Service Tax Act - Section 64 and 65

As on 24.10.2013

Section 64. Extent, commencement and application

(1) This Chapter extends1 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.

1 In exercise of the powers conferred by clause (a) of sub-section (6) of section 6, and clause (a) of sub-section (7) of section 7, of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 (80 of 1976), the Central Government hereby extends the provisions Chapter V of the Finance Act (32 of 1994) to the designated areas in the Continental Shelf and Exclusive Economic Zone of India. [Notification no. 01/2002-ST dated 01.03.2002 as amended]

Section 265. [Definitions]6

2 Section 65 & 65 A substituted for section 65 ((w.e.f. 14.05.2003) by s. 159 of the Finance Act, 2003 (32 of 2003)
6 section 65 not applicable w.e.f.1-7-2012 vide Notification No.20/2012-ST, dated 5-6-2012.

(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 3[person] engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant;

3 Substituted (w.e.f. 01.05.2006) by s. 68 of the Finance Act, 2006 (21 of 2006)

4[(3a) "aircraft" has the meaning assigned to it in clause (1) of section 2 of the Aircraft Act, 1934 (22 of 1934);

4 Inserted (w.e.f. 10.09.2004) by s. 90 of the Finance (No. 2) Act, 2004 (23 of 2004).

5[(3b) "aircraft operator" means any person which provides the service of transport of goods or passengers by aircraft;]

5 Substituted (w.e.f. 01.05.2006) by s. 68 of the Finance Act, 2006 (21 of 2006).

(3c) "airport" has the meaning assigned to it in clause (b) of section 2 of the Airports Authority of India Act, 1994 (55 of 1994);

(3d) "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;]

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

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

(6) "architect" means any person whose name is, for the time being, entered in the register of architects maintained under section 23 of the Architect Act,1972 (20 of 1972) and also includes any commercial concern engaged in any manner, whether directly or indirectly, in rendering services in the field of architecture;

(7) "assessee" means a person liable to pay the service tax and includes his agent;

1 [(7a) "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;]

1 Inserted (w.e.f. 01.05.2006) by s. 68 of the Finance Act, 2006 (21 of 2006).

2 [(7b) "associated enterprise" has the meaning assigned to it in section 92A of the Income tax Act, 1961;]

(8) "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);

2 Inserted (w.e.f. 16.05.2008) by s. 90 of the Finance Act, 200 (18 of 2008).

3 [(9) Omitted]

3 Omitted (w.e.f. 1-5-2011) by s.74 of the Finance Act, 2011(8 of 2011)

4 [(9a) "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;]

4 Inserted (w.e.f. 01.05.2006) by s. 68 of the Finance Act, 2006 (21 of 2006).

5 [(9b) "automated teller machine operations, maintenance or management service" means any service provided in relation to automated tellermachines and includes site selection, contracting of location, acquisition, financing, installation, certification, connection, maintenance, transactionprocessing, cash forecasting, replenishment, reconciliation and value-added services;]

5 Inserted (w.e.f. 01.05.2006) by s. 68 of the Finance Act, 2006 (21 of 2006).

6 [(9c) "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 activitiesrelating to an issue including acceptance of application, application money, allotment money and call money, refund of application money,payment of dividend and interest warrants;]

6 Inserted (w.e.f. 01.05.2006) by s. 68 of the Finance Act, 2006 (21 of 2006).

(10) "banking" has the meanings assigned to it in clauses (b) of section 5 of the Banking Regulation Act, 1949 (10 of 1949),

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

1[(12) "banking and other financial services" means

(a) the following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate or 2[commercial concern], namely :-

1 Substituted (w.e.f. 10.09.2004) by s. 90 of the Finance (No 2) Act, 2004 (23 of 2004).

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

2 Substituted (w.e.f. 01.06.2007) by s. 135 of the Finance Act, 2007 (22 of 2007).

3['Explanation.-For the purposes of this item, "financial leasing" means a lease transaction where- (i) contract for lease isentered into between two parties for leasing of a specific asset;

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

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

(iv) 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;]

3 Inserted (w.e.f. 01.06.2007) by s. 135 of the Finance Act, 2007 (22 of 2007).

4[(ii) Omitted]

4 Omitted (w.e.f. 01.05.2006) by s. 68 of the Finance Act, 2006 (21 of 2006).

(iii) merchant banking services;

5[(iv) Securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing;]

5 Substituted (w.e.f. 16.05.2008) by s. 90 of the Finance Act, 2008 (18 of 2008).

(v) asset management including portfolio management, all forms of fund management, pension fund management, 6[custodial, depository and trust services,]

