In these rules, unless the context otherwise requires, ­(a) "Act" means the Finance Act, 1994 (32 of 1994)

Indian Service Tax

Service Tax Rules, 1994

[Notification No. 2/94-ST, dated28/6/1994]

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 for the purpose of the assessment and collection of service tax, namely,-

Short title and commencement

1. These rules may be called the Service Tax Rules, 1994.

2. They shall come into force on the 1st day of July, 1994.

Definitions

(1) In these rules, unless the context otherwise requires, ­(a) "Act" means the Finance Act, 1994 (32 of 1994)

¹[(b) "assessment" includes self assessment of service tax by the assessee, reassessment, provisional assessment, best judgment assessment and any order of assessment in which the tax assessed is nil; determination of the interest on the tax assessed or reassessed]

(c) "Form" means a Form appended to these rules;

²[(CC) "Half year" means the period between 1st April to 30th September or 1st October to 31st March of a financial year]

³[( ccc) "input service distributor" has the meaning assigned to it in clause (m) of rule (2) of the CENVAT Credit Rules, 2004]

⁴[(d) "Person liable for paying service tax" means -

(i) in relation to a telephone connection or pager ⁵[or a communication through telegraph or telex or a facsimile communication or a leased circuit] -

(a) the Director General of Posts and Telegraphs, referred to in clause (6) of Section 3 of the Indian Telegraph Act, 1885 (13 of 1885) or

(b) the Chairman-cum-Managing Director, Mahanagar Telephone Nigam Ltd., Delhi, a company registered under the Companies Act, 1956 (1 of 1956) or

(c) any other person who has been granted a licence by the Central Government under the first proviso to sub-section (1) of Section 4 of the Indian Telegraph Act, 1885 (13 of 1885);

(ii) In relation to general insurance business I[x x x]­

• the Chairman of the General Insurance Corporation of India, Mumbai or

• the Chairman-cum-Managing Director of the National Insurance Company Ltd., Calcutta or

• the Chairman-cum-Managing Director of the New India Assurance Company Ltd., Mumbai or

• the Chairman-cum-Managing Director of the Oriental Insurance Company Ltd., Delhi or

• the Chairman-cum-Managing Director of the United India Insurance Company Ltd., Chennai or

• any other person carrying on general insurance business and who has obtained a certificate of registration under Section 3 of the Insurance Act, 1938 (4 of 1938) and

²[(iii) in relation to insurance auxiliary service by an insurance agent, any person carrying on the general insurance business 3[or the life insurance business, as the case may be,] in India]

³[(iv) in relation to any taxable service provided by a person who is a non-resident or is from outside India, does not have any office in India, the person receiving taxable service in India.]

⁴[(e)"quarter"means the period between 1st January to 31st March or 1st April to 30th June or 1st July to 30th September or 1st October to 31st December of a financial year.]

(2) All words and expressions used but not defined in these rules but defined in the Central Excise Act, 1944 (1 of 1944), S[and the Rules made thereunder shall have the meanings assigned to them in that Act and rules.]

Appointment of officers

The Central Board of Excise and Customs may appoint such Central Excise Officers as it thinks fit for exercising the powers under Chapter V of the Act within such local limits as it may assign to them as also specify the taxable service in relation to which any such Central Excise Officer shall exercise his powers.

Registration

(1) Every person liable for paying the service tax shall make an application to the 5[concerned Superintendent of Central Excise]

in Form ST-l for registration within a period of thirty days from the date on which the service tax under Section 66 of the Finance Act, 1994 (32 of 1994) is levied

Provided that where a person commences the business of providing a taxable service after such service has been levied, he shall make an application for registration within a period of thirty days from the date of such commencement:

¹[Provided further that a person liable for paying the service tax in the case of taxable services referred to in sub-section (4) or sub-section (5) of Section 66 of the Finance Act, 1994 (32 of 1994) may make an application for registration on or before the 31st day of December, 1998:]

²[x x x]

(2) Where an assessee is providing a taxable service from more than one premises or offices and has a centralised billing system in respect of such, service rendered to clients from such premises or offices at anyone premises or office, he may opt for registering only the premises or office from where such centralised billing is done.

(3) Where an assessee is providing a taxable service from more than one premises or offices, and does not have any centralised billing system, he shall make separate applications for registration in respect of each such premises or offices to the concerned³[Superintendent of Central Excise].

