transport of —

(i) coastal goods;

(ii) goods through national waterway; or

(iii) goods through inland water.

Explanation.— For the purposes of this sub-clause,—

(a) “coastal goods” has the meaning assigned to it in clause (7) of section 2 of the Customs Act, 1962;

(b) “national waterway” has the meaning assigned to it in clause (h) of section 2 of the Inland Waterways Authority of India Act, 1985;

(c) “inland water” has the meaning assigned to it in clause (b) of section 2 of the Inland Vessels Act, 1917;

(zzzzm) to a business entity, by any other business entity, in relation to advice, consultancy or assistance in any branch of law, in any manner:

Provided that any service provided by way of appearance before any court, tribunal or authority shall not amount to taxable service.

Explanation.—For the purposes of this sub-clause, “business entity” includes an association of persons, body of individuals, company or firm, but does not include an individual;

(Above sub-clauses (zzzzk) to (zzzzm) has been inserted vide Union Budget 2009-2010 - Finance Bill)

(In clause (105), Sub-clauses (zzzze) to (zzzzj) - inserted and in sub-clauses (e), (h), (j), (k), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (za), (zc), (zi), (zj), (zu), (zzt) and (zzw) the words "to any person" & in sub-clause (f), (l), (zb), (zh), (zm), (zo), (zq), (zt), (zz), (zzd), (zzg), (zzp), (zzv) and (zzx) the words "to any person" has been substituted vide Finance Bill 2008)

(In Clause (105), sub-clause (b),(c),(zd),(ze),(zf),(zg)- omitted, in sub-clause (g), the words "including the discipline of computer hardware engineering but excluding the discipline of computer software engineering", sub-clause (r), in sub-clause (zm) the words "or commercial concern" , in sub-clause (zzzm) explanation 2 - substituted and in clause (k) explantion, sub-clause (zzzx) to (zzzzd) - inserted vide Union Budget 2007 - 2008)

[OMITTED-
Explanation.—For the removal of doubts, it is hereby declared that where any service provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India and such service is received or to be received by a person who has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence, in India such service shall be deemed to be taxable service for the purposes of this clause; ]

(Sub-clause (zzzi) to (zzzw) - inserted & above Explanation - Omitted vide Union Budget 2006-2007 -Finance Bill)

(Sub-clause & Explanation in Clause (105) has been vide Finance Bill 2005-2006)

(106) "technical testing and analysis" means any service in relation to physical, chemical, biological or any other scientific testing or analysis of goods or material or information technology software or any immovable property, but does not include any testing or analysis service provided or to be provided * [OLD- service provided ] in relation to human beings or animals;

(In clause (106) the words "information technology software or" has been inserted vide Finance Bill 2008)

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this clause, “technical testing and analysis” includes testing and analysis undertaken for the purpose of clinical testing of drugs and formulations; but does not include testing or analysis for the purpose of determination of the nature of diseased condition, identification of a disease, prevention of any disease or disorder in human beings or animals;

(Explanation at clause (106) has been inserted vide Union Budget 2006-2007 -Finance Bill)

(107) "technical testing and analysis agency" means any agency or person engaged in providing service in relation to technical testing and analysis;

(108) "technical inspection and certification" means inspection or examination of goods or process or material or information technology software [OLD- process or material ] or any immovable property to certify that such goods or process or material or information technology software [OLD- process or material ] or immovable property qualifies or maintains the specified standards, including functionality or utility or quality or safety or any other characteristic or parameters, but does not include any service in relation to inspection and certification of pollution levels;

(In clause (108) the words "process or material or information technology software" has been substituted vide Finance Bill 2008)

(109) "technical inspection and certification agency" means any agency or person engaged in providing service in relation to technical inspection and certification;

(109a) “telecommunication service” means service of any description provided by means of any transmission, emission or reception of signs, signals, writing, images and sounds or intelligence or information of any nature, by wire, radio, optical, visual or other electro-magnetic means or systems, including the related transfer or assignment of the right to use capacity for such transmission, emission or reception by a person who has been granted a licence under the first proviso to sub-section (1) of section 4 of the Indian Telegraph Act, 1885 and includes -

(i) voice mail, data services, audio tex services, video tex services, radio paging;

(ii) fixed telephone services including provision of access to and use of the public switched telephone network for the transmission and switching of voice, data and video, inbound and outbound telephone service to and from national and international destinations;

(iii) cellular mobile telephone services including provision of access to and use of switched or non-switched networks for the transmission of voice, data and video, inbound and outbound roaming service to and from national and international destinations;

(iv) carrier services including provision of wired or wireless facilities to originate, terminate or transit calls, charging for interconnection, settlement or termination of domestic or international calls, charging for jointly used facilities including pole attachments, charging for the exclusive use of circuits, a leased circuit or a dedicated link including a speech circuit, data circuit or a telegraph circuit;

(v) provision of call management services for a fee including call waiting, call forwarding, caller identification, three-way calling, call display, call return, call screen, call blocking, automatic call-back, call answer, voice mail, voice menus and video conferencing;

(vi) private network services including provision of wired or wireless telecommunication link between specified points for the exclusive use of the client;

(vii) data transmission services including provision of access to wired or wireless facilities and services specifically designed for efficient transmission of data; and

(viii) communication through facsimile, pager, telegraph and telex, but does not include service provided by-

(a) any person in relation to on-line information and database access or retrieval or both referred to in sub-clause (zh) of clause (105);

(b) a broadcasting agency or organisation in relation to broadcasting referred to in subclause (zk) of clause (105); and

(c) any person in relation to internet telecommunication service [OLD-internet telephony] referred to in sub-clause (zzzu) of clause (105);

(In above sub-clause (c) the words "internet telecommunication service" has been substituted vide Finance Bill 2008)

(Clause (109a) has been inserted vide Union Budget 2007 - 2008)

(110) "telegraph" has the meaning assigned to it in clause ( 1) of section 3 of the Indian Telegraph Act, 1885;

(111) "telegraph authority" has the meaning assigned to it in clause ( 6) of section 3 of the Indian Telegraph Act, 1885 and includes a person who has been granted a licence under the first proviso to sub-section ( 1) of section 4 of that Act;

(112) "telex" means a typed communication by using teleprinters through telex exchanges;

(113) "tour" means a journey from one place to another irrespective of the distance between such places;

(114) "tourist vehicle" has the meaning assigned to it in clause (43) of section 2 of the Motor Vehicles Act, 1988;

(115) “tour operator” means any person engaged in the business of planning, scheduling, organising or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle or a contract carriage by whatever name called, covered by a permit, other than a stage carriage permit, granted under the Motor Vehicles Act, 1988 or the rules made thereunder.

