Finance Act, 1994, India-legitquest

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FINANCE ACT, 1994

Preamble 1 - FINANCE ACT,1994

THE FINANCE ACT,1994

[Act, No. 32 of 1994]

[Extract Relevant To Direct Taxes]

[13th May, 1994]

PREAMBLE

An Act to give effect to the financial proposals of the Central Government for the financial year 1994-95.

BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows: -

Section 1 - Short Title and Commencement

(1) This Act May Be Called The Finance Act, 1994.

(2) Save as otherwise provided in this Act, sections 2 to 59 (except section 26) shall be deemed to have come into force on the 1st day of April, 1994.

Section 2 - Income-Tax

(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1994, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as "the Income-tax Act"), shall be increased, -

(a) in the cases to which Paragraphs, A, B, C and D of that Part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which Paragraph E of that Part applies, by a surcharge,calculated in each case in the manner provided therein.

(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding six hundred rupees, in addition to total income, and the total income exceeds, -

(i) in a case to which the said Sub-Paragraph I applies, thirty thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, eighteen thousand rupees,then, -

(iii) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after, -

(iv) in a case to which the said Sub-Paragraph I applies, the first thirty thousand rupees, and

(v) ?in a case to which the said Sub-Paragraph II applies, the first eighteen thousand rupees,of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and

(vi) ?the income-tax chargeable shall be calculated as follows :-

(vii) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;

(viii) ?the net agricultural income shall be increased, -

(ix) ?in a case to which the said Sub-Paragraph I applies, by a sum of thirty thousand rupees; and

(x) in a case to which the said Sub-Paragraph II applies, by a sum of eighteen thousand rupees,and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the total income;

(xi) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income :

Provided that the amount of income-tax so arrived at, as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act, shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax and the sum so arrived at shall be the income-tax in respect of the total income.

(3) In cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be :

Provided that the amount of income-tax computed in accordance with the provisions of section 112 shall be increased by a surcharge for purposes of the Union or surcharge as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule :

Provided further that in respect of any income chargeable to tax under section 115B or section 115BB of the Income-tax Act, -

(a) the income-tax computed under section 115B shall be increased by a surcharge calculated at the rate of fifteen per cent. of such income-tax; and

(b) the income-tax computed under section 115BB shall be increased, -

(c) in the case of a person other than a company, being a resident in India, by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax; and

(d) in the case of a domestic company, by a surcharge calculated at the rate of fifteen per cent. of such income-tax.

(4) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified in Part II of the First Schedule and shall be increased in the cases to which the provisions of sub-item (a) of item 2 of that Part apply, by a surcharge, calculated in the manner provided therein.

(5) In cases in which tax has to be deducted under sections 194C, 194EE, 194F, 194G and 194-I of the Income-tax Act, the deduction shall be made at the rates specified in those sections and shall be increased in the case of an assessee, being a domestic company, by a surcharge calculated at the rate of fifteen per cent. of such deduction.

(6) ?In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection shall be made at the rate specified in that section and shall be increased in the case of a buyer, being a domestic company, by a surcharge calculated at the rate of fifteen per cent. of such collection.

(7) Subject to the provisions of sub-section (8), in cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the Income-tax Act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax shall be increased in the cases to which Paragraph E of that Part applies, by a surcharge, calculated in the manner provided therein :

Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be :

Provided further that the amount of income-tax computed in accordance with the provisions of section 112 shall be increased by a surcharge as provided in Paragraph E of Part III of the First Schedule :

Provided also that in respect of any income chargeable to tax under section 115B, or in the case of a domestic company, under section 115BB, of the Income-tax Act, the "advance tax" computed under the first proviso shall be increased by a surcharge calculated at the rate of fifteen per cent. of such "advance tax".

(8) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding six hundred rupees, in addition to total income and the total income exceeds, -

(9) in a case to which the said Sub-Paragraph I applies, thirty-five thousand rupees, and

(10) in a case to which the said Sub-Paragraph II applies, eighteen thousand rupees,then, in calculating income-tax under the first proviso to sub-section (5) of section 132 of the Income-tax Act or in charging income-tax under sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or in computing the "advance tax" payable under Chapter XVII-C of the said Act, at the rate or rates in force, -

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after, -

(b) ?in a case to which the said Sub-Paragraph I applies, the first thirty-five thousand rupees, and

(c) in a case to which the said Sub-Paragraph II applies, the first eighteen thousand rupees,of the total income but without being liable to tax], only for the purposes of calculating, charging or computing such income-tax or, as the case may be, "advance tax" in respect of the total income; and

(d) ?such income-tax or, as the case may be, "advance-tax" shall be so calculated, charged or computed as follows :-

(e) ?the total income and the net agricultural income shall be aggregated and the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;

(f) ?the net agricultural income shall be increased, -

(g) in a case to which the said Sub-Paragraph I applies, by a sum of thirty-five thousand rupees; and.

(h) in a case to which the said Sub-Paragraph II applies, by a sum of eighteen thousand rupees,and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Sub-Paragraph I or, as the case may be, the said Sub-Paragraph II as if the net agricultural income as so increased were the total income;

(i) the amount of income-tax or "advance tax" determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income.

(11) ?For the purposes of this section and the First Schedule, -

(a) "company in which the public are substantially interested" means a company within the meaning of clause (18) of section 2 of the Income-tax Act, and includes a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year;

(b) "domestic company" means an Indian company, or any other company which, in respect of its income liable to income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1994, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194 of the Act;

(c) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);

(d) "net agricultural income", in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule :

(e) all other words and expressions used in this section or in the First Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.

Section 3 - Amendment of Section 2

In section 2 of the Income-tax Act, -

(a) in clause (19A), after the words "Deputy Commissioner of Income-tax", the words "or an Additional Commissioner of Income-tax" shall be inserted with effect from the 1st day of June, 1994;

(b) in clause (19B), after the words and brackets "Deputy Commissioner of Income-tax (Appeals)", the words and brackets "or an Additional Commissioner of Income-tax (Appeals)" shall be inserted with effect from the 1st day of June, 1994;

(c) after clause (19B), the following clause shall be inserted with effect from the 1st day of June, 1994, namely :-'(19C) "Deputy Director" means a person appointed to be a Deputy Director of Income-tax or an Additional Director of Income-tax under sub-section (1) of section 117;';

(d) in clause (21), after the words "that sub-section to be", the words "an Additional Director of Income-tax or" shall be inserted with effect from the 1st day of June, 1994;

(e) in clause (42A), with effect from the 1st day of April, 1995, -

(f) in the proviso, after the words "share held in a company", the words, figures, brackets and letter "or any other security listed in a recognised exchange in India or a unit of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), or a unit of a Mutual Fund specified under clause (23D) of section 10" shall be inserted;

(g) the existing Explanation shall be renumbered as Explanation 1 and in Explanation 1 as so renumbered, in clause (i), after sub-clause (c), the following sub-clauses shall be inserted, namely :-

(h) in the case of a capital asset, being a share or any other security (hereafter in this clause referred to as the financial asset) subscribed to by the assessee on the basis of his right to subscribe to such financial asset or subscribed to by the person in whose favour the assessee has renounced his right to subscribe to such financial asset, the period shall be reckoned from the date of allotment of such financial asset;

(i) in the case of a capital asset, being the right to subscribe to any financial asset, which is renounced in favour of any other person, the period shall be reckoned from the date of the offer of such right by the company or institution, as the case may be, making such offer;";

(j) after Explanation 1 as so renumbered, the following Explanation shall be inserted, namely :-

'Explanation 2 : For the purposes of this clause, the expression "security" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);'.

Section 4 - Insertion of New Section 5A

After section 5 of the Income-tax Act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1963, namely :-'5A. Apportionment of income between spouses governed by Portuguese Civil Code. - (1) Where the husband and wife are governed by the system of community of property (known under the Portuguese Civil Code of 1860 as "COMMUNIAO DOS BENS") in force in the State of Goa and in the Union territories of Dadra and Nagar Haveli and Daman and Diu, the income of the husband and of the wife under any head of income shall not be assessed as that of such community of property (whether treated as an association of persons or a body of individuals), but such income of the husband and of the wife under each head of income (other than under the head "Salaries") shall be apportioned equally between the husband and the wife and the income so apportioned shall be included separately in the total income of the husband and of the wife respectively, and the remaining provisions of this Act shall apply accordingly.

(2) Where the husband or, as the case may be, the wife governed by the aforesaid system of community of property has any income under the head "Salaries", such income shall be included in the total income of the spouse who has actually earned it.'

Section 5 - Amendment of Section 6

In section 6 of the Income-tax Act, in clause (1), in sub-clause (c), in the Explanation, in clause (b), for the words "one hundred and fifty days", the words "one hundred and eighty-two days" shall be substituted with effect from the 1st day of April, 1995.

Section 6 - Amendment of Section 10

In section 10 of the Income-tax Act, -

(1) in clause (10C), with effect from the 1st day of April, 1995, -

(2) in sub-clause (iv), for the word "authority,", the words "authority; or" shall be substituted;

(3) after sub-clause (iv), the following sub-clauses shall be inserted, namely :-

(4) a co-operative society; or

(5) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or

(6) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961); or

(7) such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf,";

(8) in the first proviso, -

(9) after the word "authorities", the words, brackets and figures "or societies or Universities or the Institutes referred to in sub-clauses (vii) and (viii)" shall be inserted;

(10) after the word, brackets and figures "sub-clause (ii)", the words, brackets and figure "or co-operative societies referred to in sub-clause (v)" shall be inserted;

(11) after clause (22A), the following clause shall be inserted, namely :-

(12) any income of such news agency set up in India solely for collection and distribution of news as the Central Government may, by notification in the Official Gazette, specify in this behalf :

Provided that the news agency applies its income or accumulates it for application solely for collection and distribution of news and does not distribute its income in any manner to its members :

Provided further that any notification issued by the Central Government under this clause shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years (including an assessment year or years commencing before the date on which such notification is issued) as may be specified in the notification;";

(13) ?in clause (26), with effect from the 1st day of April, 1995,-

(14) in the opening portion, for the words "State of Nagaland, Manipur and Tripura or in the Union territories of Arunachal Pradesh and Mizoram", the words "States of Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura" shall be substituted;

(15) ?in sub-clause (a), for the words ", States or Union territories aforesaid", the words "or States aforesaid" shall be substituted;

(16) in clause (26B), the following amendments shall be made and shall be deemed to have been made with effect from the 1st day of April, 1993, namely :-

(a) for the words "members of either the Scheduled Castes or the Scheduled Tribes or of both", the words "members of the Scheduled Castes or the Scheduled Tribes or backward classes or of any two or all of them" shall be substituted;

(b) for the Explanation, the following Explanation shall be substituted, namely :-

'Explanation : For the purposes of this clause, -

(c) "Scheduled Castes" and "Scheduled Tribes" shall have the meanings respectively assigned to them in clauses (24) and (25) of articles 366 of the Constitution;

(d) "backward classes" means such classes of citizens, other than the Scheduled Castes and the Scheduled Tribes, as may be notified ?

(e) by the Central Government; or

(f) by any State Government,as the case may be, from time to time.'.

Section 7 - Amendment of Section 10B

In section 10B of the Income-tax Act, -

(a) in sub-section (2), after clause (i), the following clause shall be inserted, with effect from the 1st day of April, 1995, namely :-

(b) ?in relation to an undertaking which begins to manufacture or produce any article or thing on or after the 1st day of April, 1994, its exports of such articles and things are not less than seventy-five per cent. of the total sales thereof during the previous year;";

(d) "produce", in relation to any article or thing referred to in clause (i) of sub-section (2) includes production of computer programmes.'.

Section 8 - Amendment of Section 12A

In section 12A of the Income-tax Act, in clause (b), for the words "twenty-five thousand", the words "fifty thousand" shall be substituted with effect from the 1st day of April, 1995.

Section 9 - Amendment of Section 13

In section 13 of the Income-tax Act, in sub-section (3) in clause (b), for the words "twenty-five thousand", the words "fifty thousand" shall be substituted with effect from the 1st day of April, 1995.

Section 10 - Amendment of Section 17

In section 17 of the Income-tax Act, in clause (2), in the proviso, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted, with effect from the 1st day of April, 1993, namely :-

"(ii) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family -

(a) in any hospital maintained by the Government or any local authority or any other hospital approved by the Government for the purposes of medical treatment of its employees;

(b) in respect of the prescribed diseases or ailments, in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines :

Provided that, in a case falling in sub-clause (b), the employee shall attach with his return of income a certificate from the hospital specifying the disease or ailment for which medical treatment was required and the receipt for the amount paid to the hospital."

Section 11 - Amendment of Section 24

In section 24 of the Income-tax Act, in sub-section (2), in the proviso, for the words "five thousand rupees", the words "ten thousand rupees" shall be substituted with effect from the 1st day of April, 1995.

Section 12 - Amendment of Section 33A

In section 33AB of the Income-tax Act, with effect from the 1st day of April, 1995, -

(1) in sub-section (1),-

(2) for the portion beginning with the words "whichever is earlier, deposited with the National Bank" and ending with the words "the assessee shall, subject to the provisions of this section,", the following shall be substituted, namely "whichever is earlier, -

(a) deposited with the National Bank any amount or amounts in an account (hereafter in this section referred to as the special account) maintained by the assessee with that Bank in accordance with, and for the purposes specified in, a scheme (hereafter in this section referred to as the scheme) approved in this behalf by the Tea Board; or

(b) deposited any amount in an account (thereafter in this section referred to as the Tea Deposit Account) opened by the assessee in accordance with, and for the purposes specified in, a scheme framed by the Tea Board (hereafter in this section referred to as the deposit scheme) with the previous approval of the Central Government,the assessee shall, subject to the provisions of this section,";

(c) in the second proviso, after the words "in the special account", the words "or in the Tea Deposit Account" shall be inserted;

(3) in sub-section (3), for the words "the special account shall not be allowed to be withdrawn except for the purposes specified in the scheme", the words "the special account or the Tea Deposit Account shall not be allowed to be withdrawn except for the purposes specified in the scheme or, as the case may be, in the deposit scheme" shall be substituted;

(4) in sub-section (5), after the words "the special account", the words "or in the Tea Deposit Account" shall be inserted;

(5) in sub-section (6), -

(6) after the words "the special account", the words "or in the Tea Deposit Account" shall be inserted;

(7) after the words "the scheme", the words "or the deposit scheme" shall be inserted;

(8) in sub-section (7), -

(9) after the words "special account", the words "or in the Tea Deposit Account" shall be inserted;

(10) after the words "National Bank", the words "or which is withdrawn by the assessee from the Tea Deposit Account" shall be inserted;

(11) after the words "the scheme", the words "or the deposit scheme" shall be inserted;

(12) in sub-section (8), after the words "the scheme", at both the places where they occur, the words "or the deposit scheme" shall be inserted.

Section 13 - Amendment of Section 35

In section 35 of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 1995, -

(a) in the opening portion, after the words "a National Laboratory", the words "or a University or an Indian Institute of Technology" shall be inserted;

(b) in the first proviso, after the words "every National Laboratory", the words "or University or Indian Institute of Technology" shall be inserted;

(d) after the words "the National Laboratory", the words "or the University or the Indian Institute of Technology" shall be inserted;

(e) after the words "such Laboratory", the words "or University or Institute, as the case may be" shall be inserted;

(f) for the Explanation, the following Explanation shall be substituted, namely

'Explanation : For the purposes of this section, -

(g) "National Laboratory" means a scientific laboratory functioning at the national level under the aegis of the India Council of Agricultural Research, the Indian Council of Medical Research, the Council of Scientific and Industrial Research, the Defence Research and Development Organisation, the Department of Electronics, the Department of Bio-Technology or the Department of Atomic Energy and which is approved as a National Laboratory by the prescribed authority in such manner as may be prescribed;

(h) "University" shall have the same meaning as in Explanation to clause (xi) of section 47;

(i) "Indian Institute of Technology" shall have the same meaning as that of "Institute" in clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961).'.

Section 14 - Amendment of Section 36

In section 36 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1995, -

(a) in clause (viia), in sub-clause (a), -

(b) the words, brackets, figures and letter "a bank approved by the Central Government for the purposes of clause (viiia) or" shall be omitted;

(d) clause (viiia) shall be omitted.

Section 15 - Amendment of Section 37

In section 37 of the Income-tax Act, in sub-section (2), for the words, figures and letters "any previous year commencing on the 1st day of April, 1992", the words, figures and letters "any previous year commencing on or after the 1st day of April, 1992" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1993.

Section 16 - Insertion of New Sections 44AD and 44AE

In the Income-tax Act, before section 44B, the following sections shall be inserted, namely :-'44AD. Special provision for computing profits and gains of business of civil construction, etc. -

(1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an assessee engaged in the business of civil construction or supply of labour for civil construction, a sum equal to eight per cent. of the gross receipts paid or payable to the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum as declared by the assessee in his return of income, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" :

Provided that nothing contained in this sub-section shall apply in case the aforesaid gross receipts paid or payable exceed an amount of forty lakh rupees.

(2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deemed under those sections shall be allowed.

(3) The written down value of any asset for the purposes of the business referred to in sub-section (1) shall be deemed to have been calculated as if the assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years.

(4) The provisions of sections 44 and 44AB shall not apply insofar as they relate to the business referred to in sub-section (1) and in computing the monetary limits under those sections, the gross receipts or, as the case may be, the income from the said business shall be excluded.

(5) Nothing contained in the foregoing provisions of this section shall apply, where the assessee claims and produces evidence to prove that the profits and gains from the aforesaid business are lower than the profits and gains specified in sub-section (1), and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee and determine the sum payable by the assessee on the basis of assessment made under sub-section (3) of section 143.

Explanation : For the purposes of this section, the expression "civil construction" includes -

(6) the construction or repair of any building, bridge, dam or other structure or of any canal or road;

(7) ?the execution of any works contract.

(8) Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages. ?

(9) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an assessee, who owns not more than ten goods carriages and who is engaged in the business of plying, hiring or leasing such goods carriages, the income of such business chargeable to tax under the head "Profits and gains of business or profession" shall be deemed to be the aggregate of the profits and gains, from all the goods carriages owned by him in the previous year, computed in accordance with the provisions of sub-section (2).

(10) ?For the purposes of sub-section (1), the profits and gains from each goods carriage, -

(11) being a heavy goods vehicle, shall be an amount equal to two thousand rupees for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year or, as the case may be, an amount higher than the aforesaid amount as declared by him in his return of income;

(12) other than a heavy goods vehicle, shall be an amount equal to one thousand eight hundred rupees for every month or part of a month during which the goods carriage is owned by the assessee in the previous year or, as the case may be, an amount higher than the aforesaid amount as declared by him in his return of income.

