A. In exercise of the powers conferred by
section 37 of the Central Excise Act, 1944
B. And in exercise of section 94 of the
Finance Act, 1994
C. These rules may be called the
CENVAT Credit (Sixth Amendment) Rules, 2012.
D.
They shall come into force on the 1st day of July, 2012.
E. IN
RULE 2 - DEFINITIONS
(i) in rule 2(a)(A)(viii) :
after the words, “their chassis” the words
“but including dumpers and tippers” shall be inserted;
(ii) in
rule 2(a)(B):
the following sub-clause shall be
substituted, namely:―
“(B) motor vehicle
designed for transportation of goods including their chassis registered in the
name of the service provider, when used for-
(i) providing an output
service of renting of such motor vehicle; or
(ii) transportation of
inputs and capital goods used for providing an output service; or
(iii) providing an output
service of courier agency”
(iii) in rule 2(a)(C) :
the following sub-clause
shall be substituted, namely:―
“(C) motor
vehicle designed to carry passengers including their chassis, registered in the
name of the provider of service, when used for providing output service of-
(i) transportation of
passengers; or
(ii) renting of
such motor vehicle; or
(iii) imparting motor
driving skills”
(iv) in rule 2(e):
the following shall be substituted, namely:-
‘(e)
“exempted service” means a-
(1) taxable service
which is exempt from the whole of the service tax leviable thereon;
or
(2) service,
on which no service tax is leviable under section 66B of the Finance
Act; or
(3) taxable service
whose part of value is exempted on the condition that no credit of inputs and
input services, used for providing such taxable service, shall be taken;
but shall
not include a service which is exported in terms of rule 6A of the Service Tax
Rules, 1994.’
(v) in rule 2(k)(B):
the following
sub-clause shall be substituted, namely:-
“(B)
any goods used for -
(a) construction
or execution of works contract of a building or a civil structure or a part
thereof; or
(b) laying
of foundation or making of structures for support of capital goods,
except for
the provision of service portion in the execution of a works contract or
construction service as listed under clause (b) of section 66E of the Act;”
(vi)
in explanation to rule 2(k)(l):
(i) for the words “ taxable
service”, the words “output service” shall be substituted;
(ii) in sub-clause (ii),
for the words “ but excludes services”, the words “ but excludes” shall be
substituted;
(vii) in explanation to rule 2(K) (1)(A):
the following sub-clause shall be substituted,
namely:-
“(A) service portion in the execution of a
works contract and
construction services including service listed under clause (b) of section 66E
of the Finance Act (hereinafter referred as specified services) in so far as
they are used for -
(a)
thereof; or construction or execution of works contract of a building or a
civil structure or a part
(b) laying
of foundation or making of structures for support of capital goods,
except for
the provision of one or more of the specified services; or”;
(viii) in explanation to rule 2(K) (1)(B):
in sub-clause
(B), for the words, brackets, letters and figures “specified in sub-clauses (o)
and (zzzzj) of clause (105) of section 65 of the Finance Act”, the words
“services provided by way of renting of a motor vehicle” shall be substituted;
(ix) in explanation to rule 2(K) (1)(BA):
for sub-clause
(BA), the following sub-clause shall be substituted, namely: —
“(BA) service
of general insurance business, servicing, repair and maintenance , in so far as
they relate to a motor vehicle which is not a capital goods, except
when used by -
(a) a manufacturer of a motor vehicle in
respect of a motor vehicle manufactured by such person ;
or
(b) an insurance company in respect of a motor vehicle
insured or reinsured by such person; or”;
(x) in rule 2(p) :
the following
clause shall be substituted, namely:-
‘(p) “output
service” means any service provided by a provider of service located in the
taxable territory but shall not include a service,-
(1) specified in section 66D of the Finance
Act; or
(2) where the whole of service tax is liable
to be paid by the recipient of service.’
F. IN RULE 3- CENVAT CREDIT
(a) in rule
3(1),:
for the words, “provider of
taxable service”, wherever they occur, the word “ provider
of output service” shall be substituted;
(b) in rule 3(1)(ixb):
after item (ixa),
the following item shall be inserted, namely:-
“(ixb) the service
tax leviable under section 66B of the Finance Act;”,
(c) in rule 3(1)(xi)(i):
after item (xi), in item (i),
for the words “premises of” the words “by” shall be substituted;
(d) Explanation
to rule 3(4):
after sub-rule (4) of the said
rules, following shall be inserted, namely:-
“Explanation. - CENVAT credit cannot
be used for payment of service tax in respect of services where the person
liable to pay tax is the service recipient”
(e) in rule
3(5B):
in the proviso to sub-rule (5B), for
the words “taxable services” the words “output services” shall be substituted;
G. IN RULE 5- REFUND OF CENVAT CREDIT
(a) in rule
5(2):
1. in sub-rule (2), in the
second proviso, for the words and figures “Export of Services Rules, 2005” the
words and figures, “Service Tax Rules, 1994” shall be substituted;
2. in Explanation
1, for the words and figures “the provisions of Export of Services
Rules, 2005, whether the payment is received or not” the words, figures and
letter “rule 6A of the Service Tax Rules 1994” shall be substituted;
(b) Rule 5B:
In
the said rules, after rule 5A, the following rule shall be inserted, namely:-
“ Refund
of CENVAT credit to service providers providing services taxed on reverse
charge basis.- 5B.
