The key features of the new system of taxation are as
follows:
1. Service'
has been defined in clause (44) of section 65B of the Act.
2. Section 66B specifies the charge of service tax: service tax shall be levied on
all
services provided or agreed to be provided in a taxable territory, other
than services specified in the negative list is contained in section 66D of the
Act.
3. Section 66C empowers the Central
Government to make rules for determination of place of provision of service (provision
of service in the taxable territory is an important ingredient of taxability, Under these provisions the Place
of Provision of Services Rules, 2012 have been made.
4. Section 66E defines certain activities as
services and are referred as Declared Services. (to remove some
ambiguities)
5. In
addition to the services specified in the negative list, certain exemptions
have been given under notification 25/2012 (single mega exemption for ease of
reference)
6. Principles have been laid down in
section 66F of the Act for interpretation wherever services have to be treated
differentially for any reason and also for determining the taxability
of bundled services.
7. Availment and utilization of CENVAT credits
essentially remains the same with only incidental changes required for the new
system of taxation.
A Pictorial Representation:
No comments:
Post a Comment