Explanation.— For the purposes of this clause, the expression “tour” does not include a journey organised or arranged for use by an educational body, other than a commercial training or coaching centre, imparting skill or knowledge or lessons on any subject or field;

(Clause (115) has been substituted vide Finance Bill 2008)

[OLD-
(115) "tour operator" means any person engaged in the business of planning, scheduling, organising or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicles Act, 1988 or the rules made thereunder;]

(115a) "travel agent" means any person engaged in providing any service connected with booking of passage for travel, but does not include air travel agent and rail travel agent;

(Clause (115) has been substituted & (115a) has been inserted vide Budget 2004-2005)

[OLD-
(115) "tour operator" means any person engaged in the business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicles Act, 1988 or the rules made thereunder; ]

(116) "underwriter" has the meaning assigned to it in clause (f) of rule 2 of the Securities and Exchange Board of India (Underwriters) Rules, 1993;

(117) "underwriting" has the meaning assigned to it in clause (g) of rule 2 of the Securities and Exchange Board of India (Underwriters) Rules, 1993;

(118) "vessel" has the meaning assigned to it in clause ( z) of section 2 of the Major Port Trusts Act, 1963;

(119) "video production agency" means any professional videographer or any commercial concern engaged in the business of rendering services relating to video-tape production;

(120) "video-tape production" means the process of any recording of any programme, event or function on a magnetic tape or on any other media or device and includes services relating thereto such as editing, cutting, colouring, dubbing, title printing, imparting special effects, processing, adding, modifying or deleting sound, transferring from one media or device to another, or undertaking any video post-production activity, in any manner;

(Clause (120) has been substituted vide Finance Bill 2005-2006)

[OLD-
(120) "video-tape production" means the process of any recording of any programme, event or function on a magnetic tape and includes editing thereof, in any manner;]

(121) words and expressions used but not defined in this Chapter and defined in the Central Excise Act, 1944 or the rules made thereunder, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise.

Explanation.—For the purposes of this section, taxable service includes any taxable service provided or to be provided by any unincorporated association or body of persons to a member thereof, for cash, deferred payment or any other valuable consideration.

(Explanation at clause (121) has been inserted vide Union Budget 2006-2007 -Finance Bill)

65A.
(1) For the purposes of this Chapter, classification of taxable services shall be determined according to the terms of the sub-clauses of clause ( 104) of section 65;

(2) When for any reason, a taxable service is, prima facie, classifiable under two or more sub-clauses of clause ( 104) of section 65, classification shall be effected as follows:–

(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description;

(b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause ( a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable;

(c) when a service cannot be classified in the manner specified in clause ( a) or clause ( b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merit consideration.";

(Section 65. has been substituted vide Finance Bill 2003)

66. There shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve per cent. of the value of taxable services referred to in sub-clauses (a), (d), (e), (f), (g,) (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (za), (zb), (zc), (zh), (zi), (zj), (zk), (zl), (zm), (zn), (zo), (zq), (zr), (zs), (zt), (zu), (zv), (zw), (zx), (zy), (zz), (zza), (zzb), (zzc), (zzd), (zze), (zzf), (zzg), (zzh), (zzi), (zzk), (zzl), (zzm), (zzn), (zzo), (zzp), (zzq), (zzr), (zzs), (zzt), (zzu), (zzv), (zzw), (zzx), (zzy), (zzz), (zzza), (zzzb), (zzzc), (zzzd), (zzze), (zzzf), (zzzg,) (zzzh), (zzzi), (zzzj), (zzzk), (zzzl), (zzzm), (zzzn), (zzzo), (zzzp), (zzzq), (zzzr),(zzzs), (zzzt), (zzzu), (zzzv), (zzzw),(zzzx), (zzzy), (zzzz), (zzzza), (zzzzb), (zzzzc) (zzzzd), (zzzze), (zzzzf), (zzzzg), (zzzzh), (zzzzi), (zzzzj), (zzzzk), (zzzzl) and (zzzzm) [OLD- and (zzzzj) and (zzzzd) ] of clause (105) of section 65 and collected in such manner as may be prescribed.

(In Section 66 the brackets, letters and word ",(zzzzj), (zzzzk), (zzzzl) and (zzzzm)" has been substituted vide Union Budget 2009-2010 - Finance Bill)

(In Section 66 the brackets, letters and word "(zzzzd), (zzzze), (zzzzf), (zzzzg), (zzzzh), (zzzzi) and (zzzzj)" has been substituted vide Finance Bill 2008)

(Section 66. has been substituted vide Union Budget 2007 - 2008)

[OLD-
66. There shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve per cent.[OLD- ten per cent.] of the value of the taxable services referred to in sub-clauses (a), (b), (c), (d), (e), (f), (g), (h),(i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (za), (zb), (zc), (zd), (ze), (zf),(zg), (zh), (zi), (zj), (zk), (zl), (zm), (zn), (zo), (zq), (zr), (zs), (zt), (zu), (zv), (zw), (zx), (zy), (zz),(zza), (zzb), (zzc), (zzd), (zze), (zzf), (zzg), (zzh), (zzi), *(zzk), (zzl), (zzm), (zzn), (zzo), (zzp),(zzq), (zzr), (zzs), (zzt), (zzu), (zzv), (zzw), (zzx), *( zzy), ( zzz), ( zzza), ( zzzb), ( zzzc), ( zzzd), ( zzze), ( zzzf), ( zzzg) (zzzh), (zzzi), (zzzj), (zzzk), (zzzl), (zzzm), (zzzn), (zzzo), (zzzp), (zzzq), (zzzr), (zzzs), (zzzt), (zzzu), (zzzv) and (zzzw) 5 of dause (105) of section 65 and collected in such manner as may be prescribed.]

