[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance (Department of Revenue) New Delhi, the 3rd September, 2010 Notification No. 47/2010 - Service Tax G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of outdoor catering referred to in sub-clause (zzt) of clause (105) of section 65 of the Finance Act, if the same is provided by a Non Government Organisation registered under any Central Act or State Act, under the Centrally assisted Mid-Day Meal Scheme, from the whole of service tax leviable thereon under section 66 of the Finance Act. [F. No. 354/165/2010 -TRU] (K.S.V.V. Prasad) Under Secretary to the Government of India

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY , PART-II SECTION 3, SUB-SECTION (i)]   Government of India Ministry of Finance Department of Revenue (Central Board of Excise and Customs) ... New Delhi, the 3rd August, 2010 Notification No. 46/2010-Service Tax Sub: Amends Notification No.19/2007-Service Tax, dated 12th May, 2007 G.S.R. (E) - In exercise of the powers conferred by sub-section (1A) of section 86 of the Finance Act, 1994(32 of 1994), the Board hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance, Department of Revenue, No.19/2007-Service Tax, published vide number G.S.R. 354(E), dated the 12thy May, 2007, namely:- In the said notification, in the Table, for Sl.No. 35, and entries relating thereto the following shall be substituted, namely:- (1) (2) (3) “35 (A) For the jurisdiction of Commissioner of Service Tax-II, Mumbai 1) Commissioner of Service Tax-II, Mumbai 2) Commissioner of Service Tax-1, Mumbai (B) For the jurisdiction of Commissioner of Central Excise, Raigad 1)Commissioner of Central Excise, Raigad 2) Commissioner of Service Tax-II, Mumbai Commissioner of Central Excise (Appeal), Mumbai Zone-II”.   {F.No.275/100/2006-CX.8A} ( Mohan Lal ) Under Secretary to the Government of India   Note:-The principal notification number 19/2007-Service Tax, dated th 12th May, 2007 was published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) vide number G.S.R. 354 (E), dated the 12th May, 2007, and was subsequently amended by :- (i) Notification number 37/2007-Service Tax, dated the 24th July, 2007 vide number G.S.R.501(E), dated the 24th July, 2007 (ii) Notification number 44/2007-Service Tax, dated the 19th December, 2007 vide number G.S.R. 780(E), dated the 19th December, 2009. (iii) Notification number 47/2008-Service Tax, dated 18th January, 2008 vide number G.S.R.26(E), dated the 18th January, 2008, renumbered as 2/2008-Service Tax vide corrigendum dated 23rd January, 2008 vide G.S.R. No.50(E), dated the 23rd January, 2008. (iv) Notification No.26/2008-Service Tax, dated the 21st May, 2008 vide number G.S.R.394(E), dated the 21st May, 2008. (v) Notification number 3/2009-Service Tax, dated the 15th January, 2009 vide number G.S.R. 27(E), dated the 15th January, 2009. (vi) Notification Number 5/2009-Service Tax, dated the 15th January, 2009 vide Number G.S.R.29(E) dated the 15th January, 2009. (vii) Notification number 12/2009-Service Tax, dated the 21st April, 2009 vide number G.S.R.268(E), dated the 21st April, 2009. (viii) Notification number 14/2009-Service Tax, dated the 15th May, 2009 vide number G.S.R.331 (E), dated the 15th May, 2009. (ix) Notification number 19/2010 Service Tax, dated the 23rd March, 2010 vide number G.S.R. 205(E), dated the 23rd March, 2010.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance (Department of Revenue) *** New Delhi, the 20 July, 2010 Notification No. 45/ 2010-Service Tax Sub: Regarding levy of service tax on all taxable services relating to transmission and distribution of electricity G.S.R.    (E).- Whereas, the Central Government is satisfied that a practice was generally prevalent regarding levy of service tax (including non-levy thereof), under section 66 of the  Finance Act, 1994 (32 of 1994) (hereinafter referred to as ‘the Finance Act’), on all taxable services relating to transmission and distribution of electricity provided by a person (hereinafter called ‘the service provider’) to any other person (hereinafter called ‘the service receiver’), and that all such services were liable to service tax under the said Finance Act, which were not being levied according to the said practice during the period up to 26th day of February, 2010 for all taxable services relating to transmission of electricity, and the period up to 21st day of June, 2010 for all taxable services relating to distribution of electricity; Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the said Finance Act, the Central Government hereby directs that the service tax payable on said taxable services relating to transmission and distribution of electricity provided by the service provider to the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of the said taxable services relating to transmission and distribution of electricity during the aforesaid period. [F. No. 356/13/2010 – TRU ] (Prashant Kumar) Under Secretary to the Government of India

