Page 121 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes Rate of service tax w.e.f.11.05.2007 was 12% + 2% (of service tax) education Cess + 1% (of service
tax) Secondary Higher Education Cess.
From 24.02.2009, Rate of service tax became 10% + 2% (of service tax) education Cess + 1% (of
service tax) Secondary Higher Education Cess (aggregating to 10.30%).
In budget 2009, following three new services have been brought under service tax net vide
Finance (No. 2) Act, 2009 (33 of 2009) and taxed w.e.f. 01.09.2009 vide Notification No. 26/2009 ST
dated 19.08.2009.

113 Cosmetic or Plastic Surgery Services 01.09.2009
114 Transport of Coastal goods, Goods through National Waterways or 01.09.2009
Goods through Inland Waterways
115 Legal Consultancy Services 01.09.2009

From 24.02.2009, Rate of service tax became 10% + 2% (of service tax) education Cess + 1% (of
service tax) Secondary Higher Education Cess (aggregating to 10.30%)
In the Budget 2010 vide Finance (14/2010) Act, 2010, the scope of service tax was extended to
cover 8 more services w.e.f. 01.07.2010 vide Notification No.24/2010 ST dated 22.06.2010 as per
details given below:

116 Promotion, marketing or organizing of games of chance including 01.07.2010
lottery, bingo etc. services
117 Health services undertaken by Hospitals or Medical establishments 01.07.2010
118 Maintenance of Medical Records services 01.07.2010
119 Promotion of Brand of Goods/Services etc. 01.07.2010
120 Services of Permitting Commercial Use or Exploitation of any event 01.07.2010

121 Electricity Exchange Services 01.07.2010
122 Copyright Services 01.07.2010
123 Services provided by Builder in relation to preferential location, 01.07.2010
internal/external development etc.

124 Services of Air-conditioned restaurants having license to service 1.5.2011
alcoholic beverages in relation to service of food or beverages.
125 Services of providing of accommodation in hotels / inns/ cubs/ 1.5.2011
guest houses/ campsite for a continuous period of less than three
months

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Caution From 24.02.2009, Rate of service tax became 10% + 2% (of service tax) education
Cess + 1% ( of service tax) Secondary Higher Education Cess (aggregating to 10.30%)

Notes As on 1.05.2011, 119 Services are under service tax net. Six services among listed
above at Sr. No. 1,6,30,31,32 and 41 have been merged with “Telecommunication Service”
with effect from 01.06.2007)

116 LOVELY PROFESSIONAL UNIVERSITY