REGD. NO. D. L.-33004/99

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 358]

NEW DELHI, THURSDAY, AUGUST 1, 2002/SRAVANA 10,1924

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION

New Delhi, the 1st August, 2002

No. 8/2002-SERVICE TAX

G.S.R 536{E).—In exercise of the powers conferred by Section 149 of the Finance Act, 2002 (20 of 2002), the Central

Government hereby appoints the 16th day of August, 2002, as the date on which the Finance Act, 1994 (32 of 1994) shall be

amended as provided in the said Section 149 and the service tax shall be levied under Sub-section (6) of Section 66 of the

Finance Act 1994 (32 of 1994)

[F.No.B11/l/2002-TRU]

G. D. LOHANI, Under Secy.

2420 GI/2002

(1)

THE GAZETTEOFINDIA: EXTRAORDINARY

[PARTH—SBC.3(I)]

NOTIFICATION

New Delhi, the 1st August, 2002

No. 9/2001-SERVICE TAX

G.S.R. 537(E).—In exercise of the powers conferred by Section 93 of the Finance Act, 1994 (32 of 1994), the Central

Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided,

by an insurer carrying on life insurance business, to a policy holder in relation to life insurance business from the whole of

the service tax leviable thereon under Section 66 of the said Act.

2 This notification shall come into force on the 16th day of August, 2002

[F.No.Bliyi/2002-TRU]

G. D. LOHANI, Under Secy.

NOTIFICATION

New Delhi, the 1st August, 2002

No. 10/2002-SERVICE TAX

G.S.R. S38(E).—In exercise of the powers conferred by Section 93 of the Finance Act, 1994 (32 of 1994), the Central

Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided

to any person by a cargo handling agency in relation to, Agricultural produce or goods intended to be stored in a cold

storage, from the whole of the service tax leviable thereon under Section 66 of the said Act.

2. This notification shall come into force on the 16th day of August, 2002,

[F.No.Bll/l/2002-TRU]

G. D. LOHANI, Under Secy.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART U—SEC. 3(i)l

NOTIFICATION

New Delhi, the 1st August, 2002

No. 12/2002-SERVICE TAX

G.S.R, 540(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, except as respects things done or

omitted to be done before such amendment, namely :-

(1) These rules may be called the Service Tax Amendment Rules, 2002.

(2) They shall come into force on the 16th day of August, 2002.

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

(1), in clause (d),»

(a) in sub-clause (iii), after the words "general insurance business", the words "or

the life insurance business, as the case may be," shall be inserted;

(b) after sub-clause (iii), the following clause shall be inserted, namely;-

" (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.";

In rule 4 of the said rules, in sub-rule (1), the third proviso shall be omitted;

In rule 6 of the said rules,-

(i) in sub-rule (1), the second proviso shall be omitted;

(ii) after sub-rule (2), the following sub-rule shall be inserted, namely;-

" (2A) For the purpose 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."

In the said rules for Form ST-3, the following Form shall be substituted, namely;-

"FORM ST- 3

(see rule 7 of the Service Tax Ruin 1994)

Return of service tax credited to the Government of India for

the period ....to

Commissionerate

1. Name of the assessee

2. Whether an individual or proprietory firm or partnership firm or any

other (please specify)

^.,

3. Category of services

4. Service tax registration No

Name of

the taxable

service

provided

Month(i)

Value

taxable

service

charged or

billed

(indicate

break-up of

the amount

month-

wise)

Value of

taxable

service

realised

(indicate

break-up of

the amount

month-wise)

Amount

of service

tax

payable

Amount of

service tax

adjusted in

terms of

sub-rule (3)

of rule 6 of

the Service

Tax Rules,

1994*

Amount of

interest, if

any payable

Details of payment made

to the Government credit

Service tax paid

Interest paid

Any other amount

Paid ••

Mode of payment

Cash

(8a)

Amount

Challan No.

and date /

Journal Slip

No. and date

Service tax credit

(8b)

Amount

xxxxxxxx

Total amount

paid

(8a+8b)

* Please specify and enclose documentary evidence

•* Please specify on what account the amount has been paid

SELF-ASSESSMENT MEMORANDUM

1. 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

the Act and rules made thereunder.

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 the section 75 of the Act. (Worksheet of

interest calculation is attached).

Place:

Date:

Name and signature of the assessee or

his authorised representative

THE GAZETTE OF INDIA: EXTRAORDINARY

|PARTn-^SBc,3(i)]

ACKNOWLEDGEMENT

Date of Receipt

Signature and Official

Seal of the Superintendent of Central Excise

Place:

Date:

Note:

(1.) Details in each of the column should be furnished separately for each of the taxable

service rendered by the assessee.

