SERVICE TAX RULES, 1994

As Amended by Service Tax (Amendment) Rules, 2001
In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules for the purpose of the assessment and collection of service tax, namely:—

1. Short title and commencement

(1) These rules may be called the Service Tax (Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of April, 2011.

(Rule 1 has been amended vide NTF. NO. 03/2011-ST, DT. 01/03/2011)

[OLD-
1. (1) These rules may be called the Service Tax (Second Amendment) Rules, 2010.

(2) They shall come into force on the date of their publication in the Official Gazette.]

(Rule 1 has been amended vide NTF. NO. 49/2010-ST, DT. 08/10/2010)

[OLD-
(1) These rules may be called the Service Tax (Amendment) Rules, 2010.

(2) They shall come into force on the 1st day of July, 2010.]

(Rule 1 has been amended vide NTF. NO. 39/2010-ST, DT. 28/06/2010)

(Rule 1 has been amended vide NTF. NO. 01/2010-ST, DT. 19/02/2010)

(Rule 1 has been amended vide NTF. NO. 10/2009-ST, DT. 17/03/2009)

(Rule 1 has been amended vide NTF. NO. 31/2008-ST, DT. 02/09/2008)

(Rule 1 has been amended vide NTF. NO. 19/2008-ST, DT. 10/05/2008)

(Rule 1 has been amended vide NTF. NO. 04/2008-ST, DT. 01/03/2008)

(Rule 1 has been amended vide NTF. NO. 45/2007-ST, DT. 28/12/2007)

(Rule 1 has been amended vide NTF. NO. 39/2007-ST, DT. 12/09/2007)

(Rule 1 has been amended vide NTF. NO. 28/2007-ST, DT. 22/05/2007)

(Rule 1 has been amended vide NTF. NO. 20/2007-ST, DT. 12/05/2007)

(Rule 1 has been amended vide NTF. NO. 14/2007-ST, DT. 02/04/2007)

(Rule 1 has been amended vide NTF. NO. 01/2007-ST, DT. 01/03/2007)

(Rule 1 has been amended vide NTF. NO. 29/2006-ST, DT. 02/11/2006)

(Rule 1 has been amended vide NTF. NO. 28/2006-ST, DT. 30/09/2006)

(Rule 1 has been amended vide NTF. NO. 27/2006-ST, DT. 21/09/2006)

(Rule 1 has been amended vide NTF. NO. 17/2006-ST, DT. 25/04/2006)

(Rule 1 has been amended vide NTF. NO. 10/2006-ST, DT. 19/04/2006)

(Rule 1 has been amended vide NTF. NO. 05/2006-ST, DT. 01/03/2006)

(Rule 1 has been amended vide NTF. NO. 31/2005-ST, DT. 20/10/2005)

(Rule 1 has been amended vide NTF. NO. 23/2005-ST, DT. 07/06/2005)

(Above Rule 1. has been amended vide NTF. NO. 07/2005-ST, DT. 01/03/2005)

(Above Rule 1. has been amended vide NTF. NO. 03/2005-ST, DT. 26/02/2005)

(Above Rule 1. has been amended vide NTF. NO. 02/2005-ST, DT. 14/02/2005)

(Above Rule 1. has been amended vide NTF. NO. 01/2005-ST, DT. 14/01/2005)

(Above Rule 1. has been amended vide NTF. NO. 35/2004-ST, DT. 03/12/2004)

(Above Rule 1. has been amended vide NTF. NO. 30/2004-ST, DT. 22/09/2004)

(Above Rule 1. has been amended vide NTF. NO. 27/2004-ST, Dt. 13/09/2004)

(Above Rule 1. has been amended vide NTF. NO. 11/2004-ST, Dt. 10/09/2004)

(Above Rule 1. has been amended vide NTF. NO. 05/2004-ST, Dt. 09/07/2004)

(Above sub rules (1) & (2) has been amended vide Ntf. No. 04/2003-ST, dt. 14/05/2003)

(Above sub rules (1) & (2) has been amended vide Ntf. No. 12/2002-ST, dt. 01/08/2002)

(Above sub rules (1) & (2) has been amended vide Ntf. No. 11/2001-ST, dt. 13/11/2001)

(Above sub rules (1) & (2) had been amended vide Ntf. No. 10/2001-ST, dt. 9/10/2001)

(Above sub rules (1) & (2) had been amended vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

2. Definitions

[Old

]

(Above clause (b) has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

NTF. NO. 11/2004-ST, Dt. 10/09/2004

NTF. NO. 20/2006-CE, (N.T.), DT. 30/09/2006

NTF. NO. 28/2006-ST

[OLD-

] [Old

]

NTF. NO. 28/2007-ST, DT. 22/05/2007

(In above clause (i) bold words has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

NTF. NO. 17/2006-ST

[OLD-

in relation to general insurance business - [Old

]

(In above clause (ii) bold words has been substituted vide Ntf. No. 11/2001-ST, dt. 13/11/2001)

(In above clause (ii) bold words had been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

]

or the life insurance business, as the case may be,

(In above clause (iii) bold words has been inserted vide Ntf. No. 12/2002-ST, dt. 01/08/2002)

