37

Rs. 5/-

New Service Tax Rate of 14% and later 16% (after inclusion of
Swachh Bharat Cess) will be applicable from a date to be notified,
creating confusion amongst the people at large including
professionals. Seeing this, we would like to request the CBEC to
have a certain and/or fixed date for applicability of new rates, if
any, in future.
Recently, pursuant to the Cadre restructuring and reorganization
of the CBEC, the board has issued instructions regarding
adjudication of Central Excise and Service Tax Cases booked by
Director General of Central Excise Intelligence (DGCEI). Vide the
circular, the methodology to be followed for adjudication of cases
booked by the officers of the DGCEI has been prescribed and as
per the same, now such cases shall be adjudicated by the
Additional Director General (Adjudication) in DGCEI. Earlier, the
adjudication power vested in the hands of the field Commissioners
only, which shall however be continued for the cases booked by
them in addition to the empowerment of DGCEI officials for
adjudication. This shall lead to instances of adjudication of cases

Beginning of the month shall make applicable a lot of changes in

the field of service tax due to the amendments as part of the
budget announcements made last month. A good number of
provisions made by notifications issued with budget proposal
either became effective from 1st March, 2015 or will become
effective from today, i.e. 1st April, 2015. One can refer the last
issue of Tax Talk for details of such changes. A key area of
concern for small business entities as well as corporates is the
applicability of Reverse Charge Mechanism in service tax. We
have compiled the Reverse Charge provisions including
amendments made in such provisions to have a complete
understanding of the applicability of Reverse or Joint Charge
Mechanism as applicable with effect from 1st April, 2015 and the
same is tabulated along with notes thereon on page 2 and 3.
We would like to make all concerned persons aware that the
system of online Service Tax Registration has been revamped
vide Order No. 01/2015 Service Tax and made applicable with
effect from 1st March, 2015. The same has been discussed in
details on page 4.
We hope this newsletter will add some value and prove to be
beneficial to the readers. We highly solicit suggestions/opinions of
the readers. Please feel free to convey your views at
servicetaxgoyal@gmail.com.

CA Sushil Kr Goyal
DUE DATES
RetuRn

FORM

Due DAte

Return for the half year i.e. October

2014 to March 2015
(All Assessee)

St-3
(Online)

25th April, 2015

Return for the quarter i.e. January

2015 to March 2015
(For a SeZ unit or a Developer)

A-3
(Physical)

30th April, 2015

eXP-2
(Physical)

15th April, 2015

DeclARAtiOn
Half Yearly Declaration
(exemption to exporters)

April 2015

Editorial

Hope this new year will give us lots of strength and enthusiasm to
adapt to the changes in the compliance mechanism, reporting
standards and newly introduced audit/ taxation regulations.
Moreover, a lot more effort shall be required to gear ourselves up
and be ready to hit on the most probable change in the Indian
taxation regime, i.e. introduction of GST. Recently, in an interview
with the Wall Street Journal, our Finance Minister, Shri Arun
Jaitley, on being asked about his efforts as a FM said that
For indirect tax, I am replacing it with the GST (Goods and
Services Tax) I am trying to break off from the legacy of the past,
which provided for unpredictability. So I am conscious of the fact
that India needs stability and predictability of taxation regime.

by the same officer who investigated the case and issued the
Show Cause Notice.

1
Vol: 3 Issue: 1

very Happy and a Prosperous

New Financial Year 2015 - 16
to all our readers. We also want to
take this opportunity to thank all
concerned due to whose support we
are entering into the 4th year of our
publication and also for their appreciations and wishes we received
on completion of the 3rd year of Tax Talk - The Monthly Service
Tax Bulletin. Your appreciations keep us motivated and encourage
us to strive for excellence!

Reverse or Joint Charge Mechanism at A Glance

April 2015

Sl.
No.

Issue No. 37

Description of service
provided

RCM w.e.f.

