PRESENTATION ON SERVICES INTRODUCTION Services to be discussed in - - PowerPoint PPT Presentation

PRESENTATION

ON

SERVICES

INTRODUCTION

Services to be discussed in this session

❖ Port Services ❖ Education Services ❖ Insurance Services

PORT SERVICES

Major Dealers and Revenue Contribution

Dealer Name Average Turnover(Per Month in Crores) Average Tax(Per month in Crores)

Visakhapatnam Port Trust 75 6 Gangavaram Port Limited 58.5 4 Adani Enterprises Limited 79 10 Srivalli Shipping & Transport Private Limited 20 3 Orissa Stevedores Ltd 2.5 0.50 Seaport Logistics Private Limited 0.84 0.15 SMS Logistics 0.50 0.10

PORT SERVICES

VALUE ADDED SERVICES CIVIL ENGINEERING SERVICES ADMINISTRA TIVE SERVICES OPERATIONAL SERVICES

SCHEDULES

Exempted Services

SNo Description of Service Rate of Tax

1 Service of transportation of passengers, with or without accompanied belongings, by inland waterways; (d) public transport,

• ther than predominantly for tourism

purpose, in a vessel between places located in India. NIL 2 Services by way of transportation of goods by inland waterways. NIL

SCHEDULES CONTD..,

Exempted Services

SNo

Description of Service Rate of Tax 3 Services by way of transportation by a vessel from

• ne place in India to another of the following

goods: (a) relief materials meant for victims of natural

• r

man-made disasters, calamities, accidents or mishap; (b) defence or military equipments; (c) newspaper or magazines registered with the Registrar of Newspapers; (d) railway equipments or materials; (e) agricultural produce; (f) milk, salt and food grain including flours, pulses and rice; and (g) organic manure. NIL 4 Services by way of loading, unloading, packing, storage or warehousing of rice. NIL

SCHEDULES CONTD..,

Services taxable @ 5% SNo Description of Service Rate of Tax SAC

1 Transport of goods in a vessel Provided that credit of input tax charged on goods (other than

• n

ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken 5% with ITC of input service s 99652

SCHEDULES CONTD..,

Services taxable @ 18% SNo Description of Service Rate of Tax SAC

1 Rental services of water vessels including passenger vessels, freight vessels etc with or without operator 18% 996602 Cargo handling services 2 Container handling services 18% 996711 3 Customs House Agent services 996712 4 Clearing and forwarding services 996713 996719 5 Other cargo and baggage handling services

SCHEDULES CONTD..,

Services taxbable @ 18%

SNo Description of Service Rate

• f Tax

SAC Storage and warehousing services 18 % 6 Refrigerated storage services 996721 996722 7 Bulk liquid or gas storage services 996729 8 Other storage and warehousing services 996731 9 Railway pushing or towing services 996744 10 Towing services for commercial and private vehicles

SCHEDULES CONTD..,

Services taxable @ 18%

SNo Description of Service Rate of Tax SAC

Supporting services for water transport (coastal, transoceanic and inland waterways) 11 Port and waterway operation services (excl. cargo handling) such as operation services

• f ports, docks, light houses, light ships etc

18% 996751 996752 12 Pilotage and berthing services 996753 13 Vessel salvage and refloating services 996759 14 Other supporting services for water transport n.e.c. 15 Electricity and gas distribution services 18% 99691 16 Water distribution and other services 18% 99692

SCHEDULES CONTD..,

Services taxable @ 18%

SNo Description of Service Rate of Tax SAC

Leasing or rental services concerning machinery and equipment with or without operator 17 Transfer of the right to use any goods for any purpose (whether or not for a specified period) Same rate of GST and compensation cess as

• n supply of similar

goods 9973 18 Any transfer of right in goods

• r of undivided share in goods

without the transfer of title thereof Same rate of GST and compensation cess as

• n supply of similar

goods 9973 19 Employment services including personnel search/referral service & labour supply service

18%

99851 20 Investigation and security services

18%

99852

SCHEDULES CONTD..,

Services taxable @ 18%

SNo Description of Service

Rate of Tax SAC

21 Cleaning services

18%

99853 22 Packaging services

18%

99854 23 Other support services to agriculture, hunting, forestry and fishing

18%

998619 24 Maintenance, repair and installation (except construction) services

18%

9987 25 Sewage and waste collection, treatment and disposal and other environmental protection services 18% 9994 26 Other services n.e.c. 18% 999799

EDUCATION SERVICES

Major Dealers and Revenue Contribution

Dealer Name Average Turnover(Per Month in Crores) Average Tax(Per month in Crores)

Gandhi Institute Of Technology & Management 0.73 0.10 Gayathri Vidya Parishad Institute

• f Health Care and Medical

Technology 0.17 0.02 R C Reddy IAS Study Circle 0.31 0.5

EDUCATION SERVICES - CLASSIFICATION

❖ Heading 9992( As per Notification No.11/2017 Central

Tax Rate dt. 28.06.2017)

❖ Subdivided in Six Groups: ❖ Pre-primary education services ❖ Primary education services ❖ Secondary Education Services ❖ Higher education services ❖ Specialised education services ❖ Other education & training services and

educational support services

SCHEDULES - EXEMPTED

SNo Description of Service

66 Services provided - (a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme iii) security or cleaning or house-keeping services (iv) services relating to admission to, or conduct of examination by, such institution; upto higher secondary: Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

SCHEDULES - EXEMPTED

SNo Description of Service

67 Services provided by IIM, as per the guidelines of the Central Government, to their students, by way of the following educational programmes, except Executive Development Programme: - (a) two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the IIM; (b) fellow programme in Management; (c) five year integrated programme in Management.