(In Section 66. the words "twelve per cent." & "(zzzh), (zzzi), (zzzj), (zzzk), (zzzl), (zzzm), (zzzn), (zzzo), (zzzp), (zzzq), (zzzr), (zzzs), (zzzt), (zzzu), (zzzv) and (zzzw)" has been substituted vide Union Budget 2006-2007 -Finance Bill)

(Bold words * has been substituted vide Finance Bill 2005-2006)

(Section 66. has been substituted vide Budget 2004-2005)

66A. (1) Where any service specified in clause (105) of section 65 is,—

(a) provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and

(b) received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or usual place of residence, in India, such service shall, for the purposes of this section, be taxable service, and such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of this Chapter shall apply:

Provided that where the recipient of the service is an individual and such service received by him is otherwise than for the purpose of use in any business or commerce, the provisions of this sub-section shall not apply:

Provided further that where the provider of the service has his business establishment both in that country and elsewhere, the country, where the establishment of the provider of service directly concerned with the provision of service is located, shall be treated as the country from which the service is provided or to be provided.

(2) Where a person is carrying on a business through a permanent establishment in India and through another permanent establishment in a country other than India, such permanent establishments shall be treated as separate persons for the purposes of this section.

Explanation 1.— A person carrying on a business through a branch or agency in any country shall be treated as having a business establishment in that country.

Explanation 2.—Usual place of residence, in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted.

67. (1) Subject to the provisions of this Chapter, service tax chargeable on any taxable service with reference to its value shall,—

(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;

(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration;

(iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.

(2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.

(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.

(4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed.

Explanation.—For the purposes of this section,—

(a) “consideration” includes any amount that is payable for the taxable services provided or to be provided;

(b) “money” includes any currency, cheque, promissory note, letter of credit, draft, pay order, travellers cheque, money order, postal remittance and other similar instruments but does not include currency that is held for its numismatic value;

(c) “gross amount charged” includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited, as the case may be, to any account, whether called “Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise. [OLD- book adjustment.]

(In above clause (c) the words "book adjustment, and any amount credited or debited, as the case may be, to any account, whether called “Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise." has been substituted vide Finance Bill 2008)

(Section 66A. - inserted & Section 67. - substituted vide Union Budget 2006-2007 -Finance Bill)

[OLD -
67. Valuation of taxable services for charging service tax –

for the purposes of this chapter, the value of any taxable service shall be the gross amount charged by the service provider of such service provided or to be provided by him * [OLD- rendered by him ].

(Bold words * has been substituted vide Finance Bill 2005-2006)

Explanation 1 – for the removal of doubts, it is hereby declared that the value of a taxable service, as the case may be, includes, --

(Clause (g) has been added vide Budget 2002-2003) but does not include–

(i) initial deposit made by the subscriber at the time of application for telephone connection or pager or facsimile (FAX) or telegraph or telex or for leased circuit;

(ii) the cost of unexposed photography film, unrecorded magnetic tape or such other storage devices, if any, sold to the client during the course of providing the service;

(iii) the cost of parts or accessories, or consumable such as lubricants and coolants, if any, sold to the customer during the course of service or repair of motor cars, maxicab or two wheeled motor vehicles;

(iv) the airfare collected by air travel agent in respect of service provided by him;

(v) the rail fare collected by rail travel agent in respect of service provided by him;

(vi) the cost of parts or other material, if any, sold to the customer during the course of providing maintenance or repair service; [OMITTED- and ]

(vii) the cost of parts or other material, if any, sold to the customer during the course of providing erection, commissioning or installation service; and

(viil) interest on loans.

(In Clause (vi) word "and" omitted, (vii) has been substituted & (viii) inserted vide Budget 2004-2005)

[OLD-
(vii) the cost of parts or other material, if any, sold to the customer during the course of providing commissioning or installation service. ]

(Portion beginning with the words "but ...............by him" has been substituted vide Finance Bill 2003)

[OLD -
but dose not include, -

(Clause (d) & (e) has been added vide Budget 2002-2003) Explanation 2.- Where the gross amount charged by a service provider is inclusive of service tax payable, the value of taxable service shall be such amount as with the addition of tax payable, is equal to the gross amount charged.

(Explanation 2 has been inserted vide Budget 2002-2003)

Explanation 3.- For the removal of doubts, it is hereby declared that the gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. ]

(Explanation 3. has been inserted vide Finance Bill 2005-2006)

68. Payment of service tax. –

69. Registration -

(1) Every person liable to pay the service tax under this chapter or the rules made there under shall, with in such time in such manner and in such form as may be prescribed, make an application for registration to the Superintendent of Central Excise.

(2) The Central Government may, by notification in the Official Gazette, specify such other person or class of persons, who shall make an application for registration within such time and in such manner and in such form as may be prescribed.

(Sub-clause (1) renumbered & (2) has been inserted vide Finance Bill 2005-2006)

(Pl. refer Policy Cir. No. 10/2002-07, Dt. 01/08/2002 for Registration Certificate from Service Tax Authorities for Service Providers under EPCG Scheme)

70. Furnishing of Returns. –

(1) Every person liable to pay the service tax shall himself assess the tax due o the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency and with such late fee not exceeding two thousand rupees, for delayed furnishing of return, as may be prescribed [OLD- as may be prescribed ].

(In above sub-section (1) the words "and with such late fee not exceeding two thousand rupees, for delayed furnishing of return, as may be prescribed" has been substituted vide Union Budget 2007 - 2008)

(2) The person or class of persons notified under sub-section ( 2) of section 69, shall furnish to the Superintendent of the Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.

(Sub-clause (1) renumbered & (2) has been inserted vide Finance Bill 2005-2006)

71. Scheme for submission of Returns through Service Tax Preparers.

(1) Without prejudice to the provisions of section 70, the Board may, by notification in the Official Gazette, frame a Scheme for the purposes of enabling any person or class of persons to prepare and furnish a return under section 70, and authorise a Service Tax Return Preparer to act as such under the Scheme.

(2) A Service Tax Return Preparer shall assist the person or class of persons to prepare and furnish the return in such manner as may be specified in the Scheme framed under this section.

(3) For the purposes of this section,—

(a) “Service Tax Return Preparer” means any individual, who has been authorised to act as a Service Tax Return Preparer under the Scheme framed under this section;

(b) “person or class of persons” means such person, as may be specified in the Scheme, who is required to furnish a return required to be filed under section 70.

(4) The Scheme framed by the Board under this section may provide for the following, namely:—

(a) the manner in which and the period for which the Service Tax Return Preparer shall be authorised under sub-section (1);

(b) the educational and other qualifications to be possessed, and the training and other conditions required to be fulfilled, by a person to act as a Service Tax Return Preparer;

(c) the code of conduct for the Service Tax Return Preparer;

(d) the duties and obligations of the Service Tax Return Preparer;

(e) the circumstances under which the authorisation given to a Service Tax Return Preparer may be withdrawn;

(f) any other matter which is required to be, or may be, specified by the Scheme for the purposes of this section.

