recent notification on applicability of service tax on radio taxi and advertisement

1.      Notification No. 18 /2014-ST – dated 25^th August, 2014 - Seeks to notify the date on which Clauses A, B, C of the section 114 of the Finance (No.2) Act 2014 becomes effective.

(i)     Clause A & B of Finance Act, 2014 for Services of radio taxi and services of advertisement other than selling of space for advertisements in print media, such services should be taxable from 1st October, 2014.

(ii)    Clause C of finance Act, 2014 relating to substitution of explanation to section 67A for meaning of rate of exchange, such subtitled explanation should be applicable from 1st October, 2014.

2.      Notification No.17/2014 - ST – Dated 20^th August, 2014 - Seeks to amend notification No. 25/2012- Service Tax, dated the 20th June, 2012

(i)      In notification No. 25/2012- ST after entry 5,the following entry shall be inserted, namely:-

“5A. Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement;”;

(ii)     in paragraph 2 relating to definitions in notification 25/2012-ST, after clause (zf),the following clause shall be inserted, namely:-

 ‘(zfa) “specified organisation” shall mean,-

(a)    Kumaon Mandal Vikas Nigam Limited, a Government of Uttarakhand Undertaking; or

(b)   ‘Committee’ or ‘State Committee’ as defined in section 2 of the Haj Committee Act, 2002 (35 of 2002)

3.      Notification  No. 19 /2014-ST- dated 25^th August, 2014 - Seeks to amend the Service Tax Rules, 1994 to insert rule of determination of rate of exchange and power to issue supplementary instruction

In the Service Tax Rules, 1994, after rule 10, the following rules shall be inserted, namely:-

“11.Determination of rate of exchange.– The rate of exchange for determination of value of taxable service shall be the applicable rate of exchange as per the generally accepted accounting principles on the date when point of taxation arises in terms of the Point of Taxation Rules, 2011.

12.  Power to issue supplementary instructions.– The Board or the Chief Commissioners of Central Excise may issue instructions for any incidental or supplemental matters  for the  implementation of  the provisions of the Act.”.

Above shall come into force on the 1^st day of October, 2014.