Service Tax

Four new taxable services have been added:
Cosmetic Surgery or Plastic Surgery
Transport of Coastal Goods; and Goods transported through Inland water.
Legal Consultancy Service
Transport of Goods through Rail
Following services to be exempt from services tax
The inter-bank transactions of purchase or sale of foreign currency, when undertaken by scheduled banks
Service provided by tour operator undertaking point-to-point transportation of passengers in a vehicle bearing contract carriage permit.
Export Promotion Council and the Federation of Indian Export Organisation on membership and fees collected by them till 31st march 2010.
The following two services have been exempted, if they are used for export of goods and where the liability to pay the tax on such services is on the exporter himself, on reverse charge basis
Transport of goods by road, from the place of removal to any ICD, CFS, port or airport; or from any CFS or ICD to the port or airport; and
Services provided by a foreign commission agent for procuring orders.
Services provided by sub- brokers excluded from the purview of service tax.
Rate of service tax for provider of taxable as well as exempt services not maintaining separate books of accounts, reduced from 8% to 6%.

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