6 Substituted (w.e.f. 01.06.2007) by s. 135 of the Finance Act, 2007 (22 of 2007).

(vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers andacquisitions and advice on corporate restructuring and strategy;

(vii) provision and transfer of information and data processing;

7[(viii) banker to an issue services; and

7 Substituted (w.e.f. 01.05.2006) by s. 68 of the Finance Act, 2006 (21 of 2006).

(ix) other financial services, namely, lending, issue of pay order, demand draft, cheque, letter of credit and bill of exchange, transfer ofmoney including telegraphic transfer, mail transfer and electronic transfer, providing bank guarantee, overdraft facility, bill discountingfacility, safe deposit locker, safe vaults, operation of bank accounts;] 8[(b) foreign exchange broking and purchase or sale of foreign currency, including money changing provided by a foreign exchange broker or anauthorised dealer in foreign exchange or an authorised money changer, other than those covered under sub-clause (a);]

8 Substituted (w.e.f. 16.05.2008) by s. 90 of the Finance Act, 2008 (18 of 2008).

1[Explanation. - For the purposes of this clause, it is hereby declared that "purchase or sale of foreign currency, including moneychanging" includes purchase or sale of foreign currency, whether or not the consideration for such purchase or sale, as the case may be, isspecified separately;]

1 Inserted (w.e.f. 16.05.2008) by s. 90 of the Finance Act, 2008 (18 of 2008).

(13) "Board" means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963); (14) "bodycorporate" shall have the meaning assigned to it in clause (7) of Section 2 of the Companies Act, 1956 (1 of 1956);{clause (7) of section 2 of the Companies Act, 1956 - "body corporate" or "corporation" includes a company incorporated outside India, butdoes not include - (a) a corporate sole; (b)a co-operative society registered under any law relating to co-operative societies; and (c ) any otherbody corporate (not being a company as defined under this Act) which the Central Government may, by Notification in the official Gazette,specify in this behalf.}

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

2 Substituted (w.e.f. 16.06.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).

(16) "broadcasting agency or organization" means any agency or organization engaged in providing service in relating to broadcasting in anymanner and, in the case of a broadcasting agency or organization, having its head office situated in any place outside India, includes its branchoffice 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 theactivity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or 3[collecting the broadcastingcharges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds bytransmission of electro-magnetic waves through space or through cables, direct to home signals or by any other means to cable operatorincluding multisystem operator or any other person on behalf of the said agency] or organisation;

3 Substituted (w.e.f. 16.06.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).

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

4 Substituted (w.e.f. 16.06.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).

(18) "beauty parlor" means any establishment providing beauty treatment services;

1[(19) "business auxiliary service" means any service in relation to, -

1 Substituted (w.e.f. 10.09.2004) by s. 90 of the Finance (No 2) Act, 2004 (23 of 2004).

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

2[****]

2 Omitted (w.e.f. 01.07.2010) by s. 76 of the Finance Act, 2010 (14 of 2010).


(iii) any customer care service provided on behalf of the client; or
(iv) procurement of goods or services, which are inputs for the client; or

3[Explanation.- For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client;]

3 Inserted (w.e.f. 16.06.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).

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

4 Substituted (w.e.f. 16.06.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).

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

(vii) 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, 5[but does not include any activitythat amounts to "manufacture" of excisable goods.]

5 Substituted (w.e.f. 01.09.2009) by s.113 of the Finance (No 2) Act, 2009 (33 of 2009).

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

6 Substituted (w.e.f. 16.06.2005) by s. 88 of the Finance Act, 2005 (18 of 2005).

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

(i) deals with goods or services or documents of title to such goods or services; or
(ii) collects payment of sale price of such goods or services; or
(iii) guarantees for collection or payment for such goods or services; or
(iv) undertakes any activities relating to such sale or purchase of such goods or services;
7[(b) "excisable goods" has the meaning assigned to it in clause (d) of section 2 of the Central Excise Act, 1944(1 of 1944);

7 Inserted (w.e.f. 01.09.2009) by s.113 of the Finance (No 2) Act, 2009 (33 of 2009).

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

(19a) "business exhibition" means an exhibition, -

(a) to market; or
(b) to promote; or
(c) to advertise; or (d) 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;]

1(19b) "business entity" includes an association of persons, body of individuals, company or firm but does not include an individual;]

1 Inserted (w.e.f. 01.07.2010) by s. 76 of the Finance Act, 2010 (14 of 2010).

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