Service Tax (Amendment) Rules, 2015 is notified

[TO BE PUBLISHED IN THE GAZETTE OF INDIA,
EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

 GOVERNMENT OF INDIA MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

 New Delhi, the 1st March, 2015

 NOTIFICATION
No.5/2015-Service Tax,

 G.S.R.(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, namely:-

 

1.                 
(1)These
rules may be called the Service Tax (Amendment) Rules, 2015.

 

(2)  
Save as otherwise provided in these rules, they
shall come into force on the 1st day of
March, 2015.

 

2.  In the Service Tax Rules,
1994,-

 

(a)in rule 2, in sub-rule (1),-

 

(i)after clause(a), the following clause
shall be inserted, namely:-

 

‘(aa) “aggregator” means a person, who owns and
manages a web based software application, and by means of the application and a
communication device, enables a potential customer to connect with persons
providing service of a particular kind under the brand name or trade name of
the aggregator;’;

 

(ii) after clause (bc),the following clause
shall be inserted, namely:-

 

‘(bca) “brand name or trade name”
means, a brand name or a trade name, whether registered or not, that is to say,
a name or a mark, such as an invented word or writing, or a symbol, monogram,
logo, label, signature, which is used for the purpose of indicating, or so as
to indicate a connection, in the course of trade, between a service and some
person using the name or mark with or without any indication of the identity of
that person;’;

 

(iii)  
in
clause (d), in sub-clause (i),-

 

(I)  after item (AA),the
following item shall be inserted, namely:-

 

‘(AAA)in relation to service provided or agreed to be provided
by a person involving an aggregator in any manner, the aggregator of the
service:

 

Provided that if the aggregator
does not have a physical presence in the taxable territory, any person
representing the aggregator for any purpose in the taxable territory shall be
liable for paying service tax;

 

Provided further that if the
aggregatordoes not have a physical presence or does not have a representative
for any purpose in the taxable territory, the aggregator shall appoint a person
in the taxable territory for the purpose of paying service tax and such person
shall be liable for paying service tax.’;

 

 

(II)in item(E), fromsuch date as the Central Government may,
by a notification in the Official Gazette, appoint, the word“support” shall be
omitted;

 

 

 

(III)  after item
(EE), the following items shall be inserted with effect from the 1st day of
April 2015, namely:-

 

“(EEA)in relation to service
provided or agreed to be provided by a mutual fund agent or distributor to a
mutual fund or asset management company, the recipient of the service;

 

(EEB) in relation to service
provided or agreed to be provided by a selling or marketing agent of lottery
tickets to a lottery distributor or selling agent, the recipient of the
service;”;

 

 

(b)  
in
rule 4,-

 

(i)  
sub-rule
(1A) shall be omitted.

 

(ii)  
after
sub-rule (8), the following sub-rule shall be inserted, namely:-

 

“(9) The registration granted
under this rule shall be subject to such conditions, safeguards and procedure
as may be specified by an order issued by the Board.”;

 

(c) after rule 4B, the
following rule shall be inserted, namely:-

 

“4C. Authentication by digital signature-

 

(1)  
Any invoice, bill or challan issued under rule 4A
or consignment note issued under rule 4B may be authenticated by means of a
digital signature.

 

(2)The Board may, by notification,
specify the conditions, safeguards and procedure to be followed by any person
issuing digitally signed invoices.”;

 

 

(d) in rule 5, after sub-rule (3), the following
sub-rules shall be inserted, namely,-

 

“(4)
Records under this rule may be preserved in electronic form and every page of
the record so preserved shall be authenticated by means of a digital signature.

 

(5) The
Board may, by notification, specify the conditions, safeguards and procedure to
be followed by an assessee preserving digitally signed records. Explanation –
For the purposes of rule 4C and sub-rule (4) and (5) of this rule,-

 

(I)The expression “authenticate” shall have the
same meaning as assignedin the
Information Technology Act, 2000 (21 of 2000).

 

(II)The expression “digital signature” shall have
the meaning as defined inthe
Information Technology Act, 2000 (21 of 2000) and the expression “digitally
signed” shall be construed accordingly.”

 

 

(e)in rule 6,

 

(i)sub-rule (6A) shall be omitted, with effect from the date
on which the Finance Bill, 2015, receives the assent of the President;

 

(ii)  
from such dates as the Central Government may, by
a notification in the Official Gazette, appoint,-

 

(a)in sub-rule (7),for the
figures“0.6%” and “1.2 %”,the figures and words“0.7 per cent.”and “1.4 per
cent.” shall respectively be substituted;

 

(b)in sub-rule (7A),in clause(ii),
for the figures and words“3 per cent.” and “1.5 per cent.”, the figures and
words“3.5 per cent.” and “1.75 per cent.” shall respectively be substituted;”;

 

(c)in sub-rule (7B),-

 

(i) in item (a), for the figures
and words“0.12 per cent”and “rupees 30”,the figures and words“0.14 per cent”
and “rupees 35” shall respectively be substituted;

 

(ii)in item (b), for the figures
and words“120 and 0.06 per cent”,the figures and words “140 and 0.07 per
cent.”shall be substituted;

 

(iii)   
in item (c), for the figures and words “660 and
0.012 per cent” and “rupees 6,000”, the figures and words“770 and 0.014 per
cent” and “rupees 7,000” shall respectively be substituted;

(d)in sub-rule (7C),-

 

(A)in the Table, in column (2),-

 

(i)againstSl. No. 1, for the figures “7000”, the figures
“8200” shall be substituted;

 

(ii)  
against Sl. No. 2, for the figures “11000”, the
figures “12800” shall be substituted;

 

(B)  in the
Explanation, item (i) shall be omitted, with effect from the date on which the
Finance Bill, 2015, receives the assent of the President. 

 

[F.No. 334 /5/2015- TRU] 

 

(Akshay Joshi) Under Secretary to the Government
of India

 

Note:-The
principal notification was published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i) by notification No. 2/94-Service
Tax, dated the 28thJune, 1994 VIDEnumber
G.S.R. 546 (E), dated the 28thJune, 1994
and last amended VIDE notification No.23/2014-Service
Tax, dated the 5th December, 2014 VIDE number
G.S.R. 872(E)., dated the 5th December,
2014.

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