Tax Lavy on 8 new services to come into effect from July 1

The Finance Ministry has specified July 1 as the date from which service tax levy would be applicable on the eight new services brought under the tax net in Budget 2010-11. The eight new services include services of promoting, marketing or organising of games of chance, including lottery, health services undertaken by hospitals for employees of business organisation and health services provided under health insurance schemes offered by insurance schemes, services provided for maintenance of medical records of employees of a business entity and promoting a ‘brand' of goods, services, events and business entity etc.

New services included

The other new services include services provided by electricity exchanges and special services provided by builder to the prospective buyers such as providing preferential location.

Tax exemption


Meanwhile, the Finance Ministry has exempted from service tax the distribution of electricity by an authorised person under the Electricity Act. It has also given service tax exemption on construction services provided for Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana

25% abatement

The Revenue Department has also provided 25 per cent abatement on construction of complex services as well as commercial or industrial construction services. The abatement would not be available in cases where the cost of land has been separately recovered from the buyer by the builder or his representative.

TNVAT

As per the Amendment to sub Rule 9(4) of TNVAT Rules 2007 in G.O.Ms.No.50, Commercial Taxes and Registration (B1) Department, dated: 19.4.2010,you are directed to furnish the Permanent Account Number (PAN) along with the proof of the same to the Registering Authority immediately.
Thank You