Service Tax :- Mandatory Payment of Duty / Tax through internet banking

           Prior to 1.1.14, a manufacturer/service tax payer was required to pay duty of Central Excise/Service tax through internet banking (e-payment) if the total duty paid by the assessee exceeded rupees ten lakhs in the previous financial year as per Rule 8 of the Central Excise Rules, 2002 and Rule 6 of the Service Tax Rules, 1994 respectively. 

          However ,vide Notification No. 15/2013- C.E ( N.T) and Notification No. 16/2013 -(ST) dated 22-11-13 , a manufacturer or a Service tax payer who has paid a duty or tax of more than rupees one lakh in the previous financial year shall be required to pay duty or tax through internet-banking, with effect from 1st of January , 2014.

Notification No. 15/2013- C.E ( N.T)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

Notification No. 15/2013 – Central Excise (N.T.)

New Delhi, the 22^nd November, 2013

01, Agrahayan 1935 Saka

G.S.R. (E). - In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules to further amend the Central Excise Rules, 2002, namely:-

1. (1)   These rules may be called the Central Excise (Second Amendment) Rules, 2013.

    (2)   They shall come into force with effect from the 1st day of January, 2014.

2. In the Central Excise Rules, 2002, in rule 8, in sub-rule (1), in the third proviso, for the words  “rupees ten lakh”,  the words “rupees one lakh” shall be substituted.

F. No. 201/02/2013-CX.6

(Pankaj  Jain)
Under Secretary to the Government of India 

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), dated the 1st March, 2002 vide notification No. 4/2002 – Central Excise ( N.T.), dated the 1^st March, 2002, [G.S.R. 143 (E), dated the 1st March, 2002] and was last amended, vide, notification No. 2/2013 - Central Excise (N.T.), dated the 1^st March, 2013, [G.S.R 149(E) dated the 1^st March, 2013].

                                                                                                                               

Service Tax :- Supoort, Service Desk, Toll Free Number

Friends  Central Board of Excise and Customs Department has provided Email address, Service Desk and Toll Free Number to resolve the problems of their customers related to Service Tax matters.  Toll Free Number , Email Address and Service  Desk link for the same is given below :-

In case of any difficulty in accessing the ACES Application or in using the ST-3 offline utility, the assessees can seek help of the ACES Service Desk by sending e-mail to aces.servicedesk@icegate.gov.in or calling up national toll-free number 1800 425 4251. In general, the Service Desk functions on any working day from Monday to Friday between 9 AM and 7 PM & on Saturdays between 9 AM to 2.30 PM. In order to assist assessees in filing their ST-3 returns in time, in the month of August, 2013, the ACES Service Desk will function from 9 AM to 7 PM on all Saturdays and also on the last Sunday (25-8-2013).

Service Tax :- Online ST-3 for the period October, 2012 to March, 2013.

Friends    Earlier only offline excel utility was available for submission of service tax return for the period,  now Central Board of Excise and Taxation has also provided facility to submit online Service Tax ST-3 return form for the period 10/12 to 03/13.  Some important guideline for submission of online return is given below :-

1. The online version of the Service Tax return (ST-3) for the period October'12 to March'13 is now available for e-filing in ACES. Assessees can also use the offline utility by downloading the latest version from http://acesdownload.nic.in/ or from 'DOWNLOADS' Section of ACES website. Assessees whose ST 3 returns for the period October'12 to March'13 for "Banking and other Financial services" got rejected are requested to use the latest version of ST 3, either online or off-line to file their return. The last date of e-filing of ST 3 for the period October, 2012 to March, 2013 is 31st August, 2013. To avoid congestion and inconvenience on the last date assessees are advised to start e-filing the returns immediately and not to wait till the end of the month.
   
   
2. New user-friendly features in the Oct, 2012 -March, 2013 ST-3 Return :
   A. Previously, the assessees were able to view the filed returns using the option, 'View Original ST3'. This facility has been enhanced with a new feature by displaying in the return, the list of error codes (with corresponding error messages). This will help the assessees to know about the errors so that they can exercise the option of filing Revised return by rectifying the errors. This facility will be made available shortly and the exact date will be intimated on ACES website. 
   
   
   B. As soon as the return uploaded by the assessee is accepted or rejected by the system, a system-generated message will be e-mailed to the assessee. The assessee can rectify the errors and file the corrected return. 