(13) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed.

(14) The written down value of any asset used for the purpose of the business referred to in sub-section (1) shall be deemed to have been calculated as if the assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years.

(15) The provisions of sections 44 and 44AB shall not apply insofar as they relate to the business referred to in sub-section (1) and in computing the monetary limits under those sections, the gross receipts or, as the case may be, the income from the said business shall be excluded.

(16) Nothing contained in the foregoing provisions of this section shall apply, where the assessee claims and produces evidence to prove that the profits and gains from the aforesaid business are lower than the profits and gains specified in sub-sections (1) and (2), and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee and determine the sum payable by the assessee on the basis of assessment made under sub-section (3) of section 143.

Explanation : For the purposes of this section, -

(17) the expressions "goods carriage" and "heavy goods vehicle" shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(18) an assessee, who is in possession of a goods carriage, whether taken on hire purchase or on installments and for which the whole or part of the amount payable is still due, shall be deemed to be the owner of such goods carriage.'.

Section 17 - Amendment of Section 44D

In section 44D of the Income-tax Act, clauses (c) and (d) shall be omitted with effect from the 1st day of April, 1995.

Section 18 - Amendment of Section 55

In section 55 of the Income-tax Act, in sub-section (2), for clause (a), the following clauses shall be substituted, with effect from the 1st day of April, 1995, namely :-

(a) in relation to a capital asset, being goodwill of a business, tenancy rights, stage carriage permits or loom hours,-

(b) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and

(c) in any other case [not being a case falling under sub-clauses (i) to (iv) of sub-section (1) of section 49], shall be taken to be nil;

(d) in a case where, by virtue of holding a capital asset, being a share or any other security within the meaning of clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) (hereafter in this clause referred to as the financial asset), the assessee becomes entitled to subscribe to any additional financial asset, then, subject to the provisions of sub-clauses (i) and (ii) of clause (b), -

(e) in relation to the original financial asset, on the basis of which the assessee becomes entitled to any additional financial asset, means the amount actually paid for acquiring the original financial asset; and

(f) in relation to any right to renounce the said entitlement to subscribe to the financial asset, when such right is renounced by the assessee in favour of any person, shall be taken to be nil in the case of such assessee;

(g) in relation to the financial asset, to which the assessee has subscribed on the basis of the said entitlement, means the amount actually paid by him for acquiring such asset;

(h) in relation to any financial asset purchased by any person in whose favour the right to subscribe to such asset has been renounced, means the aggregate of the amount of the purchase price paid by him to the person renouncing such right and the amount paid by him to the company or institution, as the case may be, for acquiring such financial asset;".

Section 19 - Amendment of Section 57

In section 57 of the Income-tax Act, the proviso shall be omitted with effect from the 1st day of April, 1995.

Section 20 - Amendment of Section 64

In section 64 of the Income-tax Act, in sub-section (1A), in the opening portion, after the words "arises or accrues to his minor child", the words, figures and letter ", not being a minor child suffering from any disability of the nature specified in section 80U" shall be inserted with effect from the 1st day of April, 1995.

Section 21 - Amendment of Section 71

In section 71 of the Income-tax Act, for sub-section (4), the following sub-section shall be substituted with effect from the 1st day of April, 1995, namely :-

'(4) Where the net result of the computation under the head "Income from house property" is a loss, in respect of the assessment years commencing on the 1st day of April, 1995, and the 1st day of April, 1996, such loss shall be first set off under sub-sections (1) and (2) and thereafter the loss referred to in section 71A shall be set off in the relevant assessment year in accordance with the provisions of that section.'

Section 22 - Substitution of New Section for Section 71A

For section 71A of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 1995, namely :-

'71A. Transitional provisions for set off of loss under the head "Income from house property". Where in respect of the assessment year commencing on the 1st day of April, 1993, or the 1st day of April, 1994, the net result of the computation under the head "Income from house property" is a loss, such loss insofar as it relates to interest on borrowed capital referred to in clause (vi) of sub-section (1) of section 24 and to the extent it has not been set off shall be carried forward and set off in the assessment year commencing on the 1st day of April, 1995, and the balance, if any, in the assessment year commencing on the 1st day of April, 1996, against the income under any head.'.

Section 23 - Section

After section 80DD of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1995, namely '80E. Deduction in respect of repayment of loan taken for higher education. -

(1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education, or interest on such loan :

Provided that the amount which may be so deducted shall not exceed twenty-five thousand rupees.

(2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the loan referred to in sub-section (1) together with interest thereon is paid by the assessee in full, whichever is earlier.

(3) For the purposes of this section, -

(a) "approved charitable institution" means an institution specified in, or, as the case may be, an institution established for charitable purposes and notified by the Central Government under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;

(b) "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;

(c) "higher education" means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics;

(d) "initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts repaying the loan or interest thereon.'.

Section 24 - Amendment of Section 80G

In section 80G of the Income-tax Act, -

(a) in sub-section (1), in clause (i), after the words, brackets, figures and letter "on in sub-clause (iiif)", the words, brackets, figures and letter "or in sub-clause (iiig)" shall be inserted;

(b) in sub-section (2), in clause (a), after sub-clause (iiif), the following sub-clause shall be inserted, namely :-

(c) the Maharashtra Chief Minister's Relief Fund during the period beginning on the 1st day of October, 1993, and ending on the 6th day of October, 1993, or to the Chief Minister's Earthquake Relief Fund, Maharashtra; or";

(d) sub-section (3) shall be omitted;

(e) in sub-section (5), -

(f) ?the word "and", occurring at the end of clause (iv), shall be omitted;

(g) ?in clause (v), the word "and" shall be inserted at the end.

Section 25 - Amendment of Section 80HHD

In section 80HHD Income-tax Act, with effect from the 1st day of April, 1995, -

(a) in sub-section (2), in the Explanation, for the words "from a tour operator or, as the case may be, a travel agent", the words "from another hotelier, tour operator or travel agent, as the case may be," shall be substituted;

(b) in sub-section (3), after the word, brackets and figure "sub-section (2)", the brackets, words, figure and letter "[as reduced by any payment, referred to in sub-section (2A), made by the assessee]" shall be inserted;

(d) the words "aggregate of the" shall be omitted;

(e) after the words "foreign tourists", the words, brackets, figure and letter, "payments made by him to any assessee referred to in sub-section (2A)" shall be inserted.

Section 26 - Amendment of Section 80HHE

In section 80HHE of the Income-tax Act, in sub-section (1), in the proviso, for the figures "1995", the figures "1996" shall be substituted.

Section 27 - Amendment of Section 80-IA

In section 80-IA of the Income-tax Act, -

(a) in sub-section (2),-

(b) in clause (iii), in the proviso, after the words "a small scale industrial undertaking", the words, brackets, letters and figures "or an industrial undertaking referred to in sub-clause (b) of clause (iv) which begins to manufacture or produce an article or thing during the period beginning on the 1st day of April, 1993, and ending on the 31st day of March, 1998" shall be inserted;

(d) in sub-clause (a), after the word, brackets and letter "sub-clause (b)", the words, brackets and letter "or sub-clause (c)" shall be inserted;

(e) after sub-clause (b), the following sub-clause shall be inserted, namely :-

(f) in the case of an industrial undertaking located in such industrially backward district as the Central Government may, having regard to the prescribed guidelines, by notification in the Official Gazette, specify in this behalf, it begins to manufacture or produce articles or things or to operate its cold storage plant or plants at any time during the period beginning on the 1st day of October, 1994, and ending on the 31st day of March, 1999;";

(g) in sub-section (5), in clause (i), in sub-clause (b), after the words, brackets and letter "sub-clause (b)", the words, brackets and letter "or sub-clause (c)" shall be inserted with effect from the 1st day of April, 1995.

Section 28 - Omission of Section 80V

80V of the Income-tax Act shall be omitted with effect from the 1st day of April, 1995

Section 29 - Amendment of Section 88

In section 88 of the Income-tax Act, the following amendments [except amendment by sub-clause (iii) of clause (1)] shall be made and shall be deemed to have been made with effect from the 1st day of April, 1991, namely :-

(1) in sub-section (2),-

(2) in clause (xii), for the words "by any person", the words "in the name of any person" shall be substituted;

(3) in clause (xiii), for the words "by any individual", the words, brackets and figure "in the name of any person specified in sub-section (4)" shall be substituted;

(4) in clause (xiiic), after the word and figures "section 10", the words and figures "or by the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963)" shall be inserted with effect from the 1st day of April, 1995;

(5) in sub-section (4), -

(6) for clause (a), the following clause shall be substituted, namely :-

(7) for the purposes of clauses (i), (v), (xii) and (xiii) of that sub-section,

(8) in the case of an individual, the individual, the wife or husband and any child of such individual, and

(9) in the case of a Hindu undivided family, any member thereof;";

(10) ?in clause (b), sub-clause (ii) shall be omitted;

(11) in clause (c), -

(12) for the words, brackets and figures "clauses (v) and (viii)", the word, brackets and figures "clause (viii)" shall be substituted;

(13) sub-clause (iii) shall be omitted;

(14) clause (d) shall be omitted.

Section 30 - Amendment of Section 88B

In section 88B of the Income-tax Act, with effect from the 1st day of April, 1995,

(a) for the words "seventy-five thousand rupees", the words "one hundred thousand rupees" shall be substituted;

(b) for the words "twenty per cent.", the words "forty per cent." shall be substituted.

Section 31 - Amendment of Section 112

In section 112 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1995, -

(a) in clause (a), after the words "Hindu undivided family,", the words "being a resident," shall be inserted;

(b) in clause (b), -

(d) for the words "forty per cent.", wherever they occur, the words "thirty per cent." shall be substituted;

(e) after clause (b), the following clause shall be inserted, namely :-

(f) ?in the case of a non-resident (not being a company) or a foreign company, -

(g) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been its total income; and

(h) ?the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent.";

(i) ?the existing clause (c) shall be relettered as clause (d), and in clause (d) as so relettered, after the words "in any other case", the words "of a resident" shall be inserted.

Section 32 - Amendment of Section 115A

In section 115A of the Income-tax Act, with effect from the 1st day of April, 1995, -

(1) for sub-section (1), the following sub-section shall be substituted, namely :-

(2) Where the total income of ?

(3) a non-resident (not being a company) or of a foreign company, includes any income by way of ?

(4) dividends; or

(5) ?interest received from Government or an Indian concern on monies borrowed or debt incurred by Government or the Indian concern in foreign currency; or

(6) ?income received in respect of units, purchased in foreign currency, of a Mutual Fund specified under clause (23D) of section 10 or of the Unit Trust of India,the income-tax payable shall be aggregate of ?

(7) the amount of income-tax calculated on the amount of income by way of dividends, if any, included in the total income, at the rate of twenty per cent.;

(8) the amount of income-tax calculated on the amount of income by way of interest referred to in sub-clause (ii), if any, included in the total income, at the rate of twenty per cent.;

(9) the amount of income-tax calculated on the income in respect of units referred to in sub-clause (iii), if any, included in the total income, at the rate of twenty per cent.; and

(10) the amount of income-tax with which he or it would have been chargeable had his or its total income been reduced by the amount of income referred to in sub-clause (i), sub-clause (ii) and sub-clause (iii);

(11) a foreign company, includes any income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976, and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy, then, subject to the provisions of sub-sections (1A) and (2), the income-tax payable shall be the aggregate of, -

(12) ?the amount of income-tax calculated on the income by way of royalty, if any, included in the total income, at the rate of thirty per cent.;

(13) the amount of income-tax calculated on the income by way of fees for technical services, if any, included in the total income, at the rate of thirty per cent.; and

(14) the amount of income-tax with which it would have been chargeable had its total income been reduced by the amount of income by way of royalty and fees for technical services.

Explanation : For the purposes of this section, -

(15) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;

(16) "foreign currency" shall have the same meaning as in the Explanation below item (g) of sub-clause (iv) of clause (15) of section 10;

(17) ?"royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9;

(18) "Unit Trust of India" means the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963).'.

(19) in sub-section (1A), for the words "approved by the Central Government or where the agreement relates to a matter", the words "the agreement is approved by the Central Government or where it relates to a matter" shall be substituted;

(20) ?after sub-section (2), the following sub-sections shall be inserted, namely :-

(21) No deduction in respect of any expenditure or allowance shall be allowed to the assessee under sections 28 to 44C and section 57 in computing his or its income referred to in sub-section (1).

(22) Where in the case of an assessee referred to in sub-section (1), -

(23) the gross total income consists only of the income referred to in clause (a) of that sub-section, no deduction shall be allowed to him or it under Chapter VI-A;

(24) ?the gross total income includes any income referred to in clause (a) of that sub-section, the gross total income shall be reduced by the amount of such income and the deduction under Chapter VI-A shall be allowed as if the gross total income as so reduced were the gross total income of the assessee.

(25) It shall not be necessary for an assessee referred to in sub-section (1) to furnish under sub-section (1) of section 139 a return of his or its income if ?

(26) his or its total income in respect of which he or it is assessable under this Act during the previous year consisted only of income referred to in clause (a) of sub-section (1); and

(27) ?the tax deductible at source under the provisions of Chapter XVII-B has been deducted from such income.".

Section 33 - Amendment of Section 115K

In section 115K of the Income-tax Act, with effect from the 1st day of April, 1995, -

(a) in sub-section (1), for the portion beginning with the words "to whom this section applies, carrying on -", and ending with the words "from such business or vacation", the following shall be substituted, namely :"to whom this section applies and who is ?

(b) ?carrying on the business of retail trade in any goods or merchandise; or

(c) carrying on the business of running an eating place or of operating, hiring or leasing a motor cab, a maxicab or a three-wheeled motor vehicle or any other business as may be prescribed; or

(d) engaged in any vocation,and submits a statement in accordance with the provisions of sub-section (4), a sum of forty-two thousand rupees shall be deemed to be the profits and gains of such person from such business or vocation";

(e) in sub-section (2), -

(f) in clause (b), -

(g) in sub-clause (i), for the words "thirty-seven thousand rupees", the words "forty-two thousand rupees" shall be substituted;

(h) ?for sub-clause (ii), the following sub-clause shall be substituted, namely :-

(i) clause (b) or clause (c) of sub-section (1), his income from the said business or vocation, during the relevant previous year does not exceed forty-two thousand rupees; and";

(j) in clause (c), for the words "of retail trade or from the business of running the eating or from the business of operating, hiring or leasing a goods carriage, a motor cab, a maxicab or a three-wheeled motor vehicle or from the vocation", the words, brackets, letters and figure "or vocation referred to in clause (a), clause (b) or, as the case may be, clause (c) of sub-section (1)" shall be substituted;

(k) in sub-section (4), -

(l) in clause (a), -

(m) in sub-clause (i), for the words "thirty-seven thousand", the words "forty-two thousand" shall be substituted;

(n) for sub-clause (ii), the following sub-clause shall be substituted, namely :-

(o) where he is carrying on the business or vocation referred to in clause (b) or, as the case may be, clause (c) of that sub-section, his income during the relevant previous year from such business or vocation does not exceed forty-two thousand rupees,";

(p) in clause (b), the proviso shall be omitted;

(q) sub-section (6) shall be omitted;

(r) in the Explanation, in clause (a), the words "goods carriage,", shall be omitted.

Section 34 - Amendment of Section 115N

In section 115N of the Income-tax Act, the words "in respect of his income from the business of retail trade or from the business of running an eating place or from the business of operating, hiring or leasing a goods carriage, a motor cab, a maxicab or a three-wheeled motor vehicle or from any vocation" shall be omitted with effect from the 1st day of April, 1995.

Section 35 - Amendment of Section 116

In section 116 of the Income-tax Act, after clause (c), the following clause shall be inserted with effect from the 1st day of June, 1994, namely :-

"(cc) Additional Directors of Income-tax or Additional Commissioners of Income-tax or Additional Commissioners of Income-tax (Appeals),".

Section 36 - Amendment of Section 139

In section 139 of the Income-tax Act, in the sub-section (1), in the Explanation, in clause (a), for the figures, letters and words "31st day of December", the figures, letters and words "30th day of November" shall be substituted.

Section 37 - Amendment of Section 143

In section 143 of the Income-tax Act, in the Explanation, for the word and figures "section 264", the words and figures "sections 246 and 264" shall be substituted with effect from the 1st day of June, 1994.

Section 38 - Amendment of Section 154

In section 154 of the Income-tax Act, in sub-section (2), the proviso shall be omitted with effect from the 1st day of June, 1994.

Section 39 - Amendment of Section 194C

In section 194C of the Income-tax Act, the Explanation occurring below sub-section (2) shall be renumbered as Explanation II, and before Explanation II as so renumbered, the following Explanation shall be inserted, with effect from the 1st day, of June, 1994, namely :-

'Explanation I : For the purposes of sub-section (2), the expression "contractor" shall also include a contractor who is carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and the Government of a foreign State or a foreign enterprise or any association or body established outside India.'.

Section 39a - "Print Media" means

[1] [39a. "print media" means.--

(a) "book" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867(25 of 1867), but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes;

(b) ?"newspaper" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867(25 of 1867);]

Section 40 - Insertion of New Section 194-I

After section 194H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 1994, namely '194-I. Rent. - Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any person any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of twenty per cent. :

Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed one hundred and twenty thousand rupees.

Explanation : For the purposes of this section, -

(a) "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant thereto, whether or not such building is owned by the payee;

(b) where any income is credited to any account, whether called "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.'.

Section 41 - Amendment of Section 196A

In section 196A of the Income-tax Act, in sub-section (2), for the words "twenty-five per cent.", the words "twenty per cent." shall be substituted with effect from the 1st day of June, 1994.

Section 42 - Amendment of Section 197

In section 197 of the Income-tax Act, in sub-section (1), after the figures and letter "194D", the figures and letter ", 194-I" shall be inserted with effect from the 1st day of June, 1994.

Section 43 - Amendment of Sections 198 to 200 and 202 to 205

In sections 198, 199, 200, 202, 203, 203A, 204 and 205 of the Income-tax Act, after the words, figures and letter "section 194H," the word, figures and letter "section 194-I," shall be inserted with effect from the 1st day of June, 1994.