(Above sub-clause (iii) has been inserted vide Ntf. No. 11/2001-ST, dt. 13/11/2001)

[Old

]

NTF. NO. 10/2006-ST

[Old

]

NTF. NO. 23/2005-ST

[Old

]

(Above sub-clause (iv) has been inserted vide Ntf. No. 12/2002-ST, dt. 01/08/2002)

[OLD-

]

NTF. NO. 23/2005-ST

NTF. NO. 35/2004-ST, DT. 03/12/2004

NTF. NO. 07/2005-ST, DT. 01/03/2005

NTF. NO. 01/2007-ST

[OLD-

]

NTF. NO. 17/2006-ST

and the rules made thereunder shall have the meanings assigned to them in that Act and rules [Old

(In above sub-rule (2) bold words has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

3. Appointment of officers

The Central Board of Excise and Customs may appoint such Central Excise Officers as it thinks fit for exercising the powers under Chapter V of the Act within such local limits as it may assign to them as also specify the taxable service in relation to which any such Central Excise Officer shall exercise his powers.

4. Registration

(1) Every person liable for paying the service tax shall make an application to the concerned Superintendent of Central Excise [Old (concerned Central Excise Officer appointed under rule 3)] in Form ST-1 for registration within a period of thirty days from the date on which the service tax under section 66 of the Finance Act, 1994 (32 of 1994) is levied :

(In above sub-rule (1) bold words has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

Provided that where a person commences the business of providing a taxable service after such service has been levied, he shall make an application for registration within a period of thirty days from the date of such commencement.

Provided further that a person liable for paying the servicr tax in the case of taxable services referred to in sub-section (4) or sub-section (5) of section 66 of the Finance Act, 1994 (32 of 1994) may make an application foe registration on or before the 31st day of December,1998.

Provided also that a person liable for paying the service tax in the case of taxable services referred to in sub-clause (zzp) of clause (105) of section 65 of the Act may make an application for registration on or before the 31st day of March, 2005 [OLD- 28th day of February 2005].

(In above provision for the figures, letters and words, "28th day of February, 2005", the figures, letters and words "31st day of March, 2005" has been substituted vide NTF. NO. 03/2005-ST, DT. 26/02/2005)

(In Rule 4. proviso has been inserted vide NTF. NO. 02/2005-ST, DT. 14/02/2005)

(Following proviso has been omitted vide Ntf. No. 12/2002-ST, dt. 01/08/2002)

OMITTED [ Provided further that a person who is a non-resident or is from outside India, does not have any office in India , and is liable to pay service tax, may not make an application for registration if such person pays the service tax on taxable service , rendered by him, under rule 6.]

(2) Where a person, liable for paying service tax on a taxable service,

(i) provides such service from more than one premises or offices; or

(ii) receives such service in more than one premises or offices; or,

(iii)is having more than one premises or offices, which are engaged in relation to such service in any other manner, making such person liable for paying service tax,

and has centralised billing system or centralised accounting system in respect of such service, and such centralised billing or centralised accounting systems are located in one or more premises, he may, at his option, register such premises or offices from where centralised billing or centralised accounting systems are located.

(3) The registration under sub-rule (2), shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralised billing or accounting is done, are located:

Provided that nothing contained in this sub-rule shall have any effect on the registration granted to the premises or offices having such centralised billing or centralised accounting systems, prior to the 2nd day of November, 2006.

(Sub-rule (2) & (3) has been substituted vide NTF. NO. 29/2006-ST, DT. 02/11/2006)

[OLD
(2) Where an assessee is providing a taxable service from more than one premises or offices and has centralized billing systems or centralized accounting systems in respect of such service, and such centralized billing or centralized accounting systems are located in one or more offices or premises, he may, at his option, register such premises or offices from where such centralized billing or centralized accounting systems are located.

(3) The registration under sub-rule (2), shall be granted,-

(a) by the Commissioner of Central Excise or the Chief Commissioner of Central Excise, as the case may be, in whose jurisdiction all the premises or offices providing taxable service and the premise or office from where centralised billing or centralised accounting is done, are located; and

(b) in cases other than (a) above, by such authority, as may be specified by the Board:

Provided that nothing contained in this sub-rule shall have any effect on the registrations granted to the premises or offices having such centralized billing or centralized accounting systems, prior to 1st day of April, 2005. ]

(3A) Where an assessee is providing a taxable service from more than one premises or offices, and does not have any centralized billing systems or centralized accounting systems, as the case may be, he shall make separate applications for registration in respect of each of such premises or offices to the jurisdictional Superintendent of Central Excise.

(Sub-rules (2),(3) and (3A) has been substituted vide NTF. NO. 07/2005-ST, DT. 01/03/2005)

[OLD-
(2) Where an assessee is providing a taxable service from more than one premises or offices and has a centralised billing system in respect of such service rendered to clients from such premises or offices at any one premises or office, he may opt for registering only the premises or office from where such centralised billing is done,

(3) Where an assessee is providing a taxable service from more than one premises or offices, and does not have any centralised billing system, he shall make separate applications for registration in respect of each such premises or offices to the concerned Superintendent of Central Excise [Old (Central Excise Officer)].

