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Government of India
New Delhi, the 10th May, 2008 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.
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