CA.AJAY JAIN, 9310167881 www.caajayjain.

com 1 AMENDMENTS (Final-MAY 2011)

AMENDMENTS APPLICABLE FOR May 2011

Note – Page No. given in these amendments belong to 12th edition of IDT notes
by CA. Ajay Jain.

Amendments under Excise

Basic Concepts

1. Circular No. 927/17/2010-CX dated 24.6.2010

It has been clarified that mere undertaking the process of oiling and pickling as
preparatory steps do not amount to manufacture.
‘Since the process of pickling is only a chemical cleaning process to remove scales and
dirt from the metal by immersion in chemical solution and does not result in
emergence of any new commercially different commodity, it will not amount to
manufacture’.

2. Sec 37 of the Central Excise Act, 1944

CG has been empowered to make rules for withdrawal of facilities/imposition of
restrictions on CENVAT Credit.

Valuation

3. Circular No. 936/26/2010-CX dated 27.10.2010 (Pg. 18)

It has been clarified that After-sale Service and Pre-delivery Inspection charges were
liable to be included in the assessable value under Section 4 of the Central Excise Act
1944.
‘These services are provided free by the dealer on behalf of the assessee, the cost
towards this is reimbursed to him and thus is a consideration to him for the sale of the
goods, therefore will be includible in the assessable value’.

4. Rule 5 of Valuation Rules(Pg. 23)

(b) As per Rule 5 the actual cost of transportation from the place of removal up to the place
of delivery is only to be excluded. [Cost of return fare of vehicles is not required to be
added for determining value.

‘Tribunal held that where onward freight was not includible in the assessable value of
the excisable goods, there was no question of return freight being included in the
CA.AJAY JAIN, 9310167881 www.caajayjain.com 2 AMENDMENTS (Final-MAY 2011)

assessable value, whether or not the return freight was mentioned in the relevant
invoices’.] (Circular No. 923/13/2010-CX dated 19.5.2010)

Central Excise Rules, 2002

5. Rule 17 of the Central Excise Rules, 2002 (pg.43)

(3) The unit shall submit a monthly return,

within 10 days from the close of the month, in notified form [Notified form is ER-2]
in respect of
 excisable goods manufactured and
 receipt of inputs and capital goods.
E-Filing:-
Provided also that where an assessee has paid duty of Rs. 10 lakhs or more including
the amount of duty paid by utilization of Cenvat credit in the preceding financial year,
he shall submit the said monthly return, electronically.

Cenvat Credit Rules, 2004

6. Rule 2(a) of the Cenvat Credit Rules, 2004 (pg. 51)

(C) Dumpers or tippers, falling under Chapter 87
 registered in the name of provider of output service
 for providing specified taxable service which are
(1) Site formation and clearance, excavation and earthmoving and demolition and such other similar
services; and
(2) Mining of mineral, oil or gas service [W.e.f. 22-6-2010]
(D) Components, spare and accessories of motor vehicles, dumpers or tippers used to
provide taxable services as specified in (B)and (C) above].

7. Rule 3(1) of the Cenvat Credit Rules, 2004 (pg.56 )

[Clean Energy Cess
No credit of CEC (Clean Energy Cess) leviable u/s 83 of the Finance Act, 2010 (imposed
on production of coal, lignite and peat) is available under Rule 3(1). Further credit of
other duties cannot be used for the payment of CEC. Hence, this amount has to be paid
in cash.]

8. Rule 6(6) of the Cenvat Credit Rules, 2004 (pg. 69)

Provisions of sub rule (1), (2), (3), (4) shall not be applicable to foreign diplomatic
missions or consular missions or career consular offices or diplomatic agents also.
[w.e.f. 1-7-2010].
CA.AJAY JAIN, 9310167881 www.caajayjain.com 3 AMENDMENTS (Final-MAY 2011)

To all the excisable goods exempt from custom duty when imported in India and are
supplied:
(i) against International Competitive Bidding or
(ii) to a power project from which power supply has been tied up through tariff
based competitive bidding; or
(iii) to a power project awarded to a developer through tariff based competitive
bidding,

9. Rule 9A of the Cenvat Credit Rules, 2004 (pg. 73)

Where a manufacturer of final products has paid total duty of Rs. 10 lakh or more
including the amount of duty paid by utilization of CENVAT credit in the preceding
financial year, he shall file ER-5 and ER-6 electronically.

