Sec./ Entry

Present position

Position after amendment

Date of effect

66B and 66BA

Explanation to Section 66B provides that references to the provisions of section 66 in Chapter V of the Finance Act, 1994 or any other Act, for the purpose of levy and collection of service tax, shall be construed as references to the provisions of section 66B.

This Explanation to Section 66B was inserted vide M.F. (D.R.) Order No. 2/2012, dated 29-6-2012.

Section 66BA is proposed to be inserted to provide that for the purpose of levy and collection of service tax, any reference to section 66 in the Finance Act, 1994 or any other Act for the time being in force, shall be construed as reference to section 66B thereof.

W.r.e.f. 1-7-2012

[Will come into force on date of enactment of Finance Bill, 2013]

66D(d)(i)

services relating to agriculture or agricultural produce by way of agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed testing are covered in the negative list.

The word "seed" shall stand omitted. Thus, services relating to agriculture or agricultural produce by way of ... testing will be covered in the negative list.

Thus, all kinds of testing in relation to agriculture or agricultural produce shall fall under the negative list.

Therefore, testing of agricultural produce, agricultural implements, etc. will be excluded from charge of service tax.

Date of enactment of Finance Bill, 2013

66D(f) read with sec. 65B(40)

Manufacture or goods liable to excise duty under section 3 of Central Excise Act, 1994 or State laws was covered in negative list.

Now, manufacture or production of goods falling under the Medicinal and Toilet Preparations (Excise Duties) Act,1955 viz. Perfumery, cosmetics, etc. containing alcohol will fall under negative list.

Date of enactment of Finance Bill, 2013.

[What about the said activity for the period from 1-7-2012 to aforesaid date ?]

66D(l) read with sec. 65B(11)

Approved vocation education courses were covered in negative list.

   •  Courses approved by the State Council for Vocational Training will also fall in negative list.

   •  However, a course run by an institute affiliated to the National Skill Development Corporation set up by the Government of India will not fall in negative list and will be chargeable to service tax.

Date of enactment of Finance Bill, 2013.

73

This section provides for raising demand of service tax. It provides issue of show-cause notice within 18 months. In evasion cases, the notice may be issued within 5 years, called extended period of limitation.

Sub-section (2A) proposed to be inserted in section 73 porvides that where any appellate authority or tribunal or court concludes that the notice issued under the proviso to sub-section (1) is not sustainable for the reason that the charge of,—

(a) fraud; or

(b) collusion; or

(c) wilful misstatement; or

(d) suppression of facts; or

(e) contravention of any of the provisions of this Chapter or the rules made thereunder with intent to evade payment of service tax, has not been established against the person chargeable with the service tax, to whom the notice was issued, the Central Excise Officer shall determine the service tax payable by such person for the period of eighteen months, as if the notice was issued for the offences for which limitation of eighteen months applies under sub-section (1).

Effect : If a notice is issued invoking 5 years and charge of evasion is not established, the notice will continue to be valid for 18 months period.

Date of enactment of Finance Bill, 2013.

77(a)

Failure to take registration attracted penalty of Rs. 10,000 or Rs. 200 per day of default, whichever is higher.

After amendment, the penalty can be levied upto Rs. 10,000. The limit of Rs. 200 per day has been done away with.

Date of enactment of Finance Bill, 2013.

78A

-New Section-

This section provides that where a company has committed any of the following contraventions, namely:—

(a) evasion of service tax; or

(b) issuance of invoice, bill or, as the case may be, a challan without provision of taxable service in violation of the rules made under the provisions of this Chapter; or

(c) availment and utilisation of credit of taxes or duty without actual receipt of taxable service or excisable goods either fully or partially in violation of the rules made under the provisions of

this Chapter; or

(d) failure to pay any amount collected as service tax to the credit of the Central Government beyond a period of six months from the date on which such payment becomes due,

then, any director, manager, secretary or other officer of such company, who at the time of such contravention was in charge of, and was responsible to, the company for the conduct of business of such company and was knowingly concerned with such contravention, shall be liable to a penalty which may extend to Rs. 1,00,000.

Effect : These offences are similar to those listed in section 89. Involvement of directors or officer is not unknown. The law seeks to charge them with penalty.

Date of enactment of Finance Bill, 2013.

83

Section 9A of Central Excise Act, 1944 applied to service tax.

Only Section 9A(2) (compounding of offences) will apply for service tax purposes.

Section 9A(1) providing for offences being non-cognizable will not be applicable. This change is in consequence of insertion of sections 90 and 91.

Date of enactment of Finance Bill, 2013.

86

Appellate Tribunal has power to condone delay in filing appeal

By way of accidental commission, power to condonation in section 86(5) didn't refer to section 86(1) relating to appeal filed by assessee.

This is sought to be corrected.

Date of enactment of Finance Bill, 2013.

[What about period prior thereto ? Amendment must be given retrospective effect.]

89

Offence of collection of any amount as service tax but failure to pay the amount so collected to the credit of the Central Government beyond a period of six months from the date on which such payment becomes due, was subject to prosecution of upto 3 years if the amount involved exceeded Rs. 50 lakhs.

The punishment is sought to be increased to 7 years. In case of second and subsequent offence, the period of punishment in this case is also proposed to be enhanced from three years to 7 years.

Date of enactment of Finance Bill, 2013.

New Sec. 90 and 91

Earlier section 9A(1) of Central Excise Act, 1994 applied, which provided that offences under section 89 will be non-cognizable.

Section 90 provides that offence of collection of any amount as service tax but failure to pay the amount so collected to the credit of the Central Government beyond a period of six months from the date on which such payment becomes due, would be cognizable offence. Thus, arrest would be made without any warrant. Section 90(2) provides that all other offences shall be non-cognizable and bailable.

Power to arrest has been brought in offences involving more than Rs. 50 lakhs.

Date of enactment of Finance Bill, 2013.

99

New section

It seeks to grant immunity to Indian railways from service tax in all forms under erstwhile section 66 i.e. positive list regime upto 30-6-2012.

Date of enactment of Finance Bill, 2013.

94 to 104 of Finance Bill, 2013

New

They seek to introduce a new scheme to encourage voluntary compliance with the following main features:

(i) The scheme can be availed of by non-filers or stop-filers or persons who have not made a truthful declaration in their return. However it will not be applicable to persons against whom any inquiry or investigation is pending by the issue of search warrant or summon or by way of audit;

(ii) The defaulter will be required to make a truthful declaration of all his pending tax dues (from October1, 2007 to December 31, 2012) and pay at least half of that before December 31, 2013; remaining half to be paid by:

(a) June 30, 2014 without interest; or

(b) By December 31, 2014 with interest from July 1, 2014 onwards;

(iii) On compliance with all the requirements the person will have immunity from interest (as specified), penalties and other proceedings;.

Date of enactment of Finance Bill, 2013.