[TO
BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (i)]
Government
of India
Ministry
of Finance
Notification
No.19/2008-Service Tax
G.S.R.
(E).- In exercise of the powers conferred by sub-sections (1) and (2) of
section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby
makes the following rules to further amend the Service Tax Rules, 1994, namely
:-
1.
(1) These rules may be called the Service Tax (Second Amendment) Rules, 2008.
(2) Save as otherwise provided in these rules,
they shall come into force on the date of their publication in the Official
Gazette.
2.
In the Service Tax Rules, 1994,-
(i)
in rule 4A, for the words “to a customer” wherever they occur, the words
“to any person” shall be substituted with
effect from the 16th day of May, 2008;
(ii)
in rule 4B, for the words “to the customer”, the words “to the recipient
of service” shall be substituted with
effect from the 16th day of May, 2008;
(iii)
in rule 6,-
(a)
in sub-rule (1), after the third proviso, the following Explanation shall be
inserted, namely:-
“Explanation.-
For the removal of doubts, it is hereby declared that where the transaction of
taxable service is with any associated enterprise, any payment received towards
the value of taxable service, in such case shall include any amount credited or
debited, as the case may be, to any account, whether called ‘Suspense
account’ or by any other name, in the books of account of a person liable to
pay service tax.”;
(b)
after sub-rule (7A), the following sub-rule shall be inserted with
effect from the 16th day of May, 2008, namely:-
“(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).”.
[F.
No. B1/5/2008-TRU]
(G.G.
Pai)
Under
Secretary to the Government of India
Note.-
The principal rules were notified vide notification No.2/94-Service Tax, dated
the 28th June, 1994 and published in the Gazette of India, Extraordinary vide
number G.S.R.546 (E), dated the 28th June, 1994 and were last amended vide
notification No.4/2008-Service Tax, dated the 1st March, 2008 and published vide
number G.S.R. 148(E), dated the 1st March, 2008.