Page 116 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 7: Collection and Recovery of Service Tax and Assessment Procedure

The Finance Act of 1997 further extended the scope of service tax to cover a larger number of Notes
services rendered by the following service providers, from the dates indicated against each of
them:
7 Consulting engineers (7 July, 1997)
th
8 Custom house (15 June, 1997)
th
agents
9 Steamer agents (15 June, 1997)
th
th
10 Clearing & (16 July, 1997)
forwarding agents
st
11 Air travel agents (1 July, 1997)
12 Tour operators 01.09.1997 (exempted upto 31.3.2000 Notification No.52/98,
8 July, 1998, reintroduced w.e.f. 1.4.2000)
th
13 Rent-a-Cab 16.07.1997 (exempted from 1.3.1999 upto 31.3.2000 Vide
Operators Notification No.3/99 Dt.28.2.99, reintroduced w.e.f. 1.4.2000)
14 Manpower (7 July, 1997)
th
recruitment Agency
15 Mandap Keepers (1 July, 1997)
st

Did u know? The services provided by goods transport operators, out door caterers and
pandal shamiana contractors were brought under the tax net in the budget 1997-98, but
nd
abolished vide Notification No.49/98, 2 June,1998.
The Service Tax was leviable @ 5% on the ’gross amount’ charged by the service provider from
the client, from the dates as notified and indicated above.
Following new services were brought under the Service Tax net in the 1998-99 union Budget.
These services were notified on 7 October, 1998 and were subjected to levy of Service Tax w.e.f.
th
th
16 October, 1998.

Notes The provisions relating to Service Tax were brought into force with effect from
st
1 July 1994.

16 Architects 16.10.1998
17 Interior Decorators 16.10.1998
18 Management or Business Consultants 16.10.1998
19 Practicing Chartered Accountants 16.10.1998
20 Practicing Company Secretaries 16.10.1998
21 Practicing Cost Accountants 16.10.1998
22 Real Estates Agents/Consultants 16.10.1998
23 Credit Rating Agencies 16.10.1998
24 Security Agencies 16.10.1998
25 Market Research Agencies 16.10.1998
26 Underwriters Services 16.10.1998

LOVELY PROFESSIONAL UNIVERSITY 111