Notification No.3/2012 - ST,dt17th March, 2012 On Amendment to Service Tax Rules 1994

           Amendment to Service Tax Rules 1994

1.  In rule 2: Definitions

                Renumbered sub-clauses  cc), (cc) and (ccc) as  (ca), (cb) and (cc) respectively;

                New sub-clause shall be inserted, namely:—

                (cd)- Partnership firm includes a limited liability partnership;

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

                In Subrule 1:

                Time limit for issue of Invoice extended from fourteen days to Thirty days.

               

                New Provsio 4 :

                For banking and other financial services, the period within which the invoice, bill or challan,          shall be forty five days.

                New Provsio 6 :

                1. If an amount up to rupees one thousand in excess of the amount indicated in the                 invoice is received

                2. And the provider of taxable service has opted to determine the point of taxation  based on the option as given in Point of Taxation Rules, 2011, No invoice is required to  be issued to such extent.

3. In Rule 6: Payment of service tax

                New Provsio:

                1. For taxable services covered under sub-rule (1) of rule 3 of     the Export of Services    Rules, 2005, this sub-rule shall not apply if  the payment is received within the period  specified by the Reserve Bank of India, or within such extended period(s).

               

                2. (a)For  individuals and partnership firms whose aggregate value of taxable services fifty lacs rupees or less in the previous financial year

                                (b) the service provider shall have the option to pay tax on taxable services provided or to be provided by him up to a total of rupees fifty lacs in the current financial year,

                                (c) on the dates specified in this sub-rule with respect to the month or quarter, in  which payment is actually received.(Non applicability of POR rules 2011).

                3. Substitution of new (2) for Sub rule (4B)

                                1.The adjustment of excess amount paid can be adjusted without any limit.

                                2. However if  excess amount paid is on account of interpretation of law,  taxability, classification, valuation or applicability of any exemption notification, adjustment is not permitted.

                4. Substitution of clause (ii) in Sub rule (7A)

                                 An insurer carrying on life insurance business

                        a.3% of the gross amount of premium charged for first year.

                        b.1.5% of the gross amount of premium charged for subsequent years.

           

            5. Substitution of clause (7B)

                                The person liable to pay service tax in relation to purchase or sale of foreign currency, calculated  as a specific  percentage, will be 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:

           

Sl no	Gross Amount of Currency changed	Specific  percentage	Subject to Minimum.(Rs)
1.	Upto Rs 1 Lacs	0.12%	30
2.	> Rs 1 Lacs to  Rs 10 Lacs	0.06%	120
3.	> Rs 10 Lacs	0.01%	660

            6. Substitution of clause (7C)

                Any person assisting in organising lottery in any manner

Sl no	Rate	Condition
1	Rs 7000 Per  Rs Lac of Aggregate Face Value	>80% Guaranteed Price money
2	Rs 11000 Per  Rs Lac of Aggregate Face Value	<80% Guaranteed Price money