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TMI BlogAmendment to CENVAT Credit RulesX X X X Extracts X X X X X X X X Extracts X X X X ..... (2) They shall come into force on the 1st day of July, 2012. 2. In the CENVAT Credit Rules, 2004 (hereinafter referred to as the said rules), in rule 2, -- (a) in clause (a), - (i) in sub-clause (A), in item(viii), after the words, "their chassis" the words "but including dumpers and tippers" shall be inserted; (ii) for sub-clause (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 serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e", 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; (iii) for sub-clause (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) 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 one or more of the specified servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s "by" shall be substituted; (b) 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" (c) in the proviso to sub-rule (5B), for the words "taxable services" the words "output services" shall be substituted; 4. In rule 5,- (i) 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; (ii) 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 le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "engaged in providing services by way of extending deposits, loans or advances" shall be substituted; (v) in sub-rule 3(D), 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 sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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." 7. In the said rules, in rule 7,- (i) for clause (d), the following clause shall be substituted, namely:- "(d) 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) after Explanation 2, the following Explanation shall be inserted, namely:- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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