Amendment in Service Tax w.e.f. 1st May'2011

Recently CBEC issued number of Notifications to amend various provisions. Gist of the Amendment is given below:

1. All the changes in old services and new services will become applicable from 1st May 2011. (Notification No 29/2011)

2. Fresh Exemption is provided to (Notification No 33/2011)

1. any preschool coaching and training;

2. any coaching or training leading to grant of a certificate or diploma or degree or any educational qualification which is recognized by any law for the time being in force;
   
   When provided by any commercial coaching or training centre from the whole of the service tax leviable thereon under section 66 of the Finance Act, 1994.

3. For Hotel Industry exemption reinforced by (Notification No 31/2011) When the declared tariff for providing of such accommodation is less than rupees 1000 per day from the whole of the service tax leviable thereon under section 66 of the said Act.
   
   Explanation:- For the purpose of this notification, “declared tariff” includes charges for all amenities provided in the unit of accommodation like furniture, air-conditioner, refrigerators etc., but does not include any discount offered on the published charges for such unit.
    

4. Provided Special Exemption to Hospital/Nursing Home rendering services under Section 65(105) (zzzzo) i.e. by any hospital, nursing home or multi-specialty clinic,—

1. to an employee of any business entity, in relation to health check-up or preventive care, where the payment for such check-up or preventive care is made by such business entity directly to such hospital, nursing home or multi-specialty clinic; or

2. to a person covered by health insurance scheme, for any health check-up or treatment, where the payment for such health check-up or treatment is made by the insurance company directly to such hospital, nursing home or multi-specialty clinic.(Notification No 30/2011)

5. Representational Services by CA/CWA/CS become Taxable (notification no 32/2011): CBEC rescinds the notification No.25/2006-Service Tax, dated the 13th July, 2006, which provide special exemption to CA/CWA/CS for representational services.

1. Old Notification 25/2006 Gist is as follows:

1. the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services falling under sub-clauses (s), (t) and (u) of clause (105) of section 65 of the Finance Act, provided or to be provided by a practicing chartered accountant, a practicing cost accountant and a practicing company secretary respectively, in his professional capacity, to a client, relating to representing the client before any statutory authority in the course of proceedings initiated under any law for the time being in force, by way of issue of notice, from the whole of service tax leviable thereon under section 66 of the said Finance Act