Trending
Home » CA » Declared Services For the Purpose of Levy of Service Tax

Declared Services For the Purpose of Levy of Service Tax

Declared Services For the Purpose of Levy of Service Tax. In the previous articles, we have given FAQ on Goods and Service Tax (GST) and How to Pay Service Tax and Central Excise Duty OnlineToday we are providing the complete details of what are the services covered under the term Declared Services. The Government notify following services as declared services u/s Section 66E of Finance Act, 1994. By declaring following declared services, it is now not disputed at all that whether following are come under chargeability of Service Tax Law:

Declared Services For the Purpose of Levy of Service Tax

(a)Renting of immovable property;
(b)Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration      is received after issuance of completion certificate by the competent authority.Explanation.- For the purposes of this clause,-

(I) the expression “competent authority” means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:-

A. architect registered with the Council of Architecture constituted under the Architects Act, 1972; or (20 of 1972.)

B.  chartered engineer registered with the Institution of Engineers (India); or

C.  licensed surveyor of the respective local body of the city or town or village or    development or planning authority;

(II) the expression “construction” includes additions, alterations, replacements or remodelling   of any existing civil structure;

(c)Temporary transfer or permitting the use or enjoyment of any intellectual property right;
(d)Development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software;
(e)Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
(f)Transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;
(g)Activities in relation to delivery of goods on hire purchase or any system of payment by instalments;
(h)Service portion in the execution of a works contract;
(i)Service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity.

Declared Services

1. Renting of immovable property

Meaning of Rent allowing : Permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property;

Exemption For Renting of Immovable property

Services by way of renting of residential dwelling for use as residence 2.Services by a hotel, inn, guest house, club, campsite or meant for residential or lodging purposes, having declared tariff of a unit of accommodation below rupees one thousand per day or equivalent declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air-conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit;

2. Construction Of Complex

Construction of a complex includes additions, alterations, replacements, or Remodeling of any existing civil structure building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of completion certificate by the competent authority.

Exemption under Construction Service.

A. Services provided to the government, a local authority or a governmental authority

Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –

  • a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
  • a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);

B. Services provided by way of construction, erection. Services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-

  • a road, bridge, tunnel, or terminal for road transportation for use by general public;
  • a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;
  • a building owned by an entity registered under section 12AA of the Income tax Act, 1961(43 of 1961) and meant predominantly for religious use by general public;
  • a pollution control or effluent treatment plant, except located as a part of a factory; or a structure meant for funeral, burial or cremation of deceased;

3. Intellectual Property Right

Temporary transfer or permitting the use or enjoyment of any intellectual property right; IPR Includes Trade Mark, Copy Right, Patents, Design.

4. Information Technology Software Taxability

  • Software development,
  • Software design,
  • Software programming,
  • Software customisation,
  • Software adaptation,
  • Software upgradation,
  • Software enhancement,
  • implementation

5. Agree in To an Obligation

  • Activity of agreeing to the obligation to refrain from an act, or
  • Activity Activity of agreeing agreeing to the obligation to tolerate an act or 3.Activity of agreeing to the obligation to do an act.

6. Transfer of Goods by Way of Hier

Transfer of goods by way of hiring, leasing, licensing or in any such manner without without transfer transfer of right to use such goods;

7. Goods Under Hire Purchase

Activities in relation to delivery of goods on hire purchase or any system of payment by instalments

8. Works Contract

works contract” means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property.

9. Supply of Foods and Human Consumption

service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity.

Suggested Articles :

Hope this article will help you to under the topic of Declared Services For the Purpose of Levy of Service Tax. Share this article ” Declared Services For the Purpose of Levy of Service Tax ” to your friends who are studying CA, CMA and CS courses.

Check Also

CA IPCC Pass Percentage Nov 2017 CA Result

CA IPCC Pass Percentage Nov 2017 | ICAI Result (Updated)

The Institute of Chartered Accountants of India conducts CA IPCC exams twice in a year …

Leave a Reply

Your email address will not be published. Required fields are marked *