SERVICE TAX ACT Chapter V of the Finance Act, 1994 …

1 1 SERVICE TAXACTC hapter Vof theFinanceAct, 1994 [As on 1-4-2017] ,commencementandapplication-.(1)ThisChap terextendstothe wholeofIndiaexcepttheStateofJammuandKash mir.(2)It shallcomeintoforceonsuchdateastheCentral Governmentmay,bynotificationintheOfficia lGazette,appoint.(3)It **[ **]SECTION[ InthisChapter,unlessthecontextotherwiser equires, (1) Actionableclaim shallhavethemeaningassignedtoitinsection 3oftheTransferofPropertyAct,1882(4of1882 );(2) Advertisement meansanyformofpresentationforpromotionof ,orbringingawarenessabout,anyevent,idea, immovableproperty,person, SERVICE ,goodsor actionableclaimthroughnewspaper,televisi on,radiooranyothermeansbutdoesnotinclude anypresentationmadeinperson;(3) Agriculture meansthecultivationofplantsandrearingofa lllife-formsofanimals,excepttherearingof horses,forfood,fibre,fuel,rawmaterialoro thersimilar products.]

2 (4) Agriculturalextension meansapplicationofscientificresearchandk nowledgetoagriculturalpracticesthroughfa rmereducationortraining;(5) Agriculturalproduce meansanyproduceofagricultureonwhicheithe rnofurtherprocessingisdoneorsuchprocessi ngisdoneasisusuallydonebyacultivatororpr oducerwhichdoesnotalteritsessentialchara cteristicsbutmakesitmarketableforprimary market;2(6) AgriculturalProduceMarketingCommitteeorB oard meansanycommitteeorboardconstitutedunder aStatelawforthetimebeinginforceforthepur poseofregulatingthemarketingofagricultur alproduce;(7) Aircraft hasthemeaningassignedtoitinclause(1)ofse ction2oftheAircraftAct,1934(22of1934);(8 ) Airport hasthemeaningassignedtoitinclause(b)ofse ction2oftheAirportsAuthorityofIndiaAct,1 994(55of1994.)

3 ;(9)[**](10) AppellateTribunal meanstheCustoms,ExciseandServiceTax AppellateTribunalconstitutedundersection 129oftheCustomsAct,1962(52of1962);(11)[* *](12) Assessee meansapersonliabletopaytaxandincludeshis agent;(13) Associatedenterprise shallhavethemeaningassignedtoitinsection 92 AoftheIncome-taxAct,1961(43of1961);(14) Authoriseddealerofforeignexchange shallhavethemeaningassignedto Authorisedperson inclause(c)ofsection2oftheForeignExchang eManagementAct,1999(42of1999);(15) Bettingorgambling meansputtingonstakesomethingofvalue,part icularlymoney,withconsciousnessofriskand hopeof gainontheoutcomeofagameoracontest,whoser esultmaybedeterminedbychanceoraccident,o ronthelikelihoodofanythingoccurringornot occurring;(16) Board meanstheCentralBoardofExciseandCustomsco nstitutedundertheCentralBoardsofRevenueA ct,1963(54of1963);(17) Businessentity meansanypersonordinarilycarryingoutanyac tivityrelatingtoindustry,commerceoranyot herbusinessorprofession;(18) CentralElectricityAuthority meanstheauthorityconstitutedundersection 3oftheElectricity(Supply)Act,1948(54of19 48).

