"assessment" include s 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;

 input service distributor has the meaning assigned to it in clause (m) of rule (2) of the CENVAT Credit Rules,2004.

 "large taxpayer" shall have the meaning assigned to it in the Central Excise Rules, 2002.

(i)

(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)

(ii)

(iii)

[(iv)

(v)

(a)

 any factory registered under or governed by the Factories Act, 1948 (63 of 1948)

            (b)

 any company formed or registered under the Companies Act, 1956 (1 of 1956)

(c)

 any corporation established by or under any law

(d)

 any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India

(e)

 any co-operative society established by or under any law

(f)

 any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder or

(g)

 any body corporate established, or a partnership firm registered, by or under any law,

"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;

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

Every person liable for paying the service tax shall make an application to the concerned Superintendent of Central Excise in Form ST-1 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:

            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:

            Provided also that a person liable for paying the service tax in the case of taxable services referred to in sub-clause (zzp) of clause (105) of section 65 of the Act may make an application for registration on or before the 31st day of March, 2005.

The registration under sub-rule (2), shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralised billing or accounting is done, are located:           

Provided that nothing contained in this sub-rule shall have any effect on the registration granted to the premises or offices having such centralised billing or centralised accounting systems, prior to the 2nd day of November, 2006.

(3A)    Where an assessee is providing a taxable service from more than one premises or offices, and does not have any centralized billing systems or centralized accounting systems, as the case may be, he shall make separate applications for registration in respect of each of such premises or offices to the jurisdictional Superintendent of Central Excise.

(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 Superintendent of Central Excise.

(5)        The Superintendent of Central Excise shall after due verification of the application form, [or an intimation under sub-rule (5A), as the case may be]⁵, grant a certificate of registration in Form ST-2 within seven days from the date of receipt of the application [or the intimation]⁵ If the registration certificate is not granted within the said period, the registration applied for shall be deemed to have been granted.

[(5A)    Where there is a change in any information or details furnished by an assessee in Form ST-1 at the time of obtaining registration or he intends to furnish any additional information or detail, such change or information or details shall be intimated, in writing, by the assessee, to the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, within a period of thirty days of such change;]⁶

(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 [to the Superintendent of Central Excise.^]6

[(8)      On receipt of the certificate under sub-rule (7), the Superintendent of Central Excise shall ensure that the assessee has paid all monies due to the Central Government under the provisions of the Act, and the rules and the notifications issued thereunder, and thereupon cancel the registration certificate.^]6

Every person providing taxable service shall not later than fourteen days from the date of completion of such taxable service or receipt of any payment towards the value of such taxable service, whichever is earlier 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 :-

Provided that in case the provider of taxable service is a banking company or a financial institution including a non banking financial company, or any other body corporate or  [any other person]⁷, providing service [to any person]²² in relation to banking and other financial services, 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.

Provided further that in case the provider of taxable service is a goods transport agency, providing service [to any person]²², in relation to transport of goods by road in a goods carriage, an invoice, a bill or, as the case may be, a challan shall include any document, by whatever name called, which shall contain the details of the consignment note number and date, gross weight of the consignment and also contain other information as required under this sub-rule.

Provided also that where any payment towards the value of taxable service is not received and such taxable service is provided continuously for successive periods of time and the value of such taxable service is determined or payable periodically, an invoice, a bill, or as the case may be, a challan shall be issued by a person providing such taxable service, not later than fourteen days from the last day of the said period.

(i)

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);

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 or any other body corporate or  [any other person] ⁷, providing service [to any person]²², in relation to banking and other financial services, 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.

Rule 4B. Issue of consignment note.-

Any goods transport agency which provides service in relation to transport of goods by road in a goods carriage shall issue a consignment note [ to the recipient of service ]²³:

Provided that where any taxable service in relation to transport of goods by road in a goods carriage is wholly exempted under section 93 of the Act, the goods transport agency shall not be required to issue the consignment note.

Explanation.- For the purposes of this rule and the second proviso to rule 4A, consignment note means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency.

Rule 5. Records

Explanation. - For the purposes of this rule, registered premises includes all premises or offices from where an assessee is providing taxable services.] ⁶

Rule 5A. Access to a registered premises.

(1) An officer authorised by the Commissioner in this behalf shall have access to any premises registered under these rules for the purpose of carrying out any scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.
 