(3A) Where an assessee is providing taxable service from more than one premises or office and has a centralised accounting system in respect of such service rendered to clients from each such premises or office at any one premises or office, the Commissioner of Central Excise may permit such assessee to registering only the premises or office from where such centralised accounting is done, if he is satisfied that such registration shall not be detrimental to the interest of revenue.]

(4) Where an assessee is providing more than one taxable service, he may make a single application, mentioning therein all the taxable services provided by him, to the concerned Superintendent of Central Excise [Old (Central Excise Officer)].

(5) The Superintendent of Central Excise [Old (Central Excise Officer)] shall after due verification of the application form or an intimation under sub-rule (5A), as the case may be, grant a certificate of registration in Form ST-2 within seven days from the date of receipt of the application or the intimation. If the registration certificate is not granted within the said period, the registration applied for shall be deemed to have granted.

(In sun-rule 5, the words "or an intimation under sub-rule (5A), as the case may be"& "or the intimation" has been inserted vide NTF. NO. 01/2007-ST, DT. 01/03/2007)

(In above sub-rules (3), (4) and (5), bold words has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

(5A) Where there is a change in any information or details furnished by an assessee in Form ST-1 at the time of obtaining registration or he intends to furnish any additional information or detail, such change or information or details shall be intimated, in writing, by the assessee, to the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, within a period of thirty days of such change.

(Sub-rule (5A) has been inserted vide NTF. NO. 05/2006-ST, DT. 01/03/2006)

(6) Where a registered assessee transfers his business to another person, the transferee shall obtain a fresh certificate of registration.

(7) Every registered assessee, who ceases to provide the taxable service for which he is registered, shall surrender his registration certificate immediately to the Superintendent of Central Excise.

(8) On receipt of the certificate under sub-rule (7), the Superintendent of Central Excise shall ensure that the assessee has paid all monies due to the Central Government under the provisions of the Act, and the rules and the notifications issued thereunder, and thereupon cancel the registration certificate.

(In Sub-rule (7) bold words & sub-rule (8) has been inserted vide NTF. NO. 05/2006-ST, DT. 01/03/2006)

4A. Taxable service to be provided or credit to be distributed on invoice, bill or challan.-

(1) Every person providing taxable service shall, not later than fourteen days from the date of provision of [OLD- completion of] such taxable service or receipt of any payment towards the value of such taxable service, whicherer is earlier, issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him in respect of such taxable service provided or to be provided and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following, namely:-

(In above Sub-rule (1) bold words has been substituted vide NTF. NO. 07/2005-ST, DT. 01/03/2005)

Provided that in case the provider of taxable service is a banking company or a financial institution including a non-banking financial company, or any other body corporate or any other person [OLD- commercial concern ], providing service to any person [OLD-to a customer], in relation to banking and other financial services, an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered, and whether or not containing address of the person receiving taxable service but containing other information in such documents as required under this sub-rule.

(Above proviso has been inserted vide NTF. NO. 30/2004-ST, DT. 22/09/2004)

Provided further that in case the provider of taxable service is a goods transport agency, providing service to any person [OLD-to a customer], in relation to transport of goods by road in a goods carriage, an invoice, a bill or, as the case may be, a challan shall include any document, by whatever name called, which shall contain the details of the consignment note number and date, gross weight of the consignment and also contain other information as required under this sub-rule.

(Above Second proviso has been inserted vide NTF. NO. 35/2004-ST, DT. 03/12/2004)

[OMITTED -
Provided also that where any payment towards the value of taxable service is not received and such taxable service is provided continuously for successive periods of time and the value of such taxable service is determined or payable periodically, an invoice, a bill, or as the case may be, a challan shall be issued by a person providing such taxable service, not later than fourteen days from the last day of the said period.]

(Above third proviso has been inserted vide NTF. NO. 23/2005-ST, DT. 07/06/2005)

Provided also that [OLD- Provided that ] in case the provider of taxable service is aircraft operator providing the service of air transport of passenger, an invoice, a bill or as the case may be, challan shall include ticket in any form by whatever name called and whether or not containing registration number of the service provider, classification of the service received and address of the service receiver but containing other information in such documents as required under this sub-rule.

(Above proviso has been inserted vide NTF. NO. 39/2010-ST, DT. 28/06/2010)

(In Rule 4A, sub rule (1), the words "provision of" - substituted , third proviso - omitted, in fourth proviso the words "provided also that" - substituted vide NTF. NO. 03/2011-ST, DT. 01/03/2011)

(2) Every input service distributor distributing credit of taxable services shall, in respect of credit distributed, issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him, for each of the recipient of the credit distributed, and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following, namely:-

Provided that in case the input service distributor is an office of a banking company or a financial institution including a non-banking financial company, or any other body corporate or any other person [OLD- commercial concern ], providing service to any person [OLD-to a customer], in relation to banking and other financial services, an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered but containing other information in such documents as required under this sub-rule.