(2.) Service tax credit shall be utilized only for payment of service tax on output service

and not for interest or penalty .

(3.) In case service tax credit on input service is availed, enclose the proforma in terms of

rule 5 (4) of the,Service Tax Credit Rules 2002.".

[F.No.Biyi/2002-TRU]

G.D.LOHANI, Under Secy.

Note:- The Principal rules were notified vide notification no. 2/94- Service Tax dated the 28^th June

1994 and published in the Gazette of India Extraordinary vide G.S.R.546 (E) dated 28^th June 1994

and were last amended vide notification no. 11/2001-Service Tax, dated the 13th November, 2001

and published in the Gazette of India Extraordinary vide G.S.R. 846(E) dated the November,.2001.

NOTIFICATION

New Delhi, the 1st August, 2002

No. 13/2002-SERVICE TAX

G.S.R 54i(E).— in exercise of the powers conferred by section 93 of the Finance Act,

1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public

interest so to do, hereby makes the following amendment in the notification of the

Government of India, in the Ministry of Finance (Department of Revenue), No. 6/99-

Service Tax, dated the 9th April, 1999, except as respects things done or omitted to be

done before such amendment, namely:-

In the said notification, for the words, brackets and figures "taxable service

specified in sub-section (72) of section 65", the words, brackets and figures "taxable

service specified in clause (90) of section 65" shall be substituted.

2. This notification shall come into force on the 16th day of August, 2002.

[F.No.Bll/l/2002-TRU]

G. D. LOHANI, Under Secy.

Note:—

The principal notification No. 6/99- Service Tax, dated the 9th April, 1999 was published

in the Gazette of India, vide G.S.R. 251 (E), dated the 9th April, 1999 and was last

amended by notification 9/2001- Service Tax, dated the 9th July, 2001 [published in the

Gazette of India, vide G.S.R. 533 (E), dated the 9th July, 2001]

Z-ti^o^jJi?-^

NOTIFICATION

New Delhi, the 1st August, 2002

No. 14/2002-SERVICE TAX

G.S.R. 542(E).— 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, namely :-

Short title and commencement.-

(1) These rules may be called the Service Tax

Credit Rules, 2002.

(2) They shall come into force on the 16th day of August, 2002.

2. Definitions.- (1) In these rules, unless the context otherwise requires,-

(a)

"Act" means the Finance Act, 1994 (32 of 1994)

(b)

"output service" means any taxable service rendered by the service provider to a

customer, client, subscriber, policy holder or any other person, as the case may be;

(c)

"input service" means any taxable service received and consumed by a service

provider in relation to rendering of output service;

•

[

—

(

)

Service tax credit.- (1) An output service provider shall be allowed to take credit

(herein referred to as service tax credit) of the service tax paid on such input services,

which fall in the sarAe category of taxable service as that of output service, for which

invoice/bill is issued on or after sixteenth day of August 2002.

(2)

For the purposes of these rules, two services shall be deemed to be falling in the

same category of taxable service, if the input service and output service fall in the same

sub- clause of clause (90) of section 65 of the Act.

Provided that the taxable services defined in sub-clauses (zm) and (zp) of clause 90

of section 65 of the Act shall be deemed to be falling within the same category.

Illustration: (i) A photography studio in course of providing photography services avails

service of processing labs for developing and processing of exposed film and printing of

photographs. In this case service provided, by the colour lab to photography studio and by

the photography studio to a customer, both fall in the same category of service i.e.

photography service. Therefore, photography studio is entitled to take credit of service tax

paid by the processing lab.

(ii) A stevedore hires dock labour from the port trust and provides such

labour to his client. In this case the service provided, by the port trust to stevedore and by

stevedore to client, both fall in the category of port service. Therefore, stevedore is entitled

to take credit of service tax paid by the port trust.

(iii) An advertising agency may avail services of a photography studio

and/or a sound recording studio and/or a video tape production agency during the course of

rendering service to it's client. Service provided by the photography studio or the sound

recording studio or the video tape production agency, as the case may be, does not fall in

the category of advertising agency service. Therefore, advertising agency is not entitled to

take credit of service tax paid by a photography studio or a sound recording studio or a

video tape production agency.

(3)

No service tax credit shall be allowed on input service received and consumed in

relation to rendering of such output service which is exempt from whole of the service tax

leviable thereon.

Utilisation of service tax credit-.- (1) The service tax credit availed on input service

may be utilised for payment of service tax on the output service.

(2)

Refund of service tax credit availed on input service shall not be allowed under any

circumstance.

Documents and accounts.- (1)

The service tax credit shall be availed on the basis

of an invoice ur bill or cha'lan issued by the service provider of input service on or after

16th day of August 20o\ indicating clearly the serial number of document, date of issue,

description and value of the input service, the service tax paid /payable, service tax

registration No. and address of input service provider.

