[TO
BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (i)]
Government of India
Ministry
of Finance
(Department of Revenue)
Notification No. 36/2012- Service Tax
New Delhi, the 20th June , 2012
G.S.R.
(E)- 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 further to amend the
Service Tax Rules, 1994, namely:—
1. (1)
These rules may be called the Service Tax (Second Amendment) Rules, 2012.
(2)
They shall come into force on the 1st day of July, 2012.
2. In the Service Tax Rules, 1994
(hereinafter referred to as the principal rules), in rule 2,-
(i) after sub-clause (b), the
following three sub-clauses shall be inserted, namely:—
“(bb) “banking company” has the meaning
assigned to it in clause (a) of section 45A of the Reserve Bank of India Act,
1934 (2 of 1934);
(bc) “body corporate” has the
meaning assigned to it in clause (7) of section 2 of the Companies Act, 1956 (1
of 1956);
(bd) “financial institution” has
the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of
India Act, 1934 (2 of 1934);”
(ii) after sub-clause (c), the following sub-clause shall be
inserted, namely:—
“(c1a) “goods carriage” has the meaning assigned to it in
clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);”
(iii) after sub-clause (cb), the
following sub-clause shall be inserted, namely:—
“(cba) “insurance agent” has the
meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938
(4 of 1938);”
(iv) after sub-clause
(cc), the following sub-clauses shall be inserted, namely:—
‘(cca)“legal service”
means any service provided in relation to advice, consultancy or
assistance in any branch of law, in any manner and includes representational
services before any court, tribunal or authority;
(ccb) “life insurance business”
has the meaning assigned to it in clause (11) of section 2 of the Insurance
Act, 1938 (4 of 1938);
(ccc) “non banking financial
company” has the meaning assigned to it in clause (f) of section 45-I of the
Reserve Bank of India Act, 1934 (2 of 1934);’
(v) for
sub-clause (d), the following shall be substituted, namely:-
“(d) “person liable for paying service
tax”, -
(i) in respect of the
taxable services notified under sub-section (2) of section 68 of the Act,
means,-
(A) in relation to
service provided or agreed to be provided
by an insurance agent to any person carrying on the insurance business,
the recipient of the service.
(B) in relation to
service provided or agreed to be provided
by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,—
(I) any factory registered under or governed
by the Factories Act, 1948 (63 of 1948);
(II) any society registered under the
Societies Registration Act, 1860 (21 of
1860) or under any
other law for the time being in force in any part of India;
(III) any co-operative society established by
or under any law;
(IV) any dealer of excisable goods, who is
registered under the Central Excise
Act, 1944 (1 of 1944)
or the rules made thereunder;
(V) any body
corporate established, by or under any law; or
(VI) any partnership firm whether registered or
not under any law including association of persons;
any person who pays or
is liable to pay freight either himself or through his agent for the
transportation of such goods by road in a goods carriage:
Provided that when such person is
located in a non-taxable territory, the provider of such service shall be
liable to pay service tax.
(C) in relation to service provided or agreed to
be provided by way of sponsorship to anybody corporate or partnership firm
located in the taxable territory, the recipient of such service;
(D) in relation to service provided or agreed to be
provided by,-
(I) an arbitral tribunal, or
(II) an individual advocate or a firm of
advocates by way of legal services,
to any business entity located in the taxable
territory, the recipient of such service;
(E) in relation
to support services provided or agreed to be provided by Government or local
authority except,-
(a) renting of immovable property,
and
(b) services specified sub-clauses
(i), (ii) and (iii) of clause (a) of section 66D of the Finance Act,1994,
to any business entity located in the taxable
territory, the recipient of such service;
(F) in
relation to services provided or agreed to be provided by way of :-
(a)
renting of a motor vehicle designed to carry passengers, to any person who is
not engaged in a similar business; or
(b)
supply of manpower for any purpose; or
(c)
service portion in execution of a works contract-
by any individual, Hindu Undivided Family or
partnership firm, whether registered or not, including association of persons,
located in the taxable territory to a
business entity registered as a body corporate, located in the taxable
territory, both the service
provider and the service recipient to the extent notified under sub-section (2)
of section 68 of the Act, for each respectively.
(G) in relation to any taxable service provided or
agreed to be provided by any person which is located in a non-taxable territory
and received by any person located in the taxable territory, the recipient of such service;
(ii) in a case other than sub-clause (i), means the
provider of service.”
(vi) after sub-clause (d), the following
sub-clause shall be inserted, namely:—
‘(dd) “place of
provision” shall be the place as determined by Place of Provision of Services Rules 2012;’
(vii) after
sub-clause (e), the following sub-clauses shall be inserted, namely:—
‘(f) “renting of immovable property”
means any service provided or agreed to be provided by renting of immovable
property or any other service in relation to such renting.
(g) “supply of manpower” means supply
of manpower, temporarily or otherwise, to another person to work under his
superintendence or control.’