Section 44 - Amendment of Section 211

In section 211 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, with effect from the 1st day of April, 1994, namely"(1) Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by -

(a) all the companies, who are liable to pay the same, in four installments during each financial year and the due date of each installment and the amount of such installment shall be as specified in Table I below :

TABLE I

Due date of installment	Amount payable
On or before the 15th June	Not less than fifteen percent. of such advance tax.
On or before the 15th September	Not less than forty-five per cent. of such advance tax, as reduced by the amount, if any, paid in the earlier installment.
On or before the 15th December	Not less than seventy-five per cent. of such advance tax, as reduced by the amount or amounts, if any, paid in the earlier installment or installments.
On or before the 15th March	The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier installment or installments.

(b) all the assessees (other than companies), who are liable to pay the same, in three installments during each financial year and the due date of each installment and the amount of such installment shall be as specified in Table II below :

TABLE II

Due date of installment	Amount payable
On or before the 15th September	Not less than thirty per cent. of such advance tax.
On or before the 15th December	Not less than sixty percent. of such advance tax, as reduced by the amount, if any, paid in the earlier installment.
On or before the 15th March	The whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier installment or installments :

Provided that any amount paid by way of advance tax on or before the 31st day of March, shall also be treated as advance tax paid during the financial year ending on that day for all the purposes of this Act."

Section 45 - Amendment of Section 234C

In section 234C of the Income-tax Act, in sub-section (1), for the portion beginning with the words "Where in any financial year" and ending with the words "as the case may be, sixty per cent. of the tax due on the returned income :", the following shall be substituted, with effect from the 1st day of April, 1995, namely "Where in any financial year, -

(a) the company which is liable to pay advance tax under section 208 has failed to pay such tax or ?

(b) ?the advance tax paid by the company on its current income on or before 15th day of June is less than fifteen per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than seventy-five per cent. of the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of one and one-half per cent. per month for a period of three months on the amount of the shortfall from fifteen per cent. or forty-five per cent. or seventy-five per cent., as the case may be, of the tax due on the returned income;

(c) the advance tax paid by the company on its current income on or before the 15th day of March is less than the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of one and one-half per cent. on the amount of the shortfall from the tax due on the returned income :

Provided that if the advance tax paid by the company on its current income on or before the 15th day of June or the 15th day of September, is not less than twelve per cent. or, as the case may be, thirty-six per cent. of the tax due on the returned income, then, it shall not be liable to pay any interest on the amount of the shortfall on those dates;

(d) the assessee, other than a company, who is liable to pay advance tax under section 208 has failed to pay such tax or, -

(e) the advance tax paid by the assessee on his current income on or before the 15th day of September is less than thirty per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than sixty per cent. of the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one and one-half per cent. per month for a period of three months on the amount of the shortfall from thirty per cent. or, as the case may be, sixty per cent. of the tax due on the returned income;

(f) the advance tax paid by the assessee on his current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one and one-half per cent. on the amount of the shortfall from the tax due on the returned income :".

Section 46 - Amendment of Section 246

In section 246 of the Income-tax Act, with effect from the 1st day of June, 1994,

(a) in sub-section (1), in clause (a), after the words "under this Act", the words, brackets, figures and letter ", or an intimation under sub-section (1) or sub-section (1B) of section 143, where the assessee objects to the making of adjustment," shall be inserted;

(b) in sub-section (2), in clause (a), for the words, brackets and figure "an order specified in sub-section (1) where such order", the words, brackets and figure "an intimation or order specified in sub-section (1) where such intimation is sent or such order" shall be substituted.

Section 47 - Amendment of Section 269

In section 269 of the income-tax Act, with effect from the 1st day of April, 1995,

(a) clause (iii) shall be omitted;

(b) in clause (vi), the word "Goa", shall be omitted.

Section 48 - Amendment of Section 273A

In section 273A of the Income-tax Act, after sub-section (6), the following sub-section shall be inserted, with effect from the 1st day of June, 1994, namely :-

"(7) Notwithstanding anything contained in sub-section (6), the provisions of sub-section (1), sub-section (2) or, as the case may be, sub-section (4) [as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989 (3 of 1989)], shall apply in the case of reduction or waiver of penalty or interest in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, with the modifications that the power under the said sub-section (1) shall be exercisable only by the Commissioner and instead of the previous approval of the Board, the Commissioner shall obtain the previous approval of the Chief Commissioner or Director General, as the case may be, while dealing with such case."

Section 49 - Amendment of Section 296

In section 296 of the Income-tax Act, after the words "every rule made under this Act", the words, brackets, figures and letters ", the rules of procedure framed by the Settlement Commission under sub-section (7) of section 245F, the Authority for Advance Rulings under section 245V and the Appellate Tribunal under sub-section (5) of section 255" shall be inserted with effect from the 1st day of June, 1994.

Section 50 - Consequential Amendments

The following amendments (being consequential in nature) shall be made in the Income-tax Act, -

(a) in section 44AB, in the Explanation, in clause (ii), in sub-clause (a), for the figures, letters and words "31st day of December", the figures, letters and words "30th day of November" shall be substituted;

(b) ?in section 80CC, in sub-section (1), -

(c) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1978;

(d) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1978;

(e) in section 80CCA, in sub-section (1), -

(f) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1988;

(g) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1988;

(h) in section 80CCB, in sub-section (1), -

(i) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(j) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(k) in section 80D, in sub-section (2), clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1987;

(l) ?in section 80L, in sub-section (1), -

(m) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1968;

(n) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1968;

(o) in section 88, in sub-section (1), -

(p) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(q) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(r) ?in section 88A, in sub-section (1), -

(s) ?in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991;

(t) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1991.

Section 51 - Amendment of Section 2

In section 2 of the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to as the Wealth-tax Act), -

(a) in clause (ea), in the Explanation, in clause (b), for the words "period of three years", the words "period of five years" shall be substituted with effect from the 1st day of April, 1995;

(b) ?in clause (s), after the word '"Director",', the words and brackets '"Additional Director of Income-tax", "Additional Commissioner of Income-tax", "Additional Commissioner of Income-tax (Appeals)", "Deputy Director",' shall be inserted with effect from the 1st day of June, 1994.

Section 52 - Amendment of Section 4

In section 4 of the Wealth-tax Act, in sub-section (1), in clause (a), in sub-clause (ii), after the words "not being", the words, figures and letter "a minor child suffering from any disability of the nature specified in section 80U of the Income-tax Act or" shall be inserted with effect from the 1st day of April, 1995.

Section 53 - Amendment of Section 46

In section 46 of the Wealth-tax Act, in sub-section (4), after the words "every rule made under this Act", the words, brackets, figures and letter "and the rules of procedure framed by the Settlement Commission under sub-section (7) of section 22F" shall be inserted with effect from the 1st day of June, 1994.

Section 54 - Amendment of Section 2

In section 2 of the Gift-tax Act, 1958 (18 of 1958) (hereinafter referred to as the Gift-tax Act), in clause (xxv), after the word '"Director",', the words and brackets '"Additional Director of Income-tax", "Additional Commissioner of Income-tax", "Additional Commissioner of Income-tax (Appeals)", "Deputy Director",' shall be inserted with effect from the 1st day of June, 1994.

Section 55 - Amendment of Section 5

In section 5 of the Gift-tax Act, in sub-section (i), in clause (vii), for the words "thirty thousand", the words "one hundred thousand" shall be substituted with effect from the 1st day of April, 1995.

Section 56 - Amendment of Section 3 of Act 45 of 1974

Interest-TaxIn section 3 of the Interest-tax Act, 1974, in sub-section (3), with effect from the 1st day June, 1994, -

(a) after the words "Income-tax Officer", the words "or Assistant Commissioner" shall be inserted;

(b) ?for the words "Director of Inspection", the word "Director" shall be substituted;

(c) for the words "Inspecting Assistant Commissioner", the words "Additional Commissioner of Income-tax or the Deputy Commissioner" shall be substituted.

Section 57 - Amendment of Section 4

In the Expenditure-tax Act, 1987 (35 of 1987) (hereinafter referred to as the Expenditure-tax Act), in section 4, in clause (a), for the words "twenty per cent.", the words "ten per cent." shall be substituted with effect from the 1st day of June, 1994.

Section 58 - Amendment of Section 6

In the Expenditure-tax Act, in section 6, with effect from the 1st day of June, 1994, -

(a) in sub-section (1), for the words "Deputy Director", the words "Additional Director of Income-tax, Additional Commissioner of Income-tax Act, Deputy Director" shall be substituted;

(b) in sub-section (3), for the words "Deputy Commissioner", the words "Additional Commissioner of Income-tax or Deputy Commissioner" shall be substituted.

Section 59 - Amendment of Section 17

In section 17 of the Expenditure-tax Act, in the proviso, for the words "Deputy Commissioner", the words "Additional Commissioner or, as the case may be, of the Deputy Commissioner" shall be substituted with effect from the 1st day of June, 1994.

Section 60 - Amendment of Act 52 of 1962

In the Customs Act, 1962 (hereinafter referred to as the Customs Act),-

(1) for section 20, the following section shall be substituted, namely:-'20.Re-importation of goods.- If goods are imported into India after exportation therefrom, such goods shall be liable to duty and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof;

Provided that if such importation (other than importation of goods exported in bond or of goods produced or manufactured in a free trade zone) takes place within three years after the exportation of such goods and it is shown to the satisfaction of the Assistant Collector of Customs that the goods are the same which were exported, the goods may be admitted-

(2) in any case where at the time of exportation of the goods, drawback of any customs or excise duty levied by the Union or both was allowed, on payment of customs duty equal to the amount of such drawback;

(3) in any case where at the time of exportation of the goods, drawback of any excise duty levied by a State was allowed, on payment of customs duty equal to such excise duty leviable at the time and place of importation of goods;

(4) in any other case, without payment of duty;--

Provided further that if the Central Government is satisfied that it is necessary in the public interest so to do, it may, by order in each case, extend the aforesaid period of three years for such further period as it may deem fit.

Explanation I.- Where in respect of any goods produced or manufactured in a free trade zone, any duty leviable under this sub-section is leviable at different rates, then, such duty shall be leviable at the highest of those rates.

Explanation II,- For the purposes of this section, "free trade zone" has the same meaning as in Explanation 2 to sub-section (1) of section 3 of the Central Excises and Salt Act, 1944,';

(5) In section 23, for sub-section (2), the following sub-section shall be substituted, namely:-

(6) The owner of any imported goods may, at any time before an order for clearance of goods for home consumption under section 47 or an order for permitting the deposit of goods in a warehouse under section 60 has been made, relinquish his title to the goods and thereupon he shall not be liable to pay the duty thereon.";

(7) ?In section 59, In sub-section (1), the words, brackets and letter "clause (a) of" shall be omitted;

(8) section 59A shall be omitted;

(9) in sections 60, 72 and 73, the words, figures and letter "or section 59A" shall be omitted;

(10) for section 61, the following section shall be substituted, namely:-

(11) Period for which goods may remain warehoused.- (1) Any warehoused goods may be left in the warehouse in which they are deposited or in any warehouse to which they may be removed,-

(a) in the case of capital goods intended for use in any hundred per cent. export oriented undertaking, till the expiry of five years; and

(b) in the case of any other goods, till the expiry of one year,after the date on which the proper officer has made an order under section 60 permitting the deposit of the goods in a warehouse:

Provided that-

(c) ?in the case of any goods which are not likely to deteriorate, the period specified in sub-section (1) may, on sufficient cause being shown be extended by the Collector of Customs for a period not exceeding six months and by the Principal Collector of Customs for such further period as he may deem fit;

(d) ?in the case of any goods referred to in clause (b), if they are likely to deteriorate, the aforesaid period of one year may be reduced by the Collector of Customs to such shorter period as he may deem fit:

Provided further that when the licence for any private warehouse is cancelled, the owner of any goods warehoused therein shall, within seven days from the date on which notice of such cancellation is given or within such extended period as the proper officer may allow, remove the goods from such warehouse to another warehouse or clear them for home consumption or exportation.

(12) Where any warehoused goods remain in a warehouse beyond the period specified in sub-section (1) by reason of extension of the aforesaid period or otherwise, interest at such rate as is specified in section 47 shall be payable, on the amount of duty payable at the time of clearance of the goods in accordance with the provisions of section 15 on the warehoused goods, for the period from the expiry of the said warehousing period till the date of payment of duty on the warehoused goods:

Provided that the Board may, if it considers it necessary so to do in the public interest, by order and under circumstances of an exceptional nature, to be specified in such order, waive the whole or part of any interest payable under this section in respect of any warehoused goods:

Provided further the Board may, if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette, specify the class of goods in respect of which no interest shall be charged under this section.

Explanation.- For the purposes of this section, "hundred per cent. export oriented undertaking" has the same meaning as in Explanation 2 to sub-section (1) of section 3 of the Central Excises and Salt Act, 1944.(1 of 1944.)'.

Section 61 - Amendment of Act 51 of 1975

The Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act) shall be amended in the manner specified in the Second Schedule.

Section 62 - Amendment of Act 5 of 1986

The Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act),-

(a) shall be amended in the manner specified in the Third Schedule; and

(b) shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, be also amended in the manner specified in the Fourth Schedule.

Section 63 - Amendment of Act 58 of 1957

In the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as the Additional Duties of Excise Act),-

(a) in section 3, for sub-section (3), the following sub-section shall be substituted, namely:-

(b) The provisions of the Central Excise and Salt Act, 1944 (1 of 1944) and the rules made thereunder, including those relating to refunds, exemptions from duty, offences and penalties, shall, so far as may be, apply in relation to levy and collection of the additional duties as they apply in relation to the levy and collection of the duties of excise on the goods specified in sub-section (1).";

Section 64 - [Omitted]

[2][***]

Section 65 - [Omitted]

[3] [***][4]Omitted by the Central Goods and Services Tax Act, 2017.*65 . [5][DefinitionsIn this Chapter, unless the context other wise requires,--

(1) "actuary" has the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938 (4 of 1938);

(2) "advertisement" includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas;

(3) "advertising agency" means any [6][person] engaged in pro?viding any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant;

(4) [7]["aircraft" has the meaning assigned to it in clause (1) of section 2 of the Aircraft Act, 1934 (22 of 1934);

(5) [8]["aircraft operator" means any person who provides the service of transport of goods or passengers by aircraft; ]

(6) "airport" has the meaning assigned to it in clause (b) of section 2 of the Airports Authority of India Act, 1994 (55 of 1994);

(7) "airports authority" means the Airports Authority of India constituted under section 3 of the Airports Authority of India Act, 1994 (55 of 1994) and also includes any person having the charge of management of an airport or a civil enclave;]

(8) "air travel agent" means any person engaged in providing any service connected with the booking of passage for travel by air

(9) "Appellate Tribunal" means the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (52 of 1962);

(10) "[9]architect" means any person whose name is, for the time being, entered in the register of architects maintained under section 23 of the Architects Act, 1972 (20 of 1972), and also includes any commercial concern engaged in any manner, whether directly or indirectly, in ren?dering services in the field of architecture;

(11) assessee means a person liable to pay the service tax and includes hi s agent;

(12) [10]["auction of property" includes calling the auction or providing a facility, advertising or illustrating services, pre-auction price estimates, short-term storage services, repair or restoration services in relation to auction of property;]

(13) [11][ ?associated enterprise? has the meaning assigned to it in section 92A of the Income-tax Act, 1961 (43 of 1961);]

(14) authorised dealer of foreign exchange" has the meaning assigned to "authorised person" in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);

(15) [12][***]

(16) [13]["automated teller machine" means an interactive automatic machine designed to dispense cash, accept deposit of cash, transfer money between bank accounts and facilitate other financial transactions;

(17) "[14]automated teller machine operations, maintenance or management service" means any service provided in relation to automated teller machines and includes site selection, contracting of location, acquisition, financing, installation, certification, connection, maintenance, transaction processing, cash forecasting, replenishment, reconciliation and value-added services;

(18) "banker to an issue" means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), carrying on the activities relating to an issue including acceptance of application, application money, allotment money and call money, refund of application money, payment of dividend and interest warrants;]

(19) "banking" has the meaning assigned to it in clause (b) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);

(20) "banking company" has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);

(21) [15]["banking and other financial services" means?

(a) [16]the following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate [17][or commercial concern], namely:--

(b) financial leasing services including equipment leasing and hire-purchase;

[18][Explanation.--For the purposes of this item, "financial leasing" means a lease transaction where--

(d) ?such contract is for use and occupation of the asset by the lessee;

(e) the lease payment is calculated so as to cover the full cost of the asset together with the interest charges; and

(f) the lessee is entitled to own, or has the option to own, the asset at the end of the lease period after making the lease payment;]

(g) [19][***]

(h) ?merchant banking services;

(i) securities and foreign exchange (forex) broking;

(j) ?asset management including portfolio management, all forms of fund management, pension fund management, [20][custodial, depository and trust services];

(k) [21][ securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing;]

(l) ?provision and transfer of information and data processing; and

(m) [22][ banker to an issue services; and

(n) other financial services, namely, lending, issue of pay order, demand draft, cheque, letter of credit and bill of exchange, transfer of money including telegraphic transfer, mail transfer and electronic transfer, providing bank guarantee, overdraft facility, bill discounting facility, safe deposit locker, safe vaults, operation of bank accounts;]

(o) [23][foreign exchange broking and purchase or sale of foreign currency, including money changing provided by a foreign exchange broker or an authorised dealer in foreign exchange or an authorised money changer, other than those covered under sub-clause (a);]

(22) " Board" means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);

(23) ?"[24]body corporate" has the meaning assigned to it in clause (7) of section 2 of the Companies Act, 1956 (1 of 1956);

(24) "broadcasting" has the meaning assigned to it in clause (c) of section 2 of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 (25 of 1990) and also includes programme selection, scheduling or pre?sentation of sound or visual matter on a radio or a television channel that is intended for public listening or viewing, as the case may be; and in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes the activity of sell?ing of time slots or obtaining sponsorships for broadcasting of any programme or [25][collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electro-magnetic waves through space or through cables, direct to home signals or by any other means to cable operator including multi system operator or any other person on behalf of the said agency] or organisation, by its branch office or subsidiary or repre?sentative in India or any agent appointed in India or by any person who acts on its behalf in any manner;

(25) "[26]broadcasting agency or organisation" means any agency or organisation engaged in providing service in relation to broadcasting in any manner and, in the case of a broadcasting agency or organisation, hav?ing its head office situated in any place outside India, includes its branch office or subsidiary or representative in India or any agent appointed in India or any person who acts on its behalf in any manner, engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or [27][collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electromagnetic waves through space or through cables, direct to home signals or by any other means to cable operator, including multi system operator or any other person on behalf of the said agency] or organisation;

(26) [28]["beauty treatment" includes hair cutting, hair dyeing, hair dressing, face and beauty treatment, cosmetic treatment, manicure, pedicure or counselling services on beauty, face care or make-up or such other similar services;'; ]

(27) "[29]beauty parlour" means any establishment providing beauty treatment services;

(28) [30]["business auxiliary service" means any service in relation to,--

(a) promotion or marketing or sale of goods produced or provided by or belonging to the client; or

(b) promotion or marketing of service provided by the client; or

(d) ?any customer care service provided on behalf of the client; or

(e) procurement of goods or services, which are inputs for the client; or

[32]['Explanation.--For the removal of doubts, it is hereby declared that for the purposes of this

(f) [33]sub-clause, "inputs" means all goods or services intended for use by the client,;]

(g) [34][production or processing of goods for, or on behalf of, the client;]

(h) provision of service on behalf of the client; or

(i) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, [35][but does not include any activity that amounts to manufacture of excisable goods].

