Tuesday, March 8, 2011

Service Tax-Notification No. 2/2011 in Budget 2011-12

Notification No. 2/2011- Service Tax
 New Delhi, the 1 st March, 2011


G.S.R. (E) - In exercise of the powers conferred by clause (aa) of sub-section (2) of section 94  of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax (Determination of Value) Rules, 2006, namely :-

  1. (1) These rules may be called the Service Tax (Determination of Value) Amendment Rules,  2011.    (2) Save as otherwise provided under these rules, they shall come into force on the 1st day  of April, 2011
  2. In the Service Tax (Determination of Value) Rules, 2006(hereinafter referred to as the said rules),-
                   after rule 2A, the following shall be inserted, namely :-
“2B. Determination of value of service in relation to money changing.- Subject to the provisions of  section 67, the value of taxable service provided for the services referred to in sub-clause (zm) and (zzk) of clause (105) of section 65 of the Act, so far as it pertains to purchase or sale of foreign currency, including money changing, shall be determined by the service provider in the following manner:- 

                For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the difference in the buying rate or the selling rate, as the case may be, and the Reserve Bank of India (RBI) reference rate for that currency for that day, multiplied by the total units of currency.

Example I:               US$100 are sold by a customer at the rate of Rupees 45 per US$. 
                               RBI reference rate for US$ is Rupees 45.50 for that day.
                               The taxable value shall be Rupees 500.
Example II:            INR70000 is changed into Great Britain Pound (GBP) and the
                             exchange rate offered is Rupees 70, thereby giving GBP 1000.
                             RBI reference rate for that day for GBP is Rupees 69.
                             The taxable value shall be Rupees 1000.

                     Provided that in case where the RBI reference rate for a currency is not available, the value shall be 1% of the gross amount of Indian Rupees provided or received, by the person changing the money:

                    Provided further that in case where neither of the currencies exchanged is Indian Rupee, the value shall be equal to 1% of the lesser of the two amounts the person changing the money would have received by converting any of the two currencies into Indian Rupee on that day at the reference rate provided by RBI;”

       3. In the said rules, in rule 5, after sub-rule (1), the following „Explanation‟ shall be inserted, with effect from the 1st day of March, 2011namely:-

Explanation.- For the removal of doubts, it is hereby clarified that for the services specified in subclause (zzzx) of clause (105) of section 65 of the Finance Act, 1994, the value of the taxable service shall be the gross amount paid by the person to whom telecom service is provided by the telegraph authority.”

F.No. 334/3/2011-TRU

-sd-
(SAMAR NANDA)
Under Secretary to the government of India

Note.- The principal rules were notified vide notification no. 12/2006-Service Tax, dated the 19th April, 2006, published in the Gazette of India, Extraordinary vide number G.S.R. 228(E), dated the 19th April, 2006 and last amended vide notification No.15/2010-Service Tax, dated the 27th February, 2010, vide number G.S.R. 159(E), dated the 27 th February, 2010.

