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

Amendments in the Service Tax Rules, 1994

G.S.R. (E).- 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 further to amend the Service Tax Rules, 1994, except as respects things done or omitted to be done before such amendment, namely :-

1. (1) These rules may be called the Service Tax (Second Amendment) Rules, 2004.

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

2. In the Service Tax Rules, 1994,-

(I) in rule 2, in sub-rule (1), after clause (cc), the following clause shall be inserted, namely,-

"(ccc) ‘input service distributor’ has the meaning assigned to it in clause (m) of rule (2) of the CENVAT Credit Rules, 2004;" ;

(II) after rule (4), the following rule shall be inserted, namely,-

"4A. Taxable service to be provided or credit to be distributed on invoice, bill or challan.- (1) Every person providing taxable service shall 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 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:-

(i) the name, address and the registration number of such person;

(ii) the name and address of the person receiving taxable service;

(iii) description, classification and value of taxable service provided or to be provided; and

(iv) the service tax payable thereon.

(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:-

(i) the name, address and registration number of the person providing input services and the serial number and date of invoice, bill, or as the case may be, challan issued under sub-rule (1);

(ii) the name, address and the registration number of the said input service distributor;

(iii) the name and address of the recipient of the credit distributed;

(iv) the amount of the credit distributed.";

(III) in rule 6 of the said rules,-

(i) in sub-rule (7), for the words "at the rate of eight per cent. of the value of taxable service rendered by him" the words, figures and letters "at the rate specified in section 66 of Chapter V of the Act" shall be substituted;

(ii) after sub-rule (7), the following sub-rule shall be inserted, namely,-

"(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.".

[F. No. B2/3/2004-TRU]

(V. Sivasubramanian)
Deputy Secretary to the Government of India

Note.- The principal rules were notified vide notification no. 2/94-Service Tax dated the 28th June 1994 and published in the Gazette of India, Extraordinary vide number G.S.R.546 (E), dated the 28th June 1994 and were last amended vide notification No. 5/2004-Service Tax, dated the 9th July, 2004 [G.S.R. 431 (E), dated the 9th July, 2004].

(Please refer NTF. NO. 27/2004-ST, DT. 13/09/2004 for further amendments in the Service Tax Rules, 1994)

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