The Central Government has notified the effective date of new services/amendments in the existing services as introduced by Finance Act, 2010 vide Notification No. 24/2010. Apart from that some further exemptions have also been given vide Notification Nos. 25/2010 to 35/2010. A brief summary of new changes are as follows:
1. EFFECTIVE DATE OF APPLICABILITY OF EIGHT NEW SERVICES NOTIFIED
Eight new services have been introduced by Finance Act, 2010. The Central Government has vide Notification No. 24/2010 dated 22.06.2010, appointed 1st day of July, 2010 as the effective date from which tax on these new services will come into effect
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Service |
EXEMPTION |
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Air Passenger Transport Service [section 65(105) (zzzo)] |
Service tax in case of domestic air journey has been restricted to a maximum of Rs. 100/- and in case of international journey Rs. 500/- |
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‘Sponsorship Service’ [section 65 (105) (zzzn)], |
Sponsorship of tournaments/championship by specified bodies/organization has been exempted vide Notification No 30/2010. |
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‘Construction of Complex service’ [section 65 (105) (zzzh)], and ‘Commercial or industrial construction service’ [section 65 (105) (zzq)], |
75% abatement has been given subject to the condition that the gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider and the cost of land has not been separately recovered from the buyer by the builder or his representative. Further, the competent authority for issuing completion certificate has also been defined. |
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‘Airport Services’ [section 65(105) (zzm)], the ‘Port Services’ [section 65 (105) (zn)] and the ‘Other Port Services’ [section 65 (105) (zzl)] |
Exemption has been given for some of the services rendered with in a port/airport such as repair of ships or boats or vessels belonging to the Government of India, supply of water and electricity , services provided by schools other than commercial coaching centers, hospitals, fire agencies and pollution control services etc. |
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Services provided by Electricity Exchanges [65(105)(zzzzs)] |
Service provided by a distribution licensee, a distribution franchisee, or any other person by whatever name called, authorized to distribute power under the Electricity Act, 2003 for distribution of electricity |
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