 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II SECTION 3 SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF EXCISE AND CUSTOMS) ***** New Delhi, the 20th July 2010 Notification No. 44/2010 – Service Tax Sub: Amends the Service Tax Return Preparer Scheme, 2009 G.S.R.610 (E).- In exercise of the powers conferred by sub-section (1) of section 71 of the Finance Act, 1994 (32 of 1994), the Central Board of Excise and Customs, makes the following amendment in the Service Tax Return Preparer Scheme, 2009, namely :- In the Service Tax Return Preparer Scheme, 2009, in paragraph 4,-- (a) proviso to sub-paragraph (1) shall be omitted; (b) sub-paragraph (2) shall be omitted. [F. No. 137/318/2007 – CX.4] (Madan Mohan) Under Secretary to Government of India Note - The principal scheme was published in the Gazette of India, vide Notification No. 7/2009 – Service Tax, dated the 3rd February, 2009, [G.S.R. 69 (E), dated the 3rd February, 2009].

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance Department of Revenue New Delhi, the 30th June, 2010 Notification No. 43/2010-Service Tax G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the Notification of the Government of India in the Ministry of Finance (Department of Revenue) No.13/2008-Service Tax dated 1st March, 2008 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 157 (E), dated the 1st March, 2008, namely:- In the said notification, the letters and brackets “(zzp)” shall be substituted with the letters and brackets “(zzp) or (zn) or (zzl) or (zzm)”. F. No. 334/03/2010-TRU (K.S.V.V. Prasad) Under Secretary to the Government of India Note.- The principal notification No.13/2008-Service Tax , dated the 1st March 2008, was published the Gazette of India, Extraordinary, vide number G.S.R.157(E), dated the 1st March, 2008.

Circular No. 128/10/2010-ST F.No.354/141/2010-TRU Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs (Tax Research Unit) ***** North Block, New Delhi, 24 thAugust, 2010. To Director General (Service Tax), Director General (Central Excise Intelligence) Director General (Audit) Chief Commissioner of Central Excise and Service Tax (All) Commissioner of Central Excise and Customs (All) Commissioner of Central Excise and Service Tax (All) Commissioner of Service Tax (All) Madam/Sir, Subject: Service tax on on-going works contracts entered into prior to 01.06.2007 – regarding – It has been brought to the notice of the Board that the following confusions/disputes prevail with respect to long term works contracts which were entered into prior to 01.06.2007 (when the taxable service, namely, Works contract came into effect) and were continued beyond that date: (i) While prior to the said date services like Construction; Erection, commissioning or installation; Repair services were classifiable under respective taxable services even if they were in the nature of works contract, whether the classification of these activities would undergo a change? (ii) Whether in such cases of continuing contracts, the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007 under Notification No. 32/2007-ST dated 22/05/2007 would be applicable? 2. The matter has been examined. As regards the classification, with effect from 01.06.2007 when the new service ‘Works Contract’ service was made effective, classification of aforesaid services would undergo a change in case of long term contracts even though part of the service was classified under the respective taxable service prior to 01.06.2007. This is because ‘works contract’ describes the nature of the activity more specifically and, therefore, as per the provisions of section 65A of the Finance Act, 1994, it would be the appropriate classification for the part of the service provided after that date. 3. As regards applicability of composition scheme, the material fact would be whether such a contract satisfies rule 3 (3) of the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007. This provision casts an obligation for exercising an option to choose the scheme prior to payment of service tax in respect of a particular works contract. Once such an option is made, it is applicable for the entire contract and cannot be altered. Therefore, in case a contract where the provision of service commenced prior to 01.06.2007 and any payment of service tax was made under the respective taxable service before 01.06.2007, the said condition under rule 3(3) was not satisfied and thus no portion of that contract would be eligible for composition scheme. On the other hand, even if the provision of service commenced before 01.06.2007 but no payment of service tax was made till the taxpayer opted for the composition scheme after its coming into effect from 01.06.2007, such contracts would be eligible for opting of the composition scheme. 4. The Board’s previous Circular No. 98/1/2008-ST dated 04.01.2008 and the ratio of judgement of the High Court of Andhra Pradesh in the matter of M/s. Nagarjuna Construction Company Limited vs. Government of India (2010 TIOL 403 HC AP ST = STO 2010 AP 299 ) are in line with the above interpretation. 5. Trade Notice/Public Notice may be issued accordingly. Yours faithfully, (J.M. Kennedy) Director (TRU)

