Service tax on new services effective from Sep 1

The service tax on four new services proposed in the Budget 2009-10 will be effective from September 1 this year, Finance Minister Pranab Mukherjee said.

"I have directed the Central Board of Excise and Customs to make the notifications prescribing levy of service tax on new services and alterations in the scope of existing services announced in the current Budget effective from the Ist day of September 2009," Mukherjee said while replying to the debate on the Finance Bill in Parliament today.

In the Budget for 2009-10, there were proposals to impose service tax on four new services-- legal advice and consultancy, transport by rail, transport by inland waterways and cosmetic surgery.

The Minister had received representations from the business community that there sufficient time should be given before notifying the changes, following which he granted their wish.

"I find merit in this suggestion," he said.

The Minister also exempted he service tax levied on the maintenance and repair of roads.