As per Finance Act, 1994 the Government made some rules for the purpose of the assessment and collection of Service Tax. Below there is a brief description of these rules, i.e., from rule 1 to rule 10. Also, there are subsections for some rules. These Service tax rules, 1994 gives you the information about Registration, Issue of Consignment Note, Appointment of officers, Revision of Return, Procedure and facilities for large taxpayer, Amount to be paid for delay in furnishing the prescribed return, Taxable service to be provided or credit to be distributed on invoice, bill or challan, etc.
Service Tax Rules, 1994
Rule 1: Short title and commencement
- The rules created in order to assess and collect service tax in India are called as Service Tax Rules, 1994.
- They came into force on 1st July 1994.
Rule 2: Definitions
This rule includes the definitions of various terms such as “Act”, “assessment”, “Form”, “personal liable for paying service tax”, “quarter”, “renting of immovable property”, “supply of manpower”, etc.
- “Act” means the Finance Act, 1994.
- “Assessment” includes self-assessment of ST by the assessee, provisional assessment, best judgment assessment, reassessment and any order of assessment in which the service tax assessed is nil.
- “Form” means a Form appended to some rules which include Half year, goods carriage, input service distributor, insurance agent, large taxpayer, legal service, life insurance business, nonbanking financial company, partnership firm.
Check the complete description regarding Rule 2 in the file attached below.
Rule 3: Appointment of officers
The appointment of Central Excise Officers may be done by the Central Board of Excise and Customs for exercising the powers under Chapter V of the Act.
Rule 4: Registration
Every person who is liable to pay service tax shall make an application in Form ST-1 for registration to the concerned Superintendent of Central Excise within a period of 30 days from the date on which the service tax is levied under section [66B] of the Finance Act, 1994.
Rule 4A: Taxable service to be provided or credit to be distributed on invoice, bill or challan
Every person providing taxable service shall issue an invoice, a bill, or a challan signed by such person or a person authorized by him. Such invoice, bill or challan shall be serially numbered and shall contain the following,
- The name, address and the registration number of such person providing taxable service.
- The name & address of the person who is receiving taxable service.
- Description and value of taxable service (provided or agreed to be provided).
- The service tax payable thereon.
Rule 4B: Issue of Consignment Note
Any goods transport agency shall issue a consignment note for providing service in relation to transport of goods by road in a goods carriage.
“Consignment Note” means a document, issued against the receipt of goods. It is serially numbered, and contains the name of the consignee and consignor, details of the goods transported, registration number of the goods carriage in which the goods are transported, details of the place of origin and destination, person liable for paying ST (service tax) whether consignee, consignor or the goods transport agency.
Rule 5A: Access to a registered premises
An officer authorized by the Commissioner shall have access to a registered premises in order to carry out any scrutiny, verification, etc. to safeguard the interest of revenue.
Rule 6: Payment of Service Tax
The Payment of Service Tax shall be made to the credit of the Central Government.
- If the duty is deposited electronically through internet banking, the service tax shall be paid by the 6th day of the month.
- In any other case, the service tax shall be paid by the 5th day of the month.
Rule 6A: Export of Services
Export of services means the provision of any service provided or agreed to be provided.
Rule 7: Returns
Every taxpayer shall submit a half yearly return in From ‘ST-3’ or ‘ST-3A,’ along with a copy of the Form TR-6, filled in triplicate (existing in three copies) for the months covered in the half-yearly return.
Rule 7A: Returns in case of taxable service provided by goods transport operators and clearing and forwarding agents:
Services provided by goods transport operators shall furnish a return in Form ‘ST-3B’ along with the copy of Form TR-6 filled in triplicate (existing in three copies) within a period of 6 months from the 13th day of May, 2003.
Rule 7B: Revision of Return
A taxpayer may submit a revised return, to correct a mistake or omission, in Form ST-3 in triplicate, within a period of 90 days from the date of submission of the return.
Rule 7C: Amount to be paid for delay in furnishing the prescribed return
If the return is furnished after the date prescribed for submission of such return, the person needs to pay some amount to the credit of the Central Government.
- An amount of Rs. 500 has to be paid for the delay of 15 days from the date prescribed for submission of such return.
- An amount of Rs. 1000 has to be paid for the delay beyond 15 days but not later than 30 days from the date prescribed for submission of such return.
- If the delay is beyond 30 days from the date prescribed for submission of such return, then an amount of Rs. 1000 plus Rs. 100 for every day from the 31st day till the date of furnishing the said return.
Rule 8: Form of Appeals to Commissioner of Central Excise (Appeals)
- You can appeal to Commissioner of Central Excise under section 85 of the Finance Act, 1994 by using Form ST-4.
Rule 9: Form of Appeals to Appellate Tribunal
- You can appeal to the Appellate Tribunal in the Form ST-5 under section 86 of the Finance Act, 1994.
Rule 10: Procedure & facilities for large taxpayer
- A large taxpayer must submit returns for each of their registered premises.
- A large taxpayer may also be required to produce all financial records for security & verification when required.
For service tax rates and other information please refer, Service Tax Rates