4 (19) CentralTransmissionUtility shallhavethemeaningassignedtoitinclause( 10)ofsection2oftheElectricityAct,2003(36 of2003);(20) courieragency meansanypersonengagedinthedoor-to-doortr ansportationoftime-sensitivedocuments,go odsorarticlesutilisingtheservicesofapers on,eitherdirectlyorindirectly,tocarryora ccompanysuch documents,goodsorarticles;(21) Customsstation shallhavethemeaningassignedtoitinclause( 13)ofsection2oftheCustomsAct,1962(52of19 62);(22) Declaredservice meansanyactivitycarriedoutbyapersonforan otherpersonforconsiderationanddeclaredas suchundersection66E;(23) Electricitytransmissionordistributionuti lity meanstheCentralElectricityAuthority;aSta teElectricityBoard;theCentralTransmissio nUtilityor aStateTransmissionUtilitynotifiedunderth eElectricityAct,2003(36of2003);oradistri butionortransmissionlicenseeunderthesaid Act,oranyotherentityentrusted3withsuchfu nctionbytheCentralGovernmentor,asthecase maybe,theStateGovernment;(23A) foremanofchitfund shallhavethesamemeaningasisassignedtothe term foreman inclause(j)ofsection2oftheChitFundsAct,1 982(40of1982);(24)[**](25) goods meanseverykindofmovablepropertyotherthan actionableclaimandmoney;andincludessecur ities,growingcrops,grass,andthingsattach edtoorformingpartoftheland whichareagreedtobeseveredbeforesaleorund erthecontractofsale.

5 (26) goodstransportagency meansanypersonwhoprovidesserviceinrelati ontotransport ofgoodsbyroadandissuesconsignmentnote,by whatevernamecalled;(26A) Government meanstheDepartmentsoftheCentralGovernmen t,aStateGovernmentanditsDepartmentsandaU nionterritoryanditsDepartments,butshalln otincludeanyentity, whethercreatedbyastatuteorotherwise,thea ccountsofwhicharenotrequiredtobekeptinac cordancewitharticle150oftheConstitutiono rtherulesmadethereunder; (27) India means, (a)theterritoryoftheUnionasreferredtoinc lauses(2)and(3)ofarticle1oftheConstituti on;(b)itsterritorialwaters,continentalsh elf,exclusiveeconomiczoneoranyothermarit imezoneasdefinedintheTerritorialWaters,C ontinentalShelf,ExclusiveEconomicZoneand otherMaritimeZonesAct,1976(80of1976);(c) theseabedandthesubjectunderlyingtheterri torialwaters;(d)theairspaceaboveitsterri toryandterritorialwaters;and(e)theinstal lations,structuresandvesselslocatedinthe continentalshelfofIndiaandtheexclusiveec onomiczoneofIndia,forthepurposesofprospe ctingorextractionorproductionofmineraloi landnatural gasandsupplythereof.

6 (28) informationtechnologysoftware meansanyrepresentationofinstructions,dat a,soundorimage,includingsourcecodeandobj ectcode,recordedinamachinereadableform,a ndcapableofbeingmanipulatedorprovidingin teractivitytoauser,bymeansofacomputerora nautomaticdataprocessingmachineoranyothe rdeviceorequipment;(29) inlandwaterway meansnationalwaterwaysasdefinedinclause( h)ofsection2oftheInlandWaterwaysAuthorit yofIndiaAct,1985(82of1985)orotherwaterwa yonanyinland water,asdefinedinclause(b)ofsection2ofth eInlandVesselsAct,1917(1of1917);4(30) interest meansinterestpayableinanymannerinrespect ofanymoneysborrowedordebtincurred(includ ingadeposit,claimorothersimilarrightorob ligation)butdoesnotincludeanyservicefeeo rotherchargeinrespectofthemoneysborrowed ordebtincurredorinrespectofanycreditfaci litywhichhasnotbeenutilized;(31) localauthority means (a)aPanchayatasreferredtoin clause(d) of article 243 oftheConstitution;(b)a Municipalityasreferredtoin clause(e) of article 243 PoftheConstitution;(c)a MunicipalCommittee and aDistrictBoard,legallyentitledto, or entrusted bytheGovernmentwith,the controlormanagementof amunicipalorlocalfund;(d)aCantonmentBoar d asdefinedin section 3 oftheCantonmentsAct, 2006(41of 2006).

