service tax amendments proposed by the finance bill 2007 ca. pankaj agrwal b.com(hons), ll.b. fca
TRANSCRIPT
SERVICE TAX
Amendments proposed by the Finance Bill 2007
CA. Pankaj Agrwal
B.Com(Hons), LL.B. FCA
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Proposed New Services
Telecommunication Service Services outsourced for mining or mineral, oil or
gas Renting of Immovable Property Services in relation to Works Contract Development and supply of content for use in
Telecommunication service, Advertising agency services On-line information and database access or retrieval
services.
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Proposed New Services
Asset management services Design Services
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Enlargement of Scope
To include sale of space in business directories, yellow pages and trade catalogues
Renting of motor vehicles capable of carrying more than 12 persons
Social function to include “Marriage” Computer Hardware engineering
consultancy.
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Enlargement of Scope
Banking and financial services to include cash management services.
Financial Leasing defined. Management consultancy to include
business consultancy also. Manpower recruitment service to include
Pre-recruitment screening Verifying the credentials and antecedents of
a candidate Authenticity of documents.
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Enlargement of Scope
Repair services to include computer software.
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Exemption
Threshold limit enhanced from Rs. 4.00 lacs to 8.00 lacs
Accordingly, registration will be required if the annual turnover exceeds Rs. 7.00 lacs.
Resident Welfare associations where the monthly contribution does not exceed Rs. 3000/- per month exempted.
Services provided in relation to delivery of content of cinema in digital form after encryption, electronically.
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Exemption
Technical testing and analysis services provided in relation to testing of new drugs, including vaccines and herbal remedies, on human participants by a Clinical Research Organisation(CRO)
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Procedural Changes
Belated Return with Late Fees. Cost Audit To constitute of committee of
commissioners for the purpose of reviewing the order passed by a commissioner of Central Excise (Appeals) or the adjudication orders passed by a Commissioner of Central Excise
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Procedural Changes
Provision for Excess Service Tax paid Rectification of mistakes and revision of
return. Enabling the provision for submission of
self attested copy of original registration certificate.
Reverse charge method in case of sponsorship service to restrict where the recipient of service is located in India.