AMENDMENTS APPLICABLE FOR NOV 2008 (As per ICAI)
Note – Page No. given in these amendments belong to 8th edition of IDT notes by CA. Ajay Jain.

SERVICE TAX
1.	Rule 5 of STR, 1994 (Pg. 192)
(2)  Every assessee shall furnish to the Superintendent at the time of filing his return for the first time, a list in duplicate, of
(i)	All records prepared or maintained by 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.
(4)	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 AC/DC.

2.	Rule 7C of STR, 1994  – (Pg. 193)
Provided also that where the gross amount of service tax payable is NIL, the CEO may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.

3.	Rule 7B of STR, 1994  – (Pg. 193)
An assessee may submit a revised return in Form ST – 3, in triplicate, to correct a mistake or omission, within a period of ninety days from the date of submission of the return under Rule 7.

4.	Rule 5A of STR, 1994 			            (To be incorporated after Rule 5 of STR at Page 192)
(1) 	An officer authorized by the Commissioner 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 authorized under (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 Rule 5(2);
(ii)	trial balance or its equivalent; and 
(iii)	the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961, for the scrutiny of the officer or audit party, as the case may be.”.

5.	Rule 6 of STR, 1994  – (Pg. 190)
(1A) without prejudice to (1), every person liable to pay service tax, may, on his volition,
→	pay service tax in advance to the credit of Central Government and 
→	adjust the amount so paid in advance against the service tax which he is liable to pay for the subsequent period.
Provided that the assessee shall
(i)	intimate the amount deposited in advance to the Supdtt within 15 days from the date of payment.
(ii)	Indicate the details of advance payment made and adjustment, if any, in the subsequent return to be filed u/s 70.

(4B) Adjustment under (4A) shall be possible only if the following conditions are satisfied.
(iii)	for others the maximum amount that can be adjusted is Rs. 50,000 [1,00,000] for a relevant month or quarter.
6.	Rule 3(1)(ii) of Export of Services Rules, 2005  – (Pg. 199)
(ii)  Services specified under this clause shall be treated to have been exported 
if such services as are performed outside India :
Provided that if such a taxable service is partly performed outside India, it shall be considered to have been performed outside India;

Provided further that where
•	Management, Maintenance or Repair Service, or
•	Technical Testing and Analysis Service, or 
•	Technical Inspection and Certification Service
is provided
•	remotely through internet or an electronic network including a computer network or any or any other means
•	in relation to any Goods or Materials or any Immovable Property, as the case may be, situated outside India at the time of provision of service
then such taxable service, whether or not partly performed outside India, shall be treated as performed outside India.

7.	Rule 3(1)(ii) of Import of Service Rules, 2006 – (Pg. 201)
(ii)	Services specified under this sub-rule, shall be treated to have been imported 
if such services are performed in India.
	Provided that part performance in India of these services shall also tantamount to be import of services.

Provided further that where
•	Management, Maintenance or Repair Service, or
•	Technical Testing and Analysis Service, or 
•	Technical Inspection and Certification Service
is provided
•	remotely through internet or an electronic network including a computer network or any or any other means
•	in relation to any Goods or Materials or any Immovable Property, as the case may be, situated in India at the time of provision of service
then such taxable service, whether or not partly performed outside India, shall be treated as performed in India and leviable to service tax under reverse charge method.

[Comments – Services covered in clause (i) are taken to be exported, if they are provided in relation to immovable property outside India.
With this notification, the above mentioned 3 services are deemed to be covered under clause (i) only, when they are provided through internet or electronic networking.]

8.	Exemption to Small Scale Service Provider – (Pg. 197)
Exemption to small scale service provider raised from 8 lakhs to 10 lakhs. Consequently the limit for registration has also been raised to 9 lakhs from earlier limit of 7 lakhs. 

9.	Exemption to GTA – (Pg. 211)
The service tax payable under GTA service, by the consignor/consignee or service provider, has been exempted to the extent of 75%.
Also the restrictions under NN12/2003 and non availment of credit have been dispensed with.

EXCISE
1.	Rule 11 of CER, 2002 (Pg. 36)
Provided that in case of a 
•	proprietary concern or 
•	a business owned by Hindu Undivided Family, 
the name of the proprietor or Hindu Undivided Family, as the case may be, shall also be mentioned in the invoice.								

2.	Rule 3(5) of CCR, 2004 (Pg. 53)
Provided that if the capital goods
•	on which Cenvat credit has been taken
•	are removed after being used 
the manufacturer or provider of output service shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by 2.5 per cent for each quarter of a year or part thereof from the date of taking the Cenvat Credit.                                         				

[Comments – Students should note that earlier there was regarding removal of capital goods after use, wherein the entire credit had to be reversed.
With the above amendment, all the disputes have been set at rest.
The block appearing on Page 53 regarding removal of capital goods after use shall now be replaced with this sub-rule.]

3.	Rule 2 of CCR, 2004 : Definition of Input Service  – (Pg. 48)
•	Means any service used by manufacturer
•	in or in relation to manufacture of final products, whether directly or indirectly 
•	in or in relation to clearance of final product upto the place of removal, whether directly or indirectly.

[Comments - Earlier there were two views for the availment of credit of tax paid on transportation of goods from the factory to the buyer’s premises.
The Board’s circular also took the view that the credit shall not be allowed.]

4.	Rule 3(5) of CCR, 2004 : Removal by service provider – (Pg. 52)
Provided that such payments shall not be required to be made where any inputs or capital goods are removed outside the premises of provider of output service for providing output service.
•	Provided further such that payments shall not be required to be made 
•	when any capital goods are removed outside the premises of provider of output service 
•	and the capital goods are brought back to the premises within 180 days, or such extended period not exceeding 180 days as may be permitted by AC/DC, of their removal.

