Edited by Hitender Mehta

CBEC has clarified that when a Vocational Education Courses/ training/ skill development courses (VEC) is offered by an institution of the Government or a local authority, question of service tax does not arise. In terms of Section 66D (a), only specified services provided by the Government are liable to tax and VEC is excluded from the service tax.

However, if the VEC is offered by an institution, as an independent entity in the form of society or any other similar body, service tax treatment is determinable by the application of either sub-clause (ii) or (iii) of clause (l) of Section 66D of negative List of services.

(Source: CBEC Circular No. 164/15/2012-ST dated August 28, 2012)

Scope of Reverse Charge/ Joint Charge Mechanism enlarged

Central Government has further enlarged the scope of Reverse Charge/ Joint Charge Mechanism by adding following services within its ambit w.e.f. August 7, 2012:-

(Source: CBEC Notification Nos. 45/2012-ST and 46/2012-ST dated August 7, 2012)

Mandatory E-Payment of Customs duty

The e-payment of duty has been made mandatory for importers registered under Accredited Clients Programme (http://www.cbec.gov.in/acp-idx.htm) and importers paying customs duty of ` 100,000/- or more per Bill of Entry w.e.f. September 17, 2012.

(Source: CBEC Circular No. 24/2012- Customs dated September 5, 2012)

Editorial Team: Bomi F. Daruwala, Gautam Chopra, Hemant Puthran, Rupesh Jain and Shilpi Shivangi

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