In addition to the present levy of 2% Education Cess, Secondary and Higher Education Cess on taxable services at the rate of one per cent., calculated on the tax which is levied and collected under section 66 of the Finance Act, 1994.

NEW SERVICES

  Telecommunication services. Definition of Leased Circuit, subscriber in relation to telephone connection and pager, communication through telegraph, communication through telex and facsimile (FAX) communication and definition of taxable service in relation to these services omitted consequent to inclusion under Telecommunication services

  Service in relation to mining of mineral, oil or gas

  Service in relation to renting of immovable property for use in the course or furtherance of business or commerce

  Service in relation to the execution of a works contract. Assesses can opt to pay at 2% on total contract value

  Development and supply of content or retrieval services

  Asset management service

  Design services

SCOPE OF TAXABLE SERVICES WIDENED

  Banking and Other Financial Services – The expression ", but does not include cash management" omitted from sub clause (v) relating to Asset Management

  Maintenance or Repair - Explanation inserted to clarify that that for the purposes of this clause, "goods" includes computer software;

  Management or Business Consultant – Service renamed to include business consulting

  Mandap Keeper - Explanation inserted to include marriages under social functions

  Pandal or Shamiana - Explanation inserted to include marriages under social functions

EXEMPTIONS

  Club or Association Services - Exemption to taxable services, provided by a resident welfare association where the total consideration received from an individual member does not exceed three thousand rupees per month.

   Exemption to service in relation to delivery of the content of a cinematograph film, content of which is in digitised form and is transmitted directly to a cinema theatre for exhibition through the use of satellite, microwave or terrestrial communication line and not by any physical means including CD and DVD

  Exemption to service provided by a Clinical Research Organization approved to conduct clinical trials by the Drugs Controller General of India, in relation to testing and analysis of newly developed drugs, including vaccines and herbal remedies, on human participants so as to ascertain the safety and efficacy of such drugs on human participants.

  Exemption to taxable services provided by an entrepreneur located within the premises of a Technology Business Incubator (TBI) or Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology Government of India subject to the conditions specified.

  Exemption to all taxable services, provided by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology, Government of India, subject to conditions specified.

  Export of Services Rules, 2005 Rule 3(2) – conditions for treating a service provided as export of service - Sub rule substituted. ( substantial amendment is in sub clause (a) which reads as "such service is provided from India and used outside India" for "such service is delivered outside India and used outside India")

PAYMENT OF TAX

  Adjustment in subsequent period of Excess of Payment of Service Tax subject to conditions

FILING OF REVISED RETURNS

  An assessee may file revised return within 60 days of filing of original return

DELAYED RETURNS ATTRACT LATE FILING FEE

  Returns filed beyond the due date to attract late not exceeding Rs.2000/-

OTHER AMENDMENTS

  Section 83 - Application of Certain Provisions Central Excise Act – Provisions of Section 14AA - Special audit in cases where credit of duty availed or utilised is not within the normal limits, etc. and "38A - Effect of amendments, etc., of rules, notifications or orders." , made applicable to service tax.

  Section 96-A - Advance Rulings – Definitions – Explanation inserted defining "Joint Venture"