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Clarification on issues regarding levy of Service Tax on the services provided by Government or a local authority to business entities
May, 17th 2016
                                                          Circular No. 192/02/2016-Service Tax

                                    F.No. 334/8/2016-TRU
                                     Government of India
                                     Ministry of Finance
                                    Department of Revenue
                                     (Tax Research Unit)
                                                                           Dated- April 13, 2016
To,
Principal Chief Commissioners of Customs and Central Excise (All)
Principal Chief Commissioners of Central Excise & Service Tax (All)
Principal Director Generals of Goods and Service Tax/System/CEI
Director General of Audit/Tax Payer Services
Principal Commissioners/ Commissioners of Customs and Central Excise (All)
Principal Commissioners/Commissioners of Central Excise and Service Tax (All)
Principal Commissioners/Commissioners of Service Tax (All)
Principal Commissioners/Commissioners LTU/Central Excise/Service Tax (Audit)

Subject: - Clarification on issues regarding levy of Service Tax on the services provided by
Government or a local authority to business entities - reg.

Madam/Sir,

        Any service provided by Government or a local authority to a business entity has been
made taxable w.e.f 1st April 2016. Post Budget 2016, representations have been received from
several quarters including business and industry associations in respect of various aspects
pertaining to the taxation of such services. Accordingly, the following clarifications are issued:-



    Sl.                    Issue                                  Clarification
   No.
   1.     Services provided by Government or Such services have been exempted vide
          a local authority to another Notification No. 25/2012 ­ ST dated
          Government or a local authority.   20.6.2012 as amended by Notification No.
                                             22/2016 ­ ST dated 13.4.2016 [Entry 54
                                             refers]. However, the said exemption does
                                             not cover services specified in sub-clauses
                                             (i), (ii) and (iii) of clause (a) of section
                                             66D of the Finance Act, 1994.

                                           Page 1 of 13
2.   Services provided by Government or         1. Services by way of grant of passport,
     a local authority to an individual who     visa, driving license, birth or death
     may be carrying out a profession or        certificates have been exempted vide
     business.                                  Notification No. 25/2012 ­ ST dated
                                                20.6.2012 as amended by Notification
                                                No. 22/2016 ­ ST dated 13.4.2016 [Entry
                                                55 refers].
                                                2. Further, for services provided upto a
                                                taxable value of Rs 5000/-, Sl. No. 5
                                                below may please be seen.

3.   Service Tax on taxes, cesses or duties.   Taxes, cesses or duties levied are not
                                               consideration for any particular service as
                                               such and hence not leviable to Service
                                               Tax. These taxes, cesses or duties include
                                               excise duty, customs duty, Service Tax,
                                               State VAT, CST, income tax, wealth tax,
                                               stamp duty, taxes on professions, trades,
                                               callings    or     employment,       octroi,
                                               entertainment tax, luxury tax and property
                                               tax.

4.   Service Tax on fines and penalties.       1. It is clarified that fines and penalty
                                               chargeable by Government or a local
                                               authority imposed for violation of a
                                               statute, bye-laws, rules or regulations are
                                               not leviable to Service Tax.

                                               2. Fines and liquidated damages payable
                                               to Government or a local authority for
                                               non-performance of contract entered into
                                               with Government or local authority have
                                               been exempted vide Notification No.
                                               25/2012 ­ ST dated 20.6.2012 as amended
                                               by Notification No. 22/2016 ­ ST dated
                                               13.4.2016 [Entry 57 refers].

5.   Services provided in lieu of fee It is clarified that any activity undertaken
     charged by Government or a local by Government or a local authority against
     authority.                       a consideration constitutes a service and

                                      Page 2 of 13
        the amount charged for performing such
        activities is liable to Service Tax. It is
        immaterial whether such activities are
        undertaken as a statutory or mandatory
        requirement under the law and irrespective
        of whether the amount charged for such
        service is laid down in a statute or not. As
        long as the payment is made (or fee
        charged) for getting a service in return
        (i.e., as a quid pro quo for the service
        received), it has to be regarded as a
        consideration for that service and taxable
        irrespective of by what name such
        payment is called. It is also clarified that
        Service Tax is leviable on any payment, in
        lieu of any permission or license granted
        by the Government or a local authority.

