Commission paid by exporters exempted from service tax

As per Clause G of Rule 2(1)(i) of Service tax Rules, in relation to taxable services provided or agreed to be provided by any person located in non taxable territory and received by person in taxable territory, the recipient of service shall be liable to pay service tax. 

Hence in respect of commission on exports payable to person located outside India, service tax liability shall fall upon exporter.

However vide notification 42/2012 dated 29-06-2012, specific exemption has been provided to exporters subject to certain conditons

Limited Period Service tax exemption for Railways

Vide Notification 43/2012 dated 2-07-2012, exemption has been provided from service tax up to 30-09-2012 in respect of AC coach or first class coach travelling by passenger, whether or not accompanied by baggage. Further transportation of goods by Railways has also been exempted up to 30-09-2012

Service of Slaughtering of all types of animals exempted

Vide Notification 44/2012 dated 7-8-2012, while earlier slaughtering of bovine animals only was exempted under entry 33 of mega exemption notification 25/2012 dated 20-6-12

Service Tax on Directors' Services brought under reverse charge

Vide Notification 46/2012 and 45/2012 dated 7-8-2012, on service provided by director to a company service tax has been imposed on reverse charge basis i.e. company shall be liable to pay 100 % service tax.

Service Tax on Security Services

Vide Notification 45/2012 and 46/2012 dated 07-08-2012 read with Notification 30/2012 dated 20-6-2012, security services has been brought under reverse charge mechanism u/s 68(2)i.e.if security services are provided by individual,HUF or partnership firm,AOP to a body corporate, 75% of service tax is required to be deposited by that body corporate and balance 25% is to be remitted by security service agency