SERVICE TAX TRADE NOTICE NO.12/2003 DATED: 27/05/2003

Sub :- Service Tax - Notifications No. 4, 5 & 6/2003-ST dated 14.05.2003-

Communicated - Reg.

***

Copies of Notifications No. 4/2003, 5/2003 and 6/2003 dated 14.5.2003 are communicated herewith for information and necessary action.

Sd/-

(V.V.HARIHARAN)

COMMISSIONER

As per mailing list (both Dept. & Trade)

May 14, 2003

Notification No. 4/2003 - Service Tax

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 Rule, 1994, except as respect things done or omitted to be done before such amendment, namely :-

1. Short title and commencement.- (1) These rules may be called the Service Tax (Amendment) Rules, 2003.

(2) They shall come into force on the date of their publication in the Official

Gazette.

2. In the Service Tax Rules, 1994, (hereinafter referred to as the said rules),-

(i)	in rule 6, in sub-rule (7),-
	(a)	for the numbers and figures ³0.25%², the number and figures ³ 0.4%² shall be substituted;
	(b)	for the numbers and figures ³ 0.5%², the numbers and figures ³0.8%² shall be substituted;
	(c)	For the words ³five per cent.², the words ³ eight per cent.² shall be substituted;
(ii)	ii) after rule 7, the following rule shall be inserted, namely,-
	"7A. Returns in case of taxable service provided by goods transport operators and clearing and forwarding agents: Not with standing 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 16^th day of November, 1997 to 2nd day of June, 1998; and
	(b)	Clearing and forwarding agents for the period commencing on and from the 16^th day of July, 1997 to 16^th day of October, 1998,
	Shall furnish a return within a period of six months from the 13th day of May, 2003, in Form ŒST-3B¹ along with copy of Form TR-6 in triplicate, failing which the interest and penal Consequences as provided in the Act shall follow .";
(iii)	iii) in Form ST-3A, in the Table, in column heading 3, the figures and number "@5%" shall be omitted;
(iv)	iv) after Form ST-3A, the following Form shall be inserted, namely,-

"FORM ST-3B

(see rule 7A)

Return of service tax credited to the Government of India for the period commencing on and from the 16^th day of July, 1997 to the 16^th day of October, 1998, in case of service provided by goods transport operator and; clearing and forwarding agents

..................Commissionerate

1. Name of the assessee....................

2. Category of service: Goods transport operator service/clearing and forwarding agents service

3. Service tax registration No...................... (optional)

4. PAN no.................... (in case assessee does not have registration No.)

5. Period*....................

6. Value of taxable service ....................

7. Amount of service tax payable....................

8. Amount of interest, if any payable....................

9. Mode of payment:

10. Challan Nos........................
Date of challans......................

* for goods transport operator service, the relevant period is from 16.11.1997 to 2.6.1998; and for clearing and forwarding agents, the relevant period is from 16.7.1997 to 16.10.1998

Self Assessment Memorandum

I/we declare that the above particulars are in accordance with the records and books maintained by us and are correctly stated.

I/we have assessed and paid the service tax correctly in terms of the provisions of the Act and rules made thereunder.

3. I/we have paid duty within the time specified in these rules and in case of delay, I/we have deposited the interest leviable as per section 75 of the Act.

Place:
Date:

Name and signature of the assessee
or his authorized representatives

Acknowledgement:

Date of receipt:.................

Signature and Official Seal of the
Superintendent of Central Excise

Place:
Date:".

V Sivasubramanian
Deputy Secretary to the Government of India

F. No. B 3/6/2003-TRU

Note:- The Principal rules were notified vide notification No. 2/94- Service Tax, dated the 28^th June, 1994 published in the Official Gazette of India, vide

G.S.R.546 (E), dated the 1^st July, 1994 and were last amended vide notification No. 12/2002-Service Tax, dated the 1st August, 2002, vide number GSR 540 (E), dated the 1^st August, 2002.

Notification No. 5/2003 - Service Tax

In exercise of the powers conferred by clause (ee) of 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 Credit Rules, 2002, except as respect things done or omitted to be done before such amendment ,namely :-

1. Short title and commencement.- (1) These rules may be called the Service Tax Credit (Second Amendment) Rules, 2003.

(2) They shall come into force on the date of their publication in the Official

Gazette.