        2. However, services provided by the
        Government or a local authority by way
        of:
           (i) registration required under the law;
          (ii) testing, calibration, safety check or
               certification relating to protection or
               safety of workers, consumers or
               public at large, required under the
               law,
        have been exempted vide Notification No.
        25/2012 ­ ST dated 20.6.2012 as amended
        by Notification No. 22/2016 ­ ST dated
        13.4.2016 [Entry 58 refers].

        3. Further, services provided by
        Government or a local authority where the
        gross amount charged for such service
        does not exceed Rs 5000/- have been
        exempted vide Notification No. 25/2012 ­
        ST dated 20.6.2012 as amended by
        Notification No. 22/2016 ­ ST dated
        13.4.2016 [Entry 56 refers]. However, the
        said exemption does not cover services




Page 3 of 13
                                               specified in sub-clauses (i), (ii) and (iii) of
                                               clause (a) of section 66D of the Finance
                                               Act, 1994. Further, in case of continuous
                                               service, the exemption shall be applicable
                                               where the gross amount charged for such
                                               service does not exceed Rs. 5000/- in a
                                               financial year.
                                               4. It is also clarified that Circular No.
                                               89/7/2006-Service Tax dated 18-12-2006
                                               & and Reference Code 999.01/23.8.07 in
                                               Circular     No.    96/7/2007-ST         dated
                                               23.8.2007 issued in the pre-negative list
                                               regime are no longer applicable.
6.   Services in the nature of allocation of   Services by way of allocation of natural
     natural resources by Government or a      resources to an individual farmer for the
     local authority to individual farmers.    purposes of agriculture have been
                                               exempted vide Notification No. 25/2012 ­
                                               ST dated 20.6.2012 as amended by
                                               Notification No. 22/2016 ­ ST dated
                                               13.4.2016 [Entry 59 refers]. Such
                                               allocations/auctions to categories of
                                               persons other than individual farmers
                                               would be leviable to Service Tax.
7.   Services in the nature of change of       Regulation of land-use, construction of
     land use, commercial building             buildings and other services listed in the
     approval, utility services provided by    Twelfth Schedule to the Constitution
     Government or a local authority.          which        have been entrusted to
                                               Municipalities under Article 243W of the
                                               Constitution,     when      provided        by
                                               governmental authority are already exempt
                                               under Notification No. 25/2012 ­ ST dated
                                               20.6.2012. The said services when
                                               provided by Government or a local
                                               authority have also been exempted from
                                               Service Tax vide Notification No. 25/2012
                                               ­ ST dated 20.6.2012 as amended by
                                               Notification No. 22/2016 ­ ST dated
                                               13.4.2016 [Entry 39 refers].
8.   Services provided by Government, a        Such services have been exempted vide
     local authority or a governmental         Notification No. 25/2012 ­ ST dated

                                      Page 4 of 13
      authority by way of any activity in       20.6.2012 as amended by Notification No.
      relation to any function entrusted to a   22/2016 ­ ST dated 13.4.2016 [Entry 60
      Panchayat under Article 243G of the       refers].
      Constitution.
9.    Whether Service Tax is payable on         Service Tax is payable on such
      yearly installments due after 1.4.2016    installments in view of rule 7 of Point of
      in respect of spectrum assigned before    Taxation Rules, 2011 as amended by vide
      1.4.2016.                                 Notification No. 24/2016 ­ ST dated
                                                13.4.2016. However, the same have been
                                                specifically exempted vide Notification
                                                No. 25/2012 ­ ST dated 20.6.2012 as
                                                amended by Notification No. 22/2016 ­
                                                ST dated 13.4.2016 [Entry 61 refers]. The
                                                exemption shall apply only to Service Tax
                                                payable on one time charge, payable in
                                                full upfront or in installments, for
                                                assignment of right to use any natural
                                                resource and not to any periodic payment
                                                required to be made by the assignee, such
                                                as Spectrum User Charges, license fee in
                                                respect of spectrum, or monthly payments
                                                with respect to the coal extracted from the
                                                coal mine or royalty payable on extracted
                                                coal which shall be taxable.
10.   When does the liability to pay Service    Rule 7 of the Point of Taxation Rules,
      Tax arise upon assignment of right to     2011 has been amended vide Notification
      use natural resource where the            No. 24/2016 ­ ST dated 13.4.2016 to
      payment of auction price is made in       provide that in case of services provided
      10 (or any number of) yearly (or          by Government or a local authority to any
      periodic) instalments under deferred      business entity, the point of taxation shall
      payment option for rights assigned        be the earlier of the dates on which:
      after 1.4.2016.                           (a)     any payment, part or full, in
                                                        respect of such service becomes
                                                        due, as indicated in the invoice,
                                                        bill, challan, or any other
                                                        document issued by Government
                                                        or a local authority demanding
                                                        such payment; or
                                                (b)     such payment is made.



