By Tarun Ghia, Brijesh Cholera, Pratik Mehta, Chartered Accountants
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This Notification gives effect to the changes proposed in the union budget which has the effect of amending the mega exemption list in the following manner.
i) Exemption by way of auxiliary educational services and renting of immovable property is restricted only to services provided by any person to specified educational institutions and thus auxiliary education service or renting of immovable property provided by educational institution will not be exempted.
ii) Temporary transfer or permitting the use or enjoyment of a copyright relating to original literary, dramatic, musical, artistic works or cinematograph films had, were exempted by the notification No. 25/2012; this benefit of exemption is now restricted to films exhibited in cinema halls only.
iii) Services provided by all the restaurants, eating joints or mess having the facility of air condition during any time of the previous year is now under the service tax net.
iv) The exemptions available to transportation of goods by railway or a vessel under Sl. No. 20 and services provided by a goods transportation agency (GTA) under Sl. No. 21 are being amended. Accordingly, exemption to transportation of petroleum and petroleum products, postal mails or mail bags and household effects by railways and vessels will not be available, while the benefit of transportation of agricultural produce, foodstuffs, relief materials for specified purposes, chemical fertilisers and oilcakes, registered newspapers or magazines, relief 4 materials meant for victims of natural or manmade disasters, calamities, accidents or mishap and defense equipments will be available to GTAs. v) The exemptions in respect of Vehicle Parking Service to general public is being withdrawn. vi) The exemption of services provided to Government, a local authority or a governmental authority for repair or maintenance of an Aircraft is being withdrawn. vii) Definition of Charitable Activities as given in Clause (k) in Paragraph 2 of Mega Notification No. 25/2012-ST dated 20-06-2012 is being amended so that there will be no separate threshold limit for granting the exemption from payment of service tax to activities relating to advancement of any other object of general public utility. MVAT UPDATE Notification No VAT.1512/CR-149/Taxation-1 dated 02.02.2013 It is notified that w.e.f. 15-02-2013 government will collect tax at source from dealer who has been awarded the rights for excavation of sand. Prescribed tax collection authority is District Collector or Cantonment Board or any other authority under the State government or Central government having jurisdiction over the area. Rate of tax collection is 10% of the auction amount to be collected in addition to the amount fixed for the auction of sand. Maharashtra Ordinance No . V of 2013 MVAT Act, 2002 has been amended by extending the period of limitation for the order of assessment for the years 2005-06 and 2008-09 from 31st March, 2013 to 30th June, 2013.