[Comments – Earlier the service provider was required to bring back the capital goods removed from his premises within a period of 180 days, otherwise he had to reverse the credit taken on such capital goods.
This condition has now been dispensed with]

5.	Rule 6 of CCR, 2004 (Pg. 61)
(3) Notwithstanding (1) and (2) the manufacturer or a provider of output service, opting not to maintain separate accounts shall follow either of the following conditions, as applicable to him, namely :- 
(i)   the manufacturer shall pay an amount 	  = 	10% of sale price exempted final product.
      the output service provider shall pay amount  	 =	8% of value of exempted service.

(ii)  pay an amount equivalent to CENVAT credit attributable to input and input services used in or in relation to manufacture of exempted good or provision of exempted service subject to conditions and procedures specified in (3A).

Explanation I – If the above option is exercised, it shall remain exercised for all the exempted goods manufactured by him or all the exempted services provided by him and such option shall not be withdrawn during the remaining part of the year.

Explanation II - The credit shall not be allowed on inputs and input services used exclusively for the manufacture of exempted goods or exempted services. 

(3A) (a) While exercising his option, the manufacturer or provider of output service shall intimate in writing to the Supdtt. giving the following details
i)	name, address and registration no. 
ii)	date from which option is exercised or proposed to be exercised.
iii)	description of dutiable goods or taxable services.
iv)	description of exempted goods or exempted services.
v)	Cenvat credit of inputs or input services lying in balance as on the date of exercising the option under this condition.
(b)	the manufacturer or output service provider shall provisionally pay on the basis of preceding financial year, for every month, the amount of Cenvat credit attributable to inputs and input services used in manufacture of Exempted Goods and provision of Exempted services.
(c)	He shall pay an amount equal to the difference between amount finally determined and provisionally paid by the 30th June of the succeeding financial year.
(d)	The manufacturer or the output service provider shall, in addition to the amount short-paid pay interest @ 24% p.a. from the due date till the date of payment.
(e)	If the amount deposited provisionally is more than the final amount, the manufacturer shall take credit of such amount.

6.	Rule 7A of CCR, 2004 – Distribution of Credit  
(To be incorporated after Rule 7 of CCR at Page 65)

•	A provider of output service shall be allowed to take credit 
•	on inputs and capital goods received
•	on the basis of challan, bill or an invoice issued by any other office or premises of the said service provider
•	which receives invoices, issued under rule 11 of CER, 2002

7.	Rule 15A of CCR, 2004 – General Panalty  
(To be incorporated after Rule 15 of CCR at Page 70)
•	Whoever contravenes the provisions of these rules
•	for which no penalty has been provided in the rules,
•	he shall be liable to a penalty which may extend to Rs. 5,000.
 
[Comments – Prior to the insertion of this Rule, there was no penalty for contravention of any provision for which no specific penal provision exist.]

8.	Central Excise (Determination of Retail Sale Price of Excisable Goods) Rules, 2008 
(To be incorporated after Section 4A(4) of CEA at Page 29)

Rule 3
The RSP under Section 4A(4) shall be determined in accordance with these rules.

Rule 4
Determination of RSP
Where the manufacturer removes the goods specified u/s 4A(1)
a)	without declaring RSP on the package or
b)	by declaring the RSP, which is not the RSP under law or
c)	by declaring the RSP but obliterates the same after their removal

the RSP of such goods shall be 
(i)  RSP of identical goods	If manufacturer manufactured and removed identical goods within a period of one month, before and after removal.	
(ii) ascertained by conducting inquiries in the retail market at or about the same time	In any other case	

Provided that if more than one RSP is ascertained by above method, highest of such RSP’s shall be taken.

Explanation – For the purpose of this rule, where RSP is required to be ascertained based on market inquiries, the said inquiries shall be carried out on sample basis.

Rule 5
Alteration of RSP declared
Where the manufacturer alters or tampers the RSP on the package after its removal from the place of manufacture, resulting into
•	increase in RSP        -  such increased RSP shall be taken as the RSP of all goods removed during a period of one before and after the date of removal of such goods.
•	More than one RSP  -  highest of such RSP shall be taken as RSP of all such goods.

Rule 6
RSP not ascertainable 
If RSP cannot be ascertained under these rules, RSP shall be ascertained in accordance with the principles and provisions of Section 4A and the rules aforesaid.

List of 32 services applicable for November 2008 attempt. 
As per the latest announcement by ICAI only the following 32 services are applicable for November 2008 exams.

Intellectual Property Services
1. Franchise services
2. Intellectual property services

Financial services
3. Banking &other financial services
4. Credit rating agency ’s services
5. Stock broking services

Transport of goods services
6. Goods transport agency ’s services
7. Courier services
8. Mailing list compilation and mailing services
9. Transport of goods by air services
10. Clearing and forwarding services
11. Cargo handling services
12. Customs house agent ’s services
13. Storage and warehousing services
14. Transport of goods through pipeline or other conduit
15. Transport of goods in containers by rail by any person, other than government rail way

Professional Services
16. Practising chartered accountant ’s services
17. Management or business consultancy services
18. Consulting engineer ’s services
19. Scientific and technical consultancy services
20. Technical testing and analysis services
21. Market research services
22. Opinion poll services
23. Public relations services

Real estate &infrastructure services
24. Construction services in respect of commercial or industrial buildings or civil structures
25. Construction services in respect of residential complexes
26. Architect ’s services
27. Real estate agent ’s services
28. Site preparation and clearance, excavation, earthmoving and demolition services
29. Interior decorator ’s services

Business services
30. Business auxiliary services
31. Business support services
32. Manpower recruitment or supply agency ’s services