Service Tax – Rules amended
Service Tax Rules have been amended.
As per the existing Rule 5(2) , Every assessee shall furnish to the Superintendent of Central Excise at the time of filing his return for the first time a list of all accounts maintained by the assessee in relation to service tax including memoranda received from his branch offices.
Now this is amended to read as
Every assessee shall furnish to the Superintendent of Central Excise at the time of filing of return for the first time or the 31st day of January, 2008, whichever is later, a list in duplicate, of-
( i ) all the records prepared or maintained by the assessee for accounting of transactions in regard to,-
(a) providing of any service, whether taxable or exempted;
(b) receipt or procurement of input services and payment for such input services;
(c) receipt, purchase, manufacture, storage, sale, or delivery, as the case may be, in regard of inputs and capital goods;
(d) other activities, such as manufacture and sale of goods, if any.
(ii) all other financial records maintained by him in the normal course of business.
Rule 4, which read as “ Every assessee shall make available, at the registered premises, at all reasonable time, such records as mentioned in sub-rule (3), for inspection and examination by the Central Excise Officer authorised in writing by the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, or, by the audit party deputed by the Comptroller and Auditor General of India.”, is now deleted. But don't be happy; it comes back with renewed vigour.
A new Rule 5 A is inserted which reads as,
Rule 5A . Access to a registered premises .
(1) An officer authorised by the Commissioner in this behalf shall have access to any premises registered under these rules for the purpose of carrying out any scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.
(2) Every assessee shall, on demand, make available to the officer authorised under sub-rule (1) or the audit party deputed by the Commissioner or the Comptroller and Auditor General of India, within a reasonable time not exceeding fifteen working days from the day when such demand is made, or such further period as may be allowed by such officer or the audit party, as the case may be,-
(i) the records as mentioned in sub-rule (2) of rule 5;
(ii) trial balance or its equivalent; and
(iii) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 ( 43 of 1961), for the scrutiny of the officer or audit party, as the case may be.
Paying the taxes may not be as difficult as maintaining all these records and producing them for the probing officers and answering all their questions.
Barbers, caterers, washer men and beauticians should now appoint Chartered Accountants and consultants to comply with Service Tax provisions.
And what should be the registered premises for an outdoor caterer and a service provider located in Mumbai rendering a service in J&K for a recipient in Delhi ?
Thank God that they did not stipulate that the cook should provide an AC room and reclining chairs to the officers and CAG Auditors!
For some strange reason, the Babus, before they go on their year-end vacation, have a tendency to spoil the New Year party of their assessees.
Notification No. Dated 28th December, 2007