[36][Explanation.--For the removal of doubts, it is hereby, declared that for the purposes of this clause,--

(j) "commission agent" means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person?

(k) ?deals with goods or services or documents of title to such goods or services; or

(l) collects payment of sale price of such goods or services; or

(m) guarantees for collection or payment for such goods or services; or

(n) undertakes any activities relating to such sale or purchase of such goods or services;

(o) [37][?excisable goods? has the meaning assigned to it in clause (d) of section 2 of the Central Excise Act, 1944 (1 of 1944);

(p) ?manufacture? has the meaning assigned to it in clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944);]

(q) "business exhibition" means an exhibition,--

(r) ?to market; or

(s) to promote; or

(t) to advertise; or

(u) to showcase,any product or service, intended for the growth in business of the producer or provider of such product or service, as the case may be;]

(29) [38][ ?business entity? includes an association of persons, body of individuals, company or firm but does not include an individual;]

(30) [39]["cab" means?

(a) a motorcab, or

(b) a maxicab, or

(c) [40]any motor vehicle constructed or adapted to carry more than twelve passengers, excluding the driver, for hire or reward:

Provided that the maxi cab referred to in sub-clause (ii) or motor vehicle referred to in sub-clause (iii) which is rented for use by an educational body imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching center, shall not be included within the meaning of cab;]

(31) "cable operator" has the meaning assigned to it in clause (aa) of section 2 of the Cable Television Networks (Regulation) Act, 1995 (7 of 1995);

(32) ?"cable service" has the meaning assigned to it in clause (b) of section 2 of the Cable Television Networks (Regulation) Act, 1995 (7 of 1995);

(33) [41][cargo handling service? means loading, unloading, packing or unpacking of cargo and includes,--

(a) cargo handling services provided for freight in special containers or for non-containerised freight, services provided by a container freight terminal or any other freight terminal, for all modes of transport, and cargo handling service incidental to freight; and

(b) service of packing together with transportation of cargo or goods, with or without one or more of other services like loading, unloading, unpacking, but does not include, handling of export cargo or passenger baggage or mere transportation of goods;]

(34) "caterer" means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or ac coutrements for any purpose or occasion;

(35) [42]["civil enclave" has the meaning assigned to it in clause (i) of section 2 of the Airports Authority of India Act, 1994 (55 of 1944);]

(36) [43]["cleaning activity" means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilising of objects or premises, of?

(a) commercial or industrial buildings and premises thereof; or

(b) ?factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof, but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying;]

(37) "clearing and forwarding agent" means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operations in any manner to any other per?son and includes a consignment agent;

(38) [44][ ?clinical establishment? means?

(a) a hospital, maternity home, nursing home, dispensary, clinic, sanatorium or an institution, by whatever name called, owned, established, administered or managed by any person or body of persons, whether incorporated or not, having in its establishment the facility of central air-conditioning either in whole or in part of its premises and having more than twenty-five beds for in-patient treatment at any time during the financial year, offering services for diagnosis, treatment or care for illness, disease, injury, deformity, abnormality or pregnancy in any system of medicine; or

(b) an entity owned, established, administered or managed by any person or body of persons, whether incorporated or not, either as an independent entity or as a part of any clinical establishment referred to in sub-clause (i), which carries out diagnosis of diseases through pathological, bacteriological, genetic, radiological, chemical, biological investigations or other diagnostic or investigative services with the aid of laboratory or other medical equipment,but does not include an establishment, owned or controlled by?

(d) a local authority;

(39) ??[46]club or association? means any person or body of persons providing services, facilities or advantages, primarily to its members, for a subscription or any other amount, but does not include?

(a) any body established or constituted by or under any law for the time being in force; or

(b) ?any person or body of persons engaged in the activities of trade unions, promotion of agriculture, horticulture or animal husbandry; or

(c) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature; or

(d) any person or body of persons associated with press or media;]

(e) [47]["commercial or industrial construction"] means?

(f) construction of a new building or a civil structure or a part thereof; or

(g) construction of pipeline or conduit; or

(h) [48]completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or

(i) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is?

(j) used, or to be used, primarily for; or

(k) ?occupied, or to be occupied, primarily with; or

(l) ?engaged, or to be engaged, primarily in,commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams;]

(40) "[49]commercial training or coaching" means any training or coaching provided by a commercial training or coaching center;

(41) ?"[50]commercial training or coaching center" means any institute or establishment providing commercial training or coaching for impart?ing skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching or tutorial classes [51][***]

(42) [52][***]

(43) "commissioning and installation agency" means any agency providing service [53][in relation to erection, commissioning or installation;]

(44) "computer network" has the meaning assigned to it in clause (j) of sub -section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(45) [54]["construction of complex" means?

(a) construction of a new residential complex or a part thereof; or

(b) completion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or

(46) ?"consulting engineer" means any professionally qualified engineer or [55][any body corporate or any other firm] who, either directly or indirectly, renders any ad?vice, consultancy or technical assistance in any manner [56][to any person] in one or more disciplines of engineering;

(47) ?"[57]convention" means a formal meeting or assembly which is not open to the general public, but does not include a meeting or assembly, the principal purpose of which is to provide any type of amusement, en?tertainment or recreation;

(48) "courier agency" means a [58][any person] engaged in the door-to-door transportation of time-sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles;

(49) [59]["credit card, debit card, charge card or other payment card service" includes any service provided,--

(a) by a banking company, financial institution including non-banking financial company or any other person (hereinafter referred to as the issuing bank), issuing such card to a card holder;

(b) ?by any person to an issuing bank in relation to such card business, including receipt and processing of application, transfer of embossing data to issuing bank's personalisation agency, automated teller machine personal identification number generation, renewal or replacement of card, change of address, enhancement of credit limit, payment updation and statement generation;

(c) ?by any person, including an issuing bank and an acquiring bank, to any other person in relation to settlement of any amount transacted through such card.

Explanation.--For the purposes of this sub-clause, "acquiring bank" means any banking company, financial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card;

(d) ?in relation to joint promotional cards or affinity cards or co-branded cards;

(e) in relation to promotion and marketing of goods and services through such card;

(f) by a person, to an issuing bank or the holder of such card, for making use of automated teller machines of such person; and

(g) by the owner of trade marks or brand name to the issuing bank under an agreement, for use of the trade mark or brand name and other services in relation to such card, whether or not such owner is a club or association and the issuing bank is a member of such club or association.

Explanation.--For the purposes of this sub-clause, an issuing bank and the owner of trade marks or brand name shall be treated as separate persons;]

(50) "[60]credit rating agency" means any [61][person] engaged in the business of credit rating of any debt obligation or of any project or programme requiring finance, whether in the form of debt or other ?wise, and includes credit rating of any financial obligation, instrument or security, which has the purpose of providing a potential investor or any other person any information pertaining to the relative safety of timely payment of interest or principal;

(51) "custom house agent" means a person licensed, temporarily or other ?wise, under the regulations made under sub -section (2) of section 146 of the Customs Act, 1962 (52 of 1962);

(52) [62][ "customs airport" means an airport appointed as such under clause (a) of subsection (1) of section 7 of the Customs Act, 1962 (52 of 1962);]

(53) "data" has the meaning assigned to it in clause (o) of sub -section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(54) [63]["dredging" includes removal of material including, silt, sediments, rocks, sand, refuse, debris, plant or animal matter in any excavating, cleaning, deepening, widening or lengthening, either permanently or temporarily, of any river, port, harbour, backwater or estuary;]

(55) [64]["design services" includes services provided in relation to designing of furniture, consumer products, industrial products, packages, logos, graphics, websites and corporate identity designing and production of three dimensional models;

(56) "[65]development and supply of content" includes development and supply of mobile value added services, music, movie clips, ring tones, wall paper, mobile games, data, whether or not aggregated, information, news and animation films;]

(57) "[66]dry cleaning" includes dry cleaning of apparels, garments or other textile, fur or leather articles;

(58) "dry cleaner" means any [67][person] providing service in re?lation to dry cleaning;

(59) "[68]electronic form" has the meaning assigned to it in clause (r) of sub -section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(60) [69][ "erection, commissioning or installation" means any service provided by a commissioning and installation agency, in relation to,--

(a) erection, commissioning or installation of plant, [70] [machinery, equipment or structures, whether pre-fabricated or otherwise]; or

(b) installation of?

(d) plumbing, drain laying or other installations for transport of fluids; or

(e) heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work; or

(f) thermal insulation, sound insulation, fire proofing or water proofing; or

(g) ?lift and escalator, fire escape staircases or travelators; or

(h) such other similar services;]

(61) "[71]event management" means any service provided in relation to plan?ning, promotion, organising or presentation of any arts, entertainment, business, [72][sports, marriage or any other event] and includes any consultation pro?vided in this regard;

(62) "event manager" means any person who is engaged in providing any service in relation to event management in any manner;

(63) ?"facsimile (FAX)" means a form of telecommunication by which fixed graphic images, such as printed texts and pictures are scanned and the information converted into electrical signals for transmission over the telecommunication system;

(64) "[73]fashion designing" includes any activity relating to conceptualising, outlining, creating the designs and preparing patterns for costumes, apparels, garments, clothing accessories, jewellery or any other articles intended to be worn by human beings and any other service inciden?tal thereto;

(65) "[74]fashion designer" means any person engaged in providing service in relation to fashion designing;

(66) "financial institution" has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);

(67) "foreign exchange broker" includes any authorised dealer of foreign exchange;

(68) [75]["forward contract" has the meaning assigned to it in clause (c) of section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952);]

(69) [76]["franchise" means an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified with franchisor, whether or not a trade mark, service mark, trade name or logo or any such symbol, as the case may be, is involved;

(70) franchisor means any person who enters into franchise with a franchisee and includes any associate of franchisor or a person designated by franchisor to enter into franchise on hi s behalf and the term "fran?chisee" shall be construed accordingly;

(71) "general insurance business" has the meaning assigned to it in clause (g) of section 3 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);

(72) "goods" has the meaning assigned to it in clause (7) of section 2 of the Sale of Goods Act, 1930 (3 of 1930);

(73) [77]["goods carriage" has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(74) "goods transport agency" means any [78][person who] provides service in relation to transport of goods by road and issues consignment note, by whatever name called;]

(75) "health and fitness service" means service for physical well being such as, sauna and steam bath, turkish bath, solarium, spas, reducing or slimming saloons, gymnasium, yoga, meditation, massage (excluding therapeutic massage) or any other like service;

(76) "health club and fitness center" means any establishment, including a hotel or a resort, providing health and fitness service;

(77) "information" has the meaning assigned to it in clause (v) of sub -sec?tion (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(78) [79][ ?information technology software? means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of a computer or an automatic data processing machine or any other device or equipment;]

(79) "insurance agent" has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);

(80) ?"insurance auxiliary service" means any service provided by an actu?ary, an intermediary or insurance intermediary or an insurance agent in relation to general insurance business or life insurance business and includes risk assessment, claim settlement, survey and loss as?sessment;

(81) [80]["intellectual property right" means any right to intangible property, namely, trade marks, designs, patents or any other similar intangible property, under any law for the time being in force, but does not include copyright;

(82) "intellectual property service" means,--

(a) transferring, [81][temporarily]; or

(b) permitting the use or enjoyment of, any intellectual property right;]

(83) "intermediary or insurance intermediary" has the meaning assigned to it in clause (f) of sub -section (1) of section 2 of the Insurance Regu?latory and Development Authority Act, 1999 (41 of 1999);

(84) [82][ "international journey", in relation to a passenger, means his journey from any customs airport on board any aircraft to a place outside India;

(85) "internet" means a global information system which is logically linked together by a globally unique address, based on Internet Protocol or its subsequent enhancements or upgradations and is able to support communications using the Transmission Control Protocol or Internet Protocol suite or its subsequent enhancements or upgradations and all other Internet Protocol compatible protocols;]

(86) "internet cafe" means a commercial establishment providing facility for accessing internet;

(87) [83][ ?internet telecommunication service? includes,--

(a) internet backbone services, including carrier services of internet traffic by one Internet Service Provider to another Internet Service Provider,

(b) ?internet access services, including provision of a direct connection to the internet and space for the customer?s web page,

(c) ?provision of telecommunication services, including fax, telephony, audio conferencing and video conferencing, over the internet;]

(88) "insurer" means any person carrying on the general insurance busi?ness or life insurance business [84][and includes a re-insurer];

(89) "interior decorator" means any person engaged, whether directly or indirectly, in the business of providing by way of advice, consultancy, technical assistance or in any other manner, services related to plan?ning, design or beautification of spaces, whether man-made or other ?wise and includes a landscape designer;

(90) [85]["issue" means an offer of sale or purchase of securities to, or from, the public or the holder of securities;]

(91) [86][***]

(92) "life insurance business" has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(93) "light motor vehicle" means any motor vehicle constructed or adapted to carry more than six passengers, but not more than twelve passen?gers, excluding the driver;

(94) "magnetic storage device" includes wax blanks, discs or blanks, strips or films for the purpose of original sound recording;

(95) [87]["mailing list compilation and mailing" means any service in relation to?

(a) compiling and providing list of name, address and any other information from any source; or

(b) sending document, information, goods or any other material in a packet, by whatever name called, by addressing, stuffing, sealing, metering or mailing, for, or on behalf of, the client;]

(d) any person under a contract or an agreement; or

(e) a manufacturer or any person authorised by him, in relation to,--

(f) management of properties, whether immovable or not;

(g) maintenance or repair of properties, whether immovable or not; or

(h) maintenance or repair including reconditioning or restoration, or servicing of any goods, excluding a motor vehicle;]

[89][Explanation. For the removal of doubts, it is hereby declared that for the purposes of this clause,--

(i) ?goods? includes computer software;

(j) ?properties? includes information technology software;]

(96) [90]["management or business consultant" means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation or business in any manner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management;]

(97) mandap means any immovable property as defined in section 3 of the Transfer of Property Act, 1882 (4 of 1882) and includes any furni?ture, fixtures, light fittings and floor coverings therein let out for a con?sideration for organising any official, social or business function;

[91][Explanation.--For the purposes of this clause, "social function" includes marriage;]

(98) mandap keeper" means a person who allows temporary occupation of a mandap for a consideration for organising any official, social or busi?ness function;

[92][Explanation.--For the purposes of this clause, "social function" includes marriage;]

(99) [93] ["manpower recruitment or supply agency" means any [94][person] engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, [95][to any other person];]

(100) "market research agency" means any [96][person] engaged in conducting market research in any manner, in relation to any pro?duct, service or utility, including all types of customised and syndi?cated research services;

(101) ?maxicab has the meaning assigned to it in clause (22) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(102) ?motorcab has the meaning assigned to it in clause (25) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(103) "motor car" has the meaning assigned to it in clause (26) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(104) "motor vehicle" has the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(105) "non-banking financial company" has the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);

(106) "on-line information and database access or retrieval" means provid?ing data or information, retrievable or other wise, [97][to any person], in electronic form through a computer network;

(107) [98][ "opinion poll" means any service designed to secure information on public opinion regarding social, economic, political or other issues;

(108) "opinion poll agency" means any person engaged in providing any service in relation to opinion poll;]

(109) "other port" has the meaning assigned to "port" in clause (4) of section 3 of the Indian Ports Act, 1908 (15 of 1908), but does not include the port defined in clause (80);

(110) [99][ "outdoor caterer" means a caterer engaged in providing services in connection with catering at a place other than his own [100][but including a place provided by way of tenancy or otherwise by the person receiving such services];]

(111) [101]["packaging activity" means packaging of goods including pouch filling, bottling, labelling or imprinting of the package, but does not include any packaging activity that amounts to 'manufacture' within the meaning of clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944);]

(112) "pager" means an instrument, apparatus or appliance which is a non-speech, one way personal calling system with alert and has the capa?bility of receiving, storing and displaying numeric or alpha-numeric messages;

(113) [102]["pandal or shamiana" means a place specially prepared or arranged for organising an official, social or business function;

[103][Explanation.--For the purposes of this clause, "social function" includes marriage;]

(114) pandal or shamiana contractor" means a person engaged in providing any service, either directly or indirectly, in connection with the preparation, arrangement, erection or decoration of a pandal or shamiana and includes the supply of furniture, fixtures, lights and lighting fittings, floor coverings and other articles for use therein;]

(115) [104][[105]["passenger" means any person boarding an aircraft in India for performing domestic journey or international journey';]]

(116) "photography" includes still photography, motion picture photography, laser photography, aerial photography or fluorescent photography;

(117) "photography studio or agency" means any professional photographer or [106][any person] engaged in the business of rendering service relating to photography;

(118) "policyholder" has the meaning assigned to it in clause (2) of section 2 of the Insurance Act, 1938 (4 of 1938);

(119) "port" has the meaning assigned to it in clause (q) of section 2 of the Major Port Trusts Act, 1963 (38 of 1963);

(120) [107][?port service? means any service rendered within a port or other port, in any manner;]

(121) ?practising chartered accountant" means a person who is a member of the Institute of Chartered Accountants of India and is holding a certificate of practice granted under the provisions of the Chartered Accoun?tants Act, 1949 (38 of 1949) and includes any concern engaged in ren?dering services in the field of chartered accountancy;

(122) practising cost accountant" means a person who is a member of the Institute of Cost and Works Accountants of India and is holding a cer?tificate of practice granted under the provisions of the Cost and Works Accountants Act, 1959 (23 of 1959) and includes any concern engaged in rendering services in the field of cost accountancy;

(123) practising company secretary" means a person who is a member of the Institute of Company Secretaries of India and is holding a certificate of practice granted under the provisions of the Company Secretaries Act, 1980 (56 of 1980) and includes any concern engaged in ren?dering services in the field of company secretaryship;

(124) "prescribed" means prescribed by rules made under this Chapter;

(125) [108]["programme" means any audio or visual matter, live or recorded, which is intended to be disseminated by transmission of electro-magnetic waves through space or through cables intended to be received by the general public either directly or indirectly through the medium of relay stations;

(126) "programme producer" means [109][any person who] produces a programme on behalf of another person;]

(127) [110][ "public relations" includes strategic counselling based on industry, media and perception research, corporate image management, media relations, media training, press release, press conference, financial public relations, brand support, brand launch, retail support and promotions, events and communications and crisis communications; ]

(128) [111][?processing and clearing house? means any person including the clearing corporation authorised or assigned by a recognised stock exchange, recognised association or a registered association to perform the duties and functions of a clearing house in relation to,--

(a) the periodical settlement of contracts for, or relating to, the sale or purchase of securities, goods or forward contracts and differences thereunder;

(b) ?the delivery of, and payment for, securities, goods or forward contracts;

(129) "rail travel agent" means any person engaged in providing any service connected with booking of passage for travel by rail;

(130) "real estate agent" means a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting, of real estate and includes a real estate consultant;

(131) "real estate consultant" means a person who renders in any manner, either directly or indirectly, advice, consultancy or technical assistance, in relation to evaluation, conception, design, development, construc?tion, implementation, supervision, maintenance, marketing, acquisi?tion or management, of real estate;

(132) [112][ "recognised association" has the meaning assigned to it in clause (j) of section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952);

(133) "registered association" has the meaning assigned to it in clause (jj) of section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of 1952);]

(134) [113]["registrar to an issue" means any person carrying on the activities in relation to an issue including collecting application forms from investors, keeping a record of applications and money received from investors or paid to the seller of securities, assisting in determining the basis of allotment of securities, finalising the list of persons entitled to allotment of securities and processing and dispatching allotment letters, refund orders or certificates and other related documents;]

(135) ?recognised stock exchange" has the meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(136) [114]["renting of immovable property" includes renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course or furtherance of business or commerce but does not include ?

