Exemption of Service Tax

 CBEC vide Notification No. 09/2016-Service Tax, Dated: March 01, 2016 has amended Mega Exemption Notification, effective 01.04.2016 unless otherwise provided, as follows:

(i) Exemptions are withdrawn on services provided by

• a senior advocate to an advocate, partnership firm of advocates providing legal (Entry 6 clause b amended)
• a person represented on an arbitral tribunal to an arbitral tribunal. (Entry 6 clause c omitted)

(ii) Exemption from Service Tax to

• Services provided by the Indian Institutes of Management e.f. 01.03.2016, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme, –

(a) two year Post Graduate Diploma in Management, conducted by Indian Institute of Management admitted through CAT;

(b) fellow programme in Management;

(c) five year integrated programme in Management. (New Entry 9B inserted)

• Services of assessing bodies empanelled under Skill Development Initiative (SDI) (New Entry 9C inserted)
• services provided by training providers under Deen Dayal Upadhyaya Grameen Kaushalya Yojana by way of offering skill or vocational training courses certified by National Council For Vocational Training. (New Entry 9D inserted)

(iii) Exemption to Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –

(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;

(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or

(c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause (44) of section 65 B of the said Act;

was withdrawn with effect from 1.4.2015. The same is being restored for the services provided under a contract which had been entered into prior to 01.03.2015 and on which appropriate stamp duty, where applicable, had been paid prior to that date. The exemption is being restored till 31.03 .2020. The services provided during the period from 01.04.2015 to 29.02.2016 under such contracts are also proposed to be exempted from service tax. (New Entry 12A inserted).

(iv) Exemption w.e.f. 01.03.2016 to services provided by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of:

• a civil structure or any other original works pertaining to the ?In-situ rehabilitation of existing slum dwellers using land as a resource through private participation” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers. (Entry 13 new item (ba) inserted)
• a civil structure or any other original works pertaining to the ?Beneficiary-led individual house construction / enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana. (Entry 13 new item (bb) inserted)

(v) Exemption w.e.f. 01.03.2016 to services by way of construction, erection, commissioning, or installation of original works pertaining to:

• railways, excluding monorail and metro;
• low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under:

(vi) Exemption e.f. 01.03.2016 to services by way of construction, erection, commissioning, or installation of original works pertaining to an airport or port provided under a contract which had been entered into prior to 1st March, 2015 and on which appropriate stamp duty, where applicable, had been paid prior to such date;

provided that Ministry of Civil Aviation or the Ministry of Shipping in the Government of India, as the case may be, certifies that the contract had been entered into before the 1st March, 2015;

provided further that nothing contained in this entry shall apply on or after the 1st April, 2020; (New Entry 14A inserted)

(vii) The threshold exemption limit of consideration charged for services provided by a performing artist in folk or classical art forms of music/ dance/ theatre, is being increased from Rs. 1 lakh to Rs. 1.5 lakh. (Amendment in entry 16)

(viii) Exemption w.e.f. 1st June 2016 to transport of passengers, with or without accompanied belongings, by stage carriage other than air-conditioned stage carriage; (Entry 23 new clause (bb) inserted)

Exemption withdrawn w.e.f. 1st June 2016 to Transport of passengers, with or without accompanied belongings by ropeway, cable car or aerial tramway. (Entry 23 clause (c) omitted)

(ix) Exemption to Services of general insurance business provided under Niramaya” Health Insurance Scheme implemented by Trust constituted under the provisions of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999). (Entry 26 new clause (q) inserted)

(x) Exemption to Services of life insurance business provided by way of annuity under the National Pension System regulated by Pension Fund Regulatory and Development Authority of India (PFRDA) under the Pension Fund Regulatory And Development Authority Act, 2013 (23 of 2013); (New Entry 26C inserted)

(xi) Exemption to:

• Services provided by Employees?Provident Fund Organisation (EPFO) to persons governed under the Employees? Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); (New Entry 49 inserted)
• Services provided by Insurance Regulatory and Development Authority of India (IRDA) to insurers under the Insurance Regulatory and Development Authority of India Act, 1999 (41 of 1999). (New Entry 50 inserted)
• Services provided by Securities and Exchange Board of India (SEBI) set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market. (New Entry 51 inserted)
• Services provided by National Centre for Cold Chain Development under Ministry of Agriculture, Cooperation and Farmer?s Welfare by way of cold chain knowledge dissemination. (New Entry 52 inserted)
• Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India e.f. 1st June 2016. (New Entry 53 inserted)