(In Rule 4A, the words "to any person" has been substituted with effect from the 16/05/2008 vide NTF. NO. 19/2008-ST, DT. 10/05/2008)

(Above proviso has been inserted vide NTF. NO. 30/2004-ST, DT. 22/09/2004)

(Rule 4A has been inserted vide NTF. NO. 11/2004-ST, Dt. 10/09/2004)

(In rule 4A, the words "any other person" has been substituted vide NTF. NO. 17/2006-ST, DT. 25/04/2006)

4B. Issue of consignment note.- Any goods transport agency which provides service in relation to transport of goods by road in a goods carriage shall issue a consignment note to the recipient of service [OLD-to the customer]:

Provided that where any taxable service in relation to transport of goods by road in a goods carriage is wholly exempted under section 93 of the Act, the goods transport agency shall not be required to issue the consignment note.

Explanation.- For the purposes of this rule and the second proviso to rule 4A, “consignment note” means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency.

(In Rule 4B, the words "to the recipient of service" has been substituted with effect from the 16/05/2008 vide NTF. NO. 19/2008-ST, DT. 10/05/2008)

(Above Rule 4B. has been inserted vide NTF. NO. 35/2004-ST, DT. 03/12/2004)

5. Records

(1) The records [Omitted- ( - ]including computerised data[Omitted- ) -] as maintained by an assessee in accordance with the various laws in force from time to time shall be acceptable.

(In sub-rule (1), the brackets, shall be omitted vide NTF. NO. 05/2006-ST, DT. 01/03/2006)

(2) Every assessee shall furnish to the Superintendent of Central Excise at the time of filing of return for the first time or the 31st day of January, 2008, whichever is later, a list in duplicate, of-

(i) all the records prepared or maintained by the assessee for accounting of transactions in regard to,-

(a) providing of any service, whether taxable or exempted;

(b) receipt or procurement of input services and payment for such input services;

(c) receipt, purchase, manufacture, storage, sale, or delivery, as the case may be, in regard of inputs and capital goods;

(d) other activities, such as manufacture and sale of goods, if any.

(ii) all other financial records maintained by him in the normal course of business.

(Above sub-rule 2 has been substituted vide NTF. NO. 45/2007-ST, DT. 28/12/2007)

[OLD-
(2) Every assessee shall furnish to the Superintendent of Central Excise [Old (Central Excise Officer)] at the time of filing his return for the first time, a list of all accounts maintained by the assessee in relation to service tax including memoranda received from his branch offices. ]

(In above rule (5), bold words has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)(3) All such records shall be preserved at least for a period of five years immediately after the financial year to which such records pertain.

[OMITTED -
(4) Every assessee shall make available, at the registered premises, at all reasonable time, such records as mentioned in sub-rule (3), for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, or, by the audit party deputed by the Comptroller and Auditor General of India. [OLD- as the case may be. ] ]

(Above sub-rule 4 has been Omitted vide NTF. NO. 45/2007-ST, DT. 28/12/2007)

(In above sub-rule (4) the words "as the case may be, or, by the audit party deputed by the Comptroller and Auditor General of India" has been substituted vide NTF. NO. 29/2006-ST, DT. 02/11/2006)

Explanation. - For the purposes of this rule, “registered premises” includes all premises or offices from where an assessee is providing taxable services.

(Sub-rule (3) & (4) has been inserted vide NTF. NO. 05/2006-ST, DT. 01/03/2006)

Rule 5A. Access to a registered premises.

(1) An officer authorised by the Commissioner in this behalf shall have access to any premises registered under these rules for the purpose of carrying out any scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.

(2) Every assessee shall, on demand, make available to the officer authorised under sub-rule (1) or the audit party deputed by the Commissioner or the Comptroller and Auditor General of India, within a reasonable time not exceeding fifteen working days from the day when such demand is made, or such further period as may be allowed by such officer or the audit party, as the case may be,-

(i) the records as mentioned in sub-rule (2) of rule 5;

(ii) trial balance or its equivalent; and

(iii) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 (43 of 1961), for the scrutiny of the officer or audit party, as the case may be.

(Rule 5A has been inserted vide NTF. NO. 45/2007-ST, DT. 28/12/2007)

5B. Date for determination of rate.- The rate of tax in case of services provided, or to be provided, shall be the rate prevailing at the time when the services are deemed to have been provided under the rules made in this regard.

(Rule 5B, has been inserted vide NTF. NO. 03/2011-ST, DT. 01/03/2011)

6. Payment of service tax

(1) The service tax shall be paid to the credit of the Central Government,-

(i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and

(ii) by the 5th day of the month, in any other case,

immediately following the calendar month in which the service is deemed to be provided as per the rules framed in this regard [OLD-payments are received, towards the value of taxable services]:

Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 6th day of the month if the duty is deposited electronically through internet banking, or, in any other case, the 5th day of the month, as the case may be, immediately following the quarter in which the service is deemed to be provided as per the rules framed in this regard [OLD- payments are received, towards the value of taxable services]:

[OMITTED-
Provided further that notwithstanding the time of receipt of payment towards the value of services, no service tax shall be payable for the part or whole of the value of services, which is attributable to services provided during the period when such services were not taxable: ]

Provided also that the service tax on the service deemed to be provided in the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.

[OLD-
Provided also that the service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.]

