I. Introduction:
With affirmation on the economic
development of the country as against the global slowdown, the Hon'ble Finance
Minister Mr. Arun Jaitley presented its third Union Budget for 2016-17. During
the budget speech, the Finance Minister flagged various issues which are in the
top most priority of the Government. One of such issue which ranks high in the
agenda ever since Mr. Narendra Modi came in power is to make the tax laws of
the country transparent and predictable. The Government has been vehemently
promoting against retrospective amendments which imposes an unforeseeable
burden on the tax payer. In the current budget, the Government has proposed to
introduce three new sections under service tax law namely 101,102 and 103 so as
to restore certain exemptions where were withdrawn in the previous years.
In order to understand the impact of
these new sections, it is relevant to refer to serial numbers 12 and 14 of the
Mega Exemption Notification 25/2012-ST dated 30.06.2012 as it stood at the time
of its introduction and the subsequent amendments which happened over the
years.
II. Original Entries
1.0 The serial number
12 of the Mega Exemption Notification 25/2012-ST reads as under:
"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) a civil structure or any other
original works meant predominantly for use other than for commerce, industry,
or any other business or profession;
(b) 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);
(c) a structure meant predominantly for
use as (i) an educational, (ii) a clinical, or (iii) an art or cultural
establishment;
(d) canal, dam or other irrigation works;
(e) pipeline,
conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage
treatment or disposal; or
(f) a residential complex
predominantly meant for self-use or the use of their employees or other persons
specified in the Explanation 1 to clause 44 of section 65B of the said
Act;"
2.0 The relevant
extracts of serial number 14 of the Mega Exemption Notification 25/2012-ST
reads as under:
"Services by way of construction, erection,
commissioning or installation of original works pertaining to:
(a) an airport, port or railways,
including monorail or metro
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