What is the service tax rate for Sale of space under Budget 2017-18?

Budget 2017-18, Service Tax to be paid for Sale of space

 

 

What is the service tax rate for Sale of space under Budget 2017-18In continuation of demonetization in the country since November 2017 and implementation of GST before September 2017, Indian Budget 2017-18 is being announced on 1st February 2017.

As Service Tax is being  transitioned to GST this year,  major changes is expected  in  Indian Budget 2017-18.  The service tax rate changes for Sale of space under Indian Budget 2017-18 is being updated below soon after announcement of Budget on 1st February, 2017. The government notification extract also is being updated in pdf format once after release from the authorities.

Click here to read government notification on changes in Service Tax tariff rate under Indian Budget 2017-18 

 

Customs duty tariff rate changes as per Indian Budget 2017-18

Central Excise Duty changes as per Indian Budget 2017-18

Service Tax rate Changes under Indian Budget 2017-18

 

SERVICE TAX

 

 

S.

No.

Changes

Existing

Proposed

A.

Relief to the armed forces of the Union from service tax

 

1.

Services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force under the Group Insurance Schemes of the Central Government is being exempted from service tax from 10th September, 2004 (the date when the services of life insurance became taxable).

14%

Nil

B.

Dispute resolution, certainty of taxation  and avoidance of  litigation

 

1.

Notification No. 41/2016-ST dated 22.09.2016, which has exempted from service tax, one time upfront amount (called as premium, salami, cost, price, development charges or by whatever name) payable for grant of long-term lease of industrial plots (30 years or more) by State Government industrial development corporations/undertakings to industrial units, is proposed to be made effective from 1.6.2007 (the date when the services of renting of immovable property became taxable).

14%

Nil

 

2.

Rule 2A of the Service Tax (Determination of Value) Rules, 2006 is proposed to be amended from 01.07.2010 so as to make it clear that value of service portion in execution of works contract involving transfer of goods and land or undivided share of land, as the case may be, shall not include value of property in such land or undivided share of land.

4.2%

4.2%

C.

Promotion of Regional Connectivity  Scheme of Ministry of Civil Aviation

 

1.

Under the Regional Connectivity Scheme (RCS), exemption from service tax is being provided in respect of the amount of viability gap funding (VGF) payable to the airline operator for providing the services of transport of passengers by air, embarking from or terminating in a Regional Connectivity Scheme (RCS) airport, for a period of one year from the date of commencement of operations of the Regional Connectivity Scheme (RCS) airport as notified by Ministry of Civil Aviation.

14%

Nil

D.

Rationalization Measures

 

1.

The exemption in respect of services provided by Indian Institutes of Management (IIMs) by way of two year full time residential Post Graduate Programmes (PGP) in Management for the Post Graduate Diploma in Management (PGDM), to which admissions are made on the basis of the Common Admission Test (CAT), conducted by IIMs, is being extended to include non-residential programmes.

14%

Nil

 

2.

Explanation-I (e) to Rule 6 of CENVAT Credit Rules, 2004 is being amended so as to exclude banks and financial institutions including non-banking financial companies engaged in providing services by way of extending deposits, loans or advances from its ambit.

 

3.

The Negative List entry in respect  of “services by way of carrying out any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption”, in the Finance Act, 1994, is proposed to be omitted and instead placed in the exemption notification. Consequently, clause (40) of section 65B of the Finance Act, which defines ‘process amounting to manufacture’ is also proposed to be omitted and instead placed in the exemption notification.

Nil

Nil

AMENDMENT IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

S.

No.

Amendment

A.

Amendments not affecting rates of duty

  1.  

The following amendments are being carried out to:

(i)          Delete tariff items 1302 32 10 and 1302 32 20 and entries relating thereto and create new tariff items 1106 10 10 and 1106 10 90, in relation to Guar meal and its products so as to harmonize the Customs Tariff with HS Nomenclature.

(ii)        Create new tariff item 1511 90 30 for Refined bleached deodorized palm stearin, so as to harmonize Customs Tariff in accordance with WCO classification decision.

(iii)      Substitute tariff items 3823 11 11 to 3823 11 90 and entries relating thereto with tariff item 3823 11 00.

(iv)      Substitute tariff items 3904 10 10 to 3904 22 90 with tariff items 3904 10 10 to 3904 22 00 in relation to the PVC Resin.

  1.  

Chapter Note (4) of Chapter 98 is being amended so as to remove the non-applicability of headings 9803 and 9804 to goods imported through courier service. Also, heading 9804 is being amended so as to extend the classification of personal imports by courier, sea, or land under this heading.

 

 

 

Sale of space fall under SAC  00440354

The Law about Service Tax for  Sale of space explains:

 

B. Definition and scope of service:

 

"Advertisement" includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas.

 

(Section 65(2) of Finance Act, 1994 as amended)

 

 "Sale of space or time for advertisement" for the purpose of section 65(105) (zzzm), includes,-

 

(i) providing space or time, as the case may be, for display, advertising, showcasing of any product or service in video programmes, television programmes or motion pictures or music albums, or on bill-boards, public places, buildings, conveyances, cell phones, automated teller machines, internet;

 

(ii) selling of time slots on radio or television by a person, other than a broadcasting agency or organization; and

 

(iii) aerial advertising

 

(Section 65(105)(zzzm) of Finance Act, 1994 as amended)

 

 "Print media" for the purpose of section 65 (105) (zzzm), means,-

 

    (i)         "newspaper" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867)

 

    (ii)        "book" as defined in sub section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867) but does not include business directories, yellow pages, and trade catalogues which are primarily meant for commercial purposes.

 

(Section 65(105)(zzzm) of Finance Act, 1994 as amended)

 

"Taxable service" means any service provided or to be provided to any person, by any other person, in relation to sale of space or time for advertisement, in any manner; but does not include sale of space for advertisement in print media and sale of time slots by a broadcasting agency or organization.

 

Explanation 1.- For the purpose of this sub-clause, "sale of space or time for advertisement" includes, -

 

(i) providing space or time, as the case may be, for display, advertising, showcasing of any product or service in video programmes, television programmes or motion pictures or music albums, or on bill boards, public places, buildings, conveyances, cell phones, automated teller machines, internet;

 

(ii) selling of time slots on radio or television by a person, other than a broadcasting agency or organization; and

 

(iii) aerial advertising

 

Explanation 2.- For the purposes of this sub-clause, "print media" means,-

 

(i) "newspaper" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867);

 

(ii) "book" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 0f 1867), but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes.

 

 

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What is the service tax rate for Sale of space as per Budget

 

ST tarriff rate changes for  Sale of space under SAC   00440354

 

Budget 2017-18, Service Tax to be paid for  Sale of space

 

Sale of space, Service Tax tariff rate changes  in Budget, SAC  00440354


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