Circular No.ES/ 271/2016-17 January 13, 2017
To: Members of the Council
Sub: Seeks to amend Service Tax Rules, 1994 so as to, (i) exclude such persons from the definition of aggregator who enable a potential customer to connect with persons providing services by way of renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes subject to fulfillment of certain conditions; (ii) Specify the person complying with the sections 29, 30 or 38 read with section 148 of the Customs Act, 1962 (52 of 1962) as the person liable for paying service tax in case of 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.
Dear Member,
This is to inform you that CBEC has issued Notification No. 02/2017- Service Tax dated 12.01.2017 by amending the Service Tax Rules, 1994. These rules may be called the Service Tax (Amendment) Rules, 2017 and shall be effective from 22.01.2017.
.In the Service Tax Rules, 1994, in rule 2, in sub-rule (1),
i) in clause (aa), a proviso is inserted, which is given in the above Notification.
(ii) in clause (d), in sub-clause(i), after item (EEB), the following item shall be inserted, namely:-
“(EEC) in relation to 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, the person in India who complies with sections 29, 30 or 38 read with section 148 of the Customs Act, 1962 (52 of 1962) with respect to such goods;”.
Members are requested to make note of the above changes.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
