Declared Services except Work contract and Construction service

1. Declared
Service
Immovable
Property
IPR
Construction
IT S/W
Not to do
T/f of
goods
Delivery
of Goods
Supply of
Food
Works
Contract
Radio
frequency
spectrum

2. Vacant Land for agricultural purpose
Residential dwelling for residential purpose
By RBI
By Govt./LA to Non-Business Entity
Precincts of Specified Religious Places for General Public
Hotel/Inn/Club/Guest house/others commercial places
for lodging/residence purpose + Declared tariff
<1000/day or equivalent
Proportionate part of Property Tax can claimed as
exemption from gross Rental Income from such
property
If failed to claim, then claim within 1yr from the date of
payment of tax + intimate to superintendent of CE
within 15days of such adjustment.
Hotel/Inn/Club/Guest house/others commercial places
for lodging/residence purpose + Declared tariff
≥1000/day or equivalent
Then 40% of value of taxable service is Exempt
But CENVAT Credit = Only Input Service
1. Renting of
Immovable Property
MEN :Negative List :
Abatement :

3. 2. Temporary t/f for use of IPR
MEN: Section 13 of Copy Right Act Remarks
(a) Original Literacy, dramatic, Musical & Artistic Works MEN
(b) Cinematograph Films MEN
(c) Sound Recording Pay ST
Must Exhibit
in cinema
hall/theatre
Intellectual Property Right includes
Copyright
Patents
Trademarks
Designs
Similar right in Intangible Property
If Permanent T/f ,it amounts to sales and NO ST
POT is as per Rule 8 of POT rules, 2011
See MEN: Exhibition of movie in next Slide

4. Film distribution &
exhibition
Operating on Principle to
Principle Basis
(No JV/PF)
Exhibited on his own by
Exhibitor
Amounts to Temporary
t/f of copyright. Hence
Exempt from ST (MEN).
Exhibited on behalf of
distributor by Exhibitor
Amounts to Renting of
immovable property
service and is liable to ST
Under Unincorporated
PF or Collaboration
(JV/PF)
Service provided by each (JV/PF,
distributor, exhibitor) is liable to
ST @ applicable head of service.
But if exhibitor exhibits movies
as its member to AOP or to
distributor is Exempt from ST
(MEN).

5. 3. EXECUTION OF WORK CONTRACT
Ref: Work Contract PPT

6. 4. CONSTRUCTION WORK
Ref: Construction work PPT

7. 5. Service Portion as a part of activity where goods (Food, drinks etc. for human consumption) is supplied
Restaurant Services Outdoor Catering Service
Without A/C or central heating
system in any part of Est. at any
point of time during the year
With A/C or central heating system
in canteen of a Factory
Catering including Mid day meals scheme
to Educational Inst. Sponsored by Govt.
Ref. Deemed sale {article 366(29A)}
MEN:
MEN:
In case of AC + Non AC in
same complex + Common
kitchen, then Non-AC is
Exempt only when it is
clearly demarcated +
separately named.
RULE 2C of Valuation Rules
A Gross Amount Charged XXX
+ FMV of Goods Supplied (as per GAAP) X
- Amount Charged for goods supplied to SP (X)
- VAT/ others levied, if any (X)
- Goods sold @ MRP as part of bill/invoice (X)
B Total Amount Charged XX
S. No Service % on Tot amt. Chg.
1 Restaurant Service 40%
2 Outdoor Catering 60%
3 Supply of food + Renting of Premises 70%

8. It is a representation of instructions, data, sound/image,
includes Source code + Object code ,
Recorded in Machine readable form ,
Capable to interact with user by means of computer or
other automatic processing machines
Development, Design, Programming, Customization,
Adaptation, Upgradation, enhancement,
implementation of
IT Software Service
Pre-packed or Canned Software is not liable to ST
IT software on with Excise duty is levied are exempted
Software given on hire is liable to ST
License to use prepacked software is liable to ST
Onsite development of software is liable to ST
Customized development of software is liable to ST
Advice/assistance/consultancy on matters relating to IT
is liable to ST
6. Information
Technology
software Service

9. 7. Delivery of Goods by Hire-Purchase or any system of payment by instalment
Delivery is not covered as it is
deemed sales {Article 366(29A)}.
Only activity related to such
delivery is covered here
Must have option to purchase the
Goods on payment of Last
Instalment (as per terms of
agreement)
Generally operating lease do not
fall here, but if we point out ant t/f
of right to use the goods then it
amounts to deemed sale
Finance Lease & Capital Lease
amounts to deemed sales.
Must be nature of financing and
Lessee pays maintenance + tax &
has option to purchase the goods
Abatement of 90% is available.
i.e. 90% interest is exempt

10. Goods available for delivery
Consensus ad idem as to identity of goods
T/f of possession & effective control
Transferee has legal right to use such goods
Right transferred to one cannot be again transferred to
another person by the owner during that period
Hiring Car with driver (Chgs. are monthly/mileage)
Supply trucks etc. to project and is returned after
specified time
Pandal/Shamiana Contract
Bank Lockers hiring
Hiring of Motor Vehicle
Motor Vehicle >12 Passengers TO State Trans. Corp.
A means of Transp. Of Goods TO GTA
Renting of Motor Cab {Abatement = 60%}
Only below mentioned input service is eligible for credit
1
Refer:
Rule-9 POPS of POPS Rules, 2012
PRCM of Renting of motor vehicle
8. T/f of goods by Hiring,
Leasing, any manner without
T/f of right to use such Goods
Input SP paid CENVAT Credit available
On Full Value 40% of CENVAT Credit
On 40% Value Full CENVAT Credit
For the purpose of abatement consideration should
include FMV (as per GAAP) cost goods (Fuel also) and
service supplied by recipient of service
MEN:

11. To refrain/tolerate/do an act
• Examples :
• Demurrage Charges
• Advance forfeited on cancellation of Agreement
• Late delivery Charges
• Non-Compete Fee
• Forfeiture of security charges (not due to
unforeseen actions or accidental damages
• MEN :
• Fines or Liquidated damages paid to Govt./local
authority for tolerating non-performance of
contract.
Assignment by Govt. of right to use radio-frequency
spectrum and its subsequent transfer
{ w.e.f FY 2016-17 }
• Up FY 2015-16 it is covered under MEN