TaxTMI 
TaxTMI 
19 Mar 2012
Changes in Service Tax Rules, 1994 - Ntf. 3/2012 ST
(w.e.f. 17-3-2012 or w.e.f. 1-4-2012)
(Service Tax Rules, 1994 as amended available on www.taxmanagementindia.com)
|
Sr. No. |
Particulars |
Old Provisions |
New Provisions |
Effective Date |
|
1. |
Meaning of partnership firm (Rule 2 (cd)) |
Not existing |
PF to include LLP |
1-4-2012 |
|
2. |
Issue of invoice, bill or challan – Period of limitation Rule 4A |
14 days |
30 days 45 days in case of banking |
1-4-2012 |
|
3. |
Receipt of excess money over and above the Invoice Value – assessee who has opted POT rules – Rule 4A |
Not existing |
No need to invoice if excess amount received is upto rs. 1000 POT will be original date of Invoice. |
1-4-2012 |
|
4. |
Export of services – due date – Rule 6(1) – Third proviso |
Due Date of payment is date of receipt in case of export, whether or not received within prescribed time limit. |
Due date of payment is, date invoice / bill if payment in foreign exchange is not received within prescribed time as per RBI, provisions of Rule 6(1) not applicable |
1-4-2012 |
|
11. |
Option to pay service tax on Receipt basis instead of accrual basis – Fourth proviso to Rule 6(1) |
individuals or proprietary firms or partnership firms - 8 categories of services No value cap |
Individuals and partnership firms – All services are eligible Value cap – Rs. 50 lacs in the preceding year and upto Rs. 50 lacs during the current year |
1-4-2012 |
|
5. |
Adjustment of excess paid service tax – Rule 6(4B) on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification.] |
Upto Rs. 2 lacs (No limit in case of centralized registration) Details and reasons were required to be intimated to the Superintendent |
Adjustment without any limit to all the assesse. No intimation |
1-4-2012 |
|
6. |
Composition in case of life insurance [Other cases] Rule 6(7A) |
1.5% |
3.0% in first year and 1.5% in subsequent years
|
1-4-2012 |
|
7. |
Composition scheme in case of Money Changing – Rule 6(7B) |
Exchanged amount ST Upto Rs. 1 lac 0.1% (cap Rs. 25) 1 lac to 10 lac 100 + 0.05% Exceeding Rs. 10 Lac Rs. 550 + 0.01%
|
Exchanged amount ST Upto Rs. 1 lac 0.12% (cap Rs. 30) 1 lac to 10 lac 120 + 0.06% Exceeding Rs. 10 Lac Rs. 660 + 0.12% [It appear, there is mistake it should be Rs. 660 + 0.012%] |
1-4-2012 |
|
8. |
Composition scheme for lottery agents – Rule 6(7C) |
Rs. 6000/- every 10 lacs – where payout is > 80% Rs. 9000/- on every 10 lacs – Where is payout is < 80% |
Rs. 7000/- every 10 lacs – where payout is > 80% Rs. 11000/- on every 10 lacs – Where is payout is < 80% |
1-4-2012 |