                                       Page 5 of 13
                                                Thus, the point of taxation in case of the
                                                services of the assignment of right to use
                                                natural resources by the Government to a
                                                business entity shall be the date on which
                                                any      payment,     including    deferred
                                                payments, in respect of such assignment
                                                becomes due or when such payment is
                                                made, whichever is earlier. Therefore, if
                                                the assignee/allottee opts for full upfront
                                                payment then Service Tax would be
                                                payable on the full value upfront.
                                                However, if the assignee opts for part
                                                upfront and remainder under deferred
                                                payment option, then Service Tax would
                                                be payable as and when the payments are
                                                due or made, whichever is earlier.
11.   How to determine the date on which        The date on which such payment becomes
      payment in respect of any service         due shall be determined on the basis of
      provided by Government or a local         invoice, bill, challan, or any other
      authority     becomes      due      for   document issued by the Government or a
      determination of point of taxation (Sl.   local authority demanding such payment
      No. 10 refers)?                           [Point of Taxation Rules, 2011 as
                                                amended by Notification No. 24/2016 ­
                                                ST dated 13.4.2016 refers]. For instance,
                                                Notice Inviting Applications (NIA) dated
                                                January 9, 2015 issued vide File No.
                                                1000/16/2014-W.F./Auction for auction of
                                                right to use spectrum and letter dated
                                                March 29, 2015 issued vide File No. 1000
                                                /23 / 2014 -W.F. /Auction by Department
                                                of Telecommunications to successful
                                                bidders of spectrum indicate the dates on
                                                which the payments in respect thereof
                                                become due. These may be accessed at
                                                http://www.dot.gov.in/sites/default/files/u
                                                8/NIA_January_2015.pdf                   and
                                                http://www.dot.gov.in/sites/default/files/u
                                                8/PaymentMethodologyAndPaymentDetai
                                                ls.pdf respectively.



                                       Page 6 of 13
12.   Whether Service Tax is leviable on       Service Tax is payable on such payments
      spectrum user charges and license fee    in view of rule 7 of Point of Taxation
      payable after 1.4.2016 for the year      Rules, 2011 as amended by Notification
      2015-16.                                 No. 24/2016 ­ ST dated 13.4.2016.
                                               However, the same have been specifically
                                               exempted vide Notification No. 25/2012 ­
                                               ST dated 20.6.2012 as amended by
                                               Notification No. 22/2016 ­ ST dated
                                               13.4.2016 [Entry 62 refers].

13.   Whether Service Tax is payable on        Rule 6(2)(iv) of the Service Tax
      the interest charged by Government or    (Determination of Value) Rules, 2006 has
      a local authority where the payment      been amended vide Notification No.
      for assignment of natural resources is   23/2016 ­ ST dated 13.4.2016 so as to
      allowed to be made under deferred        provide that interest chargeable on
      payment option.                          deferred payment in case of any service
                                               provided by Government or a local
                                               authority to a business entity, where
                                               payment for such service is allowed to be
                                               deferred on payment of interest, shall be
                                               included in the value of the taxable
                                               service.

14.   When and how will the allottee of the    The CENVAT Credit Rules, 2004 have
      right to use natural resource be         been amended vide Notification No.
      entitled to take CENVAT Credit of        24/2016 C.E. (N.T.) dated 13.4.2016.
      Service Tax paid for such assignment     Consequently, the CENVAT Credit of the
      of right.                                Service Tax on one time charges (whether
                                               paid upfront or in installments) paid in a
                                               year, may be allowed to be taken evenly
                                               over a period of 3 (three) years. [Rule 4(7)
                                               of CENVAT Credit Rules, 2004 as
                                               amended refers]. Detailed illustrations
                                               explaining how the CENVAT Credit is to
                                               be availed, are given in para 2 below.

                                               However, the Service Tax paid on
                                               spectrum user charges, license fee, transfer
                                               fee charged by the Government on trading
                                               of spectrum would be available in the year


                                      Page 7 of 13
                                                  in which the same is paid. Likewise,
                                                  Service Tax paid on royalty in respect of
                                                  natural resources and any periodic
                                                  payments shall be available as credit in the
                                                  year in which the same is paid. The
                                                  existing eighth proviso in sub-rule (7) of
                                                  rule 4 of CENVAT Credit Rules, 2004 is
                                                  being omitted because the same is
                                                  superfluous.

