MANU/DSTX/0034/2016

Ministry : Ministry of Finance

Department/Board : Central Board of Indirect Taxes and Customs

Circular No. : 193/03/2016-Service Tax

Date : 18.05.2016

Notification/ Circulars Referred : Notification No. 25/2012 - ST MANU/DSTX/0065/2012;Notification No. 30/3012 - ST MANU/DSTX/0070/2012

Subject: Goods and Services Tax

Subject: Excise

Citing Reference:
Notification No. 25/2012 - ST MANU/DSTX/0065/2012  Referred

Notification No. 30/3012 - ST MANU/DSTX/0070/2012  Referred

To

Principal Chief Commissioners of Customs and Central Excise (All)
Principal Chief Commissioners of Central Excise & Service Tax (All)
Principal Director Generals of Goods and Service Tax/System/CEI
Director General of Audit/Tax Payer Services,
Principal Commissioners/ Commissioners of Customs and Central Excise (All)
Principal Commissioners/Commissioners of Central Excise and Service Tax (All)
Principal Commissioners/Commissioners of Service Tax (All)
Principal Commissioners/Commissioners LTU/Central Excise/Service Tax
(Audit)

Madam/Sir,

Clarification regarding leviability of service tax in respect of services provided by arbitral tribunal and members of such tribunal -reg

It has come to the notice of the Board that there is some confusion regarding the legal position with respect to continuance of reverse charge mechanism for services provided by arbitral tribunals and individual arbitrators on the arbitral tribunal, with effect from 1.4.2016.

2.1 Services provided by an arbitral tribunal to (i) any person other than a business entity; or (ii) a business entity with a turnover up to rupees ten lakh in the preceding financial year, are exempt from services tax [Entry 6(a) of Notification No. 25/2012 - ST refers]. "Arbitral tribunal" has been assigned the same meaning in the exemption notification No. 25/2012 - ST [paragraph 2(c)] as in clause (d) of Section 2 of the Arbitration and Conciliation Act 1996, which is as follows:-