Service tax valuation rules amended on 6-6-2012 w.e.f 1-7-2012

Rule 2A of Service Tax Valuation Rules, as amended on 17-3-2012, had made provision for paying service tax on 25% of total amount when the total amount charged by builders included value of land. This provision has been omitted vide amendment dated 17-3-2012. Let up hope that this scheme is included in the abatement scheme.

Service tax on Annual Maintenance Contracts (which include value of material) will be payable on 70% of total amount.

Interest on deposits, loans, advances, debentures etc. will be exempted service and will be considered for reversal of Cenvat Credit under rule 6 of Cenvat Credit Rules.