(2) Every assessee shall, on demand, make available to the officer authorised under sub-rule (1) or the audit party deputed by the Commissioner or the Comptroller and Auditor General of India, within a reasonable time not exceeding fifteen working days from the day when such
demand is made, or such further period as may be allowed by such officer or the audit party, as the case may be,-

(i) the records as mentioned in sub-rule (2) of rule 5;
(ii) trial balance or its equivalent; and
(iii) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 ( 43 of 1961), for the scrutiny of the officer or audit party, as the case may be..
 

Rule 6. Payment of service tax

Explanation: For the removal of doubt, it is hereby clarified that in case the value of the 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.

[ Provided that the assessee, who has paid service tax of rupees fifty lakh or above in the preceding financial year or has already paid service tax of rupees fifty lakh in the current financial year, shall deposit the service tax liable to be paid by him electronically, through internet banking.]¹⁰

(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 a pro rata basis) 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.

(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.

[(4A) Notwithstanding anything contained in sub-rule (4), where an assessee 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, the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding month or quarter, as the case may be.

(4B) The adjustment of excess amount paid, under sub-rule (4A), shall be subject to the following conditions, namely:-

(i) excess amount paid is on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification,

(ii) excess amount paid by an assessee registered under sub-rule (2) of rule 4, on account of delayed receipt of details of payments towards taxable services may be adjusted without monetary limit,

(iii) in cases other than specified in clause (ii) above, the excess amount paid may be adjusted with a monetary limit of [ Rupees one lakh rupees ]¹⁹ for a relevant month or quarter, as the case may be, 

(iv) the details and reasons for such adjustment shall be intimated to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such adjustment.]⁵

(4C). Notwithstanding anything contained in sub-rules (4), (4A) and (4B), where the person liable to pay service tax in respect of services provided or to be provided in relation to renting of immovable property, referred to in sub-clause (zzzz) of clause (105) of section 65 of the Act, 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.24/2007-Service Tax, dated the 22^nd May, 2007, 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. 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.

(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 of the 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  [0.6%]¹¹of the basic fare in the case of domestic bookings, and at the rate of  [1.2%]¹¹of 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 at the rate of specified in Section 66 of Chapter V of the Act 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.

 (7A)    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 premium 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.

 [(7B). The person liable to pay service tax in relation to purchase or sale of foreign currency, including money changing, provided by a foreign exchange broker, including an authorised dealer in foreign exchange or an authorized money changer, referred to in sub-clauses (zm) and (zzk) of clause (105) of section 65 of the Act, shall have the option to pay an amount calculated at the rate of 0.25 per cent. of the gross amount of currency exchanged towards 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 the consideration for the service provided or to be provided is shown separately in the invoice, bill or, as the case may be, challan issued by the service provider.

Illustration

Buying rate $US 1 = Rs.38, selling rate $US 1 = Rs.40

 

(i) Person exchanged $100 for equivalent rupees

Transaction value = Rs.3800 (Rs.38 x 100)

Service tax payable =            Rs.9.5 (0.25% x 3800)

 

(ii) Person exchanged equivalent rupees for $100

Transaction value = Rs.4000 (40 x 100)

Service tax payable =            Rs.10 (0.25% x 4000)..  ]²⁵

(8) [x x x]¹³

(9) [x x x]¹³

Rule 7. Returns

(3) [x x x]¹⁴

(4) [x x x]¹⁴

Rule 7A. 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 -

[(7B). Revision of Return.-

An assessee may submit a revised return, in Form ST-3, in triplicate, to correct a mistake or omission, within a period of  [ninety]²⁰ days from the date of submission of the return under rule 7.

Explanation.- Where an assessee submits a revised return, the relevant date for the purpose of recovery of service tax, if any, under section 73 of the Act shall be the date of submission of such revised return]⁵

[(7C). Amount to be paid for delay in furnishing the prescribed return.-

Where the return prescribed under rule 7 is furnished after the date prescribed for submission of such return, the person liable to furnish the said return shall pay to the credit of the Central Government, for the period of delay of-  

(i) fifteen days from the date prescribed for submission of such return, an amount of five hundred rupees;

(ii) beyond fifteen days but not later than thirty days from the date prescribed for submission of such return, an amount of one thousand rupees; and

(iii) beyond thirty days from the date prescribed for submission of such return an amount of one thousand rupees plus one hundred rupees for every day from  the thirty first day till the date of furnishing the said return:

      Provided that the total amount payable in terms of this rule, for delayed submission of return, shall not exceed the amount specified in section 70 of the Act:

     Provided further that where the assessee has paid the amount as prescribed under this rule for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall be deemed to be concluded.

