Declared services under service tax law
Meaning of Declared Services
The definition of term “service” is given in section 65B (44) of Finance act, 1944 which includes “ Declared Services” . According to section 65B (22) “ Declared services” means any activity carried out by a person for another person for consideration and declared as such under section 66E.
Following is the list of declared services.
a) Renting of immovable property
b) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of completion-certificate by the competent authority.
c) Temporary transfer or permitting the use or enjoyment of any intellectual property right.
d) Development, design, programming, customization, adaptation, up gradation, enhancement, implementation of information technology software.
e) Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act.
f) Transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods.
g) Activities in relation to delivery of goods on hire purchase or any system of payment by installments.
h) Service portion in the execution of a works contract.
i) Service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity.
In the definition of service contained in clause (44) of section 65B of the act it has also been stated that service includes a declared service. The phrase declared service is also defined in the said section as an activity carried out by a person for another for consideration and specified in section 66 E of the act.
The above activities when carried out by a person for another consideration would amount to provision of service. Most of these services are presently also being taxed except in so far as SI. It is clarified that they are amply covered by the definition of service but have been declared with a view to remove any ambiguity for the purpose of uniform application of law all over the country.