72.Best judgment assessment

If any person, liable to pay service tax,—

(a) fails to furnish the return under section 70;

(b) having made a return, fails to assess the tax in accordance with the provisions of this Chapter or rules made thereunder,

the Central Excise Officer, may require the person to produce such accounts, documents or other evidence as he may deem necessary and after taking into account all the relevant material which is available or which he has gathered, shall by an order in writing, after giving the person an opportunity of being heard, make the assessment of the value of taxable service to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment.

(Above Section 71 & 72 has been inserted vide Finance Bill 2008)

[OMITTED - 71. Verification of tax assessed by the assessee, etc. –

71A. Notwithstanding anything contained in the provisions of sections 69 and 70, the provisions thereof shall not apply to a person referred to in the proviso to sub-section ( 1) of section 68 for the filing of return in respect of service tax for the respective period and service specified therein and such person shall furnish return to the Central Excise Officer within six months from the day on which the Finance Bill, 2003 receives the assent of the President in the prescribed manner on the basis of the self assessment of the service tax and the provisions of section 71 shall apply accordingly.

(Section 71A. has been inserted (on and from the 16th day of July, 1997) vide Finance Bill 2003)

72. Best judgment assessment. –

(Section 71 and 72 has been omitted vide Budget 2002-2003)

73. (1) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the Central Excise Officer* [OLD- Assistant Commissioner of Central Excise or, as the case may be, the Deputy Commissioner of Central Excise] may, within one year from the relevant date, serve notice on the person chargeable with the service tax which has not been levied or paid or which has been short-levied or short-paid or the person to whom such tax refund has erroneously been made, requiring him to show cause why he should not pay the amount specified In the notice;

Provided that where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of-

(a) fraud; or
(b) collusion; or
(c) wilful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax,

by the person chargeable with the service tax or his agent, the provisions of this sub-section shall have effect, as if, for the words "one year" , the words "five years" had been substituted.

Explanation.-Where the service of the notice is stayed by an order of a court, the period of such stay shall be excluded in computing the aforesaid period of one year or five years, as the case may be.

(1A) Where any service tax has not been levied or paid or has been short-levied or shortpaid or erroneously refunded, by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Chapter or the rules made thereunder, with intent to evade payment of service tax, by such person or his agent, to whom a notice is served under the proviso to sub-section (1) by the Central Excise Officer, such person or agent may pay service tax in full or in part as may be accepted by him, and the interest payable thereon under section 75 and penalty equal to twenty-five per cent. of the service tax specified in the notice or the service tax so accepted by such person within thirty days of the receipt of the notice.

(Sub-section (1A) has been vide Union Budget 2006-2007 -Finance Bill)

(2) The Central Excise Officer* [OLD- Assistant Commissioner of Central Excise or, as the case may be, the Deputy Commissioner of Central Excise] shall, after considering the representation, if any, made by the person on whom notice is served under sub-section (1), determine the amount of service tax due from, or erroneously refunded to, such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined.

Provided that where such person has paid the service tax in full together with interest and penalty under sub-section (1A), the proceedings in respect of such person and other persons to whom notices are served under sub-section (1) shall be deemed to be concluded:

Provided further that where such person has paid service tax in part along with interest and penalty under sub-section (1A), the Central Excise Officer shall determine the amount of service tax or interest not being in excess of the amount partly due from such person.

(Above two provisos has been inserted vide Union Budget 2006-2007 -Finance Bill)

(3) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person chargeable with the service tax, or the person to whom such tax refund has erroneously been made, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the Central Excise Officer* [OLD- Assistant Commissioner of Central Excise or, as the case may be, the Deputy Commissioner of Central Excise] of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the amount so paid":

Provided that the Central Excise Officer* [OLD- Assistant Commissioner of Central Excise or, as the case may be, the Deputy Commissioner of Central Excise] may determine the amount of short payment of service tax or erroneously refunded service tax, if any, which in his opinion has not been paid by such person and, then, the Central Excise Officer* [OLD- Assistant Commissioner of Central Excise or, as the case may be, the Deputy Commissioner of Central Excise] shall proceed to recover such amount in the manner specified in this section, and the period of "one year" referred to in sub-section ( 1) shall be counted from the date of receipt of such information of payment.

Explanation.-For the removal of doubts, it is hereby declared that the interest under section 75 shall be payable on the amount paid by the person under this sub-section and also on the amount of short payment of service tax or erroneously refunded service tax, if any, as may be determined by the Central Excise Officer* [OLD- Assistant Commissioner of Central Excise or, as the case may be, the Deputy Commissioner of Central Excise], but for this sub-section.

(4) Nothing contained in sub-section (3) shall apply to a case where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of-

(a) fraud; or
(b) collusion; or
(c) wilful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or of the rules made thereunder

with intent to evade payment of service tax,

(5) The provisions of sub-section (3) shall not apply to any case where the service tax had become payable or ought to have been paid before the 14th day of May, 2003.

(6) For the purposes of this section, "relevant date" means,-

(i) in the case of taxable service in respect of which service tax has not been levied or paid or has been short-levied or short-paid -

(a) where under the rules made under this Chapter, a periodical return, showing particulars of service tax paid during the period to which the said return relates, is to be filed by an assessee, the date on which such return is so filed;

(b) where no periodical return as aforesaid is filed, the last date on which such return is to be filed under the said rules;

(c) in any other case, the date on which the service tax is to be paid under this Chapter or the rules made thereunder;

(ii) in a case where the service tax is provisionally assessed under this Chapter or the rules made thereunder, the date of adjustment of the service tax after the final assessment thereof;

(iii) in a case where any sum, relating to service tax, has erroneously been refunded, the date of such refund.

(Bold words* in section 73 has been substituted vide Finance Bill 2005-2006)

(Section 73 has been substituted vide Budget 2004-2005)

73A. (1) Any person who is liable to pay service tax under the provisions of this Chapter or the rules made thereunder, and has collected any amount in excess of the service tax assessed or determined and paid on any taxable service under the provisions of this Chapter or the rules made thereunder from the recipient of taxable service in any manner as representing service tax, shall forthwith pay the amount so collected to the credit of the Central Government.

(2) Where any person who has collected any amount, which is not required to be collected, from any other person, in any manner as representing service tax, such person shall forthwith pay the amount so collected to the credit of the Central Government.