10. Rule 9(8) of the Cenvat Credit Rules, 2004 (pg. 73)
Provided that the first stage or second stage dealer, as the case may be, shall submit
the said return electronically.

11. Circular No. 930/20/2010-CX dated 9.7.2010

In case of breakage loss of input, which is fully written off in the books of account,
credit availed is required to be reversed as per the provisions of Rule 3(5B) of CENVAT
Credit Rules, 2004.

SSI
12. SSI (pg.83)
(e) Packing Materials
Where the specified goods are in the nature of packing materials [namely, printed
cartons of paper or paper board, metal containers, adhesive tapes, stickers, metal
labels, plastic bags, printed laminated rolls etc. and plastic bottles and are meant
for use as packing materials by the person whose brand name they bear.]

Export Procedure

13. Rule 19 of the Cenvat Excise Rules, 2004 (pg.90)

N.N. 42/2001:
The export of excisable goods which are chargeable to NIL rate of duty or are wholly
exempted, other than goods cleared by a 100% EOU shall not be allowed under this
notification.

AMENDMENTS In COMMON TOPICS

Demand

1. Sec. 11A (2B) (Pg. )

[No Penalty:-
Explanation - Penalty shall not be imposed in respect of payment of duty or interest
under this sub- section.]
CA.AJAY JAIN, 9310167881 www.caajayjain.com 4 AMENDMENTS (Final-MAY 2011)

Settlement Commission

1. Bar on subsequent application (pg. 121)

‘Assessee is now entitled to apply for settlement more than once’.
Bar on subsequent application for settlement in certain cases where –
(i) An order of settlement passed which provides for imposition of Penalty on grounds
of concealment of duty liability.
(ii) A person is convicted of any offence under the Act after passing of order of
settlement.
(iii) Case is sent back to CEO having jurisdiction by the settlement Commission.
2. Time limit for passing the order (Sec 32 F)
Time limit for passing the order of settlement can be extended by 3 months. Earlier the
time limit was nine months with no extension.

3. Conditions for making an application (Sec 32E)

Now assessee can file an application for settlement of cases where he has not
maintained proper records.

Amendments under Custom

Basic Concepts
1. Section 20 (Pg.9)
(ii) Re-import on rejection
If the same goods which were exported are re-imported within 3 years (10 years in
case of Nepal)] by same person, no custom duty is payable.

Types of duties
2. Section 3 (pg.13)
(6) Valuation of Pre- packed Articles
[Same shall apply to goods specified under Medical and Toilet Preparations (Excise
Duties) Act, 1955.]

Duty Drawback
3. Circular No. 7/2010-CX dated
23.3.2010
It has been clarified that Drawback not payable where export proceeds not realised in
accordance with the provisions of the Foreign Exchange Management Act, 1999 even
if the claim has been settled by ECGC or realisation waived by RBI.

4. Rule 7 of the Duty Drawback Rules

1) Where the exporter finds that the drawback rate fixed under Rule 3 or Rule 4
is less than 4/5th of the duty or taxes paid on inputs or input services, he may
CA.AJAY JAIN, 9310167881 www.caajayjain.com 5 AMENDMENTS (Final-MAY 2011)

submit an application with all the details to the Commissioner within 60 days 3
months.
The above period of 60 days 3 months can be extended by a period of 30 days.
5. Rule 16A of the Duty Drawback Rules
Period of one year for producing the evidence has been amended and now it is three
months

Baggage

6. Rule 3 of the Baggage Rules, 1998 (pg. 53)

Circular No. 25/2010-CX dated 4.8.2010
It has been clarified that Rule 3 shall apply in case of persons returning from Hong
Kong. As Hong Kong is a separate Customs Territory from China.
Amendments under Service Tax
1. Circular No. 125/7/2010-ST dated 30.7.2010
It has been clarified that Levy and collection of service tax on State government
agencies/departments implementing Centrally Sponsored Schemes (CSS) under a
central grant, is not legally tenable and therefore not liable to service tax.
As it will be wrong to say that the relationship between SG and CG is of a principal and
the agent because under administrative arrangement, SGs are bound to implement
such schemes and thus they are not service providers, consequently, CG cannot be
taken as a service receiver. Grant cannot be presumed as a consideration for
providing a service.