(Above sub-rule (1) has been substituted vide NTF. NO. 39/2007-ST, DT. 12/09/2007)

[OMITTED-
Explanation.- For the removal of doubts, it is hereby declared that where the transaction of taxable service is with any associated enterprise, any payment received towards the value of taxable service, in such case shall include any amount credited or debited, as the case may be, to any account, whether called ‘Suspense account’ or by any other name, in the books of account of a person liable to pay service tax.]

(Above Explanation has been inserted vide NTF. NO. 19/2008-ST, DT. 10/05/2008)

(1A) Without prejudice to the provisions contained in sub-rule (1), every person liable to pay service tax, may, on his own volition, pay an amount as service tax in advance, to the credit of the Central Government and adjust the amount so paid against the service tax which he is liable to pay for the subsequent period:

Provided that the assessee shall,-

(i) intimate the details of the amount of service tax paid in advance, to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such payment; and

(ii) indicate the details of the advance payment made, and its adjustment, if any in the subsequent return to be filed under section 70 of the Act.

[OLD-
(1) The service tax shall be paid to the credit of the Central Government by the 5th of the month immediately following the calendar month in which the payments are received, towards the value of taxable services:

Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 5th of the month immediately following the quarter in which the payments are received, towards the value of taxable services:

Provided further that notwithstanding the time of receipt of payment towards the value of services, no service tax shall be payable for the part or whole of the value of services, which is attributable to services provided during the period when such services were not taxable:

Provided also that the service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year. ]

(Above Sub-rule (1) has been substituted vide NTF. NO. 07/2005-ST, DT. 01/03/2005)

[OLD-
(1) The service tax on the value of taxable services r received during any calendar month shall be Paid to the credit of the Central Government by the 25th of the month immediately following the said calendar month :

Provided that where the assessee is an individual or proprietory firm or partnership firm, the service tax on the value of taxable services received during any quarter shall be paid to the credit of the Central Government by the 25th of the month immediately following the said quarter.

Provided further that the Service Tax on the value of taxable services received during the month of March or the quarter ending March, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.

(Above Rule 6. has been amended vide NTF. NO. 01/2005-ST, DT. 14/01/2005)

Explanation.- For the removal of doubt it is hereby clarified that in case the value of taxable service is received before providing the said service, service tax shall be paid on the value of service attributable to the relevant month, or quarter, as the case may be.

(Above Explanation has been inserted vide NTF. NO. 05/2004-ST, Dt. 09/07/2004)

(Following proviso has been omitted vide Ntf. No. 12/2002-ST, dt. 01/08/2002)

OMITTED [ Provided further that, in the case of a person who is a non-resident or is from outside India, does not have any office in India and is liable to pay service tax on taxable services provided in India,-]

]

(2) The assessee shall deposit the service tax liable to be paid by him with the bank designated by the Central, Board of Excise and Customs for this purpose in Form TR-6 or in any other manner prescribed by the Central Board of Excise and Customs.

Provided that where an assessee has paid a total service tax of rupees ten lakh or more including the amount paid by utilisation of CENVAT credit, in the preceding financial year, he shall deposit the service tax liable to be paid by him electronically, through internet banking.

(Above proviso has been substituted vide NTF. NO. 01/2010-ST, DT. 19/02/2010)

[OLD-
Provided that the assessee, who has paid service tax of rupees fifty lakh or above in the preceding financial year or has already paid service tax of rupees fifty lakh in the current financial year, shall deposit the service tax liable to be paid by him electronically, through internet banking.]

(Above proviso has been added vide NTF. NO. 27/2006-ST, DT. 21/09/2006)

(2A) For the purpose this rule, if the assessee deposits the service tax by cheque, the date of presentation of cheque to the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque.

(Above sub-clause (2A) has been inserted vide Ntf. No. 12/2002-ST, dt. 01/08/2002)

(3) Where an assessee has issued an invoice, or received any payment, against a service to be provided which is not so provided by him either wholly or partially for any reason, the assessee may take the credit of such excess service tax paid by him, if the assessee.-

(a) has refunded the payment or part thereof, so received alongwith the service tax payable thereon for the service to be provided by him to the person from whom it was received; or

(b) has issued a credit note for the value of the service not so provided to the person to whom such an invoice had been issued.

[OLD-
(3) Where an assessee has paid to the credit of Central Government service tax in respect of a taxable service, which is not so provided by him either wholly or partially for any reason, the assessee may adjust the excess service tax so paid by him (calculated on a prorata basis) against his service tax liability for the subsequent period, if the assessee has refunded the value of taxable service and the service fax thereon to the person from whom it was received.]

(4) Where an assessee is, for any reason, unable to correctly estimate, on the date of deposit, the actual amount payable for any particular month or quarter, as the case may be, he may make a request in writing to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, giving reasons for payment of service tax on provisional basis and the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, on receipt of such request, may allow payment of service tax on provisional basis on such value of taxable service as may be specified by him and the provisions of the Central Excise (No.2) Rules,2001, relating to provisional assessment, except so far as they relate to execution of bond, shall, so far as may be, apply to such assessment.

[Old
(4) Where an assessee is, for any reason, unable to correctly estimate on the date of deposit the actual amount payable for any particular month or quarter, as the case may be, the assessee may make a request in writing to the Central Excise Officer to make a provisional assessment of the tax on the basis of the amount deposited and the Central Excise Officer, may, on receipt of such request, order provisional assessment of tax and where the Central Excise Officer makes a provisional assessment, the provisions of Central Excise Rules, 1944 relating to provisional assessment, except so far as it relates to execution of bond, shall, so far as may be, apply to such assessment.]

