Legal changes in Service Tax & Central Excise

 

 

Sir,

There are certain amendments in relation to the Service Tax & Central Excise in the area in which we are operating. They are as follows:

SERVICE TAX:

1. Regarding exemption to construction of complex when provided to Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana:

Exemption of the taxable service of construction of residential complex referred to in sub-clause (zzzh) of clause (105) of section 65 of the Finance Act, when provided to Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana, from the whole of the service tax leviable thereon under section 66 of the Finance Act from 1st of July 2010, (Notification No. 28/2010, Dated 22.06.10).

2. Amendment in the notification No. 1/2006 dated 01.03.2006:

Regarding general exemption from payment of service tax in the area of commercial or industrial construction (zzq) and Construction of Complex (zzzh) by which percentage specified in column 5 has been reduced to 33% to 25% (Notification No. 29/2010, Dated 22.06.10).

3. Tax levy on 8 new services to come into effect from July 1^st :

The Finance Ministry has specified July 1^st as the date from which service tax levy would be applicable on the eight new services brought under the tax net in Budget 2010-11. The major head in respect of new services have been allotted as "0044-Service Tax" and details regarding accounting code are available in the Circular No. 124/6/10-TRU, Dated 29.06.10.

CENTRAL EXCISE:

1. Amendment in the Cenvat Credit rules 2004:

New sub para (C) has been inserted in Rule 2(a) and now Dumpers and Tippers falling under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), registered in the name of provider of output service for providing taxable services as specified in sub-clauses (zzza) and (zzzy) of clause (105) of section 65 of the said Finance Act will be considered as the capital goods for the purpose of Cenvat Credit Rules, 2004 Notification No. 25/2010-CE(NT) Dated 22.06.10).

2. Amendment in Notification No. 42/2001-C.E.(NT) dated 26.06.2001:

No goods can be exported under bond which are exempted from payment of duty or chargeable to nil rate of duty except 100% EOU which are allowed to export under bond (Notification No. 24/2010-C.E.(NT) dated 26.05.10).

 

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Yours truly,