Saturday, 13 April 2013


Changes in exemptions Mega (this applies to the World Economic Forum 04/01/2013)

 I. Exemption through educational services and rental assistance immovable property by educational institutions established under will not be available. This will have the effect of restricting the scope of the exemption to "help educational services" and "renting of immovable property services" only when
A. Introduction by anyone for educational institutions;
B. Provided by the Institute for Educational one to another Institute for Education.
II. Will benefit from the exemption with respect to the copyright of the movies now be available only offered films in the cinema hall or theater. Will TV channels such as Sony now be liable to pay service tax on them and show movies on Sony channel.

III. Service tax on all restaurants AC: Earlier, to claim an exemption for services rendered with respect to food or beverage service, restaurant, eating joint or chaos was required to meet the dual requirements:
A. Do not have the facility of central air conditioning or hot air in any part of the organization, at any time during the year, and
B. And did not have a license to serve alcoholic beverages
However, being the rationalization of the exemption so that the exemption will now be available to all non-air-conditioned restaurants (non-central hot air), eating or joint regardless of the mess they have a license to serve alcohol or not. Will impact other parts of this amendment is to impose a tax on service restaurants having air-conditioned facility, regardless of their license to serve alcohol or not, and an example of the same is Kentucky Fried Chicken, Macedonian.

IV. Exemptions are available for the transport of goods by rail and ship under S. No. 20 and the services provided by goods transport agency (GTA) under S. NO.21 being coordinated. And will therefore exemption for the transportation of oil and petroleum products, mailings or courier bags and household goods by rail and ships that may not be available while the use of transportation of agricultural products and food and relief materials for specific purposes, and chemical fertilizers and earnings, and newspapers registered or magazines, means materials relief to the victims of natural disasters, man-made disasters, calamitites, accidents or accident, and will be available defense equipment to the technical advisory groups;

V. Being withdrawn  An exemption for the car park to the general public so that each type of grant and parking facility, either through reserved (ie in renting the place for the entity to provide, such as parking) or unreserved parking (ie General) will be subject to service tax

VI. The exemption shall be withdrawn for services rendered to the government or local authority or government authority, by repairing or maintenance of aircraft.

VII.Definition of charitable activities, as contained in paragraph (k) of the definition of part of the Mega Code No. 25/2012-ST DT. 2012/06/20 being amended so that there will not be a separate threshold for the granting of the exemption for activities related to the advancement of any other object of general public interest and will be governed by the provisions applicable to the SSI claim exemption from payment of service tax.

By: Atul Kumar Gupta, B COM (Hons) FCA, FCMA, Mima, CIQA, PGDEMM
Mobile: 9810103611, E-mail:

Review of exemptions (to take effect on April 1, 2013):

(A) being the rationalization of the following exemptions:

Rationalization of the exemption limit prescribed for charities, and provide service to any other object of general public interest. So far, the limit was Rs 25 lakh per annum. Now, you will be covered by the exemption threshold.
Exemption provided to other restaurants of the ones that have (i) Air conditioning and (ii) to provide alcoholic beverages license, being rational; clause is deleted on the "license to alcoholic beverages." Therefore, with effect from April 1, 2013, and will be tax service to be performed on the taxable service provided in restaurants with air conditioning or heating, central air in any part of the establishment at any time during the year.
Rationalize the exemption for the transport of goods by road and rail / ship.

(B) is withdrawn following exemptions:

Services provided by an educational institution by renting immovable property.
The temporary transfer or permitting the use or enjoyment of a copyright related to movies and full exemption until now, and now, this exemption will be limited to view movies in the cinema hall or movie theater.
Services through the car park to the general public.
Services provided to the government or local authority or government authority, by repairing or maintenance of aircraft.
Download Code 2/2013, 3/2013, 4/2013, and an explanation of the changes in the service tax by CBEC Claus through the analysis of inter by voice CA

Download Notification 2/2013,3/2013,4/2013 and Explanation to Service Tax changes By CBEC and claus by clause analysis by Voice of CA



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