2. N.No. 36/2010
Exemption to advances received
Exemption to advances received prior to 1-7-2010 towards 8 new services introduced
and specified existing services expanded by Finance Act, 2010 are exempt to the
extent of amount of advance payment received before 1-7-2010 in respect of them.

However any advance payment relating to retrospective amendments in CTCC and

Renting of immovable property shall not be so exempt.

3. CBEC Clarification

It has been decided to specifically exempt service tax on that partial or full amount
which is received by the service provider (not by an agent, who in turn transfers such
amount to such person after this date) before 1-7-2010, pertain to a service which has
become taxable by Finance Act, 2010 and is provided on or after 1-7-2010.

Import & Export

4. Exemptions (pg. 73)

Exemption from service tax has been extended to following:
2) [Service is provided to any person by any other person for transmission of
electricity.
CA.AJAY JAIN, 9310167881 www.caajayjain.com 6 AMENDMENTS (Final-MAY 2011)

3) Service is provided to any person by a distribution licensee, a distributor franchisee,

or any other person by whatever name called authorised to distribute power, for
distribution of power.
Note: The aforesaid 3rd and 4th exemption have been given retrospective effect such
that they would be exempt even for the period prior to issue of such
notification.]

Assessment

5. Rule 6 of Service Tax Rules, 1994 (pg. 63)

(2) Deposit of tax:-
The assessee shall deposit the service tax with the bank designated by CBEC in
Form GAR – 7.
Provided that the assessee, who has paid service tax of [Rs. 50 lakh or more, other
than by CENVAT credit Rs. 10 lakhs or more including the amount of duty paid by
utilization of Cenvat credit,] in the preceding financial year, shall deposit the tax
liable to be paid electronically through internet banking.
6. Rule 4A of Service Tax Rules, 1994
(pg. 62)
(2) Invoice for distributing credit by ISD:-
[provided also that in case
→ the input service distributor is aircraft operator providing the service of
air transport of passenger,
→ an invoice etc. shall include ticket in any form, by whatever name
called,
→ whether or not containing registration number of the service provider,
classification of the service received and the address of the service receiver,
but containing other information in such documents as required above.]

7. Rule 7 of Service Tax Rules, 1994

(pg. 65)

E-Filing:-

Provided that where an assessee has paid service tax of Rs. 10 lakhs or more
including the amount paid by utilization of Cenvat credit, in the preceding financial
year, he shall file the return electronically.

8. Rule 6(7C) of Service Tax Rules, 1994 (pg. 63)

[(7C) The distributor or selling agent, liable to pay service tax for the taxable service
of promotion, marketing or organising lottery, shall have the option to pay tax at
the following rates:-

S.N Rate Condition

o.
1 Rs. 6,180 on every Rs. 10 lakhs (or If lottery scheme is one where
CA.AJAY JAIN, 9310167881 www.caajayjain.com 7 AMENDMENTS (Final-MAY 2011)

part thereof) of aggregate face value guaranteed prize payout is more

of lottery tickets printed by the than 80%.
organizing state for a draw
2 Rs. 9,270 on every Rs. 10 lakhs (or If lottery scheme is one where
part thereof) of aggregate face value guaranteed prize payout is less
of lottery tickets printed by the than 80%.
organizing state for a draw

Face value : it is the amount mentioned on the lottery ticket.

Aggregate Face Value : face value of lottery x the number of tickets printed
Guaranteed Prize Payout : the agreed aggregate prize money distributed to all
the winners

Provided that in case of online lottery, the aggregate face value of lottery tickets
sold shall be taken.

Provided further that the distributor or agent shall exercise such option within a
period of one month of beginning of each F/Y and such option shall not be
withdrawn during the remaining part of the F/Y.

Marketers of lottery other than the distributors or selling agents appointed or

authorised shall be exempted if this option is availed by him.]