Service
Provider
(Effective
Tax %)

Service
Receiver/ Any
Person
(Effective Tax
%)

Service Provider

Service Receiver

Refer
Notes
on
Page
3

Insurance Agency Service

13.11.2001

Nil

100%(12.36%)

Any Person

Insurance Company

1A

Recovery Agent Service

11.07.2014

Nil

100%(12.36%)

Any Person

Banking Company,
Financial Institution and
NBFC

1B

Mutual Fund Agent or

Distributor Services

01.04.2015

Nil

100%(12.36%)

Mutual Fund Agent or

Distributor

Mutual Fund or Asset

Management Company

1C

Services of Selling or Marketing

Agent of Lottery Tickets

01.04.2015

Nil

100%(12.36%)

Selling or Marketing
Agent

Lottery Distributor or
Selling Agent

Goods Transport Agency

Service

01.01.2005

Nil

100% (3.09%)

Any Person

As mentioned in Note

01.04.2015

Nil

100% (3.708%)

Sponsorship
Service

01.05.2006

Nil

100%(12.36%)

Any Person

Body Corporate or
Partnership Firm

Service of Arbitral Tribunal

01.07.2012

Nil

100%(12.36%)

Arbitral Tribunal

Business entity

Legal Services (Advocate)

01.07.2012

Nil

100%(12.36%)

Individual or Firm

Business entity

07.08.2012

Nil

100%(12.36%)

Individual

Company

11.07.2014

Nil

100%(12.36%)

Individual

Company or Body
Corporate

01.07.2012

Nil

100%(12.36%)

Yet to be
notified

Nil

100%(12.36%)

Government /Local
Authority

Business Entity

01.07.2012

Nil

100%(4.944%)

01.07.2012

60%(7.416%)

40%(4.944%)

01.10.2014

50%(6.18%)

50%(6.18%)

01.07.2012

25%(3.09%)

75%(9.27%)

01.04.2015

Nil

100% (12.36%)

07.08.2012

25%(3.09%)

75%(9.27%)

01.04.2015

Nil

100%(12.36%)

5A

Director Service

Government Support Services

6

Government Services
Renting of Passenger Vehicle
After Abatement of 60%

Renting of Passenger Vehicle

Without Abatement

Supply of Manpower

Security Services
Service portion on execution of
Works Contract

a. Value of service excluding

material (Taxable 100%)

01.07.2012

50% (6.18%)

50% (6.18%)

b. Original Work (Taxable 40%)

01.07.2012

50%(2.472%)

50%(2.472%)

c. Repairs and Maintenance of

any goods (Taxable 70%)

01.07.2012

50%(4.326%)

50%(4.326%)

01.07.2012

50%(3.708%)

50% (3.708%)

01.10.2014

50% 4.326%)

50%(4.326%)

d. Maintenance, Repairing,
Completion or Finishing of
immovable property (Taxable
value increased from 60% to
70%)

Individual/ HUF/
Partnership firm
AOP / LLP

Business Entity
registered as body
corporate

10

Import of service

19.04.2006

Nil

100%(12.36%)

Any Person

Any Person

11

Services involving an
Aggregator

01.03.2015

Nil

100%(12.36%)

Any Person

Any Person

10

Notes on Page 2 Table

3. Person Liable : Any person who pays or

is liable to pay freight either himself or
through his agent if such person is:
a. any factory registered under or
governed by the Factories Act, 1948
(63 of 1948); or
b. any society registered under the
Societies Registration Act, 1860 (21
of 1860) or under any other law for
the time being in force in any part of
India; or
c. any co-operative society established
by or under any law; or
d. any dealer of excisable goods, who is
registered under the Central Excise
Act, 1944 (1 of 1944) or the rules
made thereunder; or
e. any body corporate established, by
or under any law; or
f. any partnership firm whether
registered or not under any law
including association of persons.
However, if such person is located in a
non-taxable territory, the provider of such
service (i.e. GTA) shall be liable to pay
service tax.
Abatment : Prior to 31.03.2015,
abatement / exemption available on GTA
Services was 75%, which has been
reduced to 70% w.e.f. 01.04.2015.
4. Services of an arbitral tribunal are
exempted if service receiver is:
a. any person other than a business
entity; or
b. a business entity with a turnover up
to rupees ten lakh in the preceding
financial year.
5. Legal services (i.e. services of an
advocate or firm of advocates) are
exempted if service receiver is:
a. an advocate or partnership firm of advocates providing legal services; or