⁴[(3A) Where an assessee is providing taxable service from more than one premises or office and has a centralised accounting system in respect of such service rendered to clients from each such premises or office at anyone premises or office, the Commissioner of Central Excise may permit such assessee to registering only the premises or office from where such centralised accounting is done, if he is satisfied that such registration shall not be detrimental to the interest of revenue.]

(4) Where an assessee is providing more than one taxable service, he may make a single application, mentioning therein all the taxable services provided by him, to the concerned 5[Superintendent of Central Excise].

(5) The 5[Superintendent of Central Excise] shall after due verification of the application form, grant a certificate of registration in Form ST-2 within

seven days from the date of receipt of the application. If the registration certificate is not granted within the said period, the registration applied for shall be deemed to have been granted.

(6) Where a registered assessee transfers his business to another person, the transferee shall obtain a fresh certificate of registration.

(7) Every registered assessee, who ceases to provide the taxable service for which he is registered, shall surrender his registration certificate immediately.

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:

• the name, address and the registration number of such person; (ii) the name and address of the person receiving taxable service

• description, classification and value of taxable service provided or

• to be provided and

• the service tax payable thereon.

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

• 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)

• the name, address and the registration number of the said input services distributor

• the name and address of the recipient of the credit distributed

• the amount of the credit distributed

Records

(1) The records (including computerised data) as maintained an assessee in accordance with the various laws in force from time to time shall be acceptable.

1. Inserted by Service Tax (2nd Amendment) Rules, 2004, dt. 10/9/2004 (Noti. 11/2004­ ST, dt. 10/9/2004).

(2) Every assessee shall furnish to the l[Superintendent of Central Excise], at the time of filing his 2[X xx] return for the first time, a list of all accounts maintained by the assessee in relation to service tax including memoranda received from his branch offices.

³[6. Payment of service tax: (1) The service tax on the value of taxable services received during any calendar month shall be paid to the credit of the Central Government by the 25th of the month immediately following the said calendar month

Provided further that where the assessee is an individual or proprietary firm or partnership firm, the service tax on the value of taxable services received during any quarter shall be paid to the credit of the Central Government by the 25th of the month immediately following the said quarter

⁴[x x x]

⁵[Explanation:- For the removal of doubt it is hereby clarified that in case the value of taxable service is received before providing the said service, service tax shall be paid on the value of service attributable to the relevant month, or quarter, as the case may be.]

(2) The assessee shall deposit the service tax liable to be paid by him with the bank designated by the Central Board of Excise and Customs for this purpose in Form TR-6 or in any other manner prescribed by the Central Board of Excise and Customs.

⁶[(2A) For the purpose of this rule, if the assessee deposits the service tax by cheque, the date of presentation of cheque to the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque.]

(3) Where an assessee has paid to the credit of Central Government service tax in respect of a taxable service, which is not so provided by him either wholly or partially for any reason, the assessee may adjust the excess service tax so paid by him (calculated on apro ratabasis) against his service tax liability for the subsequent period, if the assessee has refunded the value of taxable service and the service tax thereon to the person from whom it was received.

¹[(4) Where an assessee is, for any reason, unable to correctly estimate, on the date of deposit, the actual amount payable for any particular month or quarter, as the case may be, he may make a request in writing to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, giving reasons for payment of service tax on provisional basis and the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, on receipt of such request, may allow payment of service tax on provisional basis on such value of taxable service as may be specified by him and the provisions of the Central Excise (No.2) Rules, 2001, relating to provisional assessment, except so far as they relate to execution of bond, shall, so far as may be, apply to such assessment.]

(5) Where an assessee under sub-rule (4) requests for a provisional assessment he shall file a statement giving details of the difference between the service tax deposited and the service tax liable to be paid for each month in a memorandum in Form ST-3A accompanying the quarterly or half yearly return, as the case may be.

(6) Where the assessee submits a memorandum in Form ST-3A under sub-rule (5), it shall be lawful for the 2[Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be,] to complete the assessment, wherever he deems it necessary, after calling such further documents or records as he may consider necessary and proper in the circumstances of the case.