Intense Debate Comments

Labels

.csi file (5) "Y" Cancellation Statement (5) (TRPS) (2) 1% TCS on Cash Sale (1) 10(10D) (1) 10E form (1) 119(1) (1) 13 (1) 15G (8) 15H (8) 16A FROM FVU (25) 16A from TXT (3) 192 (1) 194 IA (1) 194A (1) 194C (4) 194H (1) 194I (1) 194J (2) 194LA (1) 194LC (1) 20% TDS (5) 2011 (1) 234A (1) 234E (2) 24Q4 (4) 26AS (21) 26Q4 (1) 27A form from FVU (5) 3CB (2) 3CD (1) 44AB (2) 44AD (1) 44AF (1) 49C (1) 7th pay commission (1) 80-IA (1) 80C (4) 80CCC (2) 80CCD (2) 80CCF (8) 80CCG (4) 80D (1) 80E (1) 80G (6) 80GG (2) 80QQB (1) 80TTA (2) 80U (1) 87A (1) 89(1) Relief (13) aadhaar (7) Aadhaar Form (3) Aadhaar Software (3) Accounting Standards (1) Accounts (1) add new challan (1) Advance Tax (29) Advance Tax Calculator (15) Age Calculator (3) AIR Codes (3) AMT (1) Application Form (2) APY (1) AS (1) ASBA (2) ATM Reconciliation (1) Authentication Code (1) B.Ed in Haryana (8) B.Ed Rohtak (2) Bank Charges (7) Banking Rates (19) Banks (17) Batch File (1) Belated Income Tax Return (4) Bills of Exchange (1) BOOKLET (1) Bootable USB (1) Broad Band (6) BSNL Forms (3) BSNL Free (4) BSNL Plan (4) BSNL usage (3) BSR Code (2) Budget (12) Budget 2012-13 (10) Budget 2013-14 (4) Budget 2014-15 (9) Budget 2016-17 (2) Bulk Pan Verification (1) Calculators (30) Calendar (3) Capital Gain (3) Central Excise (52) Challan Correction (4) Challan 280 (9) Challan 281 (8) Challan Status Query (1) Change of Deductor Category (1) Changes w.e.f. 01.06.2015 (1) Cheques (1) Children Education Allowance (1) Circulars (10) Cloud Printing (1) Clubbing of Income (1) Codes (7) Company (1) Complaint Form (1) Composition Scheme (1) Computer Repair (2) Consolidated File (9) Convert .docx to .doc (1) convert .rpt to .xls (1) Convert .xlsx to .xls (1) Corporate Salary Package (2) CPC (1) CPC Call Center (2) CPT (5) CTS-2010 (3) currency of 500 and 1000 (3) Customs (73) CWE (2) D.A. (6) Debit Card Scheme (1) Declared Goods (2) deduction from salary (3) Deductions (10) Default Status (8) Defaulter (3) Defective Return (1) Depreciation (3) Digital Signature (4) Direct Tax Codes (4) Diwali (1) DND (1) Dos to USB (Printing) (4) Download Exchange currency Form of old 500 or 1000 (1) Drop Box (1) DSC (1) DTO (1) due date (14) Due Dates (68) Duplicate Currency (1) Duplicate form 16 (3) e-Aadhaar (1) e-Electricity Bill (3) e-Excise (4) e-filing (66) e-Filing FAQ's (1) e-GRAS (1) e-Land Line Phone Bill (1) e-Payments (15) e-Post (1) e-Tax (1) e-TDS (20) e-Tutorial (1) e-Verification of Income Tax Returns (2) Electronic Signature (1) Emails (1) Employees Provident Fund (3) English Tenses (1) Enrollent Form (1) EPF (4) ETDS (14) Etds /Etcs (140) etds correction statement (86) etds\ (2) Excel (19) Excess TDS Deposit (3) Exchange of Currency (3) Excise Return (1) Excise Software (1) Exempted Income (10) Exempted Items from Vat (1) Exemption From Filling I-T Return (10) Extension in due Date (6) F.Y.2011-12 (1) FAQ (1) FAQ-Excise (1) Fast Calculation (3) Fat Calculator (1) FDR (4) Finance Bill (8) First Prize in Government Departments (1) Flag in TDS Retunr (1) Flood (1) Forget Password (11) FORM 15G (2) FORM 16 (1) Form 16 or Form 16A Directly from FVU files (22) Form 16A PDF Converter Utility (5) Form 16A PDF Generator (4) FORM 24G (1) Form 26AS (3) FORM 3CB (2) FORM 3CD (1) Form 49A (4) Form 49AA (2) Form B (1) form BB (1) forms (12) Free Calls from Mobile (2) Free Internet (1) Free of Cost Submission of TDS Returns (2) Free SMS (2) FVU 2.130 (1) FVU 2.131 (1) FVU 3.1 (1) FVU 3.3 (1) GAR7 Challan (1) Gas (6) Gift Tax (4) Google Drive (1) GPF (1) Gratuity Tax Exemption (2) Greeting (2) GST (22) GST Adjustment (1) GST Composition Scheme (1) GST Due Dates (1) GST Exemption (2) GST ITC Adjustment (1) GST Validation (1) GSTR-3B (1) H.U.F. (2) Handicapped/Blind Allowance (1) Happy Diwali (2) Happy New Year (2) Happy New Year 2014 (1) Haryana (1) Haryana Vat Forms (3) HDFC (1) Housing Property Loss (2) HRA (2) HSN CODES (1) HYUNDAI (1) IBPS (4) ICC World Cup 2011 (6) icicilombard (2) IFSC (1) IIT-JEE (1) Important Day's (1) Income Tax (29) Income Tax Calculator (30) income tax challans (1) Income Tax Forms (18) income Tax Return (1) Index Rate (1) Indian Currency Symbol (5) Indian Government (1) Infrastructure Bond (5) insurance (4) Interest on Loan for House Property u/s 24(b) (2) Interest on TDS (4) Interest Rates (10) intimation u/s 143(1) (1) Investment (1) IPCC (2) IPCE (1) IPL 2011 (1) IPL 2011 Schedule (2) ITR (72) ITR FORMS (3) ITR-4 (1) ITR-4S SUGAM (14) ITR-5 (1) ITR-7 (1) ITRV (4) Jain Temple (1) Jan Lokpal Bill (1) JOB (3) jobs (2) Justification Report (3) Know Name through Pan (5) Know Online EPF Balance (2) Know Your Age (1) Know Your Pan (3) Knowledge (7) KVP (2) KYC (4) Last Date (1) late filing of TDS return (1) Leave Travel Allowance (1) Legal Heir (1) LIC (3) Life Insurance Policy (1) Login at TRACES (1) Login Page for online upload TDS Return (4) Lokpal Bill (2) LPG (7) LTC (1) Mandatory (7) Manual (1) Master Card (1) mca (1) MEDICLAIM (1) Memorandum (2) MetLife (2) MICR Codes (6) Mobile (12) Mutual Funds (4) NEFT (1) Net Banking (3) new FORM 3CA (2) new form 3CB (2) new form 3CD (1) New Form ST3 (1) New Fvu (14) New Income Tax Slab (25) NEW ITR RPU (5) NEW ITR FORMS (7) New ITR-1 SAHAJ (20) NEW ORM 3CD (1) New Pension Scheme (3) New RPU (28) NEW RPU 2.4 (2) New RPU 2.8 (2) NEW RPU 4.4 (1) News (13) NIL TDS RETURN (2) Notification (46) NSDL (Form16A) (11) NSDL (RPU) (4) nsdl Conso. File (1) NSDL Form 16 (5) NSSF (2) OBC (1) OLTAS (1) Ombudsman (3) Online Facility (5) Online Income Tax Return (10) Online Pan (1) Online Rectification Request u/s 154 (11) Online submission of etds return (5) Outstanding Tax Demand (2) Pan (22) Pan % (1) Pan Error (1) PAN Ledger (3) Pan Verification (3) PAO (1) Passport (2) Password (2) Password Recovery (1) Pay Calculator (4) pay commission (1) Payroll (1) PDF Generator (4) PDF Software (2) Penalty (7) Perquisites (9) Petrol Rate (1) PF (2) PMJJBY (1) PMSBY (1) PNB (3) POS (1) Post Office Interest Calculators (13) PPF (9) Press Release (4) Quarter 2 TDS return (1) Railway (5) Railway Budget (3) rbi (2) RBI Circulars (5) Re-generation of Tax Receipt (1) Re-Registration of TAN (4) READY RECKONER (1) Rectification Manual (3) Rectification Order u/s 154 (2) Refund of Income Tax (13) Refund of TDS (3) Refund Reissue (2) Registration at TRACES (3) Registration e-TDS (2) Registration of TAN in e-filing site (1) Registration Procedure (2) Rejected eTDS/e-TCS (22) Renewal or Updation in Digital Signature for e-tds return (2) Resend Activation Link (1) Reset Password (1) Result (2) Revised ITR (4) Royalty (2) RPU (13) RPU 1.3 (1) RPU 2.6 (1) RPU 2.7 (2) RPU 2.9 (1) RPU 3.0 (1) RPU 3.1 (1) RPU 3.2 (1) RPU 3.3 (1) RPU 3.4 (1) RPU 3.5 (1) RPU 3.6 (1) RPU 3.7 (3) RPU 3.8 (1) RPU 3.9 (1) RPU 4 (1) RPU 4.1 (1) RPU 4.2 (1) RPU 4.3 (1) RTGS (1) RTI (1) RULES FOR ITR-1 (1) S.B.I. Software (4) Salary (18) Savings (7) SBI (37) Search GST Rates (5) Section (16) section 10 (2) Section 10(46) (2) section 197 (2) section 201 (1) Section 35CCD (1) Service Tax (111) Service Tax Codes (12) Shares (1) short payment (1) SMALL SAVING SCHEMES (11) Software (5) ST-3 (1) State Bank of Patiala (1) statement Status (1) Status (3) Status of KYC (1) STCG (1) STD Codes (1) Stock Valuation (1) Survey (1) T7Import (1) Tally (58) Tan (2) Tan Registration (32) Tariff (3) Tax Accounting Standards (1) TAX AUDIT (1) Tax Audit Limit (1) Tax Free Bonds (1) Tax Rate Flag (1) Tax Rates (3) Tax Return Preparer (1) TCS (1) TDS Calculator (3) Tds on Properties (1) TDS on Rent (2) TdS on Salary (5) TDs Rates (14) Toll Free Number (2) TRACES (11) Track (1) Trade Fair (1) Traffic Rules and Signals (3) TRAI (4) Transport Allowance (1) u/s 139(4) (3) u/s 143(1) (2) UIDAI (1) Unconsumed Challans (1) Union Budget (11) Upload (2) USB Bootable Creator Tool (1) value of Flag (2) Vat (4) Verify Pan Through PAN (1) View Tax Credit (12) Virtual Card (1) Visa (2) WEALTH TAX (1) WhatsApp (1) Windows (2) XBRL (1) Zero Uploading Fee (3)