FINANCE ACT, 1994
(1) This Act May Be Called The Finance Act, 1994.
(2) Save as otherwise provided in this Act, sections 2 to 59 (except section 26) shall be deemed to have come into force on the 1st day of April, 1994.
(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1994, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as "the Income-tax Act"), shall be increased, -
(a) in the cases to which Paragraphs, A, B, C and D of that Part apply, by a surcharge for purposes of the Union; and
(b) in the cases to which Paragraph E of that Part applies, by a surcharge,
calculated in each case in the manner provided therein.
(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Sch
In section 2 of the Income-tax Act, -
(a) in clause (19A), after the words "Deputy Commissioner of Income-tax", the words "or an Additional Commissioner of Income-tax" shall be inserted with effect from the 1st day of June, 1994;
(b) in clause (19B), after the words and brackets "Deputy Commissioner of Income-tax (Appeals)", the words and brackets "or an Additional Commissioner of Income-tax (Appeals)" shall be inserted with effect from the 1st day of June, 1994;
(c) after clause (19B), the following clause shall be inserted with effect from the 1st day of June, 1994, namely :-
'(19C) "Deputy Director" means a person appointed to be a Deputy Director of Income-tax or an Additional Director of Income-tax under sub-section (1) of section 117;';
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After section 5 of the Income-tax Act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1963, namely :-
'5A. Apportionment of income between spouses governed by Portuguese Civil Code. - (1) Where the husband and wife are governed by the system of community of property (known under the Portuguese Civil Code of 1860 as "COMMUNIAO DOS BENS") in force in the State of Goa and in the Union territories of Dadra and Nagar Haveli and Daman and Diu, the income of the husband and of the wife under any head of income shall not be assessed as that of such community of property (whether treated as an association of persons or a body of individuals), but such income of the husband and of the wife under each head of income (other than under the head "Salaries") shall be apportioned equally between the husband and the wife and
In section 6 of the Income-tax Act, in clause (1), in sub-clause (c), in the Explanation, in clause (b), for the words "one hundred and fifty days", the words "one hundred and eighty-two days" shall be substituted with effect from the 1st day of April, 1995.
In section 10 of the Income-tax Act, -
(1) in clause (10C), with effect from the 1st day of April, 1995, -
(a) in sub-clause (iv), for the word "authority,", the words "authority; or" shall be substituted;
(b) after sub-clause (iv), the following sub-clauses shall be inserted, namely :-
"(v) a co-operative society; or
(vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or
(vii) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59
In section 10B of the Income-tax Act, -
(a) in sub-section (2), after clause (i), the following clause shall be inserted, with effect from the 1st day of April, 1995, namely :-
"(ia) in relation to an undertaking which begins to manufacture or produce any article or thing on or after the 1st day of April, 1994, its exports of such articles and things are not less than seventy-five per cent. of the total sales thereof during the previous year;";
(b) in the Explanation occurring at the end, after clause (iii), the following clause shall be inserted, namely :-
'(iv) "produce", in relation to any article or thing referred to in clause (i) of sub-section (2) includes production of computer programmes.'.
In section 12A of the Income-tax Act, in clause (b), for the words "twenty-five thousand", the words "fifty thousand" shall be substituted with effect from the 1st day of April, 1995.
In section 13 of the Income-tax Act, in sub-section (3) in clause (b), for the words "twenty-five thousand", the words "fifty thousand" shall be substituted with effect from the 1st day of April, 1995.
In section 17 of the Income-tax Act, in clause (2), in the proviso, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted, with effect from the 1st day of April, 1993, namely :-
"(ii) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family -
(a) in any hospital maintained by the Government or any local authority or any other hospital approved by the Government for the purposes of medical treatment of its employees;
(b) in respect of the prescribed diseases or ailments, in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines :
Provided that, in a case falling in
In section 24 of the Income-tax Act, in sub-section (2), in the proviso, for the words "five thousand rupees", the words "ten thousand rupees" shall be substituted with effect from the 1st day of April, 1995.