ith all positive indications for

introduction of GST from April, 2016, it
seems that the Government is all geared up
and is putting in required efforts for the
reform. In league of the developments for roll
out of GST, the Kerala Finance Minister, Mr.
K. M. Mani has been appointed as the
chairman of the empowered committee of
State Finance Ministers on GST. The
empowered committee chairman's post fell
vacant after Mr. Abdul Rahim Rather, the
former Finance Minister of Jammu & Kashmir,
quit following the defeat of the National
Conference in state elections held in
December 2014.
Continuing with the tradition of appointing
Chairman of the Empowered Committee of
State Finance Ministers on Goods and
Services Tax (GST) from non-ruling party,
Mr. Mani represents the Kerala Congress (M)
and is also a senior Finance Minister and his
appointment could help the government
garner support from the opposition when
Parliament takes up the Constitutional
Amendment Bill for GST.
With just a year in hand, the Central
Government is working at a rapid pace for
implementation of GST and it shall require
support of the stakeholders and the public at
large also.
The Government is also facing certain
difficulties in walking through its roadmap.
Many states including states led by BJP have
forwarded their request and urged the Centre
to compensate them for their share of
revenue that they have to forego on
implementation of GST. Recently, the
Finance Minister of Maharashtra, Shri Sudhir
Mungantiwar said Many states want the
Central Government to enact a law to make it
mandatory for the Centre to compensate for
octroi and entry tax for 10 years. At present,
the Centre has promised the arrangement for
only three years. States like West Bengal
fear loss of revenue due to abolition of entry
tax. In the case of Mumbai, it is octroi."
Moreover, while addressing a National
Workshop, the Urban Minister, Shri M.
Venkaiah Naidu stressed on the need of
share of GST revenue for the municipalities
across the country to ensure predictable and
guaranteed flow of funds to enable them take
up urban reconstruction initiatives.

April 2015

The same had been exempted w.e.f

01.07.2012 vide Notification No. 25/2012ST dated 20.06.2012. The exemption is
being withdrawn w.e.f 01.04.2015.

b. any person other than business

entity; or
c. a business entity with a turnover up
to rupees ten lakh in the preceding
financial year.
6. Services of Director of a Body Corporate
has been included in the purview of
Director Services, w.e.f 11.07.2014.
Service provided by a director in capacity
of an employee of the Company or Body
Corporate shall not be chargeable to
service tax. Deduction of TDS under
salary head can establish the same.
7. Presently RCM is applicable on all
Support Services provided by
Government or Local Authority except
the following:
a. Renting of Immovable Property,
b. Services by Department of Post by
way of Speed Post, Express Parcel
Post, Life Insurance and Agency
Services;
c. Services in relation to aircraft or a
vessel, inside or outside the precincts
of a port or an airport;
d. Transportation of goods or
passengers.
Vide the Finance Bill 2015, it is proposed
to extend to Any Service with effect
from a date to be notified.
8. No reverse charge is applicable, in case
of similar line of business.
9. Where any taxable service is provided by
a person located in non taxable territory
and as per the Place of Provision Rules
2012; Place of provision of the service is
determined to be in the taxable territory,
such service will be considered as Import
of Service.
10. In relation to service provided or agreed
to be provided by a person involving an
aggregator in any manner, the person
liable to pay tax is the aggregator of the
service (or any person representing the
aggregator for any purpose or designated
if aggregator does not have a physical
presence in the taxable territory).
Aggregator means a person, who owns
and manages a web based software
application, and by means of the
application and a communication device,
enables a potential customer to connect
with persons providing service of a
particular kind under the brand name or
trade name of the aggregator.
Small Service Provider exemption of
Rs. 10 lakh is not available to recipient of
service. Kindly refer Negative List and
Exemption Notification No.25/2012 along
with this chart to determine tax liability.

3
Issue No. 37

1. The term Recovery Agent has not

been defined in the service tax laws.
However, in trade and common parlance,
recovery refers to the action or process
of regaining possession or control of
something stolen or lost. Accordingly,
recovery agent shall mean to be a
person who has the power to recover bad
(or poor) debts.
2. Mutual Fund Agent or Distributor
Services were taxable under RCM w.e.f.
01.04.2005 to 30.06.2012.