SERVICES

1. Transport of passengers by air

 Service provided by aircraft operator
 In transporting passengers
 On international journey i.e. journey from any customs airport to a place outside
India.
 [Embarking in India for domestic journey or international journey.]
[amended by F.A. 2010 w.e.f. 1-
7-2010]

Does not include

√ Economy class international travel
√ Crew and In - transit [international] passengers i.e. who has arrived at customs
airport from outside India and is in transit through India provided he does not pass
through immigration and does not leave customs area and continues his journey
to a place outside India.
√ [Exemption to passengers from/ to North East and Baghdora in West Bengal
North East includes state of Arunachal Pradesh, Assam, Manipur, Meghalya,
Mizoram, Nagaland, sikkim, Tripura)
√ Exemption from service tax
CA.AJAY JAIN, 9310167881 www.caajayjain.com 8 AMENDMENTS (Final-MAY 2011)

In case of domestic passengers – Least of 10% of gross value of ticket or Rs. 100
In case of international passengers – Least of 10% of gross value of ticket or Rs.
500]

[w.e.f. 1-7-2010]

Explanation I- For the purposes of this service, economy class for scheduled
transport means
1) where there is more than one class, the class attracting lowest fare
2) where there is only one class of travel, that class
Explanation II- For non-scheduled transport no class of travel shall be treated as
economy class.

2. Transport of coastal goods or Transport of goods through national or Inland

waterways
[inserted in Finance Act,
2009]
 Service provided by any person to any person,
 In relation to transport of
(i) Coastal goods
(ii) Goods through national Waterways
(iii) Goods through Inland Water (canals, lakes, rivers, Water course, Inlet, Bays
etc.)

Does not include

Transport of following goods:-
Foodstuffs, Petroleum and Petroleum products, Hank yarn, Raw jute and jute textiles,
Seeds, Pharmaceutical products, Relief materials meant for victims of disasters,
calamities etc., Defence/ military equipments, Luggage of passengers, Registered
Newspaper/ magazines

3. Port services [substituted by F.A.

2010]
→ Service rendered [within a port (in respect of major port) or other port (in respect
of other ports) in a by a major port or any other port or any person authorized by
the port
→ to any person by any other person
→ in relation to a vessel or goods. ]
Does not include
→ Demurrage services
charges wouldprovided within
be included a port
in value of or airport
taxable service.
→ Rental charges received by the port for renting of accommodation and lease
rentals received for allowing use of land are not liable to service tax as these
are not services rendered in relation to goods or vessels.
→ [Repair of specified ships/ boats/ vessels, Supply of water or electricity,
Treatment by a dispensary etc, Service provided by a school other than CTCC,
by fire service agencies, Pollution control services.
→ Also following specified services –
Cargo handling, Storage and warehousing, transport of export goods in an
aircraft by an aircraft operator, site formation etc.
CA.AJAY JAIN, 9310167881 www.caajayjain.com 9 AMENDMENTS (Final-MAY 2011)

4. Construction of Residential Complex Services (Pg. 83)

[The construction of a complex which is intended for sale shall be deemed to be a
taxable service unless the entire payment for the property is paid by the buyer after
the completion of the construction.]

√ There is option to pay tax on 33% of gross amount charged if gross amount
does not include value of land and
√ [25% if gross amount includes value of land.
√ Not taxable when provided to Jawaharlal Nehru National Urban Renewal
Mission and Rajiv Awaas Yojna.]

5. Airport services: [substituted

by FA.. 2010]
Any services
→ such as security, transit facilities, landing charges, parking charges and route
navigation facility charges as well as for cargo and passenger handling
→ provided by [Airlines], Airport authority or [any person authorised by it by any
other person]
→ In an airport or civil enclave
[Refer Port services for exceptions] [inserted
by F.A. 2010]
Any rental charges from letting of any part of airport or civil enclave shall not be
“Civil enclave” means the area, if any, allotted at an airport belonging to any armed
forces of the union, for use by person availing of any air transport services from such
airport or for the handling of the baggage or cargo by such services, and
includes land comprising of any building or structure on such area.
Charges for royalty, license fee etc. collected by AAI from other service providers at
the airport such as ground handling, security, common user terminal services etc. are
chargeable to tax.
6. Commercial or Industrial Construction services:
→ The word service in this service’s definition stands omitted with a view to provide
that the service in relation to Commercial or Industrial Construction shall be
taxable under this service. Double use of word ‘service’ has been done away with.