7 (e)aregionalcouncilor a districtcouncilconstituted underthe Sixth ScheduletotheConstitution;(f)a developmentboard constituted underarticle 371 oftheConstitution;or(g)aregionalcouncilc onstituted under article 371 AoftheConstitution;(31A)- lotterydistributororsellingagent meansapersonappointedorauthorizedbyaStat eforthepurposesofpromoting,marketing,sel lingorfacilitatinginorganizinglotteryofa nykind,inanymanner,organizedbysuchStatei naccordancewiththeprovisionsoftheLotteri es(Regulation)Act,1998(17of1998);(32) meteredcab meansanycontractcarriageonwhichanautomat icdevice,ofthetypeandmakeapprovedunderth erelevantrulesbytheStateTransportAuthori ty,isfittedwhichindicatesreadingofthefar echargeableatanymomentandthatischargedac cordinglyundertheconditionsofitspermitis suedundertheMotorVehiclesAct,1988(59of19 88)andtherulesmadethereunder[butdoesnoti ncluderadiotaxi];(33) money meanslegaltender,cheque,promissorynote,b ill ofexchange,letterofcredit, draft,payorder,travelercheque,moneyorder ,postalorelectronicremittanceoranysuchsi milarinstrumentbutshallnotincludeanycurr encythatisheldforitsnumismaticvalue;(34) negativelist meanstheserviceswhicharelistedinsection6 6D.

8 (35) non-taxableterritory meanstheterritorywhichisoutsidethetaxabl eterritory;(36) notification meansnotificationpublishedintheOfficialG azetteandtheexpressions notify and notified shallbeconstruedaccordingly;(37) person includes, (i)anindividual,(ii)aHinduUndividedFamil y,5(iii)a company,(iv)a society,(v)Alimitedliabilitypartnership, (vi)afirm,(vii)an association of persons orbodyofindividuals,whetherincorporated ornot,(viii)Government,(ix)alocalauthori ty, or(x)everyartificialjuridicalperson, notfallingwithin anyofthe precedingsub-clauses;(38) port hasthemeaningassignedtoitinclause(q)ofse ction2oftheMajorPortTrustsAct,1963(38of1 963)orinclause4ofsection3oftheIndianPort sAct,1908(15of1908);(39) prescribed meansprescribedbyrulesmadeunderthisChapt er;(39a) printmedia means, (i) book asdefinedinsub-section(1)ofsection1ofthe PressandRegistrationofBooksAct,1867(25of 1867),butdoesnotincludebusinessdirectori es,yellowpagesandtradecatalogueswhichare primarilymeantforcommercialpurposes;(ii) newspaper asdefinedinsub-section(1)ofsection1ofthe PressandRegistrationofBooksAct,1867(25of 1867)(40) [**].

9 ;(41) renting meansallowing,permittingorgrantingaccess ,entry,occupation,useoranysuchfacility,w hollyorpartly,inanimmovableproperty,with orwithoutthetransferofpossessionorcontro lofthesaidimmovablepropertyandincludesle tting,leasing,licensingorothersimilararr angementsinrespect ofimmovableproperty;(42) ReserveBankofIndia meansthebankestablishedundersection3ofth eReserveBankofIndiaAct,1934(2of 1934);6(43) securities hasthemeaningassignedtoitinclause(h)ofse ction2oftheSecuritiesContract(Regulation )Act,1956(42of1956);(44) SERVICE meansanyactivitycarried outbyapersonforanotherforconsideration,a ndincludesadeclaredservice,butshallnotin clude (a)anactivitywhich constitutesmerely, (i)atransfer oftitlein goods orimmovable property,byway of sale, giftorin anyothermanner;or(ii)suchtransfer, deliveryor supplyof anygoodswhichis deemedto be a salewithinthemeaning of clause(29A) of article 366oftheConstitution;or(iii)atransaction inmoneyor actionable claim;(b)a provision of servicebyan employeetotheemployerinthe course of orinrelationtohis employment.

10 (c)feestakenin anyCourtortribunalestablishedunder anylawforthetime Fortheremovalof doubts,itis herebydeclaredthatnothing containedinthis clause shallapplyto, (A)thefunctions performedbythe Members ofParliament, Membersof StateLegislative,Members ofPanchayats, Members of Municipalities and Members of otherlocalauthoritieswhoreceive anyconsiderationin performingthefunctions ofthatoffice as suchmember;or(B)the duties performed byanypersonwho holdsanypostin pursuance ofthe provisions oftheConstitutioninthatcapacity;or(C)the duties performedbyanyperson as aChairperson or aMember or aDirectorin a bodyestablished bytheCentralGovernmentor StateGovernments orlocalauthorityandwhois notdeemed as anemployeebeforethecommencementofthissec tion.