In section 33AB of the Income-tax Act, with effect from the 1st day of April, 1995, -
(1) in sub-section (1),-
(i) for the portion beginning with the words "whichever is earlier, deposited with the National Bank" and ending with the words "the assessee shall, subject to the provisions of this section,", the following shall be substituted, namely :-
"whichever is earlier, -
(a) deposited with the National Bank any amount or amounts in an account (hereafter in this section referred to as the special account) maintained by the assessee with that Bank in accordance with, and for the purposes specified in, a scheme (hereafter in this section referred to as the scheme) approved in this behalf by the Tea Board; or
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In section 35 of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 1995, -
(a) in the opening portion, after the words "a National Laboratory", the words "or a University or an Indian Institute of Technology" shall be inserted;
(b) in the first proviso, after the words "every National Laboratory", the words "or University or Indian Institute of Technology" shall be inserted;
(c) in the second proviso, -
(i) after the words "the National Laboratory", the words "or the University or the Indian Institute of Technology" shall be inserted;
(ii) after the words "such Laboratory", the words "or University or Institute, as the case may be" shall be inserted;
In section 36 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1995, -
(a) in clause (viia), in sub-clause (a), -
(i) the words, brackets, figures and letter "a bank approved by the Central Government for the purposes of clause (viiia) or" shall be omitted;
(ii) for the words "four per cent.", the words "ten per cent." shall be substituted;
(b) clause (viiia) shall be omitted.
In section 37 of the Income-tax Act, in sub-section (2), for the words, figures and letters "any previous year commencing on the 1st day of April, 1992", the words, figures and letters "any previous year commencing on or after the 1st day of April, 1992" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1993.
In the Income-tax Act, before section 44B, the following sections shall be inserted, namely :-
'44AD. Special provision for computing profits and gains of business of civil construction, etc. -
(1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an assessee engaged in the business of civil construction or supply of labour for civil construction, a sum equal to eight per cent. of the gross receipts paid or payable to the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum as declared by the assessee in his return of income, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" :
Provided that nothing con
In section 44D of the Income-tax Act, clauses (c) and (d) shall be omitted with effect from the 1st day of April, 1995.
In section 55 of the Income-tax Act, in sub-section (2), for clause (a), the following clauses shall be substituted, with effect from the 1st day of April, 1995, namely :-
"(a) in relation to a capital asset, being goodwill of a business, tenancy rights, stage carriage permits or loom hours,-
(i) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and
(ii) in any other case [not being a case falling under sub-clauses (i) to (iv) of sub-section (1) of section 49], shall be taken to be nil;
(aa) in a case where, by virtue of holding a capital asset, being a share or any other security within the meaning of clause (h) of section 2 of the Securities Contracts (Regulation) Ac
In section 57 of the Income-tax Act, the proviso shall be omitted with effect from the 1st day of April, 1995.
In section 64 of the Income-tax Act, in sub-section (1A), in the opening portion, after the words "arises or accrues to his minor child", the words, figures and letter ", not being a minor child suffering from any disability of the nature specified in section 80U" shall be inserted with effect from the 1st day of April, 1995.
In section 71 of the Income-tax Act, for sub-section (4), the following sub-section shall be substituted with effect from the 1st day of April, 1995, namely :-
'(4) Where the net result of the computation under the head "Income from house property" is a loss, in respect of the assessment years commencing on the 1st day of April, 1995, and the 1st day of April, 1996, such loss shall be first set off under sub-sections (1) and (2) and thereafter the loss referred to in section 71A shall be set off in the relevant assessment year in accordance with the provisions of that section.'
For section 71A of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 1995, namely :-
'71A. Transitional provisions for set off of loss under the head "Income from house property". -
Where in respect of the assessment year commencing on the 1st day of April, 1993, or the 1st day of April, 1994, the net result of the computation under the head "Income from house property" is a loss, such loss insofar as it relates to interest on borrowed capital referred to in clause (vi) of sub-section (1) of section 24 and to the extent it has not been set off shall be carried forward and set off in the assessment year commencing on the 1st day of April, 1995, and the balance, if any, in the assessment year commencing on the 1st day of April, 1996, against the income under any head.'.
