AMENDMENTS PROPOSED BY FINANCE BILL, 2008 AT A GLANCE

 

Section of Finance Act, 1994

Effective date of proposed amendment

Nature of proposed amendment

Effect of proposed amendment

1

2

3

4

65(7b)

 

Proposed to be inserted

Section 65 is proposed to be amended so as to,-

(a) define the terms - associated enterprise, information technology software, internet telecommunication service, processing and clearing­house;

(b) specify the scope of the following taxable services - banking and other financial service, business auxiliary service, cargo handling service, internet telecommunication service, management, maintenance or repair service, renting of immovable property service, consulting engineer service, information technology software service, management of investment under Unit Linked Insurance Plan (ULIP) service, stock exchange service, recognised association or registered association commonly known as commodity exchange service, processing and clearinghouse service, supply of tangible goods for use service, technical testing and analysis service, technical inspection and certification service, tour operator service;

(c) omit the taxable service "internet telephony";

(d) substitute the word "client" with the words "any person" in the specified taxable services;

(e) substitute the word "customer" with the words "any person" in the specified taxable services;

 

65(12)(a)

 

Item (iv) proposed to be substituted

 

65(12)(b)

 

Proposed to be substituted; Explanation proposed to be inserted after sub-clause (b) so amended

 

65(19)

 

Explanation to sub-section (ii) proposed to be inserted; certain words proposed to be omitted; clause (b) of Explanation proposed to be omitted

 

65(23)

 

Proposed to be substituted

 

65(31)

 

Certain words proposed to be substituted

 

65(53a)

 

Proposed to be inserted

 

65(57a)

 

Proposed to be substituted

 

65(64), Explanation

 

Proposed to be substituted

 

65(68)

 

Certain words proposed to be substituted

 

65(75)

 

Certain words proposed to be substituted

 

65(86d)

 

Proposed to be inserted

 

65(90a)

 

Explanation proposed to be renumbered as Explanation 1; Explanation 2 proposed to be inserted after Explanation 1 so numbered

 

65(92)

 

Certain words proposed to be substituted

 

65(105)(e)/(h)/(j)/(k)/(p)/(q)/(r)/(s)/(t)/(u)/(v)/(w)/(x)/(y)/(z)/(za)/(zc)/(zi)/(zj)/(zu)/(zzt)/(zzw)

 

Certain words proposed to be substituted

 

65(105)(f)/(l)/(zb)/(zh)/(zm)/(zo)/(zq)/(zt)/(zz)/(zzd)/(zzg)/(zzp)/(zzv)/(zzx)

 

Certain words proposed to be substituted

 

65(105)(g)

 

Proposed to be substituted

 

65(105)(m)

 

Certain words proposed to be substituted

 

65(105)(zzk)

 

Proposed to be substituted

 

65(105)(zzzu)

 

Certain words proposed to be substituted

 

65(105)(zzzze)/ (zzzzf)/ (zzzzg)/ (zzzzh)/ (zzzzi)/ (zzzzj)

 

Proposed to be inserted

 

65(106)

 

Certain words proposed to be inserted

 

65(108)

 

Certain words proposed to be substituted

 

65(109a)(c)

 

Certain words proposed to be substituted

 

65(115)

 

Proposed to be substituted

 

66

 

Certain words proposed to be substituted

Section 66 is proposed to be amended so as to specify the following services as taxable services, namely:-

(a) information technology software service,

(b) management of investment under Unit Linked Insurance Plan (ULIP) service,

(c) stock exchange service,

(d) recognised association or registered association commonly known as commodity exchange service,

(e) processing and clearinghouse service,

(/) supply of tangible goods for use service,

(g) internet telecommunication service;

 

67, Explanation (c)

 

Proposed to be substituted

Section 67 is proposed to be amended so as to include any amount credited or debited in the books of account within the scope of the term "gross amount charged" where the transaction of taxable service is with any associated enterprise

71, 72

 

Proposed to be inserted

New sections 71 and 72 are proposed to be inserted so as to -

(i) empower the Board to frame a Scheme by notification in the Official Gazette for filing service tax returns by any person or class of persons in preparing and furnishing return required to be filed under section 71 through a Service Tax Return Preparer authorised to act under the Scheme. It seeks to provide that a Service Tax Return Preparer shall assist the person or class of persons furnishing the return in such manner as may be specified in the Scheme and seeks to define "Service Tax Return Preparer" and "Specified person or class of persons". It seeks to provide the manner in which and the period for which the Service Tax Return Preparer shall be authorised, the educational and other qualifications, the training and other conditions required to be fulfilled, the code of conduct, the duties and obligations, the circumstances under which the authorisation may be withdrawn and any other matter which is required to be, or may be specified by the Scheme;

(ii) authorise the Central Excise Officer for assessment on the basis of his best judgment after allowing assessee to represent his case where assessee fails to make service tax returns as required under section 70 or if return have been made out fails to assess the tax in accordance with the provisions of the Act or rules made thereunder.

77

 

Proposed to be substituted

Section 77 is proposed to be substituted so as to provide for specific penalty for specific contraventions which are as follows:-

In case of violation of the provisions of section 69, failure to furnish certain information, and failure to appear before the Central Excise Officer a penalty up to five thousand rupees or rupees two hundred every day till such contravention continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance.

In case of failure to pay service tax electronically, issuance of incorrect or incomplete invoices and general contravention, a penalty of up to five thousand rupees.

78, fifth proviso

 

Proposed to be inserted

Section 78 is proposed to be amended so as to provide that where penalty for suppressing value of taxable service under section 78 is imposed, the penalty for failure to pay service tax under section 76 shall not be applicable;

83

 

Certain words proposed to be inserted

Section 83 which deals with the application of certain provisions of the central Excise Act, 1944 is proposed to be amended so as to insert the word, figures and letters “Section 35FF.”

86

 

Proviso proposed to be inserted in sub-section (2); Proviso and Explanation proposed to be inserted in sub-section (2A)

Section 86 is proposed to be amended with a view to insert a proviso,-

(i) to sub-section (2) so as to provide that in case the Committee of Chief Commissioners of Central Excise differs in its opinion regarding the appeal against the order of the Commissioner of Central Excise, it shall refer the matter to the Board which shall, after considering the facts of the order and the points of difference between them and if it is of the opinion that the order passed by the Commissioner is not legal or proper, direct the Commissioner to appeal to the Appellate Tribunal against the order.

(ii') to sub-section (2A) so as to provide that in case the Committee of Commissioners differs in its opinion regarding the appeal against the order of the Commissioner (Appeals), it shall record the point or points of difference between them and refer the matter to the jurisdictional Chief Commissioner who shall, after considering the facts of the order and if he is of the opinion that the order passed by the Commissioner (Appeals) is not legal or proper, direct the Central Excise Officer to appeal to the Appellate Tribunal against the order of the Commissioner (Appeals). The jurisdictional Chief Commissioner shall be the Chief Commissioner having jurisdiction over the adjudicating authority who has decided the case.

94(4)

 

Certain words proposed to be substituted

Section 94 is proposed to be amended to provide that the Scheme framed by the Board under section 71 shall be laid before each House of Parliament.

95(1E)

 

Proposed to be inserted

Section 95 is proposed to be amended so as to empower the Central Government to issue orders for removal of difficulty in case of implementing, classifying or assessing the value of any taxable service incorporated by the proposed legislation in this Chapter, up to one year from the date of enactment of the Finance Bill, 2008.

Service tax Disputes Resolution Scheme, 2008

 

 

Proposed to be introduced.