Service Tax :- Circular No. 170 / 5 /2013-ST

Circular No.  170/5 /2013 - ST

F. No. B1/19/2013-TRU (Pt)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Tax Research Unit

*****

New Delhi, dated the 8th August, 2013

To,

Chief Commissioners of Central Excise and Customs (All),

Director General (Service Tax), Director General (Systems),

Director General (Central Excise Intelligence), Director General (Audit),

Commissioners of Service Tax (All), Commissioners of Central Excise (All), Commissioners of Central Excise and Customs (All)

Madam/Sir,

Subject: The Service Tax Voluntary Compliance Encouragement Scheme - clarifications regarding.

            The Service Tax Voluntary Compliance Encouragement Scheme (VCES) has come into effect from 10.5.2013. Some of the issues raised with reference to the Scheme have been clarified by the Board vide circular No. 169/4/2013-ST, dated 13.5.2013.  Subsequently, references have been received by the Board seeking further clarifications as regards the scope and applicability of the Scheme.

2.         The issues have been examined and clarifications thereto are as follows:

S No.	Issues	Clarification
1	Whether the communications, wherein department has sought information of roving nature from potential taxpayer regarding their business activities without seeking any documents from such person or calling for his presence, while quoting the authority of section 14 of the Central Excise Act, 1944, would attract the provision of section 106 (2) (a)?	Attention is invited to clarification issued at S. No. 4 of the circular No. 169/4/2013–ST, dated 13.5.2013, as regards the scope of section 106 (2) (a) of the Finance Act, 2013, wherein it has been clarified that the provision of section 106 (2)(a)(iii) shall be attracted only in such cases where accounts, documents or other evidence are requisitioned by the authorized officer from the declarant under the authority of a statutoryprovision. A communication of the nature as mentioned in the previous column would not attract the provision of section 106 (2)(a) even though the authority of section 14 of the Central Excise Act may have been quoted therein.
2	An assessee has two units at two different locations, say Mumbai and Ahmedabad. Both are separately registered.  The Mumbai unit has received a Show Cause Notice for non-payment of tax on a revenue stream but the Ahmedabad unit has not.  Whether the Ahmedabad unit is eligible for VCES?	Two separate service tax registrations are two distinct assessees for the purposes of service tax levy. Therefore, eligibility for availing of the Scheme is to be determined accordingly. The unit that has not been issued a show cause notice shall be eligible to make a declaration under the Scheme.
3	Whether a declaration can be made under the Scheme in respect of CENVAT credit wrongly utilized for payment of service tax?	Any service tax that has been paid utilizing the irregular credit, amounts to non-payment of service tax. Therefore such service tax amount is covered under the definition of “tax dues”.
4	Whether a party, against whom an inquiry, investigation or audit has been initiated after 1.3.2013 (the cutoff date) can make a declaration under the Scheme?	Yes. There is no bar from filing of declaration in such cases.
5	There was a default and a Show Cause Notice was issued for the period prior to the period covered by the Scheme, i.e. before Oct 2007. Whether declaration can be filed for default on the same issue for the subsequent period?	In the context of the Scheme, the relevant period is from Oct 2007 to Dec 2012. Therefore, the 2ndproviso to section 106 (1) shall be attracted only in such cases where a show cause notice or order of determination has been issued for the period from Oct 2007 to Dec 2012. Accordingly, issuance of a show cause notice or order of determination for any period prior to Oct 2007, on an issue, would not make a person ineligible to make a declaration under the Scheme on the same issue for the period covered by the Scheme.    Therefore, declaration can be made under VCES.
6	In a case where the assessee has been audited and an audit para has been issued, whether the assessee can declare liability on an issue which is not a part of the audit para, under the VCES 2013?	Yes, declarant can declare the “tax dues” concerning an issue which is not a part of the auditpara.
7	Whether a person, who has paid service tax for a particular period but failed to file return, can take the benefit of VCES Scheme so as to avoid payment of penalty for non- filing of return?	Under VCES a declaration can be made only in respect of “tax dues”. A case where no tax is pending, but return has not been filed, does not come under the ambit of the Scheme. However, rule 7C of the Service Tax Rules provides for waiver of penalty in deserving cases where return has not been filed and, in such cases, the assessee may seek relief under rule 7C.
8	A person has made part payment of his ‘tax dues’ on any issue before the scheme was notified and makes the declaration under VCES for the remaining part of the tax dues. Will he be entitled to the benefit of non-payment of interest/penalty on the tax dues paid by him outside the VCES, i.e., (amount paid prior to VCES)?	No. The immunity from interest and penalty is only for “tax dues” declared under VCES. If any “tax dues” have been paid prior to the enactment of the scheme, any liability of interest or penalty thereon shall be adjudicated as per the provisions of Chapter V of the Finance Act, 1994 and paid accordingly.
9	Whether an assessee, who, during a part of the period covered by the Scheme, is in dispute on an issue with the department under an erstwhile provision of law, can declare his liability under the amended provisions, while continuing to litigate the outstanding liability under the erstwhile provision on the issue?	In terms of the second proviso to section 106 (1), where a notice or order of determination has been issued to a person in respect of any issue, no declaration shall be made by such person  in respect of “tax dues” on the same issue for subsequent period. Therefore, if an issue is being litigated for a part of the period covered by the Scheme, i.e., Oct, 2007 to Dec 2012, no declaration can be filed under VCES in terms of the said proviso on the same issue for the subsequent period.
10	Whether upon filing a declaration a declarant realizes that the declaration filed by him was incorrect by mistake? Can he file an amended declaration?	The declarant is expected to declare his tax dues correctly. In case the mistake is discovered suo-moto by the declarant himself, he may approach the designated authority, who, after taking into account the overall facts of the case may allow amendments to be made in the declaration, provided that the amended declaration is furnished by declarant before the cut off date for filing of declaration, i.e., 31.12.2013.