→ The construction of a new building which is intended for sale, shall be deemed to
be a taxable service unless the entire payment for the property is paid by the
buyer after the completion of the construction.
CA.AJAY JAIN, 9310167881 www.caajayjain.com 10 AMENDMENTS (Final-MAY 2011)

→ ‘Competent authority’ to issue completion certificate includes:

(i) Architect registered with the Council of Architecture
constituted under Architect’s Act.
(ii) Chartered engineer registered with the institution of Engineers
(India)
(iii) Licensed surveyor of the respective local body of the city or town or village
or development or planning authority.

but does not include road, port, airport, railway, transport terminal, bridge, tunnel.

→ [Construction, repair, alteration and renovation of wharves quays,

docks, stages, jetties, piers and railways within port.
→ Service provided wholly within the airport.]
→ Service tax on 67% of gross amount charged
shall be exempt in case of composite contract.

7. Transport of goods by rail (Pg. 89)

If such services are provided in a port/ Other port/ Airport, the abatement shall
continue to be available.

8. Telecommunication services
 Service of any description provided by telegraph authority
 By means of any transmission, emission or reception
 of signs, signals, writing, images and sounds or intelligence or information of any
nature
 by way of wire, radio, optical, visual or other electro – magnetic means or systems
 including the related transfer or assignment of the right to use capacity for such
transmission, emission or reception and includes:
(i) Voice mail, data, audio tex, video tex, radio paging.
(ii) Fixed telephone service to and from national and international
destination.
(iii) Cellular mobile telephone services
(iv) Carrier services
(v) Provision of call management services for a fee including call waiting,
call forwarding, automatic call back, video conferencing etc.
(vi) Private network services
(vii) Data transmission services
(viii) Communication through facsimile, pager, telegraph and telex

- Rent and access charges paid by cellular phone operators are chargeable to tax
and service provider such as BSNL can take input credit of such amount .
- The
Does notcharges
includetowards
serviceSIMprovided
cards shall be chargeable to tax.
by:
(i)
- Any International
person in in-bound
relation toroaming
on-line liable to service
information and tax.
data base access retrieval
or both
(ii) A broadcasting agency or organisation
(iii) Any person in relation to internet telecommunication service
Certain telephone services exempt from service tax:
(i) Departmentally run public telephone for local calls
(ii) Guaranteed public telephone operating only for local calls,
(iii) Free telephones at Airport/Hospitals etc. where no bills are being issued.
CA.AJAY JAIN, 9310167881 www.caajayjain.com 11 AMENDMENTS (Final-MAY 2011)

9. [Preferential Location or Development Services

[Inserted by F.A. 2010]

 Service provided by a builder of a residential complex, or any other person

authorised by such builder
 to a buyer
 for providing preferential location or development of such complex (Park
Maintenance, water pipeline or sewerage laying, providing access roads,
common lighting, fire fighting installation, power backup are also covered).

Does not include services covered under

→ Management, Maintenance or Repair Service
→ Commercial or industrial construction service,
→ Construction of residential complex service.
→ And in relation to parking place.
→ Provided by resident’s Welfare association and Cooperative Group Housing
Societies.]

10. Tour operator

→ engaged in planning, organizing, or arranging tours ( which may include

arrangements for accommodation, sightseeing or other similar services)
→ by any mode of transport and
→ includes business of operating tours in tourist vehicle- covered by a permit
granted under the Motor Vehicle Act

 In case of Package and other tours

abatement of 60% shall be given.
 If the tour operator is providing services solely of booking accommodation in
relation to a tour and the bill indicates that it is towards charges for such
accommodation, then 90% of gross amount is exempt.
 Service tax is not payable for tours abroad. In case of composite tour within India
and also outside India service tax will be leviable only on services rendered for

11. Asset Management Service by individuals

7]
CA.AJAY JAIN, 9310167881 www.caajayjain.com 12 AMENDMENTS (Final-MAY 2011)

 Service provided
 In relation to asset management including portfolio management and all forms
of fund management.

Does not include

→ Banking Company or a financial institution, NBFC or any other body corporate or
commercial concern taxable under “Banking and other financial services’.

12. [Copyright Service [Inserted by

F.A. 2010]
 Service provided by any person to any person for
 (i) Transferring temporarily or
 (ii) Permitting the use or enjoyment of
 any copy right defined in the Copyright act 1957

Copy right transfer relating to recording of cinematographic films and sound

recording is taxable.

