Budget 2012-2013 - Amendments in Service Tax Rules, 1994

[C.A. Surender Gupta]

Changes in Service Tax Rules, 1994 -  Ntf. 3/2012 ST

(w.e.f. 17-3-2012 or w.e.f. 1-4-2012)

(Service Tax Rules, 1994  as amended available on www.taxmanagementindia.com)

Sr. No.	Particulars	Old Provisions	New Provisions	Effective Date
1.	Meaning of partnership firm (Rule 2 (cd))	Not existing	PF to include LLP	1-4-2012
2.	Issue of invoice, bill or challan – Period of limitation Rule 4A	14 days	30 days 45 days in case of banking	1-4-2012
3.	Receipt of excess money over and above the Invoice Value – assessee who has opted POT rules – Rule 4A	Not existing	No need to invoice if excess amount received is upto rs. 1000 POT will be original date of Invoice.	1-4-2012
4.	Export of services – due date – Rule 6(1) – Third proviso Provisions of Rule 7 of POT, 2011 migrated to STR, 1994	Due Date of payment is date of receipt in case of export, whether or not received within prescribed time limit.	Due date of payment is, date invoice / bill if payment in foreign exchange is not  received within prescribed time as per RBI, provisions of Rule 6(1) not applicable	1-4-2012
11.	Option to pay service tax on Receipt basis instead of accrual basis – Fourth proviso to Rule 6(1) Provisions of Rule 7 of POT, 2011 migrated to STR, 1994	individuals or proprietary firms or partnership firms - 8 categories of services No value cap	Individuals and partnership firms – All services are eligible Value cap – Rs. 50 lacs in the preceding year and upto Rs. 50 lacs during the current year	1-4-2012
5.	Adjustment of excess paid service tax – Rule 6(4B) on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification.]	Upto Rs. 2 lacs (No limit in case of centralized registration) Details and reasons were required to be intimated to the Superintendent	Adjustment without any limit to all the assesse. No intimation	1-4-2012
6.	Composition in case of life insurance [Other cases] Rule 6(7A)	1.5%	3.0% in first year and 1.5% in subsequent years	1-4-2012
7.	Composition scheme in case of Money Changing – Rule 6(7B)	Exchanged amount         ST Upto Rs. 1 lac                     0.1% (cap Rs. 25) 1 lac to 10 lac                      100 + 0.05% Exceeding Rs. 10 Lac       Rs. 550 + 0.01%	Exchanged amount         ST Upto Rs. 1 lac                     0.12% (cap Rs. 30) 1 lac to 10 lac                      120 + 0.06% Exceeding Rs. 10 Lac       Rs. 660 + 0.12%                 [It appear, there is mistake it should be Rs. 660 + 0.012%]	1-4-2012
8.	Composition scheme for lottery agents – Rule 6(7C)	Rs. 6000/- every 10 lacs – where payout is > 80% Rs. 9000/- on every 10 lacs – Where is payout is < 80%	Rs. 7000/- every 10 lacs – where payout is > 80% Rs. 11000/- on every 10 lacs – Where is payout is < 80%	1-4-2012

Discussions to this article

[Sumit Aggarwal]

Regarding S.no. 4 - old provsions. First Proviso to rule 7 of Point of Taxation rules, 2011 is as below:-

"Providedthat in case of services referred to in clause (a), where payment is not received within

the period specified by the Reserve Bank of India, the point of taxation shall be determined, as if

this rule does not exist :"

and as such if export proceeds are not received within prescribed time, then this rule 7 will not apply and point of taxation will be date of export invoice.