Circular No.ES/168 /2016-17 November 11, 2016
To: Members of the Council
Sub: Service Tax Notifications
Dear Sir,
We wish to inform you that CBEC has issued following Service Tax Notifications :
(a) CBEC amends Rules relating to Place of Provision of ‘online information and database access or retrieval services
CBEC has issued Notification No. 46/2016-Service Tax dated 9th November, 2016, i.e. Place of Provision of Services (Amendment) Rules 2016, applicable w.e.f. 1st December, 2016. This amendment has been made by the CBEC to amend the place of provision of ‘online information and database access or retrieval services’.
(b) Service Tax Exemption withdrawn by CBEC for Services by a person in Non-taxable Territory
CBEC has issued Notification No. 47/2016 Service Tax dated 9th November, 2016, which seeks to amend Notification No. 25/2012-ST dated 20th June, 2016. CBEC withdraws Service Tax Exemption for services provided by a person in non-taxable territory to Government/ Local Authority or an individual for purpose other than commerce, industry or any other business or profession, located in taxable territory.
(c) CBEC Notification on Taxability of Services provided to ‘non-assessee online recipient’
CBEC Notification No. 48/2016 Service Tax dated 9th November, 2016, which seeks to amend Service Tax Rules, 1994. CBEC has amended the Service Tax Rules so as to prescribe that the person located in non-taxable territory providing online information and database access or retrieval services to ‘non-assessee online recipient’ is liable to pay service tax and the procedure for payment of service tax.
(d) Service Tax Compliance Liability on Service Provider in Non-taxable Territory: CBEC
CBEC has issued Notification No. 49/2016-Service Tax dated 9th November, 2016 applicable w.e.f. 1st December, 2016, which seeks to amend notification No. 30/2012- ST dated 20 June, 2016. This amendment has been made by the CBEC to put compliance liability of service tax payment and procedure on to the service provider located in the non-taxable territory with respect to online information and database access or retrieval services provided in the taxable territory to ‘non-assessee online recipient’.
Members may make a note of the above.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