2. In the Service Tax Credit Rules, 2002, (hereinafter referred to as the said rules),-

(i)	i) In rule 2, in clause (b), for the words ³ taxable service², the word ³ service² shall be substituted; (ii) in rule 3,- (A)for sub-rule (1), the following sub-rule shall be substituted, namely,- ³ (1) An output service provider shall be allowed to take credit (hereinafter referred to as service tax credit) of the service tax paid on input service in the following manner, namely:- (a) where the input service falls in the same category of taxable service as that of output service, service tax credit shall be allowed to be taken on such input service for which invoice or bill or challan is issued on or after the sixteenth day of August, 2002; (b) in any other case, service tax credit shall be allowed to be taken on such input service for which invoice or bill or challan is issued on or after the fourteenth day of May, 2003: Provided that the output service provider shall be allowed to take such credit, on or
(ii)











(iii)

after the day on which he makes payment of the value of input service and the service tax paid or payable as indicated in invoice or bill or challan referred to in sub-rule (1) of rule 5.

(B) in sub-rule (2) for the brackets and figures (90) , wherever they occur, the brackets and figures (105) shall be substituted

( C) in sub-rule (3) , for the words such output service which are exempt from whole of the service tax leviable thereon, the words, brackets and figures such output service which is either exempt from whole of the service tax leviable thereon or is not a taxable service, except in the circumstances mentioned in sub-rules (4) (5) shall be substituted;

(d) after sub rule (3) the following sub-rules shall be inserted, namely-

(4) where a service provider avails credit on any input service and renders such output services which are chargeable to service tax as well as exempted services or non taxable services, as the case may be, then the service provider shall maintain separate accounts for receipt and consumption of input service meant for consumption in relation to rendering of output services which are chargeable to service tax and the inputs service meant for consumption in relation to rendering of output services which are exempted services or non-taxable services, as the case may be. The service provider shall take credit only on that portion of input service, which is intended for use in relation to rendering output services, which are chargeable to service tax.

(5) In case the service provider, opts not to maintain separate accounts of input service meant for consumption in relation to rendering of such output services which are chargeable to service tax as well as exempted services or non-taxable services, he shall be allowed to utilize service tax credit for payment of service tax on any output service only to the extent of an amount not exceeding thirty-five percent of the amount service tax payable on such output service.

(6) Service tax credit on the service provided in relation to telephone connection shall be allowed only in respect of such telephone connections which are installed in the premises from where output service is provided.;

(iii) in form, after the heading “ Service Tax” and the table under it, the following shall be inserted, namely:-

CE Output service

(a) Description of output services in relation to rendering of which the input services are consumed:

(b) whether separate account is maintained for receipt and consumption of which the input services meant for consumption in relation to rendering of output services which are taxable or exempted or non-taxable service:

V Sivasubramanian
Deputy Secretary to the Government of India

F. No. B-3/6/2003-TRU

Note:- The Principal rules were notified vide notification No. 14/2002- Service Tax, dated the 1^st August, 2002 published in the Official Gazette of India, vide G.S.R. 542 (E), dated the 1^st August 2002 and were last amended vide notification No. 1/2003-Service Tax, dated the 1^st March, 2003, published vide number GSR 155 (E), dated the 1^st March, 2003.

Notification No.6/2003 – Service Tax

In exercise of the power conferred by section 93 of the finance Act, 1994 (32 of 94) (herein after referred to as the said Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 59/98-ST, dated 16^th October, 1998, namely:-

In the said notifications, in the Explanation for the brackets and figure “(90)” , the brackets and figures “(105)” shall be substituted.

V.Sivasubramanian

Deputy Secretary to the Government of India

F.No.B-3/6/2003-TRU

Note:- The notification No.59/98-Service Tax, dated the 16^th October, 1998 published in the Official Gazette of India, vide G.S.R 624 (E), dated the 16^th Octorber, 1998 and was last amended vide notification No.15/2002-Service Tax, dated the 1^st August, 2002, vide number GSR 543 (E), dated the 1^st August, 2002.