(3) Where any amount is required to be paid to the credit of the Central Government under sub-section (1) or sub-section (2) and the same has not been so paid, the Central Excise Officer shall serve, on the person liable to pay such amount, a notice requiring him to show cause why the said amount, as specified in the notice, should not be paid by him to the credit of the Central Government.

(4) The Central Excise Officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (3), determine the amount due from such person, not being in excess of the amount specified in the notice, and thereupon such person shall pay the amount so determined.

(5) The amount paid to the credit of the Central Government under sub-section (1) or subsection (2) or sub-section (4), shall be adjusted against the service tax payable by the person on finalisation of assessment or any other proceeding for determination of service tax relating to the taxable service referred to in sub-section (1).

(6) Where any surplus amount is left after the adjustment under sub-section (5), such amount shall either be credited to the Consumer Welfare Fund referred to in section 12C of the Central Excise Act, 1944 or, as the case may be, refunded to the person who has borne the incidence of such amount, in accordance with the provisions of section 11B of the said Act and such person may make an application under that section in such cases within six months from the date of the public notice to be issued by the Central Excise Officer for the refund of such surplus amount.

73B. Where an amount has been collected in excess of the tax assessed or determined and paid for any taxable service under this Chapter or the rules made thereunder from the recipient of such service, the person who is liable to pay such amount as determined under sub-section (4) of section 73A, shall, in addition to the amount, be liable to pay interest at such rate not below ten per cent. and not exceeding twenty-four per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first day of the month succeeding the month in which the amount ought to have been paid under this Chapter, but for the provisions contained in sub-section (4) of section 73A, till the date of payment of such amount:

Provided that in such cases where the amount becomes payable consequent to issue of an order, instruction or direction by the Board under section 37B of the Central Excise Act, 1944, and such amount payable is voluntarily paid in full, without reserving any right to appeal against such payment at any subsequent stage, within forty-five days from the date of issue of such order, instruction or direction, as the case may be, no interest shall be payable and in other cases, the interest shall be payable on the whole amount, including the amount already paid.

Explanation 1.—Where the amount determined under sub-section (4) of section 73A is reduced by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, the interest payable thereon under this section shall be on such reduced amount.

Explanation 2.—Where the amount determined under sub-section (4) of section 73A is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, the interest payable thereon under this section shall be on such increased amount.

73C. (1) Where, during the pendency of any proceeding under section 73 or section 73A, the Central Excise Officer is of the opinion that for the purpose of protecting the interests of revenue, it is necessary so to do, he may, with the previous approval of the Commissioner of Central Excise, by order in writing, attach provisionally any property belonging to the person on whom notice is served under sub-section (1) of section 73 or sub-section (3) of section 73A, as the case may be, in such manner as may be prescribed.

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1):

Provided that the Chief Commissioner of Central Excise may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years.

73D. (1) If the Central Government is of the opinion that it is necessary or expedient in the public interest to publish the name of any person and any other particulars relating to any proceedings under this Chapter in respect of such person, it may cause to be published such names and particulars in such manner as may be prescribed.

(2) No publication under this section shall be made in relation to any penalty imposed under this Chapter until the time for presenting an appeal to the Commissioner (Appeals) under section 85 or the Appellate Tribunal under section 86, as the case may be, has expired without an appeal having been presented or the appeal, if presented, has been disposed of.

Explanation.—In the case of a firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasurers or managers of the company, or the members of the association, as the case may be, shall also be published if, in the opinion of the Central Government, circumstances of the case justify it.

(Section 73A to 73D has been inserted vide Union Budget 2006-2007 -Finance Bill)

74. Rectification of mistake. –

(In Sub-Section (7), words "liability of the assessee" has been substituted vide Budget 2004-2005)

(Bold words* in section 74 has been substituted vide Finance Bill 2005-2006)

75. Interest on delayed payment of Service Tax –

Every person, liable to pay the tax in accordance with the provisions of section 68 or rules made thereunder, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed, shall pay simple interest at such rate not below ten per cent. and not exceeding thirty-six per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, [OLD- at the rate of fifteen per cent. per annum ] for the period by which such crediting of the tax or any part thereof is delayed]

(In Section 75., words "at such rate not below ten per cent. and not exceeding thirty-six per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette," has been substituted vide Budget 2004-2005)

(In section 75 the words "twenty-four per cent", shall substituted by "fifteen per cent" vide Budget 2002-2003)

[OMITTED-
75A. Penalty for failure of registration. –

Any person, liable to service tax in accordance with the provisions of section 68 or the rules made thereunder, fails to make an application for registration under section 69, shall pay, by way of penalty, a sum of five hundred rupees. ]

(Section 75A. has been omitted vide Budget 2004-2005)

76. Any person, liable to pay service tax in accordance with the provisions of section 68 or the rules made under this Chapter, who fails to pay such tax, shall pay, in addition to such tax and the interest on that tax amount in accordance with the provisions of section 75, a penalty which shall not be less than two hundred rupees for every day during which such failure continues or at the rate of two per cent. of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax:

Provided that the total amount of the penalty payable in terms of this section shall not exceed the service tax payable.

Illustration

X, an assessee, fails to pay service tax of Rs. 10 lakhs payable by 5th March. X pays the amount on 15th March. The default has continued for 10 days. The penalty payable by X is computed as follows:—

2% of the amount of default for 10 days = 2 x 10, 00, 000 x 10/31= Rs. 6,451.61

Penalty calculated @ Rs. 200 per day for 10 days =Rs. 2,000

Penalty liable to be paid is Rs. 6,452.00.