                                                  Amendments have also been made in
                                                  CENVAT Credit Rules, 2004 so as to
                                                  allow CENVAT credit to be taken on the
                                                  basis of the documents specified in sub-
                                                  rule (1) of rule 9 of CENVAT Credit
                                                  Rules, 2004 even after the period of 1 year
                                                  from the date of issue of such a document
                                                  in case of services provided by the
                                                  Government or a local authority or any
                                                  other person by way of assignment of right
                                                  to use any natural resource [Fifth Proviso
                                                  to sub-rule (7) of Rule 4 of CENVAT
                                                  Credit Rules, 2004].

   15.   On basis of which documents can          CENVAT Credit may be availed on the
         CENVAT Credit be availed in respect      basis of challan evidencing payment of
         of services provided by Government       Service Tax by the Service recipient
         or a local authority.                    [Clause (e) of sub-rule (1) of rule 9 of
                                                  CENVAT Credit Rules, 2004, refers].




2.      Illustration explaining how the CENVAT Credit is to be availed on Service Tax paid
for assignment of right to use natural resources:


   Government of India assigns right to use spectrum for a period of 20 years in an auction held
in May 2016. The Notice Inviting Application (NIA) for auction of spectrum specifies that the
successful bidders would have two payment options ­



                                          Page 8 of 13
   (a) Full upfront payment:
       to make full upfront payment of full auction price (bid amount) by, let's say, 25.6.2016;
       or

   (b) Deferred payment:

          (i)        An upfront payment of 33% of the final bid amount shall be made by 25.6.2016;

          (ii)       There shall be a moratorium of 2 years for payment of balance amount of one
                     time charges for the spectrum, which shall be recovered in 10 equal annual
                     instalments of Rs. 131.94 including interest for deferred payment.

          (iii)      The 1st instalment of the balance due shall become due on the third anniversary of
                     the scheduled date of the first payment. Subsequent instalment shall become due
                     on the same date of each following year.

          (iv)       The applicable rate of interest under deferred payment option shall be 10%.

CASE 1:

   Company ABC becomes the successful bidder. The spectrum is assigned to ABC for a total
consideration of Rs. 1000/-. ABC chooses to make full upfront payment on the due date. The
Service Tax liability and eligibility of the CENVAT Credit in this case would be as follows:





   (i)            The amount of Rs. 1000/- will become due on 25.6.2016. Thus, according to rule 7 of
                  the Point of Taxation Rules, 2011 the point of taxation shall be 25.6.2016.
   (ii)           According to rule 6(1) of the Service Tax Rules, 1994, the liability to pay Service Tax
                  liability of Rs. 150/- on the consideration of Rs. 1000/- paid or payable would be
                  required to be discharged by 6.7.2016.
   (iii)          According to the sixth proviso to rule 4(7) of the CENVAT Credit Rules, the
                  CENVAT Credit in respect of the Service Tax paid would be spread over 3 years as
                  follows:


                                  Financial   Amount of CENVAT Credit eligible to
                                    Year                  be taken
                                                  (1/3 of total Service Tax paid)
                                  2016-17                    Rs. 50/-
                                  2017-18                    Rs. 50/-
                                  2018-19                    Rs. 50/-




                                                   Page 9 of 13
CASE 2:



In the above example, ABC assigns the right to use the spectrum to Company XYZ on 1.8.2019
(and issues invoice dated 1.8.2019) for a consideration of Rs. 930/-. The Service Tax liability
and eligibility of CENVAT Credit would be as follows:



           F.Y.       Due date        Amount         Amount          Service          Date of         Date of        CENVAT           CENVAT
                        for         payable by     charged by           Tax          Point of        payment           Credit           Credit
                      payment        ABC for        ABC for          liability       Taxation           of          available to      available
                                    assignment       further            on                            Service       ABC in the         to XYZ
                                         of        assignment          ABC                             Tax            relevant          in the
                                     spectrum           of           @ 15%                                           F.Y. (Rs.)        relevant
                                       (Rs.)        spectrum           (Rs.)                                                          F.Y. (Rs.)
                                                     to XYZ
                                                       (Rs.)
          2016-17     25.6.2016          1000            -             150           25.6.2016       6.7.2016           50                  -
          2017-18           -             -              -               -               -               -              50                  -