11	What is the consequence if the designated authority does not issue an acknowledgement within seven working days of filing of declaration? Whether the declarant can start making payment of the tax dues even if acknowledgement is not issued?	Department would ensure that the acknowledgement is issued in seven working days from the date of filing of the declaration.  It may however be noted that payment of tax dues under the Scheme is not linked to the issuance of an acknowledgement. The declarant can pay tax dues even before the acknowledgement is issued by the department.
12	Whether declarant will be given an opportunity to be heard and explain his cases before the rejection of a declaration under section 106(2) by the designated authority?	Yes. In terms of  section 106 (2) of the Finance Act, 2013, the designated authority shall, by an order, and for reasons to be recorded in writing, reject a declaration if any inquiry/investigation or audit was pending against the declarant as on the cutoff date, i.e., 1.3.2013.  An order under this section shall be passed following the principles of natural justice. To allay any apprehension of undue delays and uncertainty, it is clarified that the designated authority, if he has reasons to believe that the declaration is covered by section 106 (2), shall give a notice of intention to reject the declaration within 30 days of the date of filing of the declaration stating the reasons for the intention to reject the declaration. For declarations already filed, the said period of 30 days would apply from the date of this circular. The declarant shall be given an opportunity to be heard before any order is passed by the designated authority.
13	What is the appeal mechanism against the order of the designated authority whereby he rejects the declaration under section 106 (2) of the Finance Act, 2013?	The Scheme does not have a statutory provision for filing of appeal against the order for rejection of declaration under section 106 (2) by the designated authority.
14	A declarant pays a certain amount under the Scheme and subsequently his declaration is rejected. Would the amount so paid by him be adjusted against his liability that may be determined by the department?	The amount so paid can be adjusted against the liability that is determined by the department.
15	Section 111 prescribes that where the Commissioner of Central Excise has reasons to believe that the declaration made by the declarant was ‘substantiallyfalse’, he may serve a notice on the declarant in respect of such declaration. However, what constitutes a ‘substantially false’ declaration has not been specified.	The Commissioner would, in the overall facts of the case, taking into account the reasons he has to believe, take a judicious view as to whether a declaration is ‘substantially false’. It is not feasible to define the term “substantially false” in precise terms.  The proceeding under section 111 would be initiated in accordance with the principles of natural justice. To illustrate, a declarant has declared his “tax dues” as Rs 25 lakh. However, Commissioner has specific information that declaration has been made only for part liability, and the actual “tax dues”   areRs 50 lakh. This declaration would fall in the category of “substantially false”. This example is only illustrative.
16	What is the consequence if a declarant fails to pay atleast 50% of declared amount of tax dues by the 31st Dec 2013?	One of the conditions of the Scheme [section 107 (3)] is that the declarant shall pay atleast an amount equal to 50% of the declared tax dues under the Scheme, on or before the 31.12.2013. Therefore, if the declarant fails to pay atleast 50% of the declared tax dues by 31st Dec, 2013, he would not be eligible to avail of the benefit of the scheme.
17	Whether the CENVAT credit is admissible on the inputs/input services used for provision of output service in respect of which declaration has been made under VCES for payment of any tax liability outside the VCES?	The VCES Rules 2013 prescribe that CENVAT credit cannot be utilized for payment of “tax dues” under the Scheme. Accordingly the “tax dues” under the Scheme shall be paid in cash. The admissibility of CENVAT credit on any inputs and input services used for provision of output service in respect of which declaration has been made shall continue to be governed by the provisions of the Cenvat Credit Rules, 2004.
18	(a)  Whether the tax dues amount paid under VCES would be eligible as CENVAT credit to the recipient of service under a supplementary invoice? (b) Whether cenvat credit would be admissible to the person who pays tax dues under VCES as service recipient under reverse charge mechanism?	Rule 6(2) of the Service Tax Voluntary Compliance Encouragement Rules, 2013, prescribes that CENVAT credit cannot be utilized for payment of “tax dues” under the Scheme. Except this condition, all issues relating to admissibility of CENVAT credit are to be determined in terms of the provisions of the Cenvat Credit Rules. As regards admissibility of CENVAT credit in situations covered under part (a) and (b), attention is invited to rule 9(1)(bb) and 9(1)(e)  respectively of the Cenvat Credit Rules.
19	In terms of section 106 (2)(b), if a declaration made by a person against whom an audit has been initiated and where such audit is pending, then the designated authority shall by an order and for reasons to be recorded in writing, reject such declaration. As the audit process may involve several stages, it may be indicated as to what event would constitute,- (i) initiation of audit; and (ii) culmination of audit.	Initiation of audit: For the purposes of VCES, the date of the visit of auditors to the unit of the taxpayer would be taken as the date of initiation of audit. A register is maintained of all visits for audit purposes. Culmination of audit: The audit process may culminate in any of the following manner.- (i)    Closure of audit file if no discrepancy is found in audit; (ii) Closure of audit para by the Monitoring Committee Meeting (MCM); (iii)  Approval of audit para by MCM and payment of amount involved therein by the party in terms of the provisions of the Finance Act, 1994; (iv)  Approval of audit para by MCM, and issuance of SCN, if party does not agree to the paraso raised. The audit culminates at a point when the auditparas raised are settled in any manner as stated above. The pendency of audit as on 1.3.2013 means an audit that has been initiated before 1.3.2013 but has not culminated as on 1.3.2013.