(Section 76. has been substituted vide Union Budget 2006-2007 -Finance Bill)

[OLD-
76. Penalty for failure to collect or pay service tax. –

Any person liable to pay service tax in accordance with the provisions of section 68 or the rules made thereunder, who fails to pay such tax shall pay in addition to paying such tax, and interest on that tax in accordance with the provisions of section 75, a penalty which shall not be less than one hundred rupees for every day during which such failure continues [OLD- one hundred rupees ] but which may extend to two hundred rupees for every day during which such failure continues, so, however, that the penalty under this clause shall not exceed the amount of service tax that he failed to pay. ]

(In Section 76., words "one hundred rupees for every day during which such failure continues" has been substituted vide Budget 2004-2005)

Notice Under Section 75 and 76

77. Penalty for contravention of rules and provisions of Act for which no penalty is specified elsewhere.

(1) Any person,—

(a) who is liable to pay service tax, or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this Chapter shall be liable to pay a penalty which may extend to five thousand rupees or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;

(b) who fails to keep, maintain or retain books of account and other documents as required in accordance with the provisions of this Chapter or the rules made thereunder, shall be liable to a penalty which may extend to five thousand rupees;

(c) who fails to—

(i) furnish information called by an officer in accordance with the provisions of this Chapter or rules made thereunder; or

(ii) produce documents called for by a Central Excise Officer in accordance with the provisions of this Chapter or rules made thereunder; or

(iii) appear before the Central Excise Officer, when issued with a summon for appearance to give evidence or to produce a document in an inquiry,

shall be liable to a penalty which may extend to five thousand rupees or two hundred rupees forevery day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;

(d) who is required to pay tax electronically, through internet banking, fails to pay the tax electronically, shall be liable to a penalty which may extend to five thousand rupees;

(e) who issues invoice in accordance with the provisions of the Act or rules made thereunder, with incorrect or incomplete details or fails to account for an invoice in his books of account,

shall be liable to a penalty which may extend to five thousand rupees.

(2) Any person, who contravenes any of the provisions of this Chapter or any rules made thereunder for which no penalty is separately provided in this Chapter, shall be liable to a penalty which may extend to five thousand rupees.

(Above Section 77 has been substituted vide Finance Bill 2008)

[OLD-
77. Whoever contravenes any of the provisions of this Chapter or any rule made thereunder for which no penalty is separately provided in this Chapter, shall be liable to a penalty which may extend to an amount not exceeding one thousand rupees. ]

(Section 77. has been substituted vide Budget 2004-2005)

[OLD -
77. Penalty for failure to furnish prescribed return. –

If a person fails to furnish in due time the return which he is required to furnish under section 70 or the rules made threunder, he shall [be liable to a penalty which may extend to an amount not exceeding one thousand rupees. ]

78. Penalty for suppressing value of taxable service.–

Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of-

with intent to evade payment of service tax,

the person, liable to pay such service tax or erroneous refund, as determined under sub-section (2) of section 73, shall also be liable to pay a penalty, in addition to such service tax and interest thereon, if any, payable by him, whim shall not be less than, but whim shall not exceed twice, the amount of service tax so not levied or paid or short-levied or short-paid or erroneously refunded:

(In Section 78. above para has been substituted vide Budget 2004-2005)

[OLD-
If the Assistnat Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise ] in the course of any proceedings under this Chapter is satisfied that any person has, with intent to evade payment of service tax, suppressed or concealed the value of taxable service of has furnished inaccurate value of such taxable service, he may direct that such person shall pay by way of penalty, in addition to service tax and interest, if any, payable by him, a sum which shall not be less than, but which shall not exceed twice, the amount of service tax sought to be evaded by reason of suppression or concealment of the value of taxable service or the furnishing of inaccurate value of such taxable service: ]

Provided that where such service tax as determined under sub-section ( 2) of section 73, and the interest payable thereon under section 75, is paid within thirty days from the date of communication of order of the Central Excise Officer* [OLD- Assistant Commissioner of Central Excise or, as the case may be, the Deputy Commissioner of Central Excise ] determining such service tax, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent. of the service tax so determined:

(In above proviso bold words* has been substituted vide Finance Bill 2005-2006)

Provided further that the benefit of reduced penalty under the first proviso shall be available only if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso:

Provided also that where the service tax determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, for the purposes of this section, the service tax as reduced or increased, as the case may be, shall be taken into account:

Provided also that in case where the service tax determined to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the first proviso shall be available, if the amount of service tax so increased, the interest payable thereon and twenty-five per cent. of the consequential increase of penalty have also been paid within thirty days of communication of the order by which such increase in service tax takes effect.

Provided also that if the penalty is payable under this section, the provisions of section 76 shall not apply.

(Above Fifth proviso has been inserted vide Finance Bill 2008)

Explanation.– For the removal of doubts, it is hereby declared that–

(1) the provisions of this section shall also apply to cases in which the order determining the service tax under sub-section ( 2) of section 73 relates to notices issued prior to the day on which the Finance Bill, 2003 receives the assent of the President;

(2) any amount paid to the credit of the Central Government prior to the date of communication of the order referred to in the first proviso or the fourth proviso shall be adjusted against the total amount due from such person.

(Proviso of section 78 has been substituted vide Finance Bill 2003)

[OLD -
Provided that if the value of taxable service (as determined by the [Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise ] on assessment) in respect of which value has been suppressed or concealed or inaccurate value has been furnished exceed a sum of two lakh rupees, the [Assistant Commissioner of Central Excise or, as the case may be Deputy Commissioner of Central Excise ] shall not issue any direction for payment by way of penalty without the previous approval of the [Commissioner] of Central Excise. ]

(In section 78,in the proviso, for the words "twenty-five thousand rupees", shall substituted by "Two lakh rupees" vide Budget 2002-2003)

[OMITTED-
79.Penalty for failure to comply with notice. –

[If the Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise in the course of any proceedings under this Chapter is satisfied that any person has failed to comply with the provisions of section 71] he may direct that such person shall pay, by way of penalty, in addition to any service tax and interest, if nay, payable by him, a sum which shall not be less than ten percent, but which shall not exceed fifty per cent, of the amount of the service tax, if any, which would have been avoided if the value of taxable service stated in the return by such person had been accepted as the correct value of taxable service. ]

(Section 79. has been omitted vide Budget 2004-2005)

80. Penalty not to be imposed in certain cases. –

Notwithstanding anything contained in the provisions of section 76, section 77 or section 78 [OLD- section 77, section 78 or section 79 ], no penalty shall be imposable on the assessee for any failure referred to in said provisions if the assessee proves that there was reasonable cause for the said failure.

(In Section 80., words "section 77 or section 78" has been substituted vide Budget 2004-2005)

[OMITTED-
81. Offences by companies –

Explanation :- For the purpose of this section, -

(Section 81. has been omitted vide Budget 2004-2005)

82. Power to search premises –

83. Application of certain provisions of Act 1 of 1944 –

The provisions of the following section of the [Central Excise Act, 1944], as in force from time to time, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise :-

9C, 9D, [OMITTED- 11, ] 11B, [11BB, 11C, [OMITTED- 11D, ] 12, 12A] 12B. 12C, 12D, 12E, 14, 14AA *15,33A,35F35FF to 350 (both inclusive), 35Q, 36, 36A, 36B, 37A, 37B, 37C, 37D,38A, and 40.