Sub: Service tax on commercial training and coaching – clarification whether ‘donation' is ‘consideration' – regarding. A representation has been received seeking clarification whether donations and grants-in-aid received from different sources by a charitable Foundation imparting free livelihood training to the poor and marginalized youth, will be treated as ‘consideration' received for such training and subjected to service tax under ‘commercial training or coaching service'. 2. The matter has been examined. The important point here is regarding the presence or absence of a link between ‘consideration' and taxable service. It is a settled legal position that unless the link or nexus between the amount and the taxable activity can be established, the amount cannot be subjected to service tax. Donation or grant-in-aid is not specifically meant for a person receiving such training or to the specific activity, but is in general meant for the charitable cause championed by the registered Foundation. Between the provider of donation/grant and the trainee there is no relationship other than universal humanitarian interest. In such a situation, service tax is not leviable, since the donation or grant-in-aid is not linked to specific trainee or training. 4. Trade Notice/Public Notice may be issued to the field formations accordingly 5. Please acknowledge the receipt of this circular. Hindi version follows. F.No. 354/119/2010-TRU (J. M. Kennedy) Director, TRU

OFFICE OF THE COMMISSIONER OF SERVICE TAX IAEA HOUSE, 17-B, I.P. ESTATE, M.G. MARG, NEW DELHI-02 C. No. IV (16)1/HW/Stats/Computer/05/pt-3 Dated: 11, August, 2010 Trade Notice No. 3/ST/2010 Sub: Submission of hard copy of documents necessary for granting online registration-reg. 1. This is to bring to the notice of trade that a large number of online registrations filed are pending issuance in various Ranges/Division offices due to non submission of required documents. It is noticed that while the registrations are filed online, either no hard copy of documents is submitted or the documents are submitted after considerable lapse of time. This results in substantial delay in granting registration. In fact, in a very large number of cases (more than 1,000), no documents have been submitted at all. 2. The list of documents required to be submitted is enumerated in Trade Notice No. 15/ST/2009 available on our above mentioned wed site. 3. If the documents are not submitted within 7 days of the filing of online application and/or issuance of this Trade notice, these applications shall rejected. 4. It is requested that the trade may give wide publicity to this notice to enable the department to grant speedy registration. (R.D. Negi) Commissioner, Service Tax MAILING LIST FOR TRADE NOTICE: 1. The Chief Commissioner, Central Excise (DZ), C.R. Building, New Delhi. 2. The Commissioner, Service Tax New Delhi. 3. DG (System) for uploading on the departmental website. 4. The Additional/ Joint Commissioner, (Tech/Audit/A.E.) Service Tax, Delhi, 5. The Assistant Commissioner, Service Tax, Division-I, II, Gurgaon and Faridabad (with direction to circulate the same to all Trade Associations in the jurisdiction of their Divisions). 6. Pay & Account Officer, Central Excise, Delhi, C.R. Building, I.P. Estate, New Delhi. 7. Guard File. 8. Notice Board. Joint Commissioner Service Tax Commissioner, Delhi