3. Trade Notice/Public Notice may be issued to the field formations and tax payers.

Please acknowledge receipt of this Circular.

Hindi version follows.

Yours sincerely,

(S. Jayaprahasam)

Technical Officer, TRU

Tel: 011-2309 2037

Service Tax :- Adjustment of Excess Service Tax Deposited

Friends   There is possibility of excess payment of service tax in the following situations :-
(1)    The assessee has issued on invoice or received of any payment but -
(a) taxable service is not so provided either wholly or partially or
(b) there is renegotiation of amount of invoice [Rule 6(3)]

(2)  Assessee is unable to correctly estimate, on the date of deposit, the actual amount payable for any particular month or quarter [Rule 6(4)]

(3) Excess payment is due to any other reason. [Rule 6(4A)]

Situation (1) : Invoice already issued or payment is received but taxable service is not provided or renegotiation of amount of invoice [Rule 6(3)].

Where an assessee has issued an invoice or received any payment against a service to be provided.

i) which is not provided by him either wholly or partly for any reason, or
ii) where the amount of invoice is renegotiated due to deficient Provision of Service or non-fulfillment of any terms contained in a contract.

the assessee may take credit of excess service tax paid by him provided:

i)  he has refunded the payment or part thereof so received for the service provided to the person from whom it was received; or
ii) he has issued a credit note for the value of the service not so provided to the person to whom such an invoice has been issued.