(Above sub-rule (4), has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

(4A) Notwithstanding anything contained in sub-rule (4), where an assessee has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding month or quarter, as the case may be.

(4B) The adjustment of excess amount paid, under sub-rule (4A), shall be subject to the following conditions, namely:-

(i) excess amount paid is on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification,

(ii) excess amount paid by an assessee registered under sub-rule (2) of rule 4, on account of delayed receipt of details of payments towards taxable services may be adjusted without monetary limit,

(iii) in cases other than specified in clause (ii) above, the excess amount paid may be adjusted with a monetary limit of two lakh rupees [OLD- one lakh rupees] [OLD- rupees fifty thousand ] for a relevant month or quarter, as the case may be,

(In rule 6, sub-rule 1A - inserted & words "one lakh rupees" at sub-rule 4B (iii) substituted vide NTF. NO. 04/2008-ST, DT. 01/03/2008)

(iv) the details and reasons for such adjustment shall be intimated to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such adjustment.

(Sub-rule (4A) has been substituted vide NTF. NO. 01/2007-ST, DT. 01/03/2007)

(4C) Notwithstanding anything contained in sub-rules (4), (4A) and (4B), where the person liable to pay service tax in respect of services provided or to be provided in relation to renting of immovable property, referred to in sub-clause (zzzz) of clause (105) of section 65 of the Act, has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, on account of non-availment of deduction of property tax paid in terms of notification No.24/2007-Service Tax, dated the 22nd May, 2007, from the gross amount charged for renting of the immovable property for the said period at the time of payment of service tax, the assessee may adjust such excess amount paid by him against his service tax liability within one year from the date of payment of such property tax. The details of such adjustment shall be intimated to the Superintendent of Central Excise having jurisdiction over the service provider within a period of fifteen days from the date of such adjustment.

(Above sub-rule (4C) has been inserted vide NTF. NO. 28/2007-ST, DT. 22/05/2007)

[OLD-
(4A) Notwithstanding anything contained in sub-rule (4), where an assessee has opted for registration under sub-rule (2) of rule 4 of these rules and has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, for the reason of not receiving details of payments received towards the value of taxable services at his other premises or offices, the assessee may adjust such excess amount so paid as service tax by him against his service tax liability for the subsequent period and the details of such adjustment shall be intimated to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such adjustment. ]

(Above sub-rule (4A) has been inserted vide NTF. NO. 23/2005-ST, DT. 07/06/2005)

(5) Where an assessee under sub-rule 4 requests for a provisional assessment he shall file a statement giving details of the difference between the service tax deposited and the service lax liable to be paid for each month in a memorandum in Form ST-3A accompanying the quarterly or half yearly return, as the case may be.

(6) Where the assessee submits a memorandum in Form ST-3A under sub-rule (5), it shall be lawful for the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, [Old (Central Excise Officer)] to complete the assessment, wherever he deems it necessary, after calling such further documents or records as he may consider necessary and proper in the circumstances of the case.

(In above sub-rule (6), bold words has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

Explanation - For the purposes of this rule and rule 7, "Form TR-6" means a memorandum or challan referred to in rule 92 of the Treasury Rules of the Central Government.

(6A) Where an amount of service tax payable has been self-assessed under sub-section (1) of section 70 of the Act, but not paid, either in full or part, the same, shall be recoverable alongwith interest in the manner prescribed under section 87 of the Act.

(Sub-rule 6A, has been inserted vide NTF. NO. 03/2011-ST, DT. 01/03/2011)

(7) The person liable for paying the service tax in relation to the services provided by an air travel agent, shall have the option, to pay an amount calculated at the rate of 0.6% [OLD -0.5%] of the basic fare in the case of domestic bookings, and at the rate of 1.2% [OLD- 1.0%] of the basic fare in the case of international bookings, of passage for travel by air, during any calendar month or quarter. as the case may be] towards the discharge of his service tax liability instead of paying service tax at the rate specified in section 66 of Chapter V of the Act [OLD- at the rate of eight per cent of the value of taxable service rendered by him ] and the option, once exercised, shall apply uniformly in respect of all the bookings of passage for travel by air made by him and shall not be changed during a financial year under any circumstances

(In sub-rule (7) the numbers and figures "0.6%" & "1.2%" has been substituted vide NTF. NO. 17/2006-ST, DT. 25/04/2006)

(In above sub-rule (7), numbers and figures "0.5% & 1.0%" has been substituted vide NTF. NO. 27/2004-ST, Dt. 13/09/2004)

(In sub-rule(7) words "at the rate specified in section 66 of Chapter V of the Act" has been substituted vide NTF. NO. 11/2004-ST, Dt. 10/09/2004)

(In sub-rule (7) bold number and figures has been substituted vide Ntf. No. 04/2003-ST, dt. 14/05/2003)

Explanation - For the purposes of this sub-rule, the expression "basic fare" means that part of the air fare on which commission is normally paid to the air travel agent by the airline.