          2018-19           -             -              -               -               -               -              50                  -
          2019-20                                       930           139.50         1.8.2019        6.9.2019            -                46.5
          2020-21           -             -              -               -               -               -               -                46.5
          2021-22           -             -              -               -               -               -               -                46.5
          TOTAL                                                       289.5                                             150               139.5




CASE 3:

Company ABC becomes the successful bidder. The spectrum is assigned to ABC for a total
consideration of Rs. 1000/-. ABC chooses the deferred payment option. The payment schedule,
Service Tax liability and eligibility of CENVAT Credit would be as follows:


                     F.Y.       Instalment      Due date      Amount         Service          Date of         Date of         Eligible
                                                  for         payable           Tax          Point of        payment         CENVAT
                                                payment        (Rs.)         liability       Taxation           of           Credit in
                                                                             @ 15%                            Service            the
                                                                               (Rs.)                           Tax            relevant
                                                                                                                             F.Y. (Rs.)
                    2016-17       Upfront       25.6.2016       330            49.50         25.6.2016       6.7.2016          16.5
                                  payment
                                   (33%)
                    2017-18          -              -            -               -               -              -              16.5
                    2018-19          -              -            -               -               -              -              16.5




                                                              Page 10 of 13
               F.Y.     Instalment   Due date    Amount    Service      Date of     Date of    Eligible
                                       for       payable      Tax      Point of    payment    CENVAT
                                     payment      (Rs.)    liability   Taxation       of      Credit in
                                                           @ 15%                    Service       the
                                                             (Rs.)                   Tax       relevant
                                                                                              F.Y. (Rs.)
              2019-20      1st       25.6.2019   131.94     19.80      25.6.2019   6.7.2019     6.60*
                            nd
              2020-21      2         25.6.2020   131.94     19.80      25.6.2020   6.7.2020    6.60 +
                                                                                               6.60*
              2021-22      3rd       25.6.2021   131.94     19.80      25.6.2021   6.7.2021    6.60 +
                                                                                               6.60 +
                                                                                               6.60*
              2022-23      4th       25.6.2022   131.94     19.80      25.6.2022   6.7.2022    6.60 +
                                                                                               6.60 +
                                                                                               6.60*
              2023-24      5th       25.6.2023   131.94     19.80      25.6.2023   6.7.2023    6.60 +
                                                                                               6.60 +
                                                                                               6.60*
              2024-25      6th       25.6.2024   131.94     19.80      25.6.2024   6.7.2024    6.60 +
                                                                                               6.60 +
                                                                                               6.60*
              2025-26      7th       25.6.2025   131.94     19.80      25.6.2025   6.7.2025    6.60 +
                                                                                               6.60 +
                                                                                               6.60*
              2026-27      8th       25.6.2026   131.94     19.80      25.6.2026   6.7.2026    6.60 +
                                                                                               6.60 +
                                                                                               6.60*
              2027-28      9th       25.6.2027   131.94     19.80      25.6.2027   6.7.2027    6.60 +
                                                                                               6.60 +
                                                                                               6.60*
              2028-29      10th      25.6.2028   131.94     19.80      25.6.2028   6.7.2028    6.60 +
                                                                                               6.60 +
                                                                                               6.60*
              2029-30       -            -          -          -           -          -        6.60 +
                                                                                                6.60
              2030-31       -            -          -          -           -          -         6.60
              TOTAL                                         247.5                               247.5




Note: Figures with * indicate the amount of CENVAT credit available against Service Tax paid
during that year.




                                                 Page 11 of 13
          CASE 4:


          In the above example, if ABC further assigns the right to use the spectrum to Company XYZ on
          1.8.2020 for a consideration of Rs. 200/-. The Service Tax liability and eligibility of CENVAT
          Credit would be as follows:


 F.Y.     Instalment   Due date      Amount       Amount       Amount      Service       Service       Date of       Date of        Eligible     Eligible
                         for       payable to   charged by   payable to       Tax           Tax       Point of      payment        CENVAT       CENVAT
                       payment      Govt for     ABC for      Govt for     liability     liability    Taxation      of Service     Credit in    Credit in
                                   assignment     further    assignment    @ 15%         @ 15%                         Tax             the          the
                                        of      assignment        of         (Rs.)         (Rs.)                                    relevant     relevant
                                    spectrum         of       spectrum       ABC          XYZ                                      F.Y. (Rs.)   F.Y. (Rs.)
                                      (Rs.)      spectrum       (Rs.)                                                                ABC          XYZ
                                     ABC          to XYZ       XYZ
                                                    (Rs.)
2016-17    Upfront     25.6.2016      330           -            -           49.50           -       25.6.2016       6.7.2016        16.5           -
           payment
            (33%)
2017-18       -            -           -            -            -             -             -            -              -           16.5           -
2018-19       -            -           -            -            -             -             -            -              -           16.5           -
2019-20      1st       25.6.2019     131.94         -            -           19.80           -       25.6.2019       6.7.2019        6.60*          -


