Thursday, June 21, 2012

New Service tax notifications dated 20.6.2012. An analysis


Notification No: 25/2012 Vide this notification, the existing mega exemption notification No: 12/2012 dated 17.3.2012 is superseded. The new mega exemption notification covers 39 exemptions (earlier it was 34 ).

Notification No: 26/2012 Vide this notification, the existing abatement Notification No: 13/2012 dated 17.3.2012 is superseded. The new abatement notification covers abatement for construction services (on which VAT liability not attracted) @ 75%, resulting a service tax liability of 12.36% on 25% of gross contract. 

Notification No: 27/2012 Vide this notification, taxable services provided to foreign diplomatic mission or consular post in India etc. are exempted from service tax.

Notification No: 28/2012 Vide this notification, Place of provision of Services Rules, 2012 is notified. This rule is effective from 1.7.2012. This rule determines the taxing jurisdiction of services.



Notification No: 29/2012 Vide this notification, Property tax paid is exempted from service tax on renting of Immovable property.

Notification No: 30/2012 Vide this notification, Services liable for reverse charge / joint charge is notified by superseding the existing notification No: 15/2012 dated 17.3.2012.

Notification No: 31/2012 Vide this notification, certain Services received by exporters of goods are exempted from service tax. (mainly transportation services)

Notification No: 32/2012 Vide this notification, Services provided by Technology Business Incubator is exempted.

Notification No: 33/2012 Vide this notification, Rs. 10 lakhs small Service provider exemption notified. There is no change in the limit of Rs. 10 lakhs and the service receivers are not eligible for this exemption. As a result, in reverse charge cases, service receiver can't enjoy this exemption.




Notification No: 34/2012 Vide this notification, 81 existing exemption notifications have been withdrawn. This withdrawal of exemptions will be effective from 1.7.2012.

Notification No: 35/2012 Vide this notification, Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007. As a result, the existing composition scheme for payment of service tax on work contract service has been withdrawn with effect from 1.7.2012.


Notification No: 36/2012Vide this notification, Service Tax Rules, 1994 has been amended with effect from 01.07.2012. The changes in the service tax rules are to fine tune it in tune with the negative list based taxation of services. A separate clause 6A introduced in rules to explain when the provision of service shall be treated as export of service.

Notification No: 37/2012 Vide this notification, some minor changes in Point of taxation Rules, 2011 has been brought in with effect from 01.7.2012.



Notification No: 38/2012




Vide this notification, 'telecommunication service and service portion in execution of works contract' shall be treated as continuous supply of services for the purpose of Point of Taxation Rules. This is effective from 01.07.2012. Earlier five services were in this category








Notification No: 39/2012 






















Vide this notification, Rebate of excise duty on inputs and services tax paid on input services allowed to the exporters of services.
















Notification No: 40/2012 























































Vide this notification, Refund of service tax paid allowed for services provided to units in SEZ and developers of SEZ.