(7A) An insurer carrying on life insurance business liable for paying the service tax in relation to the risk cover in life insurance provided to a policy holder shall have the option to pay an amount calculated at the rate of one per cent. of the gross amount of premium charged by such insurer towards the discharge of his service tax liability instead of paying service tax at the rate specified in section 66 of Chapter V of the Act:

Provided that such option shall not be available in cases where-

(a) the entire premium paid by the policy holder is only towards risk cover in life insurance; or

(b) the part of the premium payable towards risk cover in life insurance is shown separately in any of the documents issued by the insurer to the policy holder.

(Above sub-rule (7A) has been inserted vide NTF. NO. 11/2004-ST, Dt. 10/09/2004)

(7A) Returns in case of taxable service provided by goods transport operators and clearing and forwarding agents:

Notwithstanding anything contained in rule 7, an assessee, in case of service provided by-

shall furnish a return within a period of six months from the 13th day of May, 2003, in Form ST-3B alongwith copy of Form TR-6 in triplicate, failing which the interest and penal consequences as provided in the Act shall follow .

(Sub-rule (7A) has been inserted vide Ntf. No. 04/2003-ST, dt. 14/05/2003)

(7B). The person liable to pay service tax in relation to purchase or sale of foreign currency, including money changing, provided by a foreign exchange broker, including an authorised dealer in foreign exchange or an authorized money changer, referred to in sub-clauses (zm) and (zzk) of clause (105) of section 65 of the Act, shall have the option to pay an amount calculated at the rate of 0.1 per cent. of the gross amount [OLD- 0.25 per cent. of the gross amount] of currency exchanged towards discharge of his service tax liability instead of paying service tax at the rate specified in section 66 of Chapter V of the Act:

[OMITTED-

Provided that such option shall not be available in cases where the consideration for the service provided or to be provided is shown separately in the invoice, bill or, as the case may be, challan issued by the service provider.

Illustration

Buying rate $US 1 = Rs.38, selling rate $US 1 = Rs.40

(i) Person exchanged $100 for equivalent rupees
Transaction value = Rs.3800 (Rs.38 x 100)
Service tax payable = Rs.9.5 (0.25% x 3800)

(ii) Person exchanged equivalent rupees for $100
Transaction value = Rs.4000 (40 x 100)
Service tax payable = Rs.10 (0.25% x 4000).]

(Sub-rule 7B, the figures & words "0.1 per cent. of the gross amount" - substituted, proviso and the illustration - omitted vide NTF. NO. 03/2011-ST, DT. 01/03/2011)

(Sub-rule (7B) has been inserted vide NTF. NO. 19/2008-ST, DT. 10/05/2008)

(7C) The distributor or selling agent, liable to pay service tax for the taxable service of promotion, marketing, organising or in any other manner assisting in organising lottery, referred to in sub-clause (zzzzn) of clause (105) of section 65 of the said Act (hereinafter referred to as the said sub-clause), shall have the option to pay an amount at the rate specified in column (2) of the Table given below, subject to the conditions specified in the corresponding entry in column (3) of the said Table, instead of paying service tax at the rate specified in section 66 of Chapter V of the said Act:

Table

Sl. No.	Rate	Condition
(1)	(2)	(3)
1.	Rs 6000/- on every Rs 10 Lakh (or part of Rs 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw	If the lottery or lottery scheme is one where the guaranteed prize payout is more than 80%
2.	Rs 9000/- on every Rs 10 Lakh (or part of Rs 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw	If the lottery or lottery scheme is one where the guaranteed prize payout is less than 80%

Provided that in case of online lottery, the aggregate face value of lottery tickets for the purpose of this sub-rule shall be taken as the aggregate value of tickets sold, and service tax shall be calculated in the manner specified in the said Table.

Provided further that the distributor or selling agent shall exercise such option within a period of one month of the beginning of each financial year and such option shall not be withdrawn during the remaining part of the financial year.

Provided also that the distributor or selling agent shall exercise such option for financial year 2010-11, within a period of one month of the publication of this sub-rule in the Official Gazette or, in the case of new service provider, within one month of providing of service under the said sub-clause and such option shall not be withdrawn during the remaining part of that financial year.

Explanation.- For the purpose of this sub-rule-

(i) “distributor or selling agent” shall have the meaning assigned to them in clause (c) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs published in the Gazette of India, Part-II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April, 2010 and shall include distributor or selling agent authorised by the lottery organising State.

(ii) “draw” shall have the meaning assigned to it in clause (d) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs published in the Gazette of India, Part-II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April, 2010.

(iii) “online lottery” shall have the meaning assigned to it in clause (e) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs published in the Gazette of India, Part-II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April, 2010.

(iv) “organising state” shall have the meaning assigned to it in clause (f) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of India in the Ministry of Home Affairs published in the Gazette of India, Part-II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April, 2010.

(Sub-rule (7C) has been inserted vide NTF. NO. 49/2010-ST, DT. 08/10/2010)

[OMITTED -
(8) The value of the taxable service in relation to the services provided by a clearing and forwarding agent to a client for rendering services of clearing and forwarding operations in any manner shall be deemed to be the gross amount of remuneration or commission (by whatever name called) paid to such agent by the client engaging such agent. ]

[OMITTED -
(9) The value of taxable service in relation to insurance auxiliary services provided by an insurance agent shall be deemed to be the gross amount of commission, fee or any other sum (by whatever name called) paid to such agent by the insurer appointing such agent.]

