Negative List BasedNew System of Taxation

Manish MohanAdditional Commissioner

A Presentation onService Tax

A little bit of historyImposed in 1994, based on Chelliah Committee Report.

Only three services in the beginning.By 2012- 119 Services in all.From 1st July 2012: All services except in the Negative List or in the Exempted Category.

What is new? Why is the noise?

Replacement of definition Section 65 to the new Section 65B.

“Service”, “Taxable Territory” and “India” defined.

Replacement of Section 66 by a new charging Section 66B.

Exclusion by “Negative List” and inclusion by “Declared List”.

What is new? Why is the noise? - 2

Determination of place of provision for both Import and Export of Services.

Concept of “Bundled Services” rather classification of services.

Introduction of “Reverse Charge” in case of import of services.

Mega Exemption – all in one.

Charging the Service Tax

There should be service (clause 44 of Section 65B).

Provided in “Taxable Territory”

Not specified in the “Negative List”.

Conditions

Issues for discussion Negative List of Services. Mega Exemption. Place of Provision of Services Rule

s, 2012.

Export of Services Import of Services Reverse Charge Bundled Services Valuation Abatement Demand and penal provisions.

Thanks

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