After section 80DD of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1995, namely :-
'80E. Deduction in respect of repayment of loan taken for higher education. -
(1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education, or interest on such loan :
Provided that the amount which may be so deducted shall not exceed twenty-five thousand rupees.
(2) The deduct
In section 80G of the Income-tax Act, -
(a) in sub-section (1), in clause (i), after the words, brackets, figures and letter "on in sub-clause (iiif)", the words, brackets, figures and letter "or in sub-clause (iiig)" shall be inserted;
(b) in sub-section (2), in clause (a), after sub-clause (iiif), the following sub-clause shall be inserted, namely :-
"(iiig) the Maharashtra Chief Minister's Relief Fund during the period beginning on the 1st day of October, 1993, and ending on the 6th day of October, 1993, or to the Chief Minister's Earthquake Relief Fund, Maharashtra; or";
(c) sub-section (3) shall be omitted;
(d) in sub-section (5), -
(i) the word "and", occ
In section 80HHD Income-tax Act, with effect from the 1st day of April, 1995, -
(a) in sub-section (2), in the Explanation, for the words "from a tour operator or, as the case may be, a travel agent", the words "from another hotelier, tour operator or travel agent, as the case may be," shall be substituted;
(b) in sub-section (3), after the word, brackets and figure "sub-section (2)", the brackets, words, figure and letter "[as reduced by any payment, referred to in sub-section (2A), made by the assessee]" shall be inserted;
(c) in sub-section (6), -
(i) the words "aggregate of the" shall be omitted;
(ii) after the words "foreign tourists", the words, brackets, figure and letter, "payments made by him to
In section 80HHE of the Income-tax Act, in sub-section (1), in the proviso, for the figures "1995", the figures "1996" shall be substituted.
In section 80-IA of the Income-tax Act, -
(a) in sub-section (2),-
(i) in clause (iii), in the proviso, after the words "a small scale industrial undertaking", the words, brackets, letters and figures "or an industrial undertaking referred to in sub-clause (b) of clause (iv) which begins to manufacture or produce an article or thing during the period beginning on the 1st day of April, 1993, and ending on the 31st day of March, 1998" shall be inserted;
(ii) in clause (iv), with effect from the 1st day of April, 1995, -
(1) in sub-clause (a), after the word, brackets and letter "sub-clause (b)", the words, brackets and letter "or sub-clause (c)" shall be inserted;
(2) after sub-clause (b), the following sub
80V of the Income-tax Act shall be omitted with effect from the 1st day of April, 1995
In section 88 of the Income-tax Act, the following amendments [except amendment by sub-clause (iii) of clause (1)] shall be made and shall be deemed to have been made with effect from the 1st day of April, 1991, namely :-
(1) in sub-section (2),-
(i) in clause (xii), for the words "by any person", the words "in the name of any person" shall be substituted;
(ii) in clause (xiii), for the words "by any individual", the words, brackets and figure "in the name of any person specified in sub-section (4)" shall be substituted;
(iii) in clause (xiiic), after the word and figures "section 10", the words and figures "or by the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963)" shall be inserted with effect from the 1st day
In section 88B of the Income-tax Act, with effect from the 1st day of April, 1995, -
(a) for the words "seventy-five thousand rupees", the words "one hundred thousand rupees" shall be substituted;
(b) for the words "twenty per cent.", the words "forty per cent." shall be substituted.