Does not include

→ Transfer or permitting use of Copy right of original literacy, dramatic, musical and
artistic works.]

13. Site formations services (Pg. 83)

Does not include

→ Services provided in relation to agriculture, irrigation, and drilling, digging,
repairing, renovating or restoring of water sources;
→ [Services provided wholly within the port or other port or airport.]
[w.e.f. 1-7-2010]

14. Business Support Services (Pg. 84)

[Doubt Circular No. 121/2010-ST
dated 26.4.2010

Whether container ‘Detention charges’ fall under the ‘Business Support Service’ or
‘Business Auxiliary Service’?
Clarification:
Such charges are not chargeable to service tax as retaining the container
beyond the pre-holding period is neither a service provided on behalf of the client
(BAS) nor it is an infrastructural support in business (BSS), it is just a penal rent.]

15. Health Check-up services [Inserted

by F.A. 2010]
 Service provided by any hospital, nursing home or multi- specialty clinic to
 (a) an employee of any business entity for any health check-up or preventive care
or
CA.AJAY JAIN, 9310167881 www.caajayjain.com 13 AMENDMENTS (Final-MAY 2011)

 (b) a person covered by the health insurance scheme for any health check-up
or treatment.
 Where the payment is made directly by the business entity or insurance
company to the hospital or medical establishment.

Any additional amount paid by the individual (i.e. employee or insured) to the
16. Business auxiliary
hospital would service
not be liable to(Pg. 87) tax.
service
(a)Promoting, marketing goods or services [including game of chance,] by whatever
name called,
(As games of chance, lottery will be taxable
under separate head.)

(F) [Exemption to service provided by news agency if

(a) Notified for collection and distribution of news.
(b) Applies or accumulates its income for collection and distribution of news and
not distribute it any manner to its members.]
[Doubt: Circular No. 120(a)/2010-ST
dated 16.4.2010

Whether ‘Re- Insurance commission’ liable to Service Tax under Business Auxiliary
Service?
Clarification:
No, it will not be liable to service tax under any head. It is because when the amount
of insurance is quite high, insurance co. in certain cases, share the risk with the re-
insurer. The arrangement between the co. and re-insurer is only share of expenses
and thus no service is provided.]

17. Management, Maintenance or repair :

→ service provided
→under a maintenance contract or by the manufacturer or his authorised person
→in relation to management, maintenance or repair including reconditioning &
restoration
→of any goods or property whether immovable or not.
Maintenance of software is taxable under this service.

excluding motor vehicle and [maintenance of road service.]

18. Erection, Commissioning or installation*:

 Erection, commissioning, installation of plant, machinery, equipment or
structures, whether pre-fabricated or otherwise.
 Installation of
a) electrical and electronic devices, including wirings or fittings thereof; or
CA.AJAY JAIN, 9310167881 www.caajayjain.com 14 AMENDMENTS (Final-MAY 2011)

b) plumbing, drain laying or other installations for transport of fluids; or

c) heating, ventilation or air-conditioning including related pipe work, duct
work and sheet metal work; or
d) sound insulation, fire proofing or water proofing; or
e) lift and escalator, fire escape staircases; or
f) such other similar services;

 In case of Composite contract of supply and installation (turnkey project) there

is option to pay tax on 33% of gross amount.
 [Exemption to –
19. AdvertisingCommissioning
Erection, Services of food grains handling system, cold storage, units
processing agricultural products.]
Any Service provided to a client, by an advertising agency in relation to
advertisement, in any manner.
→ Advertisement includes
 any label, wrapper, document, hoarding or any audio/ visual representation
 made by means of light, sound, smoke or gas;
→ Advertising agency means any person connected with preparation or display
of advertisement.

Not Taxable:
 Charges for only displaying advertisement.
 Printing and publishing telephone directories, yellow pages or business
directories, is essentially printing a readymade advertisements from the
advertisers and publishing the same in directory. Their activities are similar
to those carried out by newspapers/ periodicals. Therefore it shall not attract
service tax.
20. Renting of Immovable Property

 Service provided by any person to any person

 by renting of immovable property [or any other service in relation to such renting,]
 for use in the course of or, for furtherance of business or commerce (as
factories, office buildings, warehouses, theaters, exhibition halls and multiple
use buildings).
‘Renting of Immovable property’ includes renting, letting, leasing, licensing or other
similar arrangements but not include renting
- by/to a religious body (or)
- to an educational body.
‘Immovable property’ includes
- building or a part of the building and land appurtenant thereto,
- Land incidental in the use of such building,
- Common or shared areas and facilities,
- In case, a building is located into a complex, all common areas within such
complex.
CA.AJAY JAIN, 9310167881 www.caajayjain.com 15 AMENDMENTS (Final-MAY 2011)

- [Vacant land, given on lease or license for construction of building or temporary

structure at a later stage to be used for the furtherance of business or
commerce.]

