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SERVICE TAX Constitutional & Legal provisions
behind levy of Service Tax in India The Central Government
has imposed service tax in terms of residuary entry no. 97 in the
Union list in accordance with provisions contained in Article 265
of the Constitution. Levy and assessment
Service tax is levied on specified taxable services and responsibility
of payment of the tax is cast on the service provider. System of
self-assessment of Service Tax Returns by service tax assessees
has been introduced w.e.f. 01.04.2001. The jurisdictional Superintendent
of Central Excise is authorized to cross verify the correctness
of self assessed returns. Tax returns are expected to be filed half
yearly.
Central Excise offices are authorized to conduct surveys to bring
the prospective service tax assessees under the tax net. Directorate
of Service Tax at Mumbai over sees the activities at the field level
for technical and policy level coordination. Sections 64 to 96
of the Finance Act, 1994, as amended from time to time provide the
legal basis for the levy and collection of Service Tax.
The provisions relating to Service Tax were brought into force with
effect from
The Finance Act (2) 1996 enlarged the scope of levy of Service Tax
on advertising agencies, courier agencies and radio pager services.
But tax on these services was made applicable from The Finance Acts of
subsequent years further extended the scope of service tax to cover
a larger number of services. Following service providers are presently
liable to pay service tax and services rendered by them.
Jurisdiction
of the six Central Excise Commissionerates in the Zone which are
administering service tax, in the states of Delhi & Haryana
is as follows :
Statutory
Provisions relating to Service Tax Extent, commencement
and application
(1)
This Chapter extends
to the whole of
(2)
It shall come
into force on such date as the Central Government may, by notification
in the Official Gazette, appoint.
(3)
It shall apply
to taxable services provided on or after the commencement of this
Chapter. Definitions In this Chapter, unless the context
otherwise requires, - (1)
"actuary" has the meaning assigned to it in clause (1)
of section 2 of the Insurance Act, 1938 (4 of1938); (2) "advertisement" includes
any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation
made by means of light, sound, smoke or gas; (3) "advertising agency"
means any commercial concern engaged in providing any service connected with the making. preparation, display or exhibition
of advertisement and includes an advertising consultant; (4)
"air travel agent" means any person engaged in providing
any service connected with the booking of passage for travel by
air; (5)
"Appellate Tribunal" means the Customs, Excise and Gold
(Control) Appellate Tribunal constituted under section 129 of the
Customs Act, 1962 (52 of 1962); (6)
“architect" means any person w/rose name is, for the time being,
entered in the register of architects maintained under section 23
of the Architects Act, 1972 (20 of 1972) and also includes any commercial
concern engaged in any manner, whether directly or indirectly, in
rendering services in the field of architecture; (7)
"assessee" means a person liable to pay the service tax
and includes his agent; (8)
"authorised service station" means any service station,
or centre, authorised. any motor vehicle manufacturer, to carry
out any service or repair of motor car or two wheeled motor vehicle
manufactured by such manufacturer; (9)
"banking" shall have the meaning assigned to it in clause
(b) of section '5, OJ the Banking Regulation Act, 1949 (10 of 1949); (10)
"banking company" shall have the meaning assigned to it
in clause (a) of section 45A of the Reserve Bank of India Act, 1934
(2 of 1934); (11)
"banking and other financial services" means the following
services provided by a banking
company or a financial institution including a non-banking
financial company or any other body corporate, namely-
(i)
financial leasing
services including equipment leasing and hire purchase by a body
corporate;
(ii)
credit card services;
(iii)
merchant banking
services;
(iv)
securities and
foreign exchange (forex) braking; (v) asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services, but does not include cash management;
(vii)
provision and
transfer of information and data processing; (12)
"Board" means the Central Board of Excise and Customs
constituted under the Central Boards of Revenue Act, 1963 (54 of
1963); (13)
"body corporate" shall have the meaning assigned to it
in clause (7) of section' 2 of the Companies Act, 1956 (1 of 1956); (14)
"broadcasting" has the meaning assigned to it in clause
(c) of section 2 of the Prasar Bharati (Broadcasting Corporation
of India) Act, 1990 (25 of 1990) and also includes programme selection,
scheduling or presentation of sound or visual matter on a radio
or a television channel that is intended for public listening or
viewing, as the case may be; and in the case of a broadcasting agency
or organisation, having its head office situated in any place outside
India, includes the activity of selling of time slots or obtaining
sponsorships for broadcasting of any programme or collecting the
broadcasting charges on behalf of the said agency or organisation,
by its branch office or subsidiary or representative in India or
any agent appointed in India or by any person who acts on its behalf
in any manner; (15)
"broadcasting agency or organisation" means any agency
or organization engaged in providing service in relation to broadcasting
in any manner and in the case of a broadcasting agency or organisation,
having its head office situated in any place outside India, includes
its branch office or subsidiary or representative in India or any
agent appointed in India or any person woo acts on its behalf in
any manner, engaged in the- activity of selling of time slots for
broadcasting of any programme or obtaining sponsorships for programme
or collecting broadcasting charges on behalf of the said agency
or organisation; (16)
"beauty treatment"
means face and beauty treatment, cosmetic treatment,
manicure, pedicure or counseling services on
beauty, face care or make-up; (17)
"beauty parlour"
means any establishment providing beauty treatment (18)
"cab" means
a motor cab or maxi cab; (19)
"cable operator"
shall have the meaning assigned to it in clause (a)
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