## Policy Summary: Service Tax Exemption on Right of Way Granted by Local Authorities
**Policy Title:** Notification No. 12/2018-Service Tax, G.S.R. 1156(E)
**Issuing Authority:** Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs
**Date of Issuance:** November 30, 2018
**Purpose:** This notification exempts service tax on services provided by local authorities related to granting the right of way, as defined in subsection 7 of section 3 of the Indian Telegraph Act, 1885.
**Scope:** The exemption applies to the period commencing on July 1, 2012, and ending on June 30, 2017. This exemption addresses a practice of non-levy of service tax that was generally prevalent during that period.
**Legal Basis:** The notification is issued in exercise of powers conferred by section 11C of the Central Excise Act, 1944, read with section 83 of the Finance Act, 1994, and clause (e) of subsection 2 of section 174 of the Central Goods and Services Tax Act, 2017.
**Implementation:** Service tax payable under section 66B of the Finance Act, 1994, on the specified services during the defined period will not be required to be paid.
**Contact Information:**
Dr. Sreeparvathy S.L., Under Secretary
F. No. 137/122/2018-Service Tax
Key Entities Referenced
Central Board of Indirect Taxes and Customs: An organization under the Department of Revenue, Ministry of Finance, responsible for the formulation of policy concerning indirect taxes.
Ministry of Finance: The ministry responsible for the fiscal policies of the Indian Government.
Central Government: The executive authority of the Union of India.
Service Tax: A tax levied by the government on service providers on certain service transactions.
Indian Telegraph Act, 1885: A law enacted in India relating to telegraphs. Section 3(7) defines local authorities for the purpose of granting right of way.
Central Excise Act, 1944: An act to consolidate and amend the law relating to central duties of excise on goods manufactured or produced in India.
Finance Act, 1994: An act of the Parliament of India that introduced service tax.
Central Goods and Services Tax Act 2017: An act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government.
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अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:4)द(cid:6)ल ी, 30 नव(cid:10)ब र, 2018
सससस..ंं..ंं 1111////2222000011118888----ससससववेेववेे ाााा ककककरररर
ससससाााा....ककककाााा....ििििनननन.... 1111111155556666((((अअअअ))))....————क(cid:13)(cid:14)ीय सरकार का यह समाधान हो गया ह ै (cid:4)क 1 जुलाई, 2012 से (cid:31)ारंभ होन े वाली और
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जो साधारणतया (cid:31)चिलत थी, भारतीय तार अिधिनयम, 1885 (1885 का 13) क6 धारा 3 क6 उपधारा (7) म (cid:13) यथा
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था और यह सेवा उ. त अविध म(cid:13) ऐसे सेवा कर के िलए दायी थी, जो उ.त (cid:31)था के अनुसार संदCत नहA (cid:4)कया जा रहा था ।
अत:, अब, क(cid:13)(cid:14)ीय सरकार, िवC त अिधिनयम, 1994 (1994 का 32) क6 धारा 83 के साथ प8ठत क(cid:13)(cid:14)ीय उCप ाद श(cid:6)ु क
अिधिनयम, 1944 (1944 का 1) क6 धारा 11ग और क(cid:13)(cid:14)ीय माल और सेवाकर अिधिनयम, 2017 (2017 का 12) क6 धारा
174 क6 उपधारा (2) के खंड (ड.) <ारा (cid:31)दC त शि.त य; का (cid:31)योग करते Lए, क(cid:13)(cid:14)ीय माल और सेवा कर अिधिनयम, 2017
(2017 का 12) के (cid:31)वृC त होने से पहले क6 गई या लोप क6 गई बात; के संबंध म(cid:13) यह िनदेश दते ी ह ै (cid:4)क भारतीय तार
अिधिनयम, 1885 क6 धारा 3 क6 उपधारा (7) म (cid:13) यथा प8रभािषत ‘‘:थ ानीय (cid:31)ािधका8रय;’’ <ारा उ.त अविध म,(cid:13) उ.त (cid:31)था
के कारण ‘‘मागा=िधकार’’ के >प म(cid:13) दी गई सेवा? पर, िवCत अिधिनयम, 1994 क6 धारा 66ख के अधीन संदेय सेवा कर
संदC त (cid:4)कया जाना अपेिNत नहA होगा ।
[फा. सं. 137/12/2018-सेवा कर]
डॉ. Oीपाव=ती एस. एल., अवर सिचव
6922 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
NOTIFICATION
New Delhi, the 30th November, 2018
No. 1/2018-Service Tax
G.S.R. 1156(E).—Whereas, the Central Government is satisfied that in the period
commencing on and from the 1st day of July, 2012 and ending with the 30th day of June, 2017
(hereinafter referred to as the said period), according to a practice that was generally prevalent, there
was non-levy of service tax, on the services by way of granting of “right of way” by “local
authorities”, as defined in sub-section (7) of section 3 of the Indian Telegraph Act, 1885 (13 of
1885), and this service was liable to service tax, in the said period, which was not being paid
according to the said practice.
Now, therefore, in exercise of the powers conferred by section 11C of the Central Excise Act,
1944 (1 of 1944), read with section 83 of the Finance Act, 1994 (32 of 1994), and clause (e) of
sub-section (2) of section 174 of the Central Goods and Services Tax Act 2017 (12 of 2017), in
respect of things done or omitted to be done before the coming into force of the Central Goods and
Services Tax Act, 2017 (12 of 2017), the Central Government hereby directs that the service tax
payable under section 66B of the Finance Act, 1994, on the services by way of granting of “right of
way” by “local authorities”, as defined in sub section (7) of section 3 of the Indian Telegraph
Act, 1885, in the said period, but for the said practice, shall not be required to be paid.
[F. No. 137/12/2018-Service Tax]
Dr. SREEPARVATHY S.L., Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.