[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)

NOTIFICATION No. 9/2016-Service Tax

New Delhi, the 1st March, 2016

G.S.R.257 (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 being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No 25/2012- Service Tax, dated the 20th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 467 (E) dated the 20th Jun' 2012, namely:-

1. In the said notification,-

(a) in the first paragraph,-

(i) in entry 6, for clause (b) and clause (c), the following clauses shall be substituted, namely,-

“(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to-

(i) an advocate or partnership firm of advocates providing legal services;

(ii) any person other than a business entity; or

(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year; or

(c) a senior advocate by way of legal services to a person other than a person ordinarily carrying out any activity relating to industry, commerce or any other business or profession;”;

(ii) after entry 9A, the following entry shall be inserted with effect from 1st March, 2016, namely,-

“9B. Services provided by the Indian Institutes of Management, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme, –

(a)two year full time residential Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT), conducted by Indian Institute of Management;

(b) fellow programme in Management;

(c)  five year integrated programme in Management.”;

(iii) after entry 9B as so inserted, the following entries shall be inserted, namely:-

“9C. services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill Development and Entrepreneurship by way of assessments under Skill Development Initiative (SDI) Scheme;

9D. services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of Rural Development by way of offering skill or vocational training courses certified by National Council For Vocational Training.”;

(iv) after entry 12, with effect from the 1st March, 2016, the following entry shall be inserted, namely-

“12A. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –

(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;

(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or

(c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause (44) of section 65 B of the said Act;

under a contract which had been entered into prior to the 1st March, 2015 and on which appropriate stamp duty, where applicable, had been paid prior to such date:

provided that nothing contained in this entry shall apply on or after the 1st April, 2020;”;

(v) in entry 13, after item (b), the following items shall be inserted with effect from 1st March, 2016, namely –

“(ba) a civil structure or any other original works pertaining to the „In-situ rehabilitation of existing slum dwellers using land as a resource through private participation‟under the Housing for All (Urban) Mission!Pradhan Mantri Awas Yojana, only for existing slum dwellers.

(bb) a civil structure or any other original works pertaining to the „Beneficiary-led individual house construction ! enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;”;

(vi) in entry 14, with effect from 1st March, 2016,

A. for item (a), the following shall be substituted, namely:-

“(a)  railways, excluding monorail and metro;

Explanation.-The services by way of construction, erection, commissioning or installation of original works pertaining to monorail or metro, where contracts were entered into before 1st March, 2016, on which appropriate stamp duty, was paid, shall remain exempt.”.

(b) after item (c), the following item shall be inserted, namely –

“(ca) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under:

(i) the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission!Pradhan Mantri Awas Yojana;

(ii) any housing scheme of a State Government.”.

(vii) after entry 14, with effect from the 1st March, 2016, the following entry shall be inserted, namely-

“14A. Services by way of construction, erection, commissioning, or installation of original works pertaining to an airport or port provided under a contract which had been entered into prior to 1st March, 2015 and on which appropriate stamp duty, where applicable, had been paid prior to such date:

provided that Ministry of Civil Aviation or the Ministry of Shipping in the Government of India, as the case may be, certifies that the contract had been entered into before the 1st March, 2015:

provided further that nothing contained in this entry shall apply on or after the 1st April, 2020;”;

(viii) in entry 16, for the words “one lakh rupees”, the words “one lakh and fifty thousand rupees” shall be substituted;

(ix) in entry 23,-

(a) after clause (b), the following clause shall be inserted with effect from 1st June 201 6, namely,-

“(bb) stage carriage other than air-conditioned stage carriage;”;

(b) clause (c) shall be omitted;

(x) in entry 26, after clause (p), the following clause shall be inserted, namely,-

“(q) Niramaya‟ Health Insurance Scheme implemented by Trust constituted under the provisions of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).”;

(xi) after entry 26B, the following entry shall be inserted, namely,-

“26C. Services of life insurance business provided by way of annuity under the National Pension System regulated by Pension Fund Regulatory and Development Authority of India (PFRDA) under the Pension Fund Regulatory And Development Authority Act, 2013 (23 of 2013);”;

(xi) after entry 48, the following entries shall be inserted, namely,-

“49. Services provided by Employees‟ Provident Fund Organisation (EPFO) to persons governed under the Employees‟ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952);