SCHEDULES - EXEMPTED

SNo Description of Service

69 70 71 72 1 Services provided by a number of Government scheme: National Skill Development Corporation Skill Development Initiative Scheme Deen Dayal Upadhyaya Grameen Kaushalya Yojana National Council for Vocational Training Central Government, State Government, Union territory administration under any training programme Educational or skill development courses by a Charitable entity Registered Under Sec 12AA of the Income Tax Act

SCHEDULES - TAXABLE AT 18%

SNo Description of Service

1 2 3 The supplies provided by third parties like musical instruments, computers, sports equipment, after school activities, food and accommodation supplied for excursion, uniform, stationery and other non-acadamic related supplies would attract GST at their relevant rates. The services outsourced by the higher education institutions such as catering, security, housekeeping and transportation are liable to GST @ 18 %, since the exemption is limited only upto higher secondary level

• nly

Education services provided for non conventional courses, certificate courses, and training programs where curriculum of degree is not recognized under law

SCHEDULES - TAXABLE AT 18%

SNo Description of Service

4 5 6 7 Coaching institutes which imparts education for competitive examinations and entrance examinations Any educational / training events organized in india by foreign entities which are attended by professionals, individuals and other participants The services provided for Tests & Examinations for admission into overseas colleges Where a course in a college leads to dual qualification,

• nly one of which is recognized by law, then exemption

may be given to that particular service only and another service may be assessed to GST separately.

SCHEDULES - TAXABLE AT 18%

SNo Description of Service

8 9 10 11 Educational institutes such as IIT’s, IIM’s charge a fee from prospective employers like corporate houses/MNCs who come to the institute for recruiting the candidates through campus interviews. Some input supplies received by educational institutes such as rents, telecommunication and event related expenditure attracts GST Specialized education services or auxiliary education services provided to higher education Services provided by way of education as a part of a prescribed curriculum for obtaining a qualification recognized by a law of foreign country

INSURANCE SERVICES

Major Dealers and Revenue Contribution

Dealer Name Average Turnover(Per Month in Crores) Average Tax(Per month in Crores)

Life Insurance Corporation Of India 120 11 SBI Life Insurance Company Limited 30 3 United India Insurance Company Limited 24 2.5 The Oriental Insurance Company Limited 14 1.5 ICICI Lombard General Insurance Co Ltd 13 1 National Insurance Company Limited 13 1.3 Bajaj Allianz General Insurance Company Limited 12.5 0.85

INSURANCE SERVICES - TYPES

❖ Life Insurance: Provides an assured sum to a

nominee upon death of a policy holder

❖ Term Plans ❖ Endowment Plans ❖ ULIPs ❖ General Insurance: Provides an assured sum as

compensation for loss caused by a natural or man made scenario

❖ Health Care ❖ Travel Insurance ❖ Motor Insurance

SCHEDULES - EXEMPTED

SNo Description of Service

Services provided by the following institutions are exempt under Heading 9971 0r 9991 28 29 30 31 32 National Pension System regulated by PFRDAI Army, Naval and Air Force Group Insurance Funds Employees’ State Insurance Corporation Employees Provident Fund Organization Insurance Regulatory and Development Authority

SCHEDULES - EXEMPTED

SNo Description of Service

Services provided by the government under various schemes 35 36 39 General insurance schemes like Swarnajaynti Gram Swarozgar Yojna ;Weather Based Crop Insurance Scheme ;Rashtriya Krishi Bima Yojana ;Rashtriya Swasthya Bima Yojana ;Pradhan Mantri Suraksha BimaYojna Life insurance schemes like Janashree Bima Yojana;Aam Aadmi Bima Yojana;Pradhan Mantri Jan DhanYogana business facilitator or a business correspondent to an insurance company in a rural area

SCHEDULES - TAXABLE

SCHEDULES - TAXABLE

SCHEDULES - TAXABLE

GST will also apply on the following ❖Interest charged on delayed receipt of premium. ❖CDA Charges inclusive of postage at the rate

• f 18%.

❖Charges like alteration fee, quotation fee or duplicate policy preparation charges, granting a written acknowledgment for receipt of notice of assignment or registering cancellation or change

• f nomination.

INSURANCE SERVICES – CONTD..

❖ Invoicing

❖ time limit is 45 days from the date of supply. ❖ If an insurance policy is getting cancelled, proper

debit or credit notes must be issued followed by the filing of returns, on or before the September of the particular year of cancellation.

❖ Reverse Charge

❖ services supplied by an insurance agent are paid by

the principal company which avails the services of the insurance agent.

❖ Input Service Distributor

❖ In cases of centrally contracted services, the services

are procured by the head office and then transferred to the rest of its branches. This is the methodology commonly followed by most insurance companies.