Circular No.126/08/2010 - ST F.No.332/13/2010-TRU Government of India Ministry of Finance Department of Revenue Tax Research Unit North Block, New Delhi 10th August 2010 To Chief Commissioners of Central Excise and Service Tax (All), Director General (Service Tax), Director General (Central Excise Intelligence), Director General (Audit), Commissioners of Service Tax (All), Commissioners of Central Excise and Service Tax (All).   Madam/Sir, Subject: Service tax on commission received by Primary Dealers dealing in Government Securities – Regarding. A representation has been received seeking clarification whether service tax is leviable on the underwriting commission received by the Primary Dealers for the auction of Government Securities. 2.  The matter has been examined.  Underwriting service is taxable by virtue of section 65 (105) (z) of the Finance Act, 1994. In the definition of taxable service, two technical terms are mentioned, namely ‘underwriting’ and ‘underwriter’. The term ‘underwriting’ [section 65 (117) of the Finance Act, 1994] has the meaning assigned to it in clause (g) of rule 2 of the Securities and Exchange Board of India (Underwriters) Rules, 1993, which reads as follows: “underwriting means an agreement with or without conditions to subscribe to the securities of a body corporate when the existing shareholders of such body corporate or the public do not subscribe to the securities offered to them.” 3. The term “underwriter” as in section 65(116) of the Finance Act, 1994, has been borrowed from rule 2 (f) of the Securities and Exchange Board of India (Underwriters) Rules, 1993, which reads as follows: “underwriter means a person who engages in the business of underwriting of an issue of securities of a body corporate.” It is thus clear that under the above definitions ‘underwriter’ or ‘underwriting’ is about dealing in securities of a body corporate. 4. The related issue requiring resolution is whether dealing in government securities amounts to dealing in securities of a body corporate, particularly since government securities are issued by the Reserve bank of India, which is a ‘body corporate’ in terms of section 3 (2) of the RBI Act, 1934. 5. Government securities are sovereign securities having zero default risk. Reserve Bank of India only manages the issue and also auction of Government Securities on behalf of the Government of India.  In effect, Primary Dealers registered with the RBI (as opposed to registration with the Securities Exchange Board of India) deal in Government Securities, issued by the RBI on behalf of the Government of India, as a part of the central Government’s market borrowing program. The general practice is that the RBI invites bids from the Primary Dealers, who in their bids indicate the amount to be underwritten and the underwriting fee expected by them. RBI examines these bids and decides the amount to be underwritten and underwriting fee to be paid to a Primary Dealer. Underwriting Fee is also known as Underwriting Commission in common parlance. Thus the conclusion drawn is that government securities are not securities of a body corporate. 6. As the service tax law stands today, service tax liability does not arise on Underwriting Fee or Underwriting Commission received by the Primary Dealers during the course of the dealing in Government Securities. 7. Trade Notice/Public Notice may be issued to the field formations accordingly. 8. Please acknowledge the receipt of this circular. Hindi version follows. (J. M. Kennedy) Director, TRU

Circular No.125/7/2010 -ST F.No.354/35/2010-TRU Government of India Ministry of Finance Department of Revenue Tax Research Unit ….. North Block, New Delh 30th July, 2010 To Chief Commissioners of Central Excise and Service Tax (All), Director General (Service Tax), Director General (Central Excise Intelligence), Director General (Audit), Commissioners of Service Tax (All), Commissioners of Central Excise and Service Tax (All). Madam/Sir, Subject: Services provided by state governments under Centrally Sponsored Schemes (CSS) -- Regarding. In the recent past, instances have come to the notice of the Board, where field formations have demanded service tax from State governments or their departments/ agencies, for providing certain services under the centrally sponsored schemes (CSS). To cite an illustration, in the case of the centrally sponsored National Biogas and Manure Management Program operating under Ministry of New and Renewable Energy, State government agencies were involved in setting up of bio-gas plants in villages. Certain expenses incurred by the State governments or their departments/ agencies during the course of setting up of such bio-gas plants were reimbursed by the central government by way of a grant under the CSS. Jurisdictional service tax authorities demanded service tax from the State government department/agency, saying that the reimbursements received by the concerned State government department/agency (as service provider) are nothing but consideration for installation and commissioning service received from the central government (service receiver). 2. Implicit in this service tax demand is an assumption that the relationship between Central government and the State government is an equivalent of a relationship between principal and the agent. This assumption is questionable as under administrative arrangement, State governments are bound to implement the centrally sponsored schemes on receipt of a grant. The fact that State governments are implementing agencies for the Central government within the framework of CSS does not make them service providers. Consequently, Central government cannot be taken as service receiver. Grant released by the Central government under a centrally sponsored scheme cannot be presumed as consideration for providing a taxable service. 3. Levy and collection of service tax on State government agencies/departments implementing CSS under a central grant, is not legally tenable and therefore in such cases service tax should not be demanded. 4. Trade Notice/Public Notice may be issued to the field formations. 5. Please acknowledge receipt of this Circular. Hindi version follows. (J. M. Kennedy) Director (TRU) Tel: 011-23092634