SIGNIFICANT AMENDMENTS MADE THROUGH NOTIFICATIONS/CIRCULARS ISSUEDBETWEEN 01.07.2011 TO 30.06.2012 A. NEW EXEMPTIONS/AMENDMENTS IN/WITHDRAWAL OF EXISTING EXEMPTIONS1. Rate of service tax restored to 12%
As per section 66, the charging section under earlier regime, rate of service tax was 12%of the value of taxable services. However, the rate of service tax was reduced to 10%vide
Notification No. 8/2009 ST dated 24.02.2009.
With effect from 01.04.2012,
Notification No. 02/2012-ST dated 17.03.2012
rescindedthe said notification and the rate of service tax was restored to 12% for the periodbetween 01.04.2012 to 30.06.2012.With effect from 01.07.2012, new charging section, section 66B has come into effect.The rate of service tax is 12% as per the new charging section also.
2. Rescission of the earlier Notifications
With the introduction of negative list approach of taxation of services, a large number of earlier notifications which were either not in line with the new provisions or which havebeen subsumed in mega exemption or abatement notification or a new notification hasbeen issued, have been rescinded
Notification No. 34/2012-ST dated 20.06.2012.
The rescinded notifications have been tabulated as under:-
S.No. Notification No. Description of the Notification
1. 45/2011-ST dated 12-09-2011 Exemption to the taxable servicesprovided to any business entity, by anarbitral tribunal, in respect of arbitration.2. 33/2011-ST dated 25-04-2011 Exemption to preschool coaching andtraining and coaching or training relatingto educational qualifications that arerecognized by law
3. 31/2011-ST dated 25-04-2011 Exemption to accommodation serviceswhen the declared tariff for providing of such accommodation is less than
1000 per day4. 30/2011-ST dated 25-04-2011 Exemption to health services5. 11/2011-ST dated 01-03-2011 Exemption to works contract serviceprovided wholly within a port/other portfor construction, repair, alteration andrenovation of wharves, quays, docks,stages, jetties, piers and railways.6. 10/2011-ST dated 01-03-2011 Exemption to works contract serviceprovided wholly within an airport and