(a) renting of immovable property by a religious body or to a religious body; or

(b) renting of immovable property to an educational body, imparting skill or knowledge or lessons on any subject or field, other than a commercial training or coaching center;

Explanation [115][1]--For the purposes of this clause, "for use in the course or furtherance of business or commerce" includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings;]

[116][Explanation 2.-- For the removal of doubts, it is hereby declared that for the purposes of this clause ?renting of immovable property? includes allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of the said immovable property;]

(d) [117]["residential complex" means any complex comprising of?

(e) a building or buildings, having more than twelve residential units;

(f) a common area; and

(g) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by any authority under law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.

Explanation.--For the removal of doubts, it is hereby declared that for the purposes of this clause,--

(h) "personal use" includes permitting the complex for use as residence by another person on rent or without consideration;

(i) "residential unit" means a single house or a single apartment intended for use as a place of residence;]

(137) "scientific or technical consultancy" means any advice, consultancy, or scientific or technical assistance, rendered in any manner, either directly or indirectly, by a scientist or a technocrat, or any science or technology institution or organisation, [118][to any person], in one or more disci?plines of science or technology;

(138) "securities" has the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(139) "security agency" means any [119][person] engaged in the busi?ness of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or other wise, including the services of providing security personnel;

(140) "service tax" means tax leviable under the provisions of this Chapter;

(141) [120][ "share transfer agent" means any person who maintains the record of holders of securities and deals with all matters connected with the transfer or redemption of securities or activities incidental thereto;]

(142) "ship" means a sea-going vessel and includes a sailing vessel;

(143) [121]["ship management service" includes,--

(a) the supervision of the maintenance, survey and repair of ship;

(b) engagement or providing of crews;

(d) arrangements for loading and unloading;

(e) providing for victualling or storing of ship;

(f) negotiating contracts for bunker fuel and lubricating oil;

(g) payment, on behalf of the owner, of expenses incurred in providing services or in relation to the management of ship;

(h) ?the entry of ship in a protection or indemnity association;

(i) dealing with insurance, salvage and other claims; and

(j) arranging of insurance in relation to ship;]

(k) ?"shipping line" means any person who owns or charters a ship and includes an enterprise which operates or manages the business of shipping;

(l) [122]["site formation and clearance, excavation and earthmoving and demolition" includes,--

(m) drilling, boring and core extraction services for construction, geophysical, geological or similar purposes; or

(n) soil stabilization; or

(o) horizontal drilling for the passage of cables or drain pipes; or

(p) land reclamation work; or

(q) contaminated top soil stripping work; or

(r) demolition and wrecking of building, structure or road,but does not include such services provided in relation to agriculture, irrigation, watershed development and drilling, digging, repairing, renovating or restoring of water sources or water bodies;]

(144) [123]["sound recording" means recording of sound on any media or device including magnetic storage device, and includes services relating to recording of sound in any manner such as sound cataloguing, storing of sound and sound mixing or re-mixing or any audio post-production activity;]

(145) ?"sound recording studio or agency" means any [124][person] engaged in the business of rendering any service relating to sound recording;

(146) [125][ "sponsorship" includes naming an event after the sponsor, displaying the sponsor's company logo or trading name, giving the sponsor exclusive or priority booking rights, sponsoring prizes or trophies for competition; but does not include any financial or other support in the form of donations or gifts, given by the donors subject to the condition that the service provider is under no obligation to provide anything in return to such donors;]

(147) "steamer agent" means any person who undertakes, either directly or indirectly,--

(a) to perform any service in connection with the ship's husbandry or dispatch including the rendering of administrative work re?lated thereto; or

(b) ?to book, advertise or canvass for cargo for or on behalf of a shipping line; or

(148) [126]["stock-broker" means a person, who has either made an application for registration or is registered as a stock-broker [127][***], in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992;]

(149) "storage and warehousing" includes storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce or any service provided by a cold storage;

(150) [128][***]

(151) [129][***]

(152) [130]["survey and exploration of mineral" means geological, geophysical or other prospecting, surface or sub-surface surveying or map making service, in relation to location or exploration of deposits of mineral, oil or gas;]

(153) [131] ["survey and map-making" means geological, geophysical or any other prospecting, surface, sub- surface or aerial surveying or map-making of any kind, but does not include survey and exploration of mineral;]

(154) [132]["support services of business or commerce" means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfillment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, [133][operational or administrative assistance in any manner], formulation of customer service and pricing policies, infrastructural support services and other transaction processing.

Explanation.--For the purposes of this clause, the expression "infrastructural support services" includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom facilities, pantry and security;]

(155) "taxable service" means any [134][service provided or to be provided],-

(a) [135][to any person], by a stock-broker in connection with the sale or purchase of securities listed on a recognised stock exchange;

(b) [136][***]

(c) to a [137][policy holder or any person], by an [138][insurer, including re-insurer] carrying on general insurance business in relation to general insurance business;

(d) [139][to any person], by an advertising agency in relation to advertisement, in any manner;

(e) [140][to any person], by a courier agency in relation to door-to-door trans?portation of time sensitive documents, goods or articles;

(f) [141][to any person, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering including the discipline of computer hardware engineering.

Explanation.-- For the purposes of this sub-clause, it is hereby declared that services provided by a consulting engineer in relation to advice, consultancy or technical assistance in the disciplines of both computer hardware engineering and computer software engineering shall also be classifiable under this sub-clause;]engineering but excluding the discipline of computer software engineering];

(g) [142][to any person], by a custom house agent in relation to the entry or departure of conveyances or the import or export of goods;

(h) to a shipping line, by a steamer agent in relation to a ship's hus?bandry or dispatch or any administrative work related thereto as well as the booking, advertising or canvassing of cargo, including container feeder services;

(i) [143][to any person], by a clearing and forwarding agent in relation to clear?ing and forwarding operations, in any manner;

(j) [144][[145] [to any person], by a manpower recruitment or supply agency in relation to the recruitment or supply of manpower, temporarily or otherwise, in any manner;]

[146][Explanation.--For the removal of doubts, it is hereby declared that for the purposes of this sub- clause, recruitment or supply of manpower includes services in relation to pre-recruitment screening, verification of the credentials and antecedents of the candidate and authenticity of documents submitted by the candidate;]

(k) [147][to any person], by an air travel agent in relation to the booking of passage for travel by air;

(l) ?to [148][any person], by a mandap keeper in relation to the use of mandap in any manner including the facilities [149][provided or to be provided to [150][such person] in relation to such use and also the services, ifany, provided or to be provided as a caterer].

(m) to any person, by a tour operator in relation to a tour;

(n) to any person, by a rent-a-cab scheme operator in relation to the renting of a cab;

(o) [151] [to any person], by an architect in hi s professional capacity, in any manner;

(p) [152][to any person], by an interior decorator in relation to planning, design or beautification of spaces, whether man-made or other wise, in any manner;

(q) [153][[154][to any person], by a management or business consultant in connection with the management of any organisation or business, in any manner;]

(r) [155][to any person], by a practising chartered accountant in hi s profes?sional capacity, in any manner;

(s) [156] [to any person], by a practising cost accountant in hi s professional capacity, in any manner;

(t) [157][to any person], by a practising company secretary in hi s professional capacity, in any manner;

(u) [158][to any person], by a real estate agent in relation to real estate;

(v) [159][to any person], by a security agency in relation to the security of any property or person, by providing security personnel or other wise and includes the provision of services of investigation, detection or verification of any fact or activity;

(w) [160][to any person], by a credit rating agency in relation to credit rating of any financial obligation, instrument or security;

(x) [161] [to any person], by a market research agency in relation to market research of any product, service or utility, in any manner;

(y) [162][to any person], by an underwriter in relation to underwriting, in any manner;

(z) [163] [to any person], by a scientist or a technocrat, or any science or tech?nology institution or organisation, in relation to scientific or tech?nical consultancy;

(aa) [164][to any person], by a photography studio or agency in relation to photography, in any manner;

(bb) [165][to any person], by any [166][person] in relation to holding of a convention, in any manner;

(cc) [167] [***]

(dd) [168][to any person], by [169][any person], , in relation to on-line information and database access orretrieval or both in electronic form through computer network, in any manner;

(ee) [170][to any person], by a video production agency in relation to video-tape production, in any manner;

(ff) [171][to any person], by a sound recording studio or agency in relation to any kind of sound recording;

(gg) to [172][any person], by a broadcasting agency or organisation in relation to broadcasting in any manner and, in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes service provided by its branch office or subsidiary or representative in India or any agent appointed in India or by any person who acts on its behalf in any manner, engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or [173][collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electromagnetic waves through space or through cables, direct to home signals or by any other means to cable operator, including multi system operator or any other person on behalf of the said agency] .

Explanation.-- For the removal of doubts, it is hereby declared that so long as the radio or television programme broadcast is received in India and intended for listening or viewing, as the case may be, by the public, such service shall be a taxable service in relation to broadcasting, even if the encryption of signals or beaming thereof through the satellite might have taken place outside India;

(156) to a [174][policy holder or any person] or [175][insurer, including re-insurer], by an actuary, or intermediary or insurance intermediary or insurance agent, in relation to insur?ance auxiliary services concerning general insurance business;

(157) [176][ [177][to any person], by a banking company or a financial institution including a non-banking financial company, or any other body corporate [178][or commercial concern], in relation to banking and other financial services;]

(158) [179][ to any person, by any other person, in relation to port services in a port, in any manner:

Provided that the provisions of section 65A shall not apply to any service when the same is rendered wholly within the port]

(159) [180][ to any person, by any other person, in relation to any service for repair, reconditioning, restoration or decoration or any other similar services, of any motor vehicle other than three wheeler scooter auto-rickshaw and motor vehicle meant for goods carriage;]

(160) [181][***]

(161) [182][to any person], by a beauty parlour in relation to beauty treatment;

(162) to any person, by a cargo handling agency in relation to cargo handling services;

(163) [183][to any person, by a cable operator, including a multi system operator,] in relation to cable services;

(164) [184][to any person], by a dry cleaner in relation to dry cleaning;

(165) [185][to any person], by an event manager in relation to event manage men t;

(166) to any person, by a fashion designer in relation to fashion design?ing;

(167) to any person, by a health club and fitness center in relation to health and fitness services;

(168) [186][to a policy holder or any person, by an insurer, including re-insurer carrying on life insurance business;]

(169) to a [187][policy holder or any person] or [188][insurer, including re-insurer] by an actuary, or intermediary or in?surance intermediary or insurance agent, in relation to insurance auxiliary services concerning life insurance business;

(170) [189][to any person], by a rail travel agent in relation to booking of passage for travel by rail;

(171) to any person, by a storage or warehouse keeper in relation to storage and warehousing of goods;

(172) to [190][any person], by [191][any person], in relation to business auxi?liary service;

(173) to any person, by a commercial training or coaching center in relation to commercial training or coaching;

[192][Explanation.--For the removal of doubts, it is hereby declared that the expression ?commercial training or coaching center? occurring in this sub-clause and in clauses (26), (27) and (90a) shall include any center or institute, by whatever name called, where training or coaching is imparted for consideration, whether or not such center or institute is registered as a trust or a society or similar other organisation under any law for the time being in force and carrying on its activity with or without profit motive and the expression ?commercial training or coaching? shall be construed accordingly]

(174) [193][to any person], by a commissioning and installation agency in re?lation to [194][erection, commissioning or installation];

(175) to a franchisee, by the franchisor in relation to franchise;

(176) to any person, by an internet cafe in relation to access of internet;

(177) [195][to any person], by [196][any other person] in relation to [197][management, maintenance or repair];

(178) to any person, by a technical testing and analysis agency, in rela?tion to technical testing and analysis;

(179) to any person, by a technical inspection and certification agency, in relation to technical inspection and certification;

(180) [198][***]

(181) [199][to any person, by a foreign exchange broker, including an authorised dealer in foreign exchange or an authorised money changer, other than a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern referred to in sub-clause (zm);]

(182) [200][ to any person, by any other person, in relation to port services in other port, in any manner:

Provided that the provisions of section 65A shall not apply to any service when the same is rendered wholly within other port;

(183) to any person, by airports authority or by any other person, in any airport or a civil enclave:

Provided that the provisions of section 65A shall not apply to any service when the same is rendered wholly within the airport or civil enclave;]

(184) ?to any person, by an aircraft operator, in relation to transport of goods by aircraft;

(185) to an exhibitor, by the organiser of a business exhibition, in relation to business exhibition;

(186) [201][to any person], by a goods transport agency, in relation to transport of goods by road in a goods carriage;

(187) to any person, by [202][any other person], in relation to [203][commercial or industrial construction [204][***]];

[205][Explanation.--For the purposes of this sub-clause, the construction of a new building which is intended for sale, wholly or partly, by a builder or any person authorised by the builder before, during or after construction (except in cases for which no sum is received from or on behalf of the prospective buyer by the builder or the person authorised by the builder before grant of completion certificate by the [206]authority competent to issue such certificate under any law for the time being in force) shall be deemed to be service provided by the builder to the buyer;]

(188) ?to any person, by the holder of intellectual property right, in relation to intellectual property service;

(189) ?to any person, by an opinion poll agency, in relation to opinion poll;

(190) [207][to any person], by an outdoor caterer;

(191) to any person, by a programme producer, in relation to a programme;

(192) [208][to any person], by any person, in relation to survey and exploration of mineral;

(193) [209][to any person], by a pandal or shamiana contractor in relation to a pandal or shamiana in any manner and also includes the services, if any, [210][provided or to be provided] as a caterer;

(194) [211][to any person], by a travel agent, in relation to the booking of passage for travel;

(195) to any person, by a member of a recognised association or a registered association, in relation to a forward contract;]

(196) [212] [" to any person by any other person, in relation to transport of goods other than water, through pipeline or other conduit;

(197) to any person, by any other person, in relation to site formation and clearance, excavation and earthmoving and demolition and such other similar activities;

(198) ?to any person, by any other person, in relation to dredging;

(199) to any person, by any other person, other than by an agency under the control of, or authorised by, the Government, in relation to survey and map-making;

(200) to any person, by any other person, in relation to cleaning activity;

(201) to its members, [213][or any other person] by any club or association in relation to provision of services, facilities or advantages for a subscription or any other amount;

(202) to any person, by any other person, in relation to packaging activity;

(203) to any person, by any other person, in relation to mailing list compilation and mailing;

(204) to any person, by any other person, in relation to construction of complex;]

[214][Explanation.--For the purposes of this sub-clause, construction of a complex which is intended for sale, wholly or partly, by a builder or any person authorised by the builder before, during or after construction (except in cases for which no sum is received from or on behalf of the prospective buyer by the builder or a person authorised by the builder before the grant of completion certificate by the [215]authority competent to issue such certificate under any law for the time being in force) shall be deemed to be service provided by the builder to the buyer;]

(205) [216][to any person, by a registrar to an issue, in relation to sale or purchase of securities;

(206) to any person, by a share transfer agent, in relation to securities;

(207) to any person, by any other person, in relation to automated teller machine operations, maintenance or management service, in any manner;

(208) to a banking company or a financial institution including a non-banking financial company or any other body corporate or a firm, by any person, in relation to recovery of any sums due to such banking company or financial institution, including a non-banking financial company, or any other body corporate or a firm, in any manner;

(209) to any person, by any other person, in relation to sale of space or time for advertisement, in any manner; but does not include sale of space for advertisement in print media and sale of time slots by a broadcasting agency or organisation.

Explanation 1.--For the purposes of this sub-clause, "sale of space or time for advertisement" includes,--

(a) providing space or time, as the case may be, for display, advertising, showcasing of any product or service in video programmes, television programmes or motion pictures or music albums, or on billboards, public places, buildings, conveyances, cell phones, automated teller machines, internet;

(b) selling of time slots on radio or television by a person, other than a broadcasting agency or organisation; and

[217][Explanation 2.--For the purposes of this sub-clause, "print media" means,--

(d) "newspaper" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867);

(e) "book" as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867), but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes;]

(f) [218][to any person, by any other person receiving sponsorship, in relation to such sponsorship, in any manner;

(g) to any passenger, by an aircraft operator, in relation to scheduled or non-scheduled air transport of such passenger embarking in India for domestic journey or international journey;]

Explanation 1.--For the purposes of this sub-clause, economy class in an aircraft meant for scheduled air transport of passengers means,--

(h) where there is more than one class of travel, the class attracting the lowest standard fare; or

(i) where there is only one class of travel, that class.