(Above Sub-rule (8) & (9) has been omitted vide NTF. NO. 10/2006-ST, DT. 19/04/2006)

(Above sub rule (9), has been inserted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

(Rule 1 has been amended vide NTF. NO. 03/2011-ST, DT. 01/03/2011)

7. Returns

ST-3

ST-3A

ST-3B

NTF. NO. 01/2010-ST, DT. 19/02/2010

[Old

]

(Above sub-rules (3) & (4) has been omitted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

(For Rule 6 & 7 - Cir. No. 63/12/2003-ST, DT. 14/10/2003 - Avoid hardship to Service Tax assesses on account of 25th of the month being a public holiday)

7B. Revision of Return.-

An assessee may submit a revised return, in Form ST-3, in triplicate, to correct a mistake or omission, within a period of ninety days[OLD -sixty days] from the date of submission of the return under rule 7.

Explanation.- Where an assessee submits a revised return, the ‘relevant date’ for the purpose of recovery of service tax, if any, under section 73 of the Act shall be the date of submission of such revised return.

(Rule 7B has been inserted vide NTF. NO. 01/2007-ST, DT. 01/03/2007)

7C. Amount to be paid for delay in furnishing the prescribed return.-

Where the return prescribed under rule 7 is furnished after the date prescribed for submission of such return, the person liable to furnish the said return shall pay to the credit of the Central Government, for the period of delay of-

(i) fifteen days from the date prescribed for submission of such return, an amount of five hundred rupees;

(ii) beyond fifteen days but not later than thirty days from the date prescribed for submission of such return, an amount of one thousand rupees; and

(iii) beyond thirty days from the date prescribed for submission of such return an amount of one thousand rupees plus one hundred rupees for every day from the thirty first day till the date of furnishing the said return:

Provided that the total amount payable in terms of this rule, for delayed submission of return, shall not exceed the amount specified in section 70 of the Act:

Provided further that where the assessee has paid the amount as prescribed under this rule for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall be deemed to be concluded.

Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.

(Rule 7B, the words "ninety days" - substituted & IIIrd proviso at rule 7C - added vide NTF. NO. 04/2008-ST, DT. 01/03/2008)

Explanation .- It is hereby declared that any pending proceedings under section 77 for delayed submission or non-submission of return that has been initiated before the date on which the Finance Bill, 2007 receives the assent of the President, shall also be deemed to be concluded if the amount specified for delay in furnishing the return is paid by the assessee within sixty days from the date of assent to the said Finance Bill.

(Rule 7C. has been inserted vide NTF. NO. 20/2007-ST, DT. 12/05/2007)

8. Form of appeals to Commissioner of Central Excise (Appeals)

9. Form of appeals to Appellate Tribunal

[Old

]

(Above sub-rule (2) has been substituted vide Ntf. No. 5/2001-ST, dt. 9/7/2001)

10. Procedure and facilities for large taxpayer.-

Notwithstanding anything contained in these rules, the following shall apply to a large taxpayer,-

(1) A large taxpayer shall submit the returns, as prescribed under these rules, for each of the registered premises.

Explanation : A large taxpayer who has obtained a centralized registration under sub rule (2) of rule 4, shall submit a consolidated return for all such premises.

(2) A large taxpayer, on demand, may be required to make available the financial, stores and CENVAT credit records in electronic media, such as, compact disc or tape for the purposes of carrying out any scrutiny and verification, as may be necessary.

(3) A large taxpayer may, with intimation of at least thirty days in advance, opt out to be a large taxpayer from the first day of the following financial year.

(4) Any notice issued but not adjudged by any of the Central Excise officer administering the Act or rules made thereunder immediately before the date of grant of acceptance by the Chief Commissioner of Central Excise, Large Taxpayer Unit, shall be deemed to have been issued by Central Excise officers of the said unit.

(5) Provisions of these rules, in so far as they are not inconsistent with the provisions of this rule shall mutatis mutandis apply in case of a large taxpayer.

(Rule 10 has been inserted vide NTF. NO. 28/2006-ST, DT. 30/09/2006)

(Pl. see Cir. No. 40/3/2002, dt. 21/2/2002)

(Note:- This rule had been amended vide following notifications i.e.,
1. Ntf. No. 27/97-ST, dt. 11/7/97
2. Ntf. No. 29/97-ST, dt. 25/7/97
3. Ntf. No. 38/97-ST, dt. 22/8/97
4. Ntf. No. 54/98-ST, dt. 7/10/98)

(see
1. Trade Notice No. 7/97-ST, dt. 4/7/97
2. Trade Notice No. 50/97-ST, dt. 4/7/97
3. Trade Notice No. 53/97-ST, dt. 4/7/97
4. Trade Notice No. 62/97-ST, dt. 5/8/97
5. Trade Notice No. 68/97-ST, dt. 29/8/97
6. Trade Notice No. 71/97-ST, dt. 29/8/97)