     [ Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.]²¹

Explanation.- It is hereby declared that any pending proceedings under section 77 for delayed submission or non-submission of return that has been initiated before the date on which the Finance Bill, 2007 receives the assent of the President, shall also be deemed to be concluded if the amount specified for delay in furnishing the return is paid by the assessee within sixty days from the date of assent to the said Finance Bill.]¹²

Rule 8. Form of Appeals to Commissioner of Central Excise (Appeals).

(1)        An appeal under Section 85 of the Act to the 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.

Rule 9. Form of appeals to Appellate Tribunal -

Rule 10. Procedure and facilities for large taxpayer.-

Notwithstanding anything contained in these rules, the following shall apply to a large taxpayer,-

Superscripts indicating amendments

¹ Deleted [a telephone connection or pager or a communication through telegraph or telex or a facsimile communication or a leased circuit], Inserted [telecommunication service] vide Notification No.28/2007 dated 22.05.2007 but effective from 01.06.2007,

² Substituted  vide Notification no.17/2006 dated 25.04.2006. [in relation to general insurance business-

  (a) the Chairman of the General Insurance Corporation of India, Mumbai; or

  (b) the Chairman-cum-Managing Director of the National Insurance company Ltd., Kolkatta; or

  (c) the Chairman-cum-Managing Director of the New India Assurance Company Ltd,  Mumbai; or

  (d) the Chairman-cum-Managing Director of the Oriental Insurance Company Ltd., Delhi; or

  (e) the Chairman-cum-Managing Director of the United India Insurance Company Ltd.,  Chennai; or

  (f) 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]

³ Substituted vide Notification No.10/2006 dated 19.04.2006.  [in relation to any taxable service provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India, and such service provider does not have any office in India, the person who receives such service and has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence, in India;]

⁴ Inserted vide Notification No. 07/2005 dated 01.03.2005, w.e.f. 01.04.2005

⁵ Inserted vide Notification No.1/2007 dated  01.03.2007, w.e.f. 01.04.2007

⁶ Inserted vide Notification No. 05/2006 dated 01.03.2006

⁷Inserted vide Notification No.17/2006 dated 25.04.2006. Deleted [commercial concern]

⁸ Deleted the brackets [including computerized data] vide Notification No. 05/2006 dated 01.03.200

⁹  Substituted vide Notification No.39/2007 dated 12.09.2007 [(1)     The service tax shall be paid to the credit of the Central Government by the 5th of the month immediately following the calendar month in which the payments are received, towards the value of taxable services :

Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 5th of the month immediately following the quarter in which the payments are received, towards the value of taxable services :

Provided further that notwithstanding the time of receipt of payment towards the value of services, no service tax shall be payable for the part or whole of the value of services, which is attributable to services provided during the period when such services were not taxable :

Provided also that the service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.]

¹⁰  Inserted vide Notification No. 27/2006 dated 21.09.2006

¹¹ Substituted vide Notification No.17/2006 dated 25.04.2006 [0.5% ] & [1.0%] respectively

¹²  Inserted vide Notification No. 20/2007 dated  12.05.2007

¹³ Omitted vide Notification No.10/2006 dated 19.04.2006 [(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. (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 appointing such agent].

¹⁴ Omitted vide Notification No.5/2001-S.T. dated 09.07.2001

¹⁵ Substituted vide Notification No. 45/2007 -ST, dated 28-12-2007

¹⁶  Omitted vide Notification No. 45/2007 -ST, dated 28-12-2007

¹⁷  Inserted  vide Notification No. 45/2007 -ST, dated 28-12-2007 

¹⁸ Inserted  vide Notification No. 04/2008 -ST, dated 01-03-2008

¹⁹ Substituted vide Notification No. 04/2008 -ST, dated 01-03-2008

²⁰ Substituted vide Notification No. 04/2008 -ST, dated 01-03-2008

²¹ Inserted vide Notification No. 04/2008 -ST, dated 01-03-2008

²² Substituted vide Notification No. 19/2008 -ST, dated 10-05-2008

²³ Substituted vide Notification No. 19/2008 -ST, dated 10-05-2008

²⁴ Inserted vide Notification No. 19/2008 -ST, dated 10-05-2008

²⁵ Inserted vide Notification No. 19/2008 -ST, dated 10-05-2008

(The principal rules were notified vide notification No. 2/94-Service Tax, dated the 28th June,1994)