'Proprietary firm' given miss in third proviso to Rule 6(1) of STR, 1994 - conscious miss?
WE received this mail -
"Kindly take a look at the first and third proviso to rule 6(1) of STR, 1994 concerning payment of Service Tax -
Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 6th day of the month if the duty is deposited electronically through internet banking, or, in any other case, the 5th day of the month, as the case may be, immediately following the quarter in which the service is deemed to be provided as per the rules framed in this regard:
Provided also that in case of individuals and partnership firms whose aggregate value of taxable services provided from one or more premises is fifty lakh rupees or less in the previous financial year, the service provider shall have the option to pay tax on taxable services provided or agreed to be provided by him up to a total of rupees fifty lakhs in the current financial year, by the dates specified in this sub-rule with respect to the month or quarter, as the case may be, in which payment is received.
Whereas the first proviso refers to individual or proprietary firm or partnership firm the third proviso refers only to individuals and partnership firms.
I think this is an inadvertent miss for the reason that legally proprietary firm and the individual is one and the same and there may not be any cause for concern and proprietary firms can avail the benefit of third proviso, but then instead of adopting a long drawn out legal battle, it would have been prudent for the rule makers to mention the word ‘proprietary' too in the third proviso so as to be in sync with the contents of the first proviso."
DDT feels that the Board should respond.