3. In the principal rules, in rule 4, in sub-rule (1), for the word and figures
“section 66”, the word, figures and
letter “section 66B”shall be substituted;
4. In the
principal rules, in rule 4A,-
(A) in
sub-rule (1),-
(i) for
the words “provided or to be provided”, the words “provided or agreed to be
provided” shall be substituted;
(ii) for
clause (iii), the following shall be substituted, namely:-
“(iii) description
and value of taxable service provided
or agreed to be provided; and”,
(iii) for the first proviso, the following proviso
shall be substituted, namely:-
“Provided that in case
the provider of taxable service is a banking company or a financial institution
including a non-banking financial company providing service to any person, an
invoice, a bill or, as the case may be, challan shall
include any document, by whatever name called, whether or not serially
numbered, and whether or not containing address of the person receiving taxable
service but containing other information in such documents as required under
this sub-rule :”;
(iv) for the fourth proviso, the following
proviso shall be substituted, namely:-
“Provided also that in case the provider
of taxable service is a banking company or a financial institution including a
non-banking financial company providing service to any person, the period
within which the invoice, bill or challan, as the
case may be, is to be issued, shall be forty-five days:” ;
(v) for the fifth proviso, the following
proviso shall be substituted, namely:-
“Provided that in case the provider of taxable
service is providing the service of transport of passenger, an invoice, a bill
or as the case may be, challan shall include ticket
in any form by whatever name called and whether or not containing registration
number of the provider of service and address of the recipient of service but
containing other information in such documents as required under this
sub-rule”;
(B) in sub-rule (2), for the first proviso,
the following proviso shall be substituted, namely:-
“Provided
that in case the input service distributor is an office of a banking company or
a financial institution including a non-banking financial company providing
service to any person an invoice, a bill or, as the case may be, challan shall include any document, by whatever name
called, whether or not serially numbered but containing other information in
such documents as required under this sub-rule:”;
5. In the principal rules, in rule 5, in
sub-rule (2), in clause (i), for sub-clause (a), the following shall be
substituted, namely:-
“(a)
providing of any service;”
6. In
the principal rules, rule 5B, shall be omitted;
7. In the principal rules, in rule 6,-
(1) in sub-rule (1),-
(i) the third proviso shall be omitted;
(ii)
after the third proviso as so amended, in the fourth proviso, for the words “provided or to be
provided”, the words “provided or agreed to be provided” shall be substituted;
(2) in sub-rule (4B), the word “classification,” shall be
omitted;
(3) for sub-rule (4C), the
following shall be substituted, namely:-
“(4C) Notwithstanding anything contained in
sub-rules (4), (4A) and (4B), where the person liable to pay service tax in respect
of service of renting of immovable property has paid to the credit of Central
Government any amount in excess of the amount required to be paid towards
service tax liability for a month or quarter, as the case may be, on account of
non-availment of deduction of property tax paid in terms of notification No.
29/2012-Service Tax , dated the 20th June, 2012, from the gross
amount charged for renting of the immovable property for the said period at the
time of payment of service tax, the assessee may adjust
such excess amount paid by him against his service tax liability within one
year from the date of payment of such property tax and the details of such
adjustment shall be intimated to the Superintendent of Central Excise having
jurisdiction over the service provider within a period of fifteen days from the
date of such adjustment.”;
(4) in sub-rule (7),-
(a) after the words “to the
services”, the words “of booking of tickets for travel by air” shall be
inserted;
(b) for the word and figures
“section 66”, the word, figures and
letter “section 66B” shall be substituted;
(5) in
sub rule (7A), for the word and figures “section 66”, the word, figures and letter “section 66B” shall be
substituted;
(6) in
sub-rule (7B), for the portion beginning with the brackets, figure, letter and
words, “(7B) The person liable to pay” and ending with the words and
figures “Chapter V of the Act, namely :”, the following shall be
substituted, namely:-
“(7B) The
person liable to pay service tax in relation to purchase or sale of foreign
currency, including money changing, shall have the option to pay an amount
calculated at the following rate towards discharge of his service tax liability
instead of paying service tax at the rate specified in section 66B of
Chapter V of the Act, namely :”
(7) in the sub-rule (7C),-
(i) for the for the portion beginning
with the brackets, figure, letter and words,
“(7C) The distributor” and ending with the
words, figures and letters “section 66 of Chapter V of the said Act:”, the
following shall be substituted, namely:-
“(7C) The distributor or
selling agent, liable to pay service tax for the taxable service of promotion,
marketing, organising or in any other manner assisting in organising lottery,
shall have the option to pay an amount at the rate specified in column (2) of
the Table given below, subject to the conditions specified in the corresponding
entry in column (3) of the said Table, instead of paying service tax at the
rate specified in section
66B of
Chapter V of the said Act :”
(ii) in the third proviso, for the
words “service under the said sub-clause”, the words “such service” shall be
substituted;
8. In the principal rules, after rule 6, the following rule shall
be inserted, namely:—
“RULE
6A. Export of services.- (1) The
provision of any service provided or agreed to be provided shall be treated as
export of service when,-
(a)
the provider of service is located in the taxable territory ,
(b) the recipient of service is located
outside India,
(c)
the service is not a service specified in the section 66D of the Act,
(d) the place of provision of the service is
outside India,
(e)
the payment for such service has been received by the provider of service in
convertible foreign exchange, and
(f)
the provider of service and recipient of
service are not merely establishments of
a distinct person in accordance with
item (b) of Explanation 2 of clause (44) of section 65B of the Act
(2) Where any service is exported, the
Central Government may, by notification, grant rebate of service tax or duty
paid on input services or inputs, as the case may be, used in providing such
service and the rebate shall be allowed subject to such safeguards, conditions
and limitations, as may be specified, by the Central Government, by
notification.”
[F.No.
334 /01/2012- TRU]
(Raj
Kumar Digvijay)
Under
Secretary to the Government of India
Note.- The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 2/94-ST, dated the 28th June, 1994 vide number G.S.R. 546(E), dated the 28th June, 1994 and was last amended by notification No. 3/2012-Service Tax, dated the 17th March, 2012 vide number G.S.R. 201 (E), dated the 17th March, 2012.