GSTUpdate

Issue No. 37

6. Submission of Documents: Self-attested copy of the

following documents is required to be submitted by registered
post/speed post to the concerned division within 7 days of
filing of Form ST -1 online:
a. Copy of PAN card of the proprietor or legal entity
registered.
b. Photograph of the person filing the application.
c. Proof of identity of the person filing the application (Such
as PAN, Voter ID Card, Passport, Aadhar Card, Driving
License or any other Photo ID Card issued by CG, SG or
PSU).
d. Proof of Address (Documents establishing possession of
the premises to be registered such as proof of ownership,
lease agreement etc)
e. Details of the Main Bank Account.
f. Memorandum/ Articles of Association.
g. List of Directors
h. Authorization by the Board of Directors/Partners/
Proprietor for the person filing the application.
i.

Business Transaction Numbers obtained from other

Government departments or agencies such as Customs
Registration No. (BIN No), Import Export Code (IEC)
number, State Sales Tax Number (VAT), Central Sales
Tax Number, Company Index Number (CIN) issued prior
to the filing of service tax registration application.

[Order No. 1/2015 ServiceTax,dated 28th February, 2015]

Our Services
consultancy
l Registration
l Return
l Compliance Verification
l Representational Service
l Adjudication at all levels
l Appeal at all levels
l GSt - impact Study
l

Bulletin Editorial Board

CA. Sushil Kumar Goyal (Editor)
CA. Pinky Agarwal
CA. Ashika Agarwal
CA. Richa Sharma

CA. Abhisek Tibrewal

CA. Manish Sharma
CA. Medha Rathi
CA. Meenakshi Daga

Date of Publication : 1st April 2015

1. PAN: Except government departments, all proprietor and legal

entities are mandatorily required to quote their Permanent
Account Number (PAN). Persons having temporary registration
i.e. (without PAN) shall have to obtain PAN and apply online
for PAN based registration within 31st May2015.
2. Email address and mobile number are mandatorily required
to be quoted by the applicants in the application form. Existing
registrants are required to file an amendment application by
30th April2015 for providing the said details.
3. Trust Based Registration shall be granted within 2 days of
filing of completed online application (in Form ST 1), through
web-portal ACES (www.aces.gov.in). Registration certificate
downloaded from the ACES website would be accepted as
proof of registration. The applicant on obtaining such
registration shall be able to pay service tax electronically.
4. Verification of Premises shall be done in case need arises
and it shall have to be authorized by an officer not below the
rank of Additional/Joint Commissioner.
5. Revocation: The registration certificate may be revoked by
the Deputy/Assistant Commissioner if:
a. the premises are found to be non existent or not in the
possession of the assessee, or
b. no documents are received within 15 days of the date of
filing the registration application, or
c. the documents are found to be incomplete or incorrect in
any respect.
(The assessee shall be given an opportunity to represent
against proposed revocation)

(a unit of Goyal Tax Services Pvt. Ltd.)

Stephen House, Room No. 64
4, B.B.D. Bag (East) 4th Floor
Kolkata - 700 001
Phone : 2262 4632/33

Email : office@goyalstax.com

Registration under RNI No. WBENG/2013/55099

April 2015

(applicable w.e.f. 1st March, 2015)

Postal Registration No. KOL RMS/465/2015-17

New Guidelines for Service Tax Registration

BOOk POST

Published from :

Stephen House
Room No. 64, 4th Floor
4, B.B.D. Bag (East) Kolkata - 700 001
Owner: M/s Goyal Tax Services Pvt. Ltd., Printer & Publisher: Mrs. Reena Goyal Published from Stephen House, Room No. 64, 4 B. B. D. Bag (East), 4th Floor, Kolkata-700 001
And Printed from M/s CDC Printers Pvt. Ltd., Tangra Industrial Estate-II (Bengal Pottery), 45, Radhanath Chowdhury Road, Kolkata - 700 015. Editor: CA Sushil Kumar Goyal.