Service Tax

SIGNIFICANT AMENDMENTS MADE THROUGH NOTIFICATIONS/CIRCULARS ISSUED BETWEEN 01.07.2011 TO 30.06.2012 A. 1. NEW EXEMPTIONS/AMENDMENTS IN/WITHDRAWAL OF EXISTING EXEMPTIONS Rate of service tax restored to 12% As per section 66, the charging section under earlier regime, rate of service tax was 12% of the value of taxable services. However, the rate of service tax was reduced to 10% vide Notification No. 8/2009 ST dated 24.02.2009. With effect from 01.04.2012, Notification No. 02/2012-ST dated 17.03.2012 rescinded the said notification and the rate of service tax was restored to 12% for the period between 01.04.2012 to 30.06.2012. With effect from 01.07.2012, new charging section, section 66B has come into effect. The rate of service tax is 12% as per the new charging section also. 2. Rescission of the earlier Notifications With the introduction of negative list approach of taxation of services, a large number of earlier notifications which were either not in line with the new provisions or which have been subsumed in mega exemption or abatement notification or a new notification has been issued, have been rescinded vide Notification No. 34/2012-ST dated 20.06.2012. The rescinded notifications have been tabulated as under:S.No. 1. 2. Notification No. 45/2011-ST dated 12-09-2011 33/2011-ST dated 25-04-2011 Description of the Notification Exemption to the taxable services provided to any business entity, by an arbitral tribunal, in respect of arbitration. Exemption to preschool coaching and training and coaching or training relating to educational qualifications that are recognized by law. Exemption to accommodation services when the declared tariff for providing of such accommodation is less than ` 1000 per day Exemption to health services Exemption to works contract service provided wholly within a port/other port for construction, repair, alteration and renovation of wharves, quays, docks, stages, jetties, piers and railways. Exemption to works contract service