(In Section 83 the figures and letters "35FF" has been inserted vide Finance Bill 2008) (In above Section 83. the figures and letters "14AA" & "38A" has been inserted vide Union Budget 2007 - 2008)

(In Section 83., the figures and letter "11 & 11D" has been omitted vide Union Budget 2006-2007 -Finance Bill)

(Bold words* has been substituted vide Finance Bill 2005-2006)

(In section 83 figures and letter 11D has been sbustituted with Bold figures and letters vide Finance Bill 2003)

(In section 83 figures and letter 11D has been inserted vide Budget 2002-2003)

(Please refer Cir No. 53/02/2003-CX(ST), Dt. 27/03/2003)

83A. Where under this Chapter or the rules made thereunder any person is liable to a penalty, such penalty may be adjudged by the Central Excise Officer conferred with such power as the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963, may, by notification in the Official Gazette, specify.

(Section (83A) has been inserted vide Finance Bill 2005-2006)

84. (1) The Commissioner of Central Excise may, of his own motion, call for and examine the record of any proceedings in which an adjudicating authority subordinate to him has passed any decision or order under this Chapter for the purpose of satisfying himself as to the legality or propriety of any such decision or order and may, by order, direct such authority or any Central Excise Officer subordinate to him to apply to the Commissioner of Central Excise (Appeals) for the determination of such points arising out of the decision or order as may be specified by the Commissioner of Central Excise in his order.

(2) Every order under sub-section (1) shall be made within a period of three months from the date of communication of the decision or order of the adjudicating authority.

(3) Where in pursuance of an order under sub-section (1), the adjudicating authority or any other officer authorised in this behalf makes an application to the Commissioner of Central Excise (Appeals) within a period of one month from the date of communication of the order under sub-section (1) to the adjudicating authority, such application shall be heard by the Commissioner of Central Excise (Appeals), as if such application were an appeal made against the decision or order of the adjudicating authority and the provisions of this Chapter regarding appeals shall apply to such application.

Explanation.—For the removal of doubts, it is hereby declared that any order passed by an adjudicating officer subordinate to the Commissioner of Central Excise immediately before the commencement of clause (C) of section 112 of the Finance (No. 2) Act, 2009, shall continue to be dealt with by the Commissioner of Central Excise as if this section had not been substituted.

(Section 84 has been substituted vide Union Budget 2009-2010 - Finance Bill)

[OLD-
84. Revision of orders by the Commissioner of Central Excise. –

85. Appeals to the Commissioner of Central Excise (Appeals). –

86. Appeals to Appellate Tribunal –

87. Where any amount payable by a person to the credit of the Central Government under any of the provisions of this Chapter or of the rules made thereunder is not paid, the Central Excise Officer shall proceed to recover the amount by one or more of the modes mentioned below:—

(a) the Central Excise Officer may deduct or may require any other Central Excise Officer or any officer of customs to deduct the amount so payable from any money owing to such person which may be under the control of the said Central Excise Officer or any officer of customs;

(b) (i) the Central Excise Officer may, by notice in writing, require any other person from whom money is due or may become due to such person, or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central Government either forthwith upon the money becoming due or being held or at or within the time specified in the notice, not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount;

(ii) every person to whom a notice is issued under this section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary;

(iii) in a case where the person to whom a notice under this section is sent, fails to make the payment in pursuance thereof to the Central Government, he shall be deemed to be an assessee in default in respect of the amount specified in the notice and all the consequences of this Chapter shall follow;

(c) the Central Excise Officer may, on an authorisation by the Commissioner of Central Excise, in accordance with the rules made in this behalf, distrain any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distress or keeping of the property, remains unpaid for a period of thirty days next after any such distress, may cause the said property to be sold and with the proceeds of such sale, may satisfy the amount payable and the costs including cost of sale remaining unpaid and shall render the surplus amount, if any, to such person;

(d) the Central Excise Officer may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which such person owns any property or resides or carries on his business and the said Collector, on receipt of such certificate, shall proceed to recover from such person the amount specified thereunder as if it were an arrear of land revenue.

(Section 87. has been inserted vide Union Budget 2006-2007 -Finance Bill)

88 to 92 Omitted

93. power to grant exemption from service tax. –

94. Power to make rules, -

(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-

a. collection and recovery of service tax under sections 66 and 68;

(j) provide for the settlement of cases, in accordance with sections 31, 32 and 32A to 32P (both inclusive), in Chapter V of the Central

Excise Act, 1944 as made applicable to service tax vide section 83;

(k) imposition, on persons liable to pay service tax, for the proper levy and collection of tax, of duty of furnishing information, keeping

records and the manner in which such records shall be verified.

(Above clause (k) has been added vide CIR. NO. 181/07/2014-ST, DT. 10/12/2014)

(3) The power to make rules conferred by this section shall on the first occasion of the exercise thereof include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Chapter come into force.

(4) Every rule made under this Chapter, Scheme framed under section 71 and every notification [OLD- Chapter and every notification ] issued under section 93 shall be laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.

(In Section 94 the words words "Chapter, Scheme framed under section 71 and every notification" has been substituted vide Finance Bill 2008)

95. Power to remove difficulty in implementing new services.

(Above Section 95 has been substituted vide Budget 2002-2003)

96. Consequential amendment. –

In the Economic Offences (Inapplicability of Limitation) Act, 1974 (12 of 1974), in the Schedule, after entry 7 relating to the [Central Excise Act, 1944] (1 of 1944), the following entry shall be inserted, namely:-

"7A. Chapter V of the Finance Act, 1994."

CHAPTER VA

ADVANCE RULINGS

96A. In this Chapter, unless the context otherwise requires,–

(a) "advance ruling" means the determination, by the Authority of a question of law or fact specified in the application regarding the liability to pay service tax in relation to a service proposed to be provided, by the applicant;

(b) "applicant" means-

Explanation. — For the purpose of this notification , a “public sector company” shall have the same meaning as is assigned to it in clause (36A) of section 2 of the Income-tax Act, 1961 ( 43 of 1961).