2020-21      2nd       25.6.2020     131.94        200           -            19.80          -        25.6.2020       6.7.2020       6.60 +      30/3 =
                                                                             (on 2nd                  (in respect    (in respect    6.60* +       10*
                                                                          Instalment)                  of the 2nd     of the 2nd     19.80
                                                                              + 30                   installment)   installment)     (being
                                                                          (for further                    and            and        balance
                                                                          assignment                   1.8.2020       6.9.2020     CENVAT
                                                                            to XYZ)                   (in respect    (in respect    Credit)
                                                                                                       of further     of further
                                                                                                     assignment     assignment
                                                                                                       to XYZ)        to XYZ)
2021-22      3rd       25.6.2021       -            -          131.94          -          19.80      25.6.2021       6.7.2021          -          10 +
                                                                                                                                                  6.60*
2022-23      4th       25.6.2022       -            -          131.94          -          19.80      25.6.2022       6.7.2022          -          10 +
                                                                                                                                                 6.60 +
                                                                                                                                                 6.60*
2023-24      5th       25.6.2023       -            -          131.94          -          19.80      25.6.2023       6.7.2023          -         6.60 +
                                                                                                                                                 6.60 +
                                                                                                                                                 6.60*
2024-25      6th       25.6.2024       -            -          131.94          -          19.80      25.6.2024       6.7.2024          -         6.60 +
                                                                                                                                                 6.60 +
                                                                                                                                                 6.60*
2025-26      7th       25.6.2025       -            -          131.94          -          19.80      25.6.2025       6.7.2025          -         6.60 +
                                                                                                                                                 6.60 +
                                                                                                                                                 6.60*
2026-27      8th       25.6.2026       -            -          131.94          -          19.80      25.6.2026       6.7.2026          -         6.60 +
                                                                                                                                                 6.60 +
                                                                                                                                                 6.60*




                                                               Page 12 of 13
 F.Y.     Instalment   Due date      Amount       Amount       Amount     Service     Service      Date of      Date of      Eligible     Eligible
                         for       payable to   charged by   payable to      Tax         Tax      Point of     payment      CENVAT       CENVAT
                       payment      Govt for     ABC for      Govt for    liability   liability   Taxation     of Service   Credit in    Credit in
                                   assignment     further    assignment   @ 15%       @ 15%                       Tax           the          the
                                        of      assignment        of        (Rs.)       (Rs.)                                relevant     relevant
                                    spectrum         of       spectrum     ABC         XYZ                                  F.Y. (Rs.)   F.Y. (Rs.)
                                      (Rs.)      spectrum       (Rs.)                                                         ABC          XYZ
                                     ABC          to XYZ       XYZ
                                                    (Rs.)
2027-28      9th       25.6.2027       -            -          131.94                  19.80      25.6.2027     6.7.2027        -         6.60 +
                                                                                                                                          6.60 +
                                                                                                                                          6.60*
2028-29      10th      25.6.2028       -            -          131.94                  19.80      25.6.2028     6.7.2028        -         6.60 +
                                                                                                                                          6.60 +
                                                                                                                                          6.60*
2029-30       -            -           -            -            -            -                       -            -            -         6.60 +
                                                                                                                                           6.60
2030-31       -            -           -            -            -            -                       -            -            -          6.60
TOTAL                                                                     119.10      158.40                                  89.10       188.40



          Note: Figures with * indicate the amount of CENVAT credit available against Service Tax paid
          during that year.


          3. All concerned are requested to acknowledge the receipt of this Circular.


          4. Wide publicity may be given so that the assessees and public are aware of the above. All the
          major Industry and Trade Associations may be informed accordingly. Difficulty if any, in the
          implementation of the Circular should be brought to the notice of the Tax Research Unit.


          5. Hindi version would follow.



                                                                                                                Yours faithfully,



                                                                                                               (Abhishek Verma)
                                                                                                          Technical Officer (TRU)




                                                               Page 13 of 13

 
 
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