Circular No.ES/ 270/2016-17 January 13, 2017
To: Members of the Council
Sub: Seeks to amend notification No. 25/2012-ST dated 20.06.2012 so as to (i) withdraw the exemption from service tax for services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India; (ii) exempt services provided by a business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch.
Dear Member,
This is to inform you that CBEC has issued Notification No. 01/2017- Service Tax dated 12.01.2017 by making amendments in the Notification No. 25/2012- Service Tax dated 20.06.2012 on the above subject.
In the said notification, in the opening paragraph,-
(i) in entry 29, for item (g), the following item shall be substituted, namely:- “(g) business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch.”
(ii) in entry 34, for the proviso, the following proviso shall be substituted with effect from 22nd day of January, 2017, namely,-
“Provided that the exemption shall not apply to – (i) online information and database access or retrieval services received by persons specified in clause (a); or (ii) services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India;”.
Members are requested to make note of the above changes.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