50. Services provided by Insurance Regulatory and Development Authority of India (IRDA) to insurers under the Insurance Regulatory and Development Authority of India Act, 1999 (41 of 1999);

51. Services provided by Securities and Exchange Board of India (SEBI) set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market;

52. Services provided by National Centre for Cold Chain Development under Ministry of Agriculture, Cooperation and Farmer‟s Welfare by way of cold chain knowledge dissemination;”;

(xiii) after entry 52 as so inserted, the following entries shall be inserted with effect from 1st June 2016, namely:-

“53.   Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India.”;

(b) in paragraph 2, –

(i) after clause (b), the following clause shall be inserted with effect from such date on which the Finance Bill, 2016 receives assent of the President of India, namely: –

„(ba) “approved vocational education course” means, –

(i) a course run by an industrial training institute or an industrial training centre affiliated to the National Council for Vocational Training or State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961 (52 of 1961); or

(ii) a Modular Employable Skill Course, approved by the National Council of Vocational Training, run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship;‟;

(ii) for clause (oa), the following shall be substituted with effect from such date on which the Finance Bill, 2016, receives assent of the President of India, namely : –

„(oa) “educational institution” means an institution providing services by way of:

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course;”;

(iii) after clause (zd), the following clause shall be inserted, namely:-

„(zdd) “senior advocate‟ has the meaning assigned to it in section 16 of the Advocates Act, 1961 (25 of 1961);‟

2. Save as otherwise provided in this notification, this notification shall come into force on the 1st of April, 2016.

[F. No.334/8/2016 -TRU]

(K. Kalimuthu)

Under Secretary to the Government of India

constitutional powers to separate a couple through a decree of divorce

 New Delhi: The Supreme Court on Monday held that living together was not a compulsory exercise as it invoked its constitutional powers to separate a couple through a decree of divorce even as the woman resisted dissolution of the marital tie.

A bench, headed by Justice Sanjay Kishan Kaul, noted that divorce was 'inevitable' since the marital tie was not working under any circumstances while the woman continued perpetrating cruelty on the husband by filing cases after cases and trying her best to see that he loses his job too.

'Filing of such complaints seeking removal of one's spouse from job has been opined as amounting to mental cruelty... these continuing acts of the respondent would amount to cruelty. This conduct shows disintegration of marital unity and thus disintegration of the marriage,' held the bench, which also included Justice Hrishikesh Roy.

The court also took note of the fact that the couple had not lived together even for a day after their marriage in February 2002 and they were separated for the last 20 years during which the man married another woman after a trial court in Tamil Nadu granted a decree of divorce in 2008 on the ground of irretrievable breakdown of marriage. However, the divorce decree was set aside by the Tamil Nadu high court in February 2019, after which the man to approach the Supreme Court to save his second marriage.

The court at first suggested mediation after noticing that they had already been living separately for two decades, but the woman remained firm that she will not give her nod for ending the marriage. She also opposed any endeavor by the court to give a decree of divorce on account of irretrievable breakdown of marriage in the absence of her consent.

The bench, in its judgment, noted that irretrievable breakdown of marriage is not a ground available under the law for couples seeking separation but the Supreme Court has granted decrees of divorce exercising its unique jurisdiction under Article 142 of the Constitution of India, to do complete justice between the parties.

It said the law commission had made recommendations in 1978 and again in 2010 to add irretrievable breakdown of marriage as a new ground for divorce in both the Hindu Marriage Act and the Special Marriage Act, but a draft law prepared in 2013 by the Union government was never passed.

The court asserted that societal stigma for a woman after getting divorced coupled with the law's failure to guarantee economic and financial security to women is stated to be the reason for the legislature's reluctance to introduce irretrievable breakdown as a ground for divorce.

'Living together is not a compulsory exercise. But marriage is a tie between two parties. If this tie is not working under any circumstances, we see no purpose in postponing the inevitability of the situation...' said the bench, emphasising that a marriage is more than a seemingly simple union between two individuals

'As a social institution, all marriages have legal, economic, cultural, and religious ramifications... Families are arranged on the idea of a mutual expectation of support and amity which is meant to be experienced and acknowledged amongst its members. Once this amity breaks apart, the results can be highly devastating and stigmatizing,' it added.

The court noted that the marriage between the parties never took off and this is one case where both the grounds of irretrievable breakdown of marriage as well as cruelty by woman against her husband would entitle the man a decree of divorce to put an end to continued allegations and litigative proceedings.