Explanation 2.--For the purposes of this sub-clause, in an aircraft meant for non-scheduled air transport of passengers, no class of travel shall be treated as economy class;

(210) [219][to any person, by any other person, in relation to transport of goods by rail, in any manner;]

(211) to any person, by any other person, in relation to support services of business or commerce, in any manner;

(212) ?to any person, by any other person, in relation to auction of property, movable or immovable, tangible or intangible, in any manner, but does not include auction of property under the directions or orders of a court of law or auction by the Government;

[220][Explanation.--For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, ?auction by the Government? means the Government property being auctioned by any person acting as auctioneer;]

(213) to any person, by any other person, in relation to managing the public relations of such person, in any manner;

(214) to any person, under a contract or an agreement, by any other person, in relation to ship management service;

(215) ?to any person, by any other person, in relation to [221][internet telecommunication service];

(216) to any person, by any other person, in relation to transport of such person embarking from any port or other port in India, by a cruise ship.

Explanation.--For the purposes of this sub-clause, "cruise ship" means a ship or vessel used for providing recreational or pleasure trips, but does not include a ship or vessel used for private purposes or a ship or vessel of, or less than, fifteen net tonnage;

(217) to any person, by any other person, in relation to credit card, debit card, charge card or other payment card service, in any manner;]

(218) [222][***]and the term "service provider" shall he construed accordingly;

(219) [223][to any person, by the telegraph authority in relation to telecommunication service;

(220) ?to any person, by any other person in relation to mining of mineral, oil or gas;

(221) [224][to any person, by any other person, by renting of immovable property or any other service in relation to such renting, for use in the course of or, for furtherance of, business or commerce]

Explanation 1.--For the purposes of this sub-clause, "immovable property" includes--

(a) building and part of a building, and the land appurtenant thereto;

(b) land incidental to the use of such building or part of a building;

(d) in case of a building located in a complex or an industrial estate, all common areas and facilities relating thereto, within such complex or estate, but does not include?

(e) vacant land solely used for agriculture, aquaculture, farming, forestry, animal husbandry, mining purposes;

(f) vacant land, whether or not having facilities clearly incidental to the use of such vacant land;

(g) land used for educational, sports, circus, entertainment and parking purposes; and

(h) building used solely for residential purposes and buildings used for the purposes of accommodation, including hotels, hostels, boarding houses, holiday accommodation, tents, camping facilities.

(i) [225][vacant land, given on lease or license for construction of building or temporary structure at a later stage to be used for furtherance of business or commerce;]

Explanation 2.--For the purposes of this sub-clause, an immovable property partly for use in the course or furtherance of business or commerce and partly for residential or any other purposes shall be deemed to be immovable property for use in the course or furtherance of business or commerce;

(j) to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams.

Explanation.--For the purposes of this sub-clause, "works contract" means a contract wherein,--

(k) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and

(l) such contract is for the purposes of carrying out,--

(m) erection, commissioning or installation of plant, machinery, equipment or structures, whether prefabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or

(n) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or

(o) construction of a new residential complex or a part thereof; or

(p) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or

(q) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;

(222) to any person, by any other person in relation to development and supply of content for use in telecommunication services, advertising agency services and on-line information and database access or retrieval services;

(223) to any person, by any other person, except a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern referred to in sub-clause (zm), in relation to asset management including portfolio management and all forms of fund management;

(224) to any person, by any other person in relation to design services, but does not include service provided by?

(a) an interior decorator referred to in sub-clause (q); and

(b) a fashion designer in relation to fashion designing referred to in sub-clause (zv);]

(d) development of information technology software,

(e) study, analysis, design and programming of information technology software,

(f) adaptation, upgradation, enhancement, implementation and other similar services related to information technology software,

(g) providing advice, consultancy and assistance on matters related to information technology software, including conducting feasibility studies on implementation of a system, specifications for a database design, guidance and assistance during the startup phase of a new system, specifications to secure a database, advice on proprietary information technology software,

(h) [228][providing] the right to use information technology software for commercial exploitation including right to reproduce, distribute and sell information technology software and right to use software components for the creation of and inclusion in other information technology software products,

(i) [229][providing] the right to use information technology software supplied electronically;

(j) to a policy holder, by an insurer carrying on life insurance business, in relation to management of investment, under unit linked insurance business, commonly known as Unit Linked Insurance Plan (ULIP) scheme.

Explanation.-- For the purposes of this sub-clause,--

(k) management of segregated fund of unit linked insurance business by the insurer shall be deemed to be the service provided by the insurer to the policy holder in relation to management of investment under unit linked insurance business; and

(l) [230][the gross amount charged by the insurer from the policy holder for the said service provided or to be provided shall be equal to the maximum amount fixed by the Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), as fund management charges for unit linked insurance plan or the actual amount charged for the said purpose by the insurer from the policy holder, whichever is higher;]

(225) to any person, by a recognised stock exchange in relation to assisting, regulating or controlling the business of buying, selling or dealing in securities and includes services provided in relation to trading, processing, clearing and settlement of transactions in securities;

(226) to any person, by a recognised association or a registered association in relation to assisting, regulating or controlling the business of the sale or purchase of any goods or forward contracts and includes services provided in relation to trading, processing, clearing and settlement of transactions in goods or forward contracts;

(227) to any person, by a processing and clearinghouse in relation to processing, clearing and settlement of transactions in securities, goods or forward contracts including any other matter incidental to, or connected with, such securities, goods and forward contracts;

(228) ?to any person, by any other person in relation to supply of tangible goods including machinery, equipment and appliances for use, without transferring right of possession and effective control of such machinery, equipment and appliances;]

(229) [231][? to any person, by any other person, in relation to cosmetic surgery or plastic surgery, but does not include any surgery undertaken to restore or reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, degenerative diseases, injury or trauma;

(230) to any person, by any other person, in relation to transport of ?

(a) coastal goods;

(b) goods through national waterway; or

Explanation.-- For the purposes of this sub-clause,--

(d) ?coastal goods? has the meaning assigned to it in clause (7) of section 2 of the Customs Act, 1962 (52 of 1962);

(e) ?national waterway? has the meaning assigned to it in clause (h) of section 2 of the Inland Water ways Authority of India Act, 1985 (82 of 1985);

(f) ?inland water? has the meaning assigned to it in clause (b) of section 2 of the Inland Vessels Act, 1917 (1 of 1917);

(g) [232][to any person, by a business entity, in relation to advice, consultancy or assistance in any branch of law, in any manner;

(h) ?to any business entity, by any person, in relation to representational services before any court, tribunal or authority;

(i) to any business entity, by an arbitral tribunal, in respect of arbitration.

Explanation.--For the purposes of this item, the expressions ?arbitration? and ?arbitral tribunal? shall have the meanings respectively assigned to them in the Arbitration and Conciliation Act, 1996 (26 of 1996);]

(j) [233][to any person,--

(k) by a clinical establishment; or

(l) by a doctor, not being an employee of a clinical establishment, who provides services from such premises for diagnosis, treatment or care for illness, disease, injury, deformity, abnormality or pregnancy in any system of medicine;]

(231) to any business entity, by any other person, in relation to storing, keeping or maintaining of medical records of employees of a business entity;

(232) ?to any person, by any other person, through a business entity or otherwise, under a contract for promotion or marketing of a brand of goods, service, event or endorsement of name, including a trade name, logo or house mark of a business entity by appearing in advertisement and promotional event or carrying out any promotional activity for such goods, service or event.

Explanation.--For the purposes of this sub-clause, ?brand? includes symbol, monogram, label, signature or invented words which indicate connection with the said goods, service, event or business entity;

(233) to any person, by any other person, by granting the right or by permitting commercial use or exploitation of any event including an event relating to art, entertainment, business, sports or marriage organised by such other person;

(234) to any person, by an electricity exchange, by whatever name called, approved by the Central Electricity Regulatory Commission constituted under section 76 of the Electricity Act, 2003 (36 of 2003), in relation to trading, processing, clearing or settlement of spot contracts, term ahead contracts, seasonal contracts, derivatives or any other electricity related contract;

(235) to any person, by any other person, for?

(a) transferring temporarily; or

(b) permitting the use or enjoyment of, any copyright defined in the Copyright Act, 1957 (14 of 1957), except the rights covered under sub-clause (a) of clause (1) of section 13 of the said Act;?;

(236) to a buyer, by a builder of a residential complex, or a commercial complex, or any other person authorised by such builder, for providing preferential location or development of such complex but does not include services covered under sub-clauses (zzg), (zzq), (zzzh) and in relation to parking place.

Explanation.--For the purposes of this sub-clause, ??preferential location?? means any location having extra advantage which attracts extra payment over and above the basic sale price;]

(237) [234][to any person, by a restaurant, by whatever name called, having the facility of air-conditioning in any part of the establishment, at any time during the financial year, which has licence to serve alcoholic beverages, in relation to serving of food or beverage, including alcoholic beverages or both, in its premises;

(238) to any person by a hotel, inn, guest house, club or campsite, by whatever name called, for providing of accommodation for a continuous period of less than three months;]

(239) "technical testing and analysis" means any service in relation to physi?cal, chemical, biological or any other scientific testing or analysis of goods or material or [235][information technology software or] any immovable property, but does not include any testing or analysis service provided in relation to human beings or animals;

[236][Explanation.--For the removal of doubts, it is hereby declared that for the purposes of this clause, "technical testing and analysis" includes testing and analysis undertaken for the purpose of clinical testing of drugs and formulations; but does not include testing or analysis for the purpose of determination of the nature of diseased condition, identification of a disease, prevention of any disease or disorder in human beings or animals;]

(240) "technical testing and analysis agency" means any agency or person engaged in providing service in relation to technical testing and analy?sis;

(241) "technical inspection and certification" means inspection or examina?tion of goods or [237][process or material or information technology software] or any immovable property to cer?tify that such goods or [238][process or material or information technology software] or immovable property quali?fies or maintains the specified standards, including functionality or utility or quality or safety or any other characteristic or parameters, but does not include any service in relation to inspection and certifica?tion of pollution levels;

(242) "technical inspection and certification agency" means any agency or person engaged in providing service in r elation to technical inspec?tion and certification;

(243) [239]["telecommunication service" means service of any description provided by means of any transmission, emission or reception of signs, signals, writing, images and sounds or intelligence or information of any nature, by wire, radio, optical, visual or other electro-magnetic means or systems, including the related transfer or assignment of the right to use capacity for such transmission, emission or reception by a person who has been granted a licence under the first proviso to sub-section (1) of section 4 of the Indian Telegraph Act, 1885 (13 of 1885) and includes?

(a) voice mail, data services, audio tax services, video tax services, radio paging;

(b) ?fixed telephone services including provision of access to and use of the public switched telephone network for the transmission and switching of voice, data and video, inbound and outbound telephone service to and from national and international destinations;

(c) cellular mobile telephone services including provision of access to and use of switched or non-switched networks for the transmission of voice, data and video, inbound and outbound roaming service to and from national and international destinations;

(d) carrier services including provision of wired or wireless facilities to originate, terminate or transit calls, charging for interconnection, settlement or termination of domestic or international calls, charging for jointly used facilities including pole attachments, charging for the exclusive use of circuits, a leased circuit or a dedicated link including a speech circuit, data circuit or a telegraph circuit;

(e) provision of call management services for a fee including call waiting, call forwarding, caller identification, three-way calling, call display, call return, call screen, call blocking, automatic callback, call answer, voice mail, voice menus and video conferencing;

(f) private network services including provision of wired or wireless telecommunication link between specified points for the exclusive use of [240][such person];

(g) data transmission services including provision of access to wired or wireless facilities and services specifically designed for efficient transmission of data; and

(h) communication through facsimile, pager, telegraph and telex,but does not include service provided by?

(i) ?any person in relation to on-line information and database access or retrieval or both referred to in sub-clause (zh) of clause (105);

(j) a broadcasting agency or organisation in relation to broadcasting referred to in sub-clause (zk) of clause (105); and

(k) any person in relation to [241][internet telecommunication service] referred to in sub-clause (zzzu) of clause (105);]

(244) "telegraph" has the meaning assigned to it in clause (1) of section 3 of the Indian Telegraph Act, 1885 (13 of 1885);

(245) "telegraph authority" has the meaning assigned to it in clause (6) of section 3 of the Indian Telegraph Act, 1885 (13 of 1885) and includes a person who has been granted a licence under the first proviso to sub -section (1) of section 4 of that Act;

(246) "telex" means a typed communication by using teleprinters through telex exchanges;

(247) ?"tour" means a journey from one place to another irrespective of the distance between such places;

(248) "tourist vehicle" has the meaning assigned to it in clause (43) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(249) [242][ "tour operator" means any person engaged in the business of planning, scheduling, organising or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle or a contract carriage by whatever name called, covered by a permit, other than a stage carriage permit, granted under the Motor Vehicles Act, 1988 (59 of 1988) or the rules made thereunder.

Explanation.-- For the purposes of this clause, the expression ?tour? does not include a journey organised or arranged for use by an educational body, other than a commercial training or coaching center, imparting skill or knowledge or lessons on any subject or field;]

(250) ?"travel agent" means any person engaged in providing any service connected with booking of passage for travel, but does not include air travel agent and rail travel agent;]

(251) ?"underwriter" has the meaning assigned to it in clause (f) of rule 2 of the Securities and Exchange Board of India (Underwriters) Rules, 1993 ;

(252) "underwriting" has the meaning assigned to it in clause (g) of rule 2 of the Securities and Exchange Board of India (Underwriters) Rules, 1993 ;

(253) "vessel" has the meaning assigned to it in clause (z) of section 2 of the Major Port Trusts Act, 1963 (38 of 1963);

(254) "video production agency" means any professional video grapher or any commercial concern engaged in the business of rendering services relating to video-tape production;

(255) [243]["video-tape production" means the process of any recording of any programme, event or function on a magnetic tape or on any other media or device and includes services relating thereto such as editing, cutting, colouring, dubbing, title printing, imparting special effects, processing, adding, modifying or deleting sound, transferring from one media or device to another, or undertaking any video post-production activity, in any manner;']

(256) words and expressions used but not defined in this Chapter and defined in the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise.

[244][Explanation.--For the purposes of this section, taxable service includes any taxable service provided or to be provided by any unincorporated association or body of persons to a member thereof, for cash, deferred payment or any other valuable consideration.]

[245] [Provided that the provisions of this section shall not apply with effect from such date as the Central Government may, by notification, appoint.]

Section 65A - [Omitted]

[246] [***]

Section 65B - [Omitted]

[247][***]

Section 66 - [Omitted]

[248][***]

Section 66A - [Omitted]

[249] [***]

Section 66B - [Omitted]

[250][***]

Section 66BA - [Omitted]

[251][***]

Section 66C - [Omitted]

[252][***]

Section 66D - [Omitted]

[253][***]

Section 66E - [Omitted]

[254][***]

Section 66F - [Omitted]

[255][***]

Section 67 - [Omitted]

[256] [***]

Section 67A - [Omitted]

[257][***]

Section 68 - [Omitted]

[258][***]

Section 69 - [Omitted]

[259][***]

Section 70 - [Omitted]

[260][***]

Section 71 - [Omitted]

[261][***]

Section 72 - [Omitted]

[262][***]

Section 72A - [Omitted]

[263] [***]

Section 73 - [Omitted]

[264] [***]

(1) The provisions of sub-section (3) shall not apply to any case where the service tax had become payable or ought to have been paid before the 14th day of May, 2003.

(2) For the purposes of this section, "relevant date" means,--

(3) in the case of taxable service in respect of which service tax has not been levied or paid or has been short-levied or short-paid--

(4) ?where under the rules made under this Chapter, a periodical return, showing particulars of service tax paid during the period to which the said return relates, is to be filed by an assessee, the date on which such return is so filed;

(5) ?where no periodical return as aforesaid is filed, the last date on which such return is to be filed under the said rules;

(6) in any other case, the date on which the service tax is to be paid under this Chapter or the rules made thereunder;

(7) ?in a case where the service tax is provisionally assessed under this Chapter or the rules made thereunder, the date of adjustment of the service tax after the final assessment thereof;

(8) in a case where any sum, relating to service tax, has erroneously been refunded, the date of such refund.]

Section 73A - [Omitted]

[265][***]

Section 73B - [Omitted]

[266][***]

Section 73C - [Omitted]

[267] [***]

Section 73D - [Omitted]

[268][***]

Section 74 - [Omitted]

[269] [***]

Section 75 - [Omitted]

[270][***]

Section 75A - [Omitted]

75A. [271] [***]

Section 76 - [Omitted]

[272][***]

Section 77 - [Omitted]

[273] [***]

Section 78 - [Omitted]

[274][***]

Section 78A - [Omitted]

[275][***]

Section 78B - [Omitted]

[276] [***]

Section 79 - [Omitted]

79. [277][***]

Section 80 - [Omitted]

[278] [***]

Section 81 - [Omitted]

81.[279] [***]

Section 82 - [Omitted]

[280] [***]

Section 83 - [Omitted]

[281][***]

Section 83A - [Omitted]

[282][***]

Section 84 - [Omitted]

[283][***]

Section 85 - [Omitted]

[284] [***]

Section 86 - [Omitted]

[285][***]

Section 87 - [Omitted]

[286] [***]

Section 88 - [Omitted]

[287] [***]

Section 89 - [Omitted]

[288][***]

Section 90 - [Omitted]

[289][***]

Section 91 - [Omitted]

[290][***]

Section 92 - [Omitted]

[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 16-10-1998.]

"92. Institution of proceedings"

Section 93 - [Omitted]

[291][***]

Section 93A - [Omitted]

4[***]

1. Inserted by Finance Act, 2006 (21 of 2006).

2. Inserted by the Finance Act, 2011.

3. Substituted by the Finance Act, 2012 for the following :- "of such goods"

4. Omitted by the Central Goods and Services Tax Act, 2017 the previous text was:-

"1[Section 93A

Where any goods or services are exported, the Central Government may grant rebate of service tax paid on taxable services which are used as input services for the manufacturing or processing 3[or removal or export of such goods] or for providing any taxable services and such rebate shall be subject to such extent and manner as may be prescribed:

Provided that where any rebate has been allowed on any goods or services under this section and the sale proceeds in respect of such goods or consideration in respect of such services are not received by or on behalf of the exporter in India within the time allowed by the Reserve Bank of India under section 8 of the Foreign Exchange Management Act, 1999, such rebate shall 2[except under such circumstances or such conditions as may be prescribed,] be deemed never to have been allowed and the Central Government may recover or adjust the amount of such rebate in such manner as may be prescribed.]

