Service Tax - Statute Update
 

The Government has issued following Notifications/Circulars.

Notification No. 29/2006 dtd. 2-11-2006

The Rules as regards to Centralized Registration are now made assessee friendly.

1. the recipient of service is also made eligible for Centralized Registration.
    

2. the assessee may register such premises wherein centralized billing or centralized accounting systems are located in one or more premises.
    

3. The Commissioner of Central Excise having Jurisdiction over the premises or offices from where such centralized billing or accounting is done, is empowered to grant such centralized registration. Hitherto such power was granted only to The DGST or the Chief Commissioners.

Circular Letter F. No. 137/50/2005 – CX dtd. 3-11-2006 is also issued in to grant benefit of this facility to the pending applications. It also direct the DGST or the Chief Commissioner to transfer pending applications to the concerned Commissioners having jurisdiction over the premises for which the Centralized Registration is sought.

Notification No. 31/2006 dtd. 30-12-2006

Exemption granted to the General Insurance provider for insurance of sheep from whole of the service tax.

Circular No. 89-7-2006 dtd. 18-12-2006

As regards to applicability of service tax on fee collected by Public Authorities while performing statutory functions/duties, it has been clarified that such activities performed by the sovereign/public authorities under the provisions of law are in the nature of statutory obligations which are to be fulfilled in accordance with law. The fee collected by them for performing such activities is in the nature of compulsory levy as per the provisions of the relevant statute. Such activity is purely in public interest and is undertaken as mandatory and statutory function. They are not in the nature of service to any particular individual for any consideration. Therefore, such activities performed by sovereign/public authorities under the provision of law, does not constitute provision of taxable service to a person and therefore, no service tax is leviable on such activities.

However, if such authorities performs a service, which is not in the nature of statutory activity and the same is undertaken for a consideration, not in the nature of fee/ levy, then in such cases, service tax would be leviable, if the activity undertaken falls within the ambit of a taxable service.