Service Tax Updates
93. Online Invoices
can be issued without digital signature by person located in non taxable
territory providing “Oidar” Services upto January 31, 2017
Notification No. 53/2016-ST dated 19.12.2016
Vide this Notification, the
Central Government has made Service Tax (Fifth Amendment) Rules, 2016 to insert
a proviso to Rule No. 4C(1) of the Service Tax Rules, 1994 to provide
that a person located in non-taxable territory providing online information and
database access or retrieval services to a non-assessee online recipient
located in taxable territory may issue online invoices not authenticated by means of a
digital signature for a period upto 31st January, 2017.
94. Amendment in Mega
Exemption Notification
Notification No. 1/2017-ST dated 12.01.2017
By this Notification, Central
Government has amended Mega Exemption Notification No. 25/2012-Service Tax by
substituting Entry No. 29 by which services provided by business facilitator or
a business correspondent to banking company with respect to accounts in rural
area branch has been exempted from Service tax.
Further, the Central Government
has substituted proviso to Entry no. 34 by which following service tax
exemptions are withdrawn effective from January 22, 2017 :
(a) online information and
database access or retrieval services received by Government, local authority,
governmental authority, or an individual in relation to any purpose other than
commerce, industry or profession;
(b) services by way of
transportation of goods by a vessel from a place outside India up to the
customs station of clearance in India.
95. Amendment in
definition of aggregator & person liable to tax on goods transport by a
vessel
Notification No. 2/2017-ST dated 12.01.2017
The Central Government by this
notification has excluded such person from the definition of aggregator who
enables a potential customer to connect with persons providing services by way
of renting of hotels, inns, guest houses, clubs, campsites or other commercial
places meant for residential or lodging purposes subject to the conditions
that:
Person providing services by way
of renting of hotels etc. has a Service tax registration; and the whole
consideration for services provided is received directly by service provider
and no part of consideration is received by the aggregator directly from either
recipient or his representative.
Notification further provides that
the person complying with the sections 29, 30 or 38 read with section 148 of
the Customs Act, 1962 is required to pay Service tax in relation of services
provided or agreed to be provided by a person located in non-taxable territory
to a person located in non-taxable territory by way of transportation of goods
by a vessel from a place outside India up to the customs station of clearance
in India.
96. Amendment in
reverse charge mechanism notification
Notification No. 3/2017-ST dated 12.01.2017
By this Notification, CBEC has
amended Reverse Charge Mechanism Notification No. 30/2012 dtd 20th June
2012, by inserting sub-clause regarding services provided or agreed to be
provided by a person located in non-taxable territory to a person located in
non-taxable territory by way of transportation of goods by a vessel from a
place outside India up to the customs station of clearance in India shall be
subject to reverse charge and the person in India who complies with sections
29,30 or 38 read with section 148 of the Customs Act, 1962 i.e. the person in
charge of vessel or authorised agent, with respect to such transported goods
shall be liable to pay Service tax.
97. Rationalisation of
abatement for tour operator
Notification No. 4/2017-ST dated 12.01.2017
Vide this Notification,
CBEC has rationalised the abatement provision w.e.f. 22.01.2017 for all classes
of tour operator services by reducing the abatement rate to 40%. For availing
the abatement, the CENVAT credit of inputs and capital goods used for providing
the said taxable service would not to be allowed and the bill issued should
indicate that it is inclusive of charges of accommodation and transportation
required for such a tour and the amount charged in the bill is the gross amount
charged for such a tour including the charges of accommodation and
transportation required for
such a tour.
MVAT UPDATE
98. Grant of
administrative relief for dealers registered after 25.05.2016
Trade Circular 38T of 2016 dated 30.12.2016
A new SAP based system for online
registration has been implemented by the Maharashtra Sales Tax Department from
25.5.2016 and earlier system of online registration was closed from 4.5.2016.
So, during this period, dealer who either became eligible for registration
because of crossing of threshold limit of turnover or who desirous of obtaining
voluntary registration could not apply for registration and even from
25.5.2016, some of the applicants could not submit their applications because
of
technical reasons. Hence, such
applicants could not obtain registration certificate with the appropriate date
of effect. In order to grant appropriate date of effect for such
applicants, administrative relief
is granted. To avail administrative relief, class of dealer and other
conditions and relief are specified in this Circular.
99.
Full/Partial exemption of late fee under section 20(6) of MVAT Act, for
late returns
Notification No. VAT.1516/C.R.178/Taxation-1 dated
28.12.2016 & Trade Circular 1T of 2017 dated 2.1.2017
A limited period opportunity is
being given for the defaulters in filing returns to upload returns for any
period up to 31.3.2016 if filed during 1.1.2017 to 31.1.2017; no late fee
payable and if filed during 1.2.2017 to 28.2.2017, Rs.2,000/- late fee payable.
100.
Distribution of Provisional Log in Ids and Passwords to Log-on the GST
Common Portal for GST enrolment
Trade Circular 2T of 2017 dated 6.1.2017
Phase wise distribution of GST
login id and password has started. List of dealers covered under Phase I &
Phase II is made available in ‘What’s New’ section on departmental portal www.mahavat.gov.in.
101. Filing of VAT
Audit Report in Form 704 for the year 2015-16
Trade Circular 3T of 2017 dated 11.1.2017
Commissioner of Sales Tax has
issued Trade circular whereby uploading of the Audit Report in Form e-704 for
the year 2015-16 is allow up to 9.2.2017
and physical copy of the acknowledgment and the statement of submission of
Audit Report shall be submitted up to 20.2.2017.