A provider
of service providing services notified under sub-section (2) of section 68 of
the Finance Act and being unable to utilise the CENVAT credit availed on inputs
and input services for payment of service tax on such output services, shall be
allowed refund of such unutilised CENVAT credit subject to procedure,
safeguards, conditions and limitations, as may be specified by the Board by
notification in the Official Gazette.
H. IN RULE 6- OBLIGATION OF THE
MANUFACTURER OR PRODUCER OF FINAL PRODUCTS AND A PROVIDER OF OUTPUT SERVICE.
(i) in the
marginal heading,
for
the words “ provider of taxable service” the words, “ provider of output
service” shall be substituted;
(ii) in rule6
(3):
after the second proviso, the following
proviso shall be inserted, namely:-
“Provided
that in case of transportation of goods or passengers by rail the amount
required to be paid under clause (i) shall be an amount equal to 2 per
cent. of value of the exempted services.”
(iii) in
rule 6(3A):
in
clauses (a), (b), (c) and (h), for the words “taxable” wherever they occur, the
words, “output” shall be substituted;
(iv) in rule 6(3B):
for the words,
brackets, letters and figures “providing taxable service specified in
sub-clause (zm) of clause (105) of section 65 of the Finance Act” the words, “engaged in providing services by way of extending deposits,
loans or advances” shall be substituted;
(v) in rule
6(3D);
for
the Explanation I, the following Explanation shall be substituted,
namely:-
“Explanation I. - “Value” for the purpose of sub-rules (3) and (3A),—
(a) shall have the
same meaning as assigned to it under section 67 of the Finance Act, read with
rules made thereunder or, as the case may be, the value determined under
section 3, 4 or 4A of the Excise Act, read with rules made thereunder;
(b) in the case of
a taxable service, when the option available under sub-rules (7),(7A),(7B) or (7C) of rule 6 of the Service Tax Rules, 1994, has been availed, shall
be the value on which the rate of service tax under section 66B of
the Finance Act, read with an exemption notification, if any, relating to such
rate, when applied for calculation of service tax results in the same amount of
tax as calculated under the option availed; or
(c) in case of
trading, shall be the difference between the sale price and the cost of goods
sold (determined as per the generally accepted accounting principles without
including the expenses incurred towards their purchase) or ten per cent of the
cost of goods sold, whichever is more.
(d) in case of trading of securities, shall be the
difference between the sale price and the purchase price of the securities
traded or one per cent. of the purchase price of the
securities traded, whichever is more.
(e) shall not include the value of services by way of
extending deposits, loans or advances in so far as the consideration is
represented by way of interest or discount;”
(vi) in rule 6(7):
the following sub-rules
shall be inserted, namely:-
The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable
in case the taxable services are provided, without payment of service tax, to a
unit in a Special Economic Zone or to a developer of a Special Economic Zone
for their authorised operations or when a service is exported,
(vii) in rule 6(8):
For the purpose of this
rule, a service provided or agreed to be provided shall not be an exempted
service when:-
(a) the service satisfies the conditions specified under rule 6A
of the Service Tax Rules, 1994 and the payment for the service is to be
received in convertible foreign currency; and
(b) such payment has not been received for a period of
six months or such extended period as maybe allowed from time-to-time by the
Reserve Bank of India, from the date of provision.”
I. IN RULE 7- MANNER OF DISTRIBUTION OF
CREDIT BY INPUT SERVICE DISTRIBUTOR
In rule 7(d)
:
the following clause shall be substituted,
namely:-
credit of service tax attributable to
service used in more than one unit shall be distributed pro rata on
the basis of the turnover during the relevant period of the
concerned unit to the sum total of the turnover of all the units to which the
service relates during the same period.”
(ii) Explanation
3 to rule 7:
the following Explanation shall be
inserted, namely:-
“Explanation 3. - (a) The relevant
period shall be the month previous to the month during which the CENVAT credit
is distributed.
(b) In case if any of its unit pays tax or duty on quarterly basis
as provided in rule 6 of Service Tax Rules, 1994 or rule 8 of Central Excise
Rules, 2002 then the relevant period shall be the quarter previous to the
quarter during which the CENVAT credit is distributed.
(c) In case of an assessee who does not have any total
turnover in the said period, the input service distributor shall distribute any
credit only after the end of such relevant period wherein the total turnover of
its units is available.”
J. RULE 9- DOCUMENTS AND RECORDS
in rule 9(2):
in the proviso, for the words, “provider of taxable service”, the
words “provider of output service” shall be substituted;
K. RULE 13-POWER TO NOTIFY GOODS FOR DEEMED CENAVT CREDIT
in rule 13:
for the words “taxable
service” wherever they occur, the words, “output service” shall be substituted.