Explanation:-For the purposes of this rule and rule 7, "Form TR-6" means a memorandum or challan referred to in rule 92 of the Treasury Rules of the Central Government,

(7) The person liable for paying the service tax in relation to the services provided by an air travel agent, shall have the option, to pay an amount calculated at the rate of 3[0.5%] of the basic fare in the case of domestic bookings, and at the rate of 4[1. 0%] of the basic fare in the case of international bookings, of passage for travel by air, during any calendar month or quarter, as the case may be, towards the discharge of his service tax liability instead of paying service tax 5[at the rate of specified in Section 66 of Chapter V ­ of the Act] per cent of the value of taxable service rendered by him and the option, once exercised, shall apply uniformly in respect of all the bookings of passage for travel by air made by him and shall not be changed during a financial year under any circumstances.

Explanation

For the purposes of this sub-rule, the expression "basic fare" means that part of the air fare on which commission is normally paid to the air travel agent by the airline.

¹[(7 A) 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 remium 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.]

(8) The value of the taxable service in relation to the services provided by a clearing and forwarding agent to a client for rendering services of clearing and forwarding operations in any manner shall be deemed to be the gross amount of remuneration or commission (by whatever name called) paid to such agent by the client engaging such agent. ]

²[(9) The value of taxable service in relation to insurance auxiliary services provided by an insurance agent shall be deemed to be the gross amount of commission, fee or any other sum (by whatever name called) paid to such agent by the insurer appoiriting such agent.]

³[7. Returns (1) Every assessee shall submit a half-yearly return in Form 'ST-3' or 'ST-3A', as the case may be, along with a copy of the Form TR-6, in triplicate for the months covered in the half-yearly return.

(2) Every assessee shall submit the half yearly return by the 25th of the month following the particular half-year.

(3) ⁴[x x x]

(4) ⁴[x x x]

¹[7 A. Returns in case of taxable service provided by goods transport operators and clearing and forwarding agents

Notwithstanding anything contained in rule 7, an assessee, in case of service provided by -

(a) goods transport operator for the period commencing on and from the 16th day of November, 1997 to 2nd day of June, 1998 and

(b) clearing and forwarding agents for the period commencing on and from the 16th day of July, 1997 to 16th day of October, 1998, shall furnish a return within a period of six months from the 13th day of May, 2003, in Form 'ST-3B' alongwith copy of Form TR­6 in triplicate, failing which the interest and penal consequences as provided in the Act shall follow.]

8. Form of Appeals to 2[Commissioner] of Central Excise (Appeals)

(1) An appeal under Section 85 of the Act to the 2[Commissioner] of Central Excise (Appeals) shall be in Form ST-4.

(2) The appeal shall be filed in duplicate and shall be accompanied by a copy of order appealed against.

³[9. Form of appeals to Appellate Tribunal:- (1) An appeal under sub-section (1) of Section 86 of the Act to the Appellate Tribunal shall be made in Form ST-5 in quadruplicate and shall be accompanied by a copy of the Order appealed against (one of which shall be a certified copy).

⁴[(2) An appeal under sub-section (2) of Section 86 of the Act to the Appellate Tribunal shall be made in Form ST-7 in quadruplicate and shall be accompanied by a copy of the order of the Commissioner of Central Excise (one of which shall be a certified copy) and a copy of the order passed by the Central Board of Excise and Customs directing the Commissioner of Central Excise to apply to the Appellate Tribunal.

(2A) An appeal under sub-section (2A) of Section 86 of the Act to the Appellate Tribunal shall be made in Form ST-7 in quadruplicate and shall be accompanied by a copy of the order of the Commissioner of Central Excise (Appeals) (one of which shall be a certified copy) and a copy of the order passed by the Commissioner of Central Excise directing the Assistant Commisioner of Central Excise or as the case may be, the Deputy Commissioner of Central Excise to apply to the Appellate Tribunal and].

(3) A Memorandum of cross-objections under sub-section (4) of Section 86 of the Act, shall be made in Form ST-6 in quadruplicate.]

Form ST-1	[See Page No. 367]
Form ST-2	[See Page No. 368]
Form ST-3	[See Page No. 311]
Form ST-3A	[See Page No. 356]
Form ST-3B	[See Page No. 369]
Form ST-4	[See Page No. 304]
Form ST-5	[See Page No. 305]
Form ST-6	[See Page No. 307]
Form ST-7	[See Page No. 308]