(PL. refer NTF. NO. 27/2009-ST, DT. 20/08/2009 for above Explanation)

Explanation.- For the purposes of this clause, “joint venture in India” means a contractual arrangement whereby two or more persons undertake an economic activity which is subject to joint control and one or more of the participants or partners or equity holders is a non-resident having substantial interest in such arrangement;

(Above Explantion has been inserted vide Union Budget 2007 - 2008)

(Clause (b) has been substituted vide Finance Bill 2005-2006)

[OLD-
(b) "applicant" means–

who proposes to undertake any business activity in India and makes application for advance ruling;]

(c) "application" means an application made to the Authority under sub-section (1) of section 96C;

(d) “Authority” means the Authority for Advance Rulings, constituted under sub-section (1), or authorised by the Central Government under sub-section (2A), of section 28F of the Customs Act, 1962.

(Above clause (d) has been substituted vide Union Budget 2009-2010 - Finance Bill)

[OLD-
(d) "Authority" means the Authority for Advance Rulings (Central Excise, Customs and Service Tax)*

[OLD-Authority for Advance Rulings] constituted under section 28F of the Customs Act, 1962;]

(Bold words* in clause (d) has been substituted vide Finance Bill 2005-2006)

(e) "non-resident", "Indian company" and "foreign company" have the meanings respectively assigned to them in clauses ( 30), ( 26) and ( 23A) of section 2 of the Income-tax Act, 1961;

(f) words and expressions used but not defined in this Chapter and defined in the Central Excise Act, 1944 or the rules made thereunder shall apply, so far as may be, in relation to service tax as they apply in relation to duty of excise.

96B. No proceeding before, or pronouncement of advance ruling by, the Authority under this Chapter shall be questioned or shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the Authority.

96C. (1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and in such manner as may be prescribed, stating the question on which the advance ruling is sought.

(2) The question on which the advance ruling is sought shall be in respect of,–

(3) The application shall be made in quadruplicate and be accompanied by a fee of two thousand five hundred rupees.

(4) An applicant may withdraw an application within thirty days from the date of the application.

96D. ( 1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the Commissioner of Central Excise and, if necessary, call upon him to furnish the relevant records:

Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the Commissioner of Central Excise.

(2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application:

Provided that the Authority shall not allow the application where the question raised in the application is,–

(a) already pending in the applicant"s case before any Central Excise Officer, the Appellate Tribunal or any Court;

(b) the same as in a matter already decided by the Appellate Tribunal or any Court: Definitions.

Provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard:

Provided also that where the application is rejected, reasons for such rejection shall be given in the order.

(3) A copy of every order made under sub-section ( 2) shall be sent to the applicant and to the Commissioner of Central Excise.

(4) Where an application is allowed under sub-section ( 2), the Authority shall, after examining such further material as may be placed before it by the applicant or obtained by the Authority, pronounce its advance ruling on the question specified in the application.

(5) On a request received from the applicant, the Authority shall, before pronouncing its advance ruling, provide an opportunity to the applicant of being heard, either in person or through a duly authorised representative.

Explanation.–For the purposes of this sub-section, "authorised representative" has the meaning assigned to it in sub-section ( 2) of section 35Q of the Central Excise Act, 1944.

(6) The Authority shall pronounce its advance ruling in writing within ninety days of the receipt of application.

(7) A copy of the advance ruling pronounced by the Authority, duly signed by the Members and certified in the prescribed manner shall be sent to the applicant and to the Commissioner of Central Excise, as soon as may be, after such pronouncement.

96E. (1) The advance ruling pronounced by the Authority under section 96D shall be binding only–

(a) on the applicant who had sought it;

(b) in respect of any matter referred to in sub-section (2) of section 96C;

(c) on the Commissioner of Central Excise, and the Central Excise authorities subordinate to him, in respect of the applicant.

(2) The advance ruling referred to in sub-section (1) shall be binding as aforesaid unless there is a change in law or facts on the basis of which the advance ruling has been pronounced.

96F. (1) Where the Authority finds, on a representation made to it by the Commissioner of Central Excise or otherwise, that an advance ruling pronounced by it under sub-section ( 4) of section 96D has been obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Chapter shall apply (after excluding the period beginning with the date of such advance ruling and ending with the date of order under this sub-section) to the applicant as if such advance ruling had never been made.

(2) A copy of the order made under sub-section ( 1) shall be sent to the applicant and the Commissioner of Central Excise.

96G. (1) The Authority shall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908.

(2) The Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973, and every proceeding before the Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code.

96H. The Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure in all matters arising out of the exercise of its powers under this Act.

96I. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:–

(a) the form and manner for making application under sub-section (1) of section 96C;

(b) the manner of certifying a copy of advanced ruling pronounced by the Authority under sub-section (7) of section 96D;

(c) any other matter which, by this Chapter, is to be or may be prescribed.

(3) Every rule made under this Chapter shall be laid, as soon as may be, after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

(CHAPTER VA - (From Section 96A to 96I has been inserted vide Finance Bill 2003)

96J. Special exemption from service tax in certain cases.

(1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of membership fee collected by a club or association formed for representing industry or commerce, during the period on and from the 16th day of June, 2005 to the 31st day of March, 2008 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected if sub-section (1) had been in force at all material times.

(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within six months from the date on which the Finance Bill, 2011 receives the assent of the President.

(Section 96J Inserted (w.e.f. 8.04.2011) by s.74 of the Finance Act, 2011 (8 of 2011))

97. Special Provision for exemption in certain cases relating to management etc .of roads.

(1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of roads, during the period on and from the 16th day of June, 2005 to the 26th day of July, 2009 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times

(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2012 receives the assent of the President.

98. (1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of noncommercial Government buildings, during the period on and from the 16th day of June, 2005 till the date on which section 66B comes into force.

(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times.

(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 20122 receives the assent of the President.

(Section 97 & 98 Inserted w.e.f. 28.5.2012 by the Finance Act, 2012 & The Finance Bill ,2012 received the assent of the President on 28-5-2012.)

99. Special provision for taxable services provided by Indian Railways:

Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, no service tax shall be levied or collected in respect of taxable services provided by the Indian Railways during the period prior to the 1st day of July, 2012, to the extent notices have been issued under section 73, up to the 28th day of February, 2013.

(Section 99 Inserted by the Finance Act, 2013 w.e.f 10-5-2013.)

(please refer Ntf Nos.08/2002-ST., 9/2002, 10/2002 & 11/2002 all of dated 01/08/2002)

(Pl. see Ntf. No. 1/2002-ST, Dt.1/3/2002 for extend the provisions of Chapter V of the Finance Act, 1994 to Exclusive Economic Zone of India.)

(Pl. see Ntf. No. 16/2002-ST, Dt. 02/08/2002 for Supersession of the Notification)

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