Not include-
(i) Vacant land
solely used for agriculture, farming, forestry, animal husbandry, mining purposes.
Whether or not having facilities clearly incidental to the use of such vacant land.
(ii) Land used for educational, sports, circus, entertainment and parking
purposes, and
(iii) Building used solely for residential purposes and accommodation purposes
including hotels, hostels, camping facilities, boarding houses.

21. [Brand Promotion Services : [Inserted by

F.A. 2010]
→Service provided by any person through a business entity or otherwise,
→under a contract
→for promotion or marketing of a brand of
→goods, service, event or endorsement of name, including a trade name, logo or
house mark of a business entity
→by appearing in advertisement and promotional event or
→carrying out any promotional activity for such goods, service or event.
Brand Ambassadors are taxable under this service.]

22. Mining Services:

→Service provided in relation to mining of mineral, oil or gas.

The types of mining activities are:

 Geological, Geophysical or other prospecting or map- making services relating to

location of deposits of mineral, oil or gas.
 Site formation services,
 Well testing and analysis services
 Sub-contracted services such as deploying workers and machinery for extraction/
breaking of rocks into stones, sieving, grading etc.
 Outsourced services provided for mining.

23. Works Contract Services :

→ Service provided in relation to the Execution of a works contract,

‘Works contract’ means a contract wherein

CA.AJAY JAIN, 9310167881 www.caajayjain.com 16 AMENDMENTS (Final-MAY 2011)

Transfer of property in goods involved in execution of such contract is leviable to tax

as sale of goods and such contract is carried out for:
(a) Erection, Commissioning or installation services
(b) Commercial or industrial construction
(c) Construction of a residential complex
(d) Completion and finishing services, repair, alteration, renovation or restoration
of in relation to (b) and (c) or
(e) Turnkey projects including engineering, procurement and construction or
commissioning (EPC) projects.
- Only specified works contract are covered.
- Option to discharge Service tax under ‘composition scheme’ @ 4.12% of
gross amount charged.

Excluding
works contract in respect of roads, airports, railways, transport terminals,
bridges,
List of New tunnels
Services and dams, Canals other than those for commerce & industry.
introduced
Other works contracts (eg. Maintenance, job work, processing etc.)
(a) Games of Chance Service
(b)Services provided for the maintenance of medical records of employees of a business
entity
(c) Service of permitting commercial use or exploitation of any event
organised by a person or an organisation.
(d) Services provided by Electricity Exchanges
(e) Services related to Copyrights on Cinematography films and Sound
Recording

Following are the services applicable for May 2011 and Nov 2011 exams along
with amendments
UNDERLINED SERVICES ARE NEWLY ADDED
1. Intellectual property services
2. Copyright services
3. Banking & other financial services
4. Asset management including portfolio management and all forms of fund
management services
5. Clearing and forwarding services
6. Tour operator’s services
7. Port services by major ports and other ports
8. Airport services
9. Goods transport agency’s services
10. Transport of goods by air services
11. Transport of goods by rail services
12. Transport of air passengers service
CA.AJAY JAIN, 9310167881 www.caajayjain.com 17 AMENDMENTS (Final-MAY 2011)

13. Transport of coastal goods and goods through inland water including national
waterways
14. Telecommunication services
15. Construction of commercial or industrial buildings or civil structures
16. Construction services in respect of residential complexes
17. Preferential location services
18. Erection, commissioning and installation services
19. Services involved in the execution of a works contract
20. Services of renting of immovable property
21. Management, maintenance or repair services
22. Site preparation and clearance, excavation, earthmoving and demolition
services
23. Business support services
24. Business auxiliary services
25. Health care services
26. Promotion of brand services
27. Mining Services
28. Advertising Services