Declared Services

The activities when carried out by a person for another for consideration would amount to provision of service. Service tax is levied on event of provision of various services. To remove any ambiguity some activities are considered as rendering of services thus service tax will be applicable.

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 66E of the Act. 

66E. Declared Services.-

The following shall constitute declared services, namely:–

Sl. No.	Services
(a)	Renting of immovable property*
(b)	construction of a complex, building, civil structure or a part thereof	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. Explanation. — For the purposes of this clause,— I)    the expression "competent authority" means the Government or any authority authorized to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:–             a)   architect registered with the Council of Architecture constituted under the Architects Act, 1972; or             b)  chartered engineer registered with the Institution of Engineers (India); or             c)   licensed surveyor of the respective local body of the city or town or village or development or planning authority; II)the expression "construction" includes additions, alterations, replacements or remodeling of any existing civil structure;
(c)	Intellectual property right	temporary transfer or permitting the use or enjoyment of any intellectual property right;
(d)	Information technology software	development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software;
(e)	refrain from an act, or to tolerate an act or a situation**	agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
(f)	hiring, leasing, licensing	transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;
(g)	delivery of goods on hire purchase	activities in relation to delivery of goods on hire purchase or any system of payment by instalments;
(h)	works contract	service portion in the execution of a works contract
(i)	food or any other article of human consumption or any drink	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.
(j)***	radio-frequency spectrum	Assignment by the Government of the right to use the radio-frequency spectrum and subsequent transfers thereof.

**Note:- The above activities when carried out by a person for another for consideration would amount to provision of service. Most of these services are presently also being taxed except in so far as Sl. No.(e) is concerned. 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.

* Renting of certain kinds of immovable properties is specified in the negative lists which are not taxable.

1)    Renting of vacant land relating to agriculture.

2)  Renting of residential dwelling for use as residence.

3)  Renting out of any property by the Reserve Bank of India.

4)  Renting out of any property by a Government or a local authority to a non-business entity.

 Note: - Renting of immovable property for some specific purpose is also exempted by exemption Notification.

***Inserted by the Finance Act 2016