Example

    A commercial coaching centre named XYZ charges following advance fee in December 2012 for a period of two years (from January 2013 to December 2014) from a student A for imparting commercial coaching in respect of an entrance examination of Engineering Degree Course when the rate of service tax was prevailing at 12%.   

	Rs.
Total Coaching Fee for a period of Two Years	200000
Service Tax @ 12% on value of taxable service	24000
Primary Education Cess @ 2% of amount of Service Tax	480
Secondary & Higeher Education Cess @ 1% of amount of Service Tax	240
Total Amount charged from the A	224720

          Further for the sake of convenience it has been assumed that XYZ  does not charge any kind of Registration Fee from the students and if a student leaves the coaching in between, he is given proportionate refund of coaching fee as well as relevant Service Tax, Primary Education Cess (EC) and Secondary  Higher Education Cess (SHEC).  Now, consider the following independent situations :
In the above three situations A will be given following amounts of refund respectively:-

1. If  A does not join the aboe course due to some unavoidable circumstances and consequently no service at all is provided by XYZ.
2. If  A is compelled to leave the above coure after completing one year of coaching.   In other words, partial services (i.e. 50%) ar not provided by XYZ.
3. A complaints against the quality of coaching being imparted which tantamount to deficient provision of service Consequently, XYZ negotiates amount of coaching fee to Rs. 1,50,000 plus applicable service tax.
   
   In the above three situations A will be given following amounts of refund respectively :-
   
   
1. Rs. 224720 (Rs. 200000+Rs. 24720) (assumed it is refunded on 15.01.2013)
2. Rs. 112360 (Rs. 100000+Rs. 12360) (assumed it is refunded on 20.02.2014)
3. Rs. 56180 (Rs. 50000+Rs. 6180) (assumed it is refunded on 18.07.2014)
   XYZ can adjust Rs. 24720, Rs. 12360 and Rs. 6180 against its Service Tax liability for the month of January 2013, February 2014 and July 2014 respectively.
   
   
   
   
   Situation (2): Assessee is unable to correctly estimate, on the date of deposit, the actual amount payable for any particular month or quarter:
   
   Payment on provisional basis [Rule 6(4) of Service Tax rules, 1994]: Where an assessee is, for any reason, unable to correctly estimate, on the date of deposit, the actual amount payable for any particular month or quarter, as the case may be , he may make a request in writing to the Assistant Commissioner or Central Excise or the Deputy Commissioners of Central Excise, as the case may be , giving reasons for payment of service tax on provisional basis and the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, on receipt of such request may allow payment of service tax on provisional basis on such value of taxable service as may be specified by him and the assessee may request for provisional assessment in that case.
   
   Provisional assessment [Rule 6(5) & 6(6) of Service Tax Rules, 1994]: The assessee requesting the provisional assessment shall file a statement giving details of the difference between the service Tax deposited and the Service Tax liable to be paid for each month in a memorandum in Form ST-3A accompanying the half-yearly return in Form ST-3.
   In case the Service Tax assessee reports to provisional assessment after following the procedure and furnishes the returns in Form ST-3A along with Form ST-3, it is a the responsibility of the asstt./Deputy Commissioner to complete the assessment after calling for from the assessee the relevant documents or records, as may be considered necessary by him. Wherever the Asstt. / Dy. Commissioner, after considering all the details/documents proposes to re-assess the Service Tax liability, the finalization of the provisional assessment would be made after providing adequate opportunity to the assessee by issuing the show cause notice and giving opportunity of being heard in persons.
   
   
   Situation (3): Excess payment is due to any other reason [Rule 6(4A) & 4(B) of Service Tax Rules, 1994]
   
   
   Where an assessee, due to any other reason, has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be , the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding amount or quarter, as the case may be.
   
   The adjustment of excess amount so paid, shall be subject to the condition that the excess amount paid is on account of reasons not involving interpretations of law, taxability, valuation or applicability of any exemption notification.

Service Tax :- ST-3 Return for the Period 01.10.2012 to 31.03.2013

Friends,

           Service Tax department has launched offline Excel Utility for submitting service tax return for the period 01.10.2012 to 31.03.2013.   This utility is most awaited by the users for submitting the service tax return for the period which has already been passed.  As this utility is only for submitting off line return and online version of the same will be made available shortly and exact date will be intimated on ACES website.   All assessees are advised to read carefully all the instructions given in a separate sheet in the ST-3 offline excel utility before filling the details :- 

Download is available  click here .

