[TO BE PUBLISHED IN THE GAZETTE OF INDIA,
EXTRAORDINARY, PART II, SECTION 3,
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 13/2012- Service Tax
New Delhi, the 17th March, 2012
G.S.R. (E). - In exercise of the powers conferred
by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994)
(hereinafter referred to as the said Finance Act), the Central Government,
being satisfied that it is necessary in the public interest so to do, hereby
exempts the taxable service of the description specified in column (2) of the
Table below, from so much of the service tax leviable thereon under section 66B
of the said Finance Act, as is in excess
of the service tax calculated on a value which is equivalent to a percentage
specified in the corresponding entry in column (3) of the said Table, of the
gross amount charged by such service provider for providing the said taxable
service, subject to the relevant conditions specified in the corresponding
entry in column (4) of the said Table, namely;-
Table
Sl.No. |
Description of taxable service |
Percentage |
Conditions |
(1) |
(2) |
(3) |
(4) |
1 |
Financial
leasing services including equipment leasing and hire purchase |
10 |
Nil. |
2 |
Transport
of goods by rail |
30 |
Nil. |
3 |
Transport
of passengers, with or without
accompanied belongings by rail |
30 |
Nil. |
4 |
Supply
of food or any other article of human consumption or any drink, in a
premises, including hotel, convention center, club, pandal,
shamiana or any place specially arranged for
organizing a function |
70 |
CENVAT
credit on any goods classifiable under chapter 1 to 22 of the Central Excise
Tariff Act, 1985 (5 of 1986) used for providing the taxable service has not
been taken under the provisions of the CENVAT Credit Rules, 2004. |
5 |
Transport
of passengers by air, with or without accompanied belongings |
40 |
CENVAT
credit on inputs and capital goods, used for providing the taxable service,
has not been taken under the provisions of the CENVAT Credit Rules, 2004. |
6 |
Renting
of hotels, inns, guest houses, clubs, campsites or other commercial places
meant for residential or lodging purposes. |
60 |
Same as above. |
7 |
Transport
of goods by road by Goods Transport Agency |
25 |
CENVAT
credit on inputs, capital goods and input services, used for providing the
taxable service, has not been taken under the provisions of the CENVAT Credit
Rules, 2004. |
8 |
Services
provided in relation to chit |
70 |
Same as above. |
9 |
Renting
of any motor vehicle designed to carry passengers |
40 |
Same as above. |
10 |
Transport
of goods in a vessel from one port in India to another |
50 |
Same as above. |
11 |
(i)Services provided or to be provided to any person, by a
tour operator in relation to a package tour |
25 |
(i) CENVAT credit on inputs, capital goods and input
services, used for providing the taxable service, has not been taken under
the provisions of the CENVAT Credit Rules, 2004. (ii)
The bill issued for this purpose indicates that it is inclusive of charges
for such a tour. |
(ii)Services
provided or to be provided to any person, by a tour operator in relation to a
tour, if the tour operator is providing services solely of arranging or
booking accommodation for any person in relation to a tour |
10 |
(i) CENVAT credit on inputs, capital goods and input
services, used for providing the taxable service, has not been taken under
the provisions of the CENVAT Credit Rules, 2004. (ii) The invoice,
bill or challan issued indicates that it is towards the charges for such
accommodation. (iii)
This exemption shall not apply in such cases where the invoice, bill or
challan issued by the tour operator, in relation to a tour, only includes the
service charges for arranging or booking accommodation for any person and does
not include the cost of such accommodation. |
|
(iii)
Services, other than services specified in (i) and
(ii) above, provided or to be provided to any person, by a tour operator in
relation to a tour |
40 |
(i) CENVAT credit on inputs, capital goods and input
services, used for providing the taxable service, has not been taken under
the provisions of the CENVAT Credit Rules, 2004. (ii)The
bill issued indicates that the amount charged in the bill is the gross amount
charged for such a tour. |
Explanation. –
A. For the purposes of
exemption at Serial number 1 –
(i) Consideration
received for the purpose of computing the gross amount charged is an amount,
forming or representing as interest, i.e. the difference between the
installment paid towards repayment of the lease amount and the principal amount
contained in such installment paid;
(ii) the exemption shall not
apply to an amount, other than an amount forming or representing as interest,
charged by the service provider such as lease management fee, processing fee,
documentation charges and administrative fee.
B. For the purposes of
exemption at Serial number 4 -
Consideration
received for the purpose of computing the gross amount charged is the sum total
of the gross amount and the value of all goods, excluding the value added tax,
if any, levied on goods or services supplied free of cost for use in or in
relation to the supply of food or any other article of human consumption or any
drink, under the same contract or any other contract:
Provided
that where the value of goods or services supplied free of cost is not ascertainable,
the same shall be determined on the basis of the fair market value of the goods
or services that have closely available resemblance.
2. For the purposes of this notification, unless
the context otherwise requires,-
(a)
“chit”
means a transaction whether called chit, chit fund, chitty, kuri,
or by whatever name by or under which a person enters into an agreement with a
specified number of persons that every one of them shall subscribe a certain
sum of money (or a certain quantity of grain instead) by way of periodical
installments over a definite period and that each subscriber shall, in his
turn, as determined by lot or by auction or by tender or in such other manner
as may be specified in the chit agreement, be entitled to a prize amount,
(b)
"package
tour" means a tour wherein transportation, accommodation for stay, food,
tourist guide, entry to monuments and other similar services in relation to
tour are provided by the tour operator as part of the package tour to the
person undertaking the tour,
(c)
“tour
operator” means any person engaged in the business of planning, scheduling,
organizing, arranging tours (which may include arrangements for accommodation,
sightseeing or other similar services) by any mode of transport, and includes
any person engaged in the business of operating tours,
(d)
“financial
leasing” means a lease transaction
where—
(i) contract for
lease is entered into between parties for leasing of a specific asset;
(ii) the contract is for use and occupation of the asset by
the lessee;
(iii) the lease payment is calculated so as to cover the full
cost of the asset together with the interest charges; and
(iv) the lessee is entitled to own, or has the option to
own, the asset at the end of the lease period after making the lease
payment;
3.
This notification shall come into force from
the date on which section 66B of the Finance Act, 1994 comes into effect.
(Samar Nanda)
Under Secretary to the Government of India
[F. No.
334/1/2012 -TRU]
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