Section 93B - [Omitted]

[292][***]

Section 94 - [Omitted]

[293][***]

Section 95 - [Omitted]

[294][***]

Section 96 - [Omitted]

[295][***]

Chapter 5A - ADVANCE RULINGS

[296][CHAPTER VA

ADVANCE RULINGS

Section 96A - Definitions

In this Chapter, unless the context otherwise requires,--

(a) "[297]advance ruling" means the determination, by the Authority, of a question of law or fact specified in the application regarding the liability to pay service tax in relation to a service proposed to be provided, by the applicant;

(b) [298]["applicant" means any person who,--

(d) is a resident setting up a joint venture in India in collaboration with a non-resident; or

(e) is a wholly owned subsidiary Indian company, of which the holding company is a foreign company,who or which, as the case may be, proposes to undertake any business activity in India;

(f) ?is a joint venture in India; or

(g) is a resident falling within any such class or category of persons, as the Central Government may, by notification in the Official Gazette, specify in this behalf,and which or who, as the case may be, makes application for advance ruling under subsection (1) of section 96C;]

[299][Explanation.--For the purposes of this clause, "joint venture in India" means a contractual arrangement whereby two or more persons undertake an economic activity which is subject to joint control and one or more of the participants or partners or equity holders is a non-resident having substantial interest in such arrangement;]

(h) "application" means an application made to the Authority under sub-section (1) of section 96C;

(i) [300]["Authority" means the Authority for Advance Rulings as defined in clause (e) of section 28E of the Customs Act, 1962 (52 of 1962);]

(j) "non-resident", "Indian company" and "foreign company" have the meanings respectively assigned to them in clauses (30), (26) and (23A) of section 2 of the Income-tax, Act, 1961 (43 of 1961);

(k) [301]words and expressions used but not defined in this Chapter and defined in the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder shall apply, so far as may be, in relation to service tax as they apply in relation to duty of excise.

Section 96B - [Omitted]

[302][***]

Section 96C - Application for Advance Ruling

(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and in such manner as may be prescribed, stating the question on which the advance ruling is sought.

(2) The question on which the advance ruling is sought shall be in respect of,--

(a) classification of any service as a taxable service under Chapter V;

(b) the valuation of taxable services for charging service tax;

(c) the principles to be adopted for the purposes of determination of value of the taxable service under the provisions of Chapter V;

(d) applicability of notifications issued under Chapter V;

(e) [303][admissibility of credit of duty or tax in terms of the rules made in this regard;]

(f) [304][determination of the liability to pay service tax on a taxable service under the provisions of Chapter V.]

(3) The application shall be made in quadruplicate and be accompanied by a fee of [305][ten thousand rupees].

(4) An applicant may withdraw an application within thirty days from the date of the application,

Section 96D - Procedure on receipt of application

(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the Commissioner of Central Excise and, if necessary, call upon him to furnish the relevant records:

Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the Commissioner of Central Excise.

(2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application:

Provided that the Authority shall not allow the application where the question raised in the application is,--

(a) already pending in the applicant's case before any Central Excise Officer, the Appellate Tribunal or any Court;

(b) the same as in a matter already decided by the Appellate Tribunal or any Court:

Provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard:

Provided also that where the application is rejected, reasons for such rejection shall be given in the order.

(3) A copy of every order made under sub-section (2) shall be sent to the applicant and to the Commissioner of Central Excise.

(4) Where an application is allowed under sub-section (2), the Authority shall, after examining such further material as may be placed before it by the applicant or obtained by the Authority, pronounce its advance ruling on the question specified in the application.

(5) On a request received from the applicant, the Authority shall, before pronouncing its advance ruling, provide an opportunity to the applicant of being heard, either in person or through a duly authorised representative.

Explanation.--For the purposes of this sub-section, "authorised representative" has the meaning assigned to it in sub-section (2) of section 35Q of the Central Excise Act, 1944 (1 of 1944).

(6) The Authority shall pronounce its advance ruling in writing within [306][six months] of the receipt of application.

(7) A copy of the advance riding pronounced by the Authority, duly signed by the Members and certified in the prescribed manner shall be sent to the applicant and to the Commissioner of Central Excise, as soon as may be, after such pronouncement.

Section 96E - Applicability of advance ruling

(1) The advance ruling pronounced by the Authority under section 96D shall be binding only?

(a) on the applicant who had sought it;

(b) in respect of any matter referred to in sub-section (2) of section 96C;

(c) on the Commissioner of Central Excise, and the Central Excise authorities subordinate to him, in respect of the applicant.

(2) The advance ruling referred, to in sub-section (1) shall be binding as aforesaid unless there is a change in law or facts on the basis of which the advance ruling has been pronounced.

Section 96F - Advance ruling to be void in certain circumstances

(1) Where the Authority finds, on a representation made to it by the Commissioner of Central Excise or otherwise, that an advance ruling pronounced by it under sub-section (4) of section 96D has been obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Chapter shall apply (after excluding the period beginning with the date of such advance ruling and ending with the date of order under this sub-section) to the applicant as if such advance ruling had never been made.

(2) A copy of the order made under sub-section (1) shall be sent to the applicant and the Commissioner of Central Excise.

Section 96G - Powers of authority

(1) The Authority shall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908).

(2) The Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974), and every proceeding before the Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code (45 of 1860).

Section 96H - Procedure of authority

The Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure in all matters arising out of the exercise of its powers under this Act.

Section 96HA - Transitional provision

[307][96HA. Transitional provision.-

On and from the date on which the Finance Bill, 2017 receives the assent of the President, every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such assent.]

Section 96-I - Power of Central Government to make rules

(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--

(a) the form and manner for making application, under sub-section (1) of section 96C;

(b) the manner of certifying a copy of advanced ruling pronounced by the Authority under sub-section (7) of section 96D;

(3) Every rule made under this Chapter shall be laid, as soon as may be, after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Section 96J - Special exemption from service tax in certain cases

(1) [308][Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of membership fee collected by a club or association formed for representing industry or commerce, during the period on and from the 16th day of June, 2005 to the 31st day of March, 2008 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected if sub-section (1) had been in force at all material times.

(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within six months from the date on which the Finance Bill, 2011 receives the assent of the President.]

Section 97 - Special provision for exemption in certain cases relating to management, etc., of roads

(1) [309][Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of roads, during the period on and from the 16th day of June, 2005 to the 26th day of July, 2009 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times.

(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2012 receives the assent of the President.]

Section 98 - Special provision for exemption in certain cases relating to management, etc., of noncommercial Government buildings

(1) [310][Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of management, maintenance or repair of non-commercial Government buildings, during the period on and from the 16th day of June, 2005 till the date on which section 66B comes into force.

(2) ?Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times.

Section 99 - Special provision for taxable services provided by Indian Railways

(1) [311][Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, no service tax shall be levied or collected in respect of taxable services provided by the Indian Railways during the period prior to the 1st day of October. 2012.

(2) No refund shall be made of service tax paid in respect of taxable services provided by the Indian Railways during the said period prior to the 1st day of October, 2012.]

Section 97 - Amendment of Act 21 of 1979

In the Finance Act, 1979, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, -

(a) after section 35, the following section shall be inserted, namely :-

(b) Interest for default in payment of foreign travel tax. - (1) Where any carrier or other person fails to pay the foreign travel tax to the credit of the Central Government under sub-section (2) of section 35, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent. and not exceeding thirty per cent. per annum, as the Central Government may, by notification in the Official Gazette, specify in this behalf.

(c) Where, on or before the date of commencement of section 97 of the Finance Act, 1994, the foreign travel tax had not been paid by any carrier or other person to the credit of the Central Government, in accordance with the rules made under this Chapter, the carrier or other person shall pay the amount of such tax within a period of thirty days of such commencement, failing which he shall be liable to pay the interest in accordance with the provisions of sub-section (1).";

(d) in section 38, for sub-section (3), the following sub-sections shall be substituted, namely :-

(e) Every carrier or other person who fails to pay the foreign travel tax to the credit of the Central Government under sub-section (2) of section 35 shall, in addition to the payment of such tax and the interest leviable thereon, be liable to pay penalty which shall not be less than one-fifth but which may extend to three times of the amount of the tax not so paid to the credit of the Central Government.

(f) Any rule made under this Chapter may provide that in case of breach thereof by the carrier or other person, he shall be liable to a penalty which shall not be less than five hundred rupees but which may extend to fifty thousand rupees, and where the breach is a continuing one, with further penalty which may extend to five hundred rupees for every day after the first during which such breach continues.

(g) Any penalty under this section may be adjudged, collected and paid to the credit of the Central Government by such authority and in such manner as may be specified in the rules made under this Chapter :

Provided that no order for imposing a penalty shall be passed by such authority unless the carrier or other person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority.";

(h) after section 38, the following section shall be inserted, namely :-

(i) 38A. Modes of recovery. - (1) Where the foreign travel tax or interest or penalty is not paid by a carrier or other person, as required under the provisions of sub-section (2) of section 35, section 35A or section 38, the authority specified in the rules (hereinafter referred to as the authority) may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of such tax, interest or penalty by any mode specified in sub-section (2) or sub-section (3).

(j) The authority may require any person, from whom any amount is due to the carrier or other person, to deduct the tax, interest or penalty so determined from the said amount and such person shall comply with any requisition by the authority and shall pay the amount so deducted to the credit of the Central Government :

Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908).

(k) The authority may prepare a certificate signed by it specifying the amount due and send it to the Collector of the district in which the carrier or other person owns property or resides or carries on business and the said Collector, on receipt of such certificate, shall proceed to recover from the said carrier or other person, the amount specified thereunder as if it were an arrear of land revenue."

Section 98 - Amendment of Act 13 of 1989

In the Finance Act, 1989, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, -

(a) after section 43, the following section shall be inserted, namely :-

(b) Interest for default in payment of inland air travel tax. - (1) Where any carrier or other person fails to pay the inland air travel tax to the credit of the Central Government under sub-section (2) of section 42, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent. and not exceeding thirty per cent. per annum, as the Central Government may, by notification in the Official Gazette, specify in this behalf.

(c) Where, on or before the date of commencement of section 98 of the Finance Act, 1994, the inland air travel tax had not been paid by any carrier or other person to the credit of the Central Government, in accordance with the rules made under this Chapter, the carrier or other person shall pay the amount of such tax within a period of thirty days of such commencement, failing which he shall be liable to pay the interest in accordance with the provisions of sub-section (1).";

(d) in section 46, for sub-section (3), the following sub-sections shall be substituted, namely :-

(e) Every carrier or other person who fails to pay the inland air travel tax to the credit of the Central Government under sub-section (2) of section 42 shall, in addition to the payment of such tax and the interest leviable thereon, be liable to pay penalty which shall not be less than one-fifth but which may extend to three times of the amount of the tax not so paid to the credit of the Central Government.

(h) after section 46, the following section shall be inserted, namely :-

(i) "46A. Modes of recovery. - (1) Where the inland air travel tax or interest or penalty is not paid by a carrier or other person, as required under the provisions of sub-section (2) of section 42, section 43A or section 46, the authority specified in the rules (hereinafter referred to as the authority) may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of such tax, interest or penalty by one or more of the modes specified in sub-section (2), sub-section (3) or sub-section (4).

(l) The authority may distrain or arrest any aircraft and any other property belonging to, or under the control of, the carrier or other person, as the case may be, and detain the same until the tax, interest or penalty so determined is paid; and in case any part of the tax, interest or penalty or of the cost of the distress or arrest or of the keeping of the aircraft or other property distrained or arrested, remains unpaid for the space of thirty days next after any such distress or arrest, may cause the said aircraft or other property to be sold and with the proceeds of such sale may satisfy the tax, interest or penalty and the costs including the cost of sale remaining unpaid, and shall render the surplus, if any, to the carrier or other person.".

Section 99 - Amendment of Act 2 of 1899

In the Indian Stamp Act, 1899, -

(a) in section 9, in sub-section (1), in clause (b), after the words "or other body corporate", the words and brackets "or of transfers (where there is a single transferee, whether incorporated or not)" shall be inserted;

(b) in Schedule I, -

(d) ?in article No. 53, -

(e) in the first column, for the words "twenty rupees", the words "five hundred rupees" shall be substituted;

(f) in the second column, for the words "Twenty paise", the words "One rupee" shall be substituted.Chapters are available in ITR Book.

Section 100 - Special provision for taxable services provided by Employees' State Insurance Corporation

[312][100. Special provision for taxable services provided by Employees' State Insurance Corporation.--

Notwithstanding anything contained in section 66 as it stood prior to the 1st day of July, 2012, no service tax shall be levied or collected in respect of taxable services provided by the Employees' State Insurance Corporation set up under the Employees' State Insurance Act, 1948(34 of 1948), during the period prior to the 1st day of July, 2012.]

Section 101 - Special provision for exemption in certain cases relating to construction of canal, dam, etc

[313][101. Special provision for exemption in certain cases relating to construction of canal, dam, etc

(1) Notwithstanding anything contained in section 66B, no service tax shall be levied or collected during the period commencing from the 1st day of July, 2012 and ending with the 29th day of January, 2014 (both days inclusive) in respect of taxable services provided to an authority or a board or any other body?

(2) set up by an Act of Parliament or a State Legislature; or

(3) established by the Government, with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution, by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of canal, dam or other irrigation works.

(4) Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times.

(5) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2016 receives the assent of the President.]

Section 102 - Special provision for exemption in certain cases relating to construction of Government buildings

[314][102. Special provision for exemption in certain cases relating to construction of Government buildings

(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?

(d) a clinical establishment; or

(e) an art or cultural establishment;

(f) a residential complex predominantly meant for self-use or for the use of their employees or other persons specified in Explanation 1 to clause (44) of section 65B of the said Act, under a contract entered into before the 1st day of March, 2015 and on which appropriate stamp duty, where applicable, had been paid before that date.

(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times.

Section 103 - Special provision for exemption in certain cases relating to construction of airport or port

[315][103. Special provision for exemption in certain cases relating to construction of airport or port

(1) Notwithstanding anything contained in section 66B, no service tax shall be levied or collected during the period commencing from the 1st day of April, 2015 and ending with the 29th day of February, 2016 (both days inclusive), in respect of services provided by way of construction, erection, commissioning or installation of original works pertaining to an airport or port, under a contract which had been entered into before the 1st day of March, 2015 and on which appropriate stamp duty, where applicable, had been paid before that date, subject to the condition that Ministry of Civil Aviation or, as the case may be, the Ministry of Shipping in the Government of India certifies that the contract had been entered into before the 1st day of March, 2015.

(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected had sub-section (1) been in force at all material times.

Section 104 - Special provision for exemption in certain cases relating to long term lease of industrial plots

[316][104. Special provision for exemption in certain cases relating to long term lease of industrial plots.-

(1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, no service tax, leviable on one time upfront amount (premium, salami, cost, price, development charge or by whatever name called) in respect of taxable service provided or agreed to be provided by a State Government industrial development corporation or undertaking to industrial units by way of grant of long term lease of thirty years or more of industrial plots, shall be levied or collected during the period commencing from the 1st day of June, 2007 and ending with the 21st day of September, 2016 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.

(3) Notwithstanding anything contained in this Chapter, an application for claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2017 receives the assent of the President.]

Section 105 - Special provision for exemption in certain cases relating to life insurance services provided to members of armed forces of Union

[317][105. Special provision for exemption in certain cases relating to life insurance services provided to members of armed forces of Union.-

(1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, no service tax shall be levied or collected in respect of taxable services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government, during the period commencing from the 10th day of September, 2004 and ending with the 1st day of February, 2017 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.

Schedule 1 - FIRST SCHEDULE

THE FIRST SCHEDULE

[See section 2]

PART I

Income-Tax

Paragraph A

Sub-Paragraph I

In the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies, -

RATES OF INCOME-TAX

(1) Where the total income does not exceed Rs. 30,000	Nil;
(2) where the total income exceeds Rs. 30,000 but does not exceed Rs. 50,000	20 per cent. of the amount by which the total income exceeds Rs. 30,000;
(3) where the total income exceeds Rs. 50,000 but does not exceed Rs. 1,00,000	Rs. 4,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 50,000;
(4) where the total income exceeds Rs. 1,00,000	Rs. 19,000 plus 40 per cent. of the amount by Which the total income exceeds Rs. 1,00,000.

Surcharge on income-taxThe amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph or section 112 shall, -

(a) in the case of every individuals or Hindu undivided family having a total income exceeding one hundred thousand rupees, be reduced by the amount of rebate of income-tax calculated under Chapter VIII-A, and the income-tax as so reduced,

(b) ?in the case of every person, other than those mentioned in item (i), having a total income exceeding one hundred thousand rupees,be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax :

Provided that no such surcharge shall be payable by a non-resident.Sub-Paragraph IIIn the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1994, exceeds Rs. 30,000, -

RATES OF INCOME-TAX

where the total income does not exceed Rs. 18,000	Nil;
where the total income exceeds Rs. 18,000 but does not exceed Rs. 1,00,000	30 per cent. of the amount by which the total income exceeds Rs. 18,000;
where the total income exceeds Rs. 1,00,000	Rs. 24,600 plus 40 per cent. of the amount by which the total income exceeds Rs. 1,00,000

Surcharge on Income-taxThe amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph or section 112 shall, in the case of every person having a total income exceeding one hundred thousand rupees, be reduced by the amount of rebate of income-tax calculated under Chapter VIII-A and the income-tax as so reduced, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax :

Provided that no such surcharge shall be payable by a non-resident.

Paragraph B

In the case of every co-operative society, -

RATES OF INCOME-TAX

(1)	where the total income does not exceed Rs. 10,000	10 per cent. of the total income;
(2)	where the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000	Rs. 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 10,000;
(3)	where the total income exceeds Rs. 20,000	Rs. 3,000 plus 35 per cent. Of the amount by which the total income exceeds Rs. 20,000.

Surcharge on the income-taxThe amount of income-tax computed in accordance with the preceding provisions of this Paragraph or section 112 shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharged for purposes of the Union calculated at the rate of twelve per cent. of such income-tax.

Paragraph C

In the case of every firm, -

RATE OF INCOME-TAX

On the whole of the total income

40 per cent.

Surcharge on Income-taxThe amount of income-tax computed at the rate of hereinbefore specified or in section 112 shall, in the case of every firm having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax.

Paragraph D

In the case of every local authority, -

RATE OF INCOME-TAX

On the whole of the total income

30 per cent.

Surcharge on Income-taxThe amount of income-tax computed at the rate hereinbefore specified or in section 112 shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax.