(2) The output service provider availing service tax credit shall take reasonable steps to

ensure that the input services in respect of which he has availed the service tax credit are

the services on which the service tax, as indicated in the documents on the basis of which

credit is availed, has been paid.

Explanation: The output service provider availing service tax credit shall be

deemed to have taken reasonable steps, if he satisfies himself about the identity and

address of the input service provider, issuing the documents on the basis of which the

service tax credit is availed and that the details regarding description and value of input

service received by him has been furnished correctly in the documents.

(3)

The output service provider availing service tax credit shall maintain proper records

in which the relevant information regarding the Sl. No. and date of document on which

service tax credit is availed, service tax registration No. and name of the input service

provider, description and value of input service, service tax credit availed, service tax

credit utilized for payment of service tax on output service shall be recorded. The burden

of proof regarding the admissibility of service tax credit shall lie upon the person taking

such credit.

(4)

The output service provider availing service tax credit shall submit to the

Superintendent of Central Excise, a return in the form annexed to these rules along with

the Form ST-3 as specified in rule 7 of the Service Tax Rules , 1994.

6. Recovery of service tax credit.- Where the service tax credit has been wrongly availed

or utilized or service tax has not been paid by the input service provider for any reason,

whatsoever, such credit along with interest shall be recoverable from the person availing

such service tax credit and the provisions of section 73, 75, 76 and 78 of the Act shall

apply mutatis mutandis for effecting such recoveries.

FORM

(see sub-rule (4) of rule 5)

Return under rule 5 of the Service Tax Credit Rules 2002

(For the period from

)

Input service

No.

Date and no. of document

on which credit is availed

. fc

Details of input service provider

ST regd. No.

Address

Details of input service

Description

Value

Credit taken

Service tax credit

Opening balance

credit taken

credit utilised

closing balance

Place:-

Date >

Name and signature of the assessee or

his authorised representative".

[F. No. B liyi/2OO2-TRU]

G D. LOHANI, Under Secy.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—SEC. 3(Q]

NOTIFICATION

New Delhi, the 1st August, 2002

No. 15/2002-SERVICE TAX

G.S.R 543(E).—In exercise of the powers conferred by section 93 of the Finance Act, 1994

(32 of 1994) (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

amendments in the notification of Government of India in the Ministry of Finance

(Department of revenue) No. 59/98-ST dated 16.10.1998, namely,-

In the said notification, the following Explanation shall be inserted in the end,

namely,-

"Explanation.-Nothing contained in this notification shall apply to the services

provided by a practising chartered accountant, a prastising company secretary or a

practising cost accountant which may fall in any other taxable services as defined in clause

(90) of section 65 of the said Act.

Illustration:-The service provided by a practising chartered accountant, a practising

company secretary or a practising cost accountant in connection with the management of

any organization in any manner or recruitment of manpower in any manner shall be

deemed to be the taxable service provided under the category of management consultant or

manpower recruitment agency, as the case may be. Therefore no exemption under this

notification shall be applicable to such practising chartered accountant, a practising

company secretary or a practising cost accountant, "

[F.No.Bll/l/2002-TRU]

N o t e ^{. _}

G. D. L0HAN1, Under Secy.

Notification No. 59/98- Service Tax, dated the 16h October, 1998 was published in the

Gazette of India, vide G.S.R. 624 (E), dated the 16th October, 1998.

ORDER

New Delhi, the 1st August, 2002

No. 1/2002-SERVICE TAX

G.S.R 544(E).— In exercise of the powers conferred by sub-section (1) of section

95 of the Finance Act, 1994 (32 of 1994), (herein after referred to as the said Act), the

Central Government hereby makes the following Order, namely :-

(1) This order may be called the Service Tax (Removal of Difficulty) Order,

2002.

(2) This Order shall come into force on the 16th day of August, 2002.

, 6

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—SEC 3(I)]

For the purposes of clause (87) of section 65 of the said Act, the expression

"agricultural produce" means any produce resulting from cultivation or plantation, on

which either no further processing is done or such processing is done by the cultivator

like tending, pruning, cutting, harvesting, drying which does not alter its essential

characteristics but make it only marketable and includes all cereals, pulses, fruits, nuts

and vegetables, spices, copra, sugar cane, jaggery, raw vegetable fibres such as cotton,

flax, jute, etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, rice, coffee

and tea but does not include manufactured products such as sugar, edible oils, processed

food, processed tobacco.

[F No B 11/1/2002-TRU]

G D LOHANI, Under Secy

Printed by the Manager, Govt of India Prem, Ring Road, Mayapuri, New Delhi-110064

and Published by the Controller of Publications, Delhi-110034