IDT Amendment Nov 2010

CA Rupesh Agrawal (Chartered Accountant) (854 Points)

06 November 2010  

Amendments under Service Tax

 

1.      Rule 3 of Export of Service Rules, 2005 

 

(2) Any taxable services provided shall be treated as export of services only if -

(a)     such service is provided from India and used outside India; and

(b)     payment for such service is received in convertible foreign exchange.

Explanation. - “India” includes the installations, structures and vessels in the Continental Shelf and Exclusive Economic Zone of India, for the purposes of prospecting or extraction or production of mineral oil & natural gas and supply thereof.

 

2.      Rule 2 of Taxation of Services (Provided from outside India and received in India) Rules, 2006

 

“India” includes the installations, structures and vessels in the Continental Shelf and Exclusive Economic Zone of India, for the purposes of prospecting or extraction or production of mineral oil & natural gas and supply thereof.

 

3.      Rule 6 of  Service Tax (Determination of Value) Rules, 2006

 

(2) The value of any taxable service does not include -

(v) the taxes levied by any Government on any passenger traveling by air, if shown separately on the ticket, or the invoice for such ticket, issued to the passenger.

 

4.      Circular No. 122/3/2010-ST dated 30.4.2010

 

In the case of “Associate Enterprises”, credit of service tax can be availed of when the payment has been made to the service provider in terms of Section 67 (4)(c) of Finance Act, 1994 and the service tax has been paid to the Government Account.