Service Tax :- Abatement Notification No. 26/2012 Dated 20-06-2012

Friends   

          Abatement Notification is important to file the service tax if you have taken any abatement.   This notification is applicable w.e.f. 01.07.2012.  July, 2012 to Sep, 2012 return will be filed with giving this Notification No and Serial Number as example given in below picture.  In column in 3 of table, Percentage of Taxable Service is given and balance percentage is of Abatement.  Serial No. of Table is also important to file in ST-3 in relation to relevant service. 

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance 
(Department of Revenue)

Notification No. 26/2012- Service Tax

New Delhi, the 20^th June, 2012

G.S.R….. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said  Act), and in supersession of notification number 13/2012- Service Tax, dated the 17^thMarch, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 211 (E), dated the 17^th March, 2012, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of the description specified in column (2) of the Table below, from so much of the service tax leviable thereon under section 66B of the said   Act, as is in excess of the service tax calculated on a value which is equivalent to a percentage specified in the corresponding entry in column (3) of the said Table, of the amount charged by such service provider for providing the said taxable service, unless specified otherwise, subject to the relevant conditions specified in the corresponding entry in column (4) of the said Table, namely;-

Table

Sl. No.	Description of taxable service	Percent- age	Conditions
(1)	(2)	(3)	(4)
1	Services in relation to financial leasing including hire purchase	10	Nil.
2	Transport of goods by rail	30	Nil.
3	Transport of passengers, with  or without accompanied belongings by rail	30	Nil.
4	Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention center, club, pandal,shamiana or any other place, specially arranged for organizing a function) together with renting of such premises	70	(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
5	Transport of passengers by air, with or without accompanied belongings	40	CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
6	Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.	60	Same as above.
7	Services of goods transport agency in relation to transportation of goods.	25	CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
8	Services provided in relation to chit	70	Same as above.
9	Renting of any motor vehicle designed to carry passengers	40	Same as above.
10	Transport of goods in a vessel	50	Same as above.
11	Services  by a tour operator in relation to,- (i)  a package tour	25	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.
	(ii)  a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour	10	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation. (iii) This exemption shall not apply in such cases where the invoice, bill or challanissued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.
	(iii) any services other than specified at (i) and (ii) above.	40	(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.
12.	Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority	25	(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004. (ii)The value of land is included in the amount charged from the service receiver.

Explanation. –

A.     For the purposes of exemption at Serial number 1 -

                        (i)      The  amount charged shall be an amount, forming or representing as interest, i.e. the difference between the installments paid towards repayment of the lease amount and the principal amount contained in such installments;

                      (ii)      the exemption shall not apply to an amount, other than an amount forming or representing as interest, charged by the service provider such as lease management fee, processing fee, documentation charges and administrative fee, which shall be added to the amount calculated in terms of (i) above.

B.     For the purposes of exemption at Serial number 4 -

The amount charged shall be the sum total of the gross amount charged and the fair market value of all goods and services supplied in or in relation to the supply of food or any other article of human consumption or any drink (whether or not intoxicating) and whether or not supplied under the same contract or any other contract, after deducting-

(i) the amount charged for such goods or services supplied to the service provider,  if any; and

(ii)  the value added tax or sales tax, if any, levied thereon:             

         Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.           

       C.  For the purposes of exemption at Serial number 12 –

      The amount charged shall be  the sum total of the  amount charged for the service including the fair market value of all goods and services supplied by the recipient(s) in or in relation to the service, whether or not supplied under the same contract or any other contract, after deducting-

(i) the amount charged for such goods or services supplied to the service provider, if any; and

(ii) the value added tax or sales tax, if any, levied thereon: 

  Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles.           

 2.   For the purposes of this notification, unless the context otherwise requires,-

a.       “chit” means a transaction whether called chit, chit fund, chitty, kuri, or by whatever name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to a prize amount,

b.      "package tour" means a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour,

c.       “tour operator” means any person engaged in the business of planning, scheduling, organizing, 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,

3.  This notification shall come into force on the 1st day of July, 2012.

[F.No. 334 /1/ 2012-TRU]

(Rajkumar Digvijay)

Under Secretary to the Government of India 

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