Paragraph E

In the case of a company, -

RATES OF INCOME-TAX

I. In the case of a domestic company, -

(1)	where the company is a company in which the public are substantially Interested	45 per cent. of the total income;
(2)	where the company is not a company in which the public are substantially Interested	50 per cent. of the total income

II. In the case of a company other than a domestic company, -

(i)	on so much of the total income as consists of -
	(a) Royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961, but before the 1st day of April, 1976, or
	(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964, but before the 1st day of April, 1976,
	and where such agreement has, in either case, been approved by the Central Government	50 per cent.;
(ii)	on the balance, if any, of the total Income	65 per cent.

Surcharge on Income-taxThe amount of income-tax computed in accordance with the provisions of this Paragraph or section 112 shall, in the case of every domestic company having a total income exceeding seventy-five thousand rupees, be increased by a surcharge calculated at the rate of fifteen per cent. of such income-tax.

PART II

Rates For Deduction Of Tax At Source In Certain Cases

In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act, tax is to be deducted at the rates force, deduction shall be made from the income subject to deduction at the following rates :-

RATES OF INCOME-TAX

1.	In the case of a person other than a company -
	(a) where the person is resident in India -
	(i)	on income by way of interest other than "Interest on securities"	10 per cent.;
	(ii)	on income by way of winnings from lotteries and crossword puzzles	40 per cent.;
	(iii)	on income by way of winnings from horse races	40 per cent.;
	(iv)	on income by way of insurance commission	10 per cent.;
	(v)	on income by way of interest payable on -	10 per cent.;
		(A) any security of the Central or a State Government;
		(B) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;
		(C) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956, and any rules made thereunder;
	(vi)	on any other income	20 per cent.;

(b) where the person is not resident in India -

(i) in the case of a non-resident Indian -

(A)	on investment income and long-term capital gains	20 per cent.;
(B)	on income by way of dividends and interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency	20 per cent.;
(C)	on income by way of winnings from lotteries and crossword puzzles	40 per cent.;
(D)	on income by way of winnings from horse races	40 per cent.;
	on the whole of other income	income-tax at 30 per cent. of the amount of income or income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of this Schedule, if such income had been the total income, whichever is higher;

(ii) in the case of any other person -

(A)	on income by way of dividends, interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency, and income payable in respect of units (not being income payable to an individual), purchased in foreign currency, of the Unit Trust of India	20 per cent.;
(B)	on income by way of winnings from lotteries and crossword puzzles	40 per cent.;
(C)	on income by way of winnings from horse races	40 per cent.;
(D)	on income by way of long-term capital gains	20 per cent.;
(E)	on the whole of the other income 30 per cent.	income-tax at of the amount of income or income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of this Schedule, if such income had been the total income, whichever is higher.

2. In The Case Of A Company -

(a) where the company is a domestic company -
	(i)	on income by way of interest other than "Interest on securities"		20 per cent.;
	(ii)	on income by way of winnings from lotteries and crossword puzzles		40 per cent.;
	(iii)	on income by way of winnings from horse races		40 per cent.;
	(iv)	on any other income		21.5 per cent.;
(b) where the company is not a domestic company -
	(i)	on income by way of dividends payable by any domestic company	20 per cent.;
	(ii)	on income by way of winnings from lotteries and crossword puzzles	40 per cent.;
	(iii)	on income by way of winnings from horse races	40 per cent.;
	(iv)	on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency	20 per cent.;
	(v)	on income by way of royalty payable by Government or an Indian concern in Pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India	30 per cent.;
	(vi)	on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(v)] payable by Government or an Indian concern in pursuance of an Agreement made by it with the Government or the Indian concern and where such Agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy -
		(A) where the agreement is made after the 31st day of March, 1961, but before the 1st day of April, 1976	50 per cent.;
		(B) where the agreement is made after the 31st day of March, 1976	30 per cent.;
	(vii)	on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial Policy, for the time being in force, of the Government of India, the agreement is in accordance with that Policy -
		(A) where the agreement is made after the 29th day of February, 1964, but before the 1st day of April, 1976	50 per cent.;
		(B) where the agreement is made after the 31st day of March, 1976	30 per cent.;
	(viii)	on income payable in respect of units, Purchased in foreign currency, of the Unit Trust of India	20 per cent.;
	(ix)	on income by way of long-term capital Gains	20 per cent.;
	(x)	on any other income	55 per cent.

Explanation : For the purposes of item 1(b)(i) of this Part, "investment income", and "non-resident Indian" shall have the meanings assigned to them in Chapter XII-A of the Income-tax Act.Surcharge on income-tax The amount of income-tax deducted in accordance with the provisions of sub-item (a) of item 2 of this Part shall be increased by a surcharge, calculated at the rate of fifteen per cent. of such income-tax.

PART III

Rates For Calculating Or Charging Income-Tax In Certain Cases, Deducting Income-Tax From Income Chargeable Under The Head "Salaries" And Computing "Advance Tax"

In cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the Income-tax Act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed at the rate or rates force, such income-tax or, as the case may be, "advance tax" [not being "advance tax" in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge on such "advance tax" in respect of any income chargeable to tax under section 115B], shall be calculated, charge, deducted or computed at the following rate or rates :-

Paragraph A

Sub-Paragraph IIn the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies, -

RATES OF INCOME-TAX

(1)	where the total income does not exceed Rs. 35,000	Nil;
(2)	where the total income exceeds Rs. 35,000 but does not exceed Rs. 60,000	20 per cent. of the amount by which the total income exceeds Rs. 35,000;
(3)	where the total income exceeds Rs. 60,000 but does not exceed Rs. 1,20,000	Rs. 5,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 60,000;
(4)	where the total income exceeds Rs. 1,20,000	Rs. 23,000 plus 40 per cent. Of the amount by which the total income exceeds Rs. 1,20,000.

Sub-Paragraph IIIn the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1995, exceeds Rs. 35,000, -

RATES OF INCOME-TAX

(1)	where the total income does not exceed Rs. 18,000	Nil;
(2)	where the total income exceeds Rs. 18,000 but does not exceed Rs. 1,00,000	30 per cent. of the amount by which the total income exceeds Rs. 18,000;
(3)	where the total income exceeds Rs. 1,00,000	Rs. 24,600 plus 40 per cent. of the amount by which the total income exceeds Rs. 1,00,000.

Paragraph B

In the case of every co-operative society, -

RATES OF INCOME-TAX

(1)	where the total income does not exceed Rs. 10,000	10 per cent. of the total income;
(2)	where the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000	Rs. 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 10,000;
(3)	where the total income exceeds Rs. 20,000	Rs. 3,000 plus 35 per cent. of the amount by which the total income exceeds Rs. 20,000.

Paragraph C

In the case of every firm, -

RATE OF INCOME-TAX

On the whole of the total income

40 per cent.

Paragraph D

In the case of every local authority, -

RATE OF INCOME-TAX

On the whole of the total income

30 per cent.

Paragraph E

In the case of a company, -

RATES OF INCOME-TAX

I. In the case of a domestic company income;		40 per cent. of the total
II. In the case of a company other than a domestic company, -
(i) on so much of the total incomes as consists of -
	(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with The Government or the Indian concern after the 31st day of March, 1961, But before the 1st day of April, 1976, or
	(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964, but before the 1st day of April, 1976,
	and where such agreement has, in	50 per cent.;
	either case, been approved by the Central Government
(ii) on the balance, if any, of the total Income		55 per cent.

Surcharge on income-taxThe amount of income-tax computed in accordance with the provisions of this Paragraph or section 112 shall, in the case of every domestic company having a total income exceeding seventy-five thousand rupees, be increased by a surcharge calculated at the rate of fifteen per cent. of such income-tax.

PART IV

[See section 2(9)(d)]

Rules For Computation Of Net Agricultural Income

Rule 1 - Agricultural income of the nature referred to in sub-clause (a) of clause (1A) of section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from other sources" and the provisions of sections 57 to 59 of that Act shall, so far as may be, apply accordingly :

Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40A therein shall be construed as not including a reference to sub-sections (3) and (4) of section 40A.

Rule 2 - Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1A) of section 2 of the Income-tax Act [other than income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head "Profits and gains of business or profession" and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections (3) and (4) thereof], 41, 43, 43A, 43B and 43C of the Income-tax Act shall, so far as may be, apply accordingly.

Rule 3 - Agricultural income of the nature referred to in sub-clause (c) of clause (1A) of section 2 of the Income-tax Act, being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 4 - Notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the agricultural income of the assessee.

Rule 5 - Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income, then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6 - Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income :

Provided that where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7 - Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 8 - Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1994, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1986, or the 1st day of April, 1987, or the 1st day of April, 1988, or the 1st day of April, 1989, or the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act, -

(a) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1986, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, or the 1st day of April, 1988, or the 1st day of April, 1989, or the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993,

(b) ?the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or the 1st day of April, 1989, or the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993,

(c) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1988, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1989, or the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of the April, 1993,

(d) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1989, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993,

(e) ?the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1990, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993,

(f) ?the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, or the 1st day of April, 1993,

(g) ?the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1993, and

(h) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1993,shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1994.

(i) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1995, or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than that previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1987, or the 1st day of April, 1988, or the 1st day of April, 1989, or the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993, or the 1st day of April, 1994, is a loss, then, for the purposes of sub-section (8) of section 2 of this Act, -

(j) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or the 1st day of April, 1989, or the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993, or the 1st day of April, 1994,

(k) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1988, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1989, or the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993, or the 1st day of April, 1994,

(l) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1989, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1990, or the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993, or the 1st day of April, 1994,

(m) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1990, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, or the 1st day of April, 1992, or the 1st day of April, 1993, or the 1st day of April, 1994,

(n) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, or the 1st day of April, 1993, or the 1st day of April, 1994,

(o) ?the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1993, or the 1st day of April, 1994,

(p) ?the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1993, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1994, and

(q) ?the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1994,shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1995.

(r) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).

(s) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in Part IV of the First Schedule to the Finance Act, 1986 (23 of 1986), or of the First Schedule to the Finance Act, 1987 (11 of 1987), or of the First Schedule to the Finance Act, 1988 (26 of 1988), or of the First Schedule to the Finance Act, 1989 (13 of 1989), or of the First Schedule to the Finance Act, 1990 (12 of 1990), or of the First Schedule to the Finance (No. 2) Act, 1991 (49 of 1991), or of the First Schedule to the Finance Act, 1992 (18 of 1992), or of the First Schedule to the Finance Act, 1993 (38 of 1993), shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).

(t) Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

(u) The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of section 288A relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

(v) For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

Statement of Objects and Reasons - FINANCE ACT, 1994

STATEMENT OF OBJECTS AND REASONS

The object of the Bill is to give effect to the financial proposals of the Central Government for the financial year 1994-95. The notes on clauses explain the various provisions contained in the Bill.

[1] Inserted by the Finance (No. 2) Act, 2014 w.e.f. 1st day of October, 2014.

[2] Omitted by the Central Goods and Services Tax Act, 2017.

"64. Extent, commencement and application

(1) This Chapter extends to the whole of India except the State of Jammu and Kashmir.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

(3) It shall apply to taxable services provided on or after the commencement of this Chapter."

[3] Substituted by the Finance Act, 2005 w.e.f. 16.06.2005 for the words "collecting the broadcasting charges on behalf of the said agency".

[4] Substituted by the Finance Act, 2005 w.e.f. 16.06.2005 for the following :-

"(17) "beauty treatment" means face and beauty treatment, cosmetic treat?ment, manicure, pedicure or counselling services on beauty, face care or make-up;"

[5] Substituted by the Finance Act, 2003 , w.e.f . 14 - 5 - 2003 . Prior to its substitution, section 65 , as amended by the Finance (No. 2) Act, 1996 and later on substituted by the Finance Act, 1997 , Finance (No. 2) Act, 1998 , w .e. f. 16 - 10 - 1998 , Finance Act, 2001 , w.e.f . 16 - 7 - 2001 and Finance Act, 2002 , w.e.f . 16 - 8 - 2002 , read as under :

'65 . Definitions.-

(1) In this Chapter, unless the context other wise requires,--

(1) "actuary" has the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938 (4 of 1938);

(2) "advertisement" includes any notice, circular, label, wrapper, document, hoard?ing or any other audio or visual representation made by means of light, sound, smoke or gas;

(3) "advertising agency" means any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of adver?tisement and includes an advertising consultant;

(45) "insurance agent" has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);

(46) "insurance auxiliary service" means any service provided by an actuary, an in?termediary or insurance intermediary or an insurance agent in relation to gen?eral insurance business or life insurance business and includes risk assessment, claim settlement, survey and loss assessment;

(47) "intermediary or insurance intermediary" has the meaning assigned to it in sub -clause (f) of clause (1) of section 2 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);

(48) "insurer" means any person carrying on the general insurance business or life insurance business in India;

(49) "interior decorator" means any person engaged, whether directly or indirectly, in the business of providing by way of advice, consultancy, technical assistance or in any other manner, services related to planning, design or beautification of spaces, whether man-made or other wise and includes a landscape designer;

(50) "leased circuit" means a dedicated link provided between two fixed locations for exclusive use of the sub scriber and includes a speech circuit, a data circuit or a telegraph circuit;

(51) "life insurance business" has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(52) "magnetic storage device" includes wax blanks, discs or blanks, strips or films for the purpose of original sound recording;

(53) "management consultant" means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation in any manner and includes any person who renders any advice, consultancy or technical assistance, relating to conceptualising, devising, deve?lopment, modification, rectification or upgradation of any working system of any organisation;

(54) mandap means any immovable property as defined in section 3 of the Transfer of Property Act, 1882 (4 of 1882) and includes any furniture, fixtures, light fit?tings and floor coverings therein let out for a consideration for organising any official, social or business function;

(55) mandap keeper" means a person who allows temporary occupation of a mandap for a consideration for organising any official, social or business function;

(56) "manpower recruitment agency" means any commercial concern engaged in providing any service, directly or indirectly, in any manner for recruitment of manpower, to a client;

(57) "market research agency" means any commercial concern engaged in conduct?ing market research in any manner, in relation to any product, service or utility, including all types of customised and syndicated research services;

(58) "maxi cab" has the meaning assigned to it in clause (22) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(59) "motor cab" has the meaning assigned to it in clause (25) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(60) "non-banking financial company" has the meaning assigned to it in clause (f) of section 45 -I of the Reserve Bank of India Act, 1934 (2 of 1934);

(61) "on-line information and database access or retrieval" means providing data or information, retrievable or other wise, to a customer, in electronic form through a computer network;

(62) "pager" means an instrument, apparatus or appliance which is a non-speech, one way personal calling system with alert and has the capability of receiving, stor?ing and displaying numeric or alpha-numeric messages;

(63) "photography" includes still photography, motion picture photography, laser pho?tography, aerial photography or fluorescent photography;

(64) "photography studio or agency" means any professional photographer or a com?mercial concern engaged in the business of rendering service relating to photo?graphy;

(65) "policy holder" has the meaning assigned to it in clause (2) of section 2 of the Insurance Act, 1938 (4 of 1938);

(66) "port" has the meaning assigned to it in clause (q) of section 2 of the Major Port Trusts Act, 1963 (38 of 1963);

(67) "port services" means any service rendered by a port or any person authorised by the port, in any manner, in relation to a vessel or goods;

(68) practising chartered accountant" means a person who is a member of the Insti?tute of Chartered Accountants of India and is holding a certificate of practice granted under the provisions of the Chartered Accountants Act, 1949 (38 of 1949) and includes any concern engaged in rendering services in the field of chartered accountancy;

(69) practising cost accountant" means a person who is a member of the Institute of Cost and Works Accountants of India and is holding a certificate of practice granted under the provisions of the Cost and Works Accountants Act, 1959 (23 of 1959) and includes any concern engaged in rendering services in the field of cost accountancy;

(70) practising company secretary" means a person who is a member of the Institute of Company Secretaries of India and is holding a certificate of practice granted under the provisions of the Company Secretaries Act, 1980 (56 of 1980) and in?cludes any concern engaged in rendering services in the field of company secretary ship;

(71) "prescribed" means prescribed by rules made under this Chapter;

(72) "rail travel agent" means any person engaged in providing any service connected with booking of passage for travel by rail;

(73) "real estate agent" means a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting, of real estate and includes a real estate consultant;

(74) "real estate consultant" means a person who renders in any manner, either directly or indirectly, advice, consultancy or technical assistance, in relation to evaluation, conception, design, development, construction, implementation, supervision, maintenance, marketing, acquisition or management, of real estate;

(75) recognised stock exchange" has the meaning assigned to it in clause (f) of sec?tion 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(76) "rent-a-cab scheme operator" means any person engaged in the business of rent?ing of cabs;

(77) "scientific or technical consultancy" means any advice, consultancy, or scientific or technical assistance, rendered in any manner, either directly or indirectly, by a scientist or a technocrat, or any science or technology institution or organisation, to a client, in one or more disciplines of science or technology;

(78) "securities" has the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(79) "security agency" means any commercial concern engaged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of inves?tigation, detection or verification, of any fact or activity, whether of a personal nature or other wise, including the services of providing security personnel;

(80) "service tax" means tax leviable under the provisions of this Chapter;

(81) "ship" means a sea-going vessel and includes a sailing vessel;

(82) "shipping line" means any person who owns or charters a ship and includes an enterprise which operates or manages the business of shipping;

(83) "sound recording" means recording of sound on a magnetic storage device and includes editing thereof, in any manner;

(84) "sound recording studio or agency" means any commercial concern engaged in the business of rendering any service relating to sound recording;

(85) "steamer agent" means any person who undertakes, either directly or indirectly,--

(a) to perform any service in connection with the ship's husbandry or dis?patch including the rendering of administrative work related thereto; or

(b) to book, advertise or canvass for cargo for or on behalf of a shipping line; or

(86) "stock-broker" means a stock-broker who has either made an application for registration or is registered as a stock-broker in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(87) "storage and warehousing" includes storage and warehousing services for goods including liquids and gases but does not include any service provided for stor?age of agricultural produce or any service provided by a cold storage;

(88) "sub-broker" means a sub -broker who has either made an application for regis?tration or is registered as a sub -broker in accordance with the rules and regula?tions made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);

(89) "subscriber" means a person to whom any service of a telephone connection or a facsimile or a leased circuit or a pager or a telegraph or a telex has been pro?vided by the telegraph authority;

(90) "taxable service" means any service provided,--

(a) to an investor, by a stock-broker in connection with the sale or purchase of securities listed on a recognised stock exchange;

(45) "insurance agent" has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);

(47) "intermediary or insurance intermediary" has the meaning assigned to it in sub-clause (f) of clause (1) of section 2 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);