In section 112 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1995, -
(i) in clause (a), after the words "Hindu undivided family,", the words "being a resident," shall be inserted;
(ii) in clause (b), -
(a) for the word "company", the words "domestic company" shall be substituted;
(b) for the words "forty per cent.", wherever they occur, the words "thirty per cent." shall be substituted;
(iii) after clause (b), the following clause shall be inserted, namely :-
"(c) in the case of a non-resident (not being a company) or a foreign company, -
(i) the amount of income-tax payable on the
In section 115A of the Income-tax Act, with effect from the 1st day of April, 1995, -
(i) for sub-section (1), the following sub-section shall be substituted, namely :-
'(1) Where the total income of -
(a) a non-resident (not being a company) or of a foreign company, includes any income by way of -
(i) dividends; or
(ii) interest received from Government or an Indian concern on monies borrowed or debt incurred by Government or the Indian concern in foreign currency; or
(iii) income received in respect of units, purchased in foreign currency, of a Mutual Fund specified under clause (23D) of section 10 or of the Unit Trust of India,
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In section 115K of the Income-tax Act, with effect from the 1st day of April, 1995, -
(i) in sub-section (1), for the portion beginning with the words "to whom this section applies, carrying on -", and ending with the words "from such business or vacation", the following shall be substituted, namely :-
"to whom this section applies and who is -
(a) carrying on the business of retail trade in any goods or merchandise; or
(b) carrying on the business of running an eating place or of operating, hiring or leasing a motor cab, a maxicab or a three-wheeled motor vehicle or any other business as may be prescribed; or
(c) engaged in any vocation,
and submits a statemen
In section 115N of the Income-tax Act, the words "in respect of his income from the business of retail trade or from the business of running an eating place or from the business of operating, hiring or leasing a goods carriage, a motor cab, a maxicab or a three-wheeled motor vehicle or from any vocation" shall be omitted with effect from the 1st day of April, 1995.
In section 116 of the Income-tax Act, after clause (c), the following clause shall be inserted with effect from the 1st day of June, 1994, namely :-
"(cc) Additional Directors of Income-tax or Additional Commissioners of Income-tax or Additional Commissioners of Income-tax (Appeals),".
In section 139 of the Income-tax Act, in the sub-section (1), in the Explanation, in clause (a), for the figures, letters and words "31st day of December", the figures, letters and words "30th day of November" shall be substituted.
In section 143 of the Income-tax Act, in the Explanation, for the word and figures "section 264", the words and figures "sections 246 and 264" shall be substituted with effect from the 1st day of June, 1994.
In section 154 of the Income-tax Act, in sub-section (2), the proviso shall be omitted with effect from the 1st day of June, 1994.
In section 194C of the Income-tax Act, the Explanation occurring below sub-section (2) shall be renumbered as Explanation II, and before Explanation II as so renumbered, the following Explanation shall be inserted, with effect from the 1st day, of June, 1994, namely :-
'Explanation I : For the purposes of sub-section (2), the expression "contractor" shall also include a contractor who is carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and the Government of a foreign State or a foreign enterprise or any association or body established outside India.'.
After section 194H of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 1994, namely :-
'194-I. Rent. - Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any person any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of twenty per cent. :
Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not
In section 196A of the Income-tax Act, in sub-section (2), for the words "twenty-five per cent.", the words "twenty per cent." shall be substituted with effect from the 1st day of June, 1994.
In section 197 of the Income-tax Act, in sub-section (1), after the figures and letter "194D", the figures and letter ", 194-I" shall be inserted with effect from the 1st day of June, 1994.
In sections 198, 199, 200, 202, 203, 203A, 204 and 205 of the Income-tax Act, after the words, figures and letter "section 194H," the word, figures and letter "section 194-I," shall be inserted with effect from the 1st day of June, 1994.
In section 211 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, with effect from the 1st day of April, 1994, namely :-
"(1) Advance tax on the current income calculated in the manner laid down in section 209 shall be payable by -
(a) all the companies, who are liable to pay the same, in four installments during each financial year and the due date of each installment and the amount of such installment shall be as specified in Table I below :
TABLE I
Due date of installment Amount payable
On or before the 15th June Not less than fifteen percent. of such advance tax.
On or before the 15th September Not less than forty-fi
In section 234C of the Income-tax Act, in sub-section (1), for the portion beginning with the words "Where in any financial year" and ending with the words "as the case may be, sixty per cent. of the tax due on the returned income :", the following shall be substituted, with effect from the 1st day of April, 1995, namely :-
"Where in any financial year, -
(a) the company which is liable to pay advance tax under section 208 has failed to pay such tax or -
(i) the advance tax paid by the company on its current income on or before 15th day of June is less than fifteen per cent. of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty-five per cent. of the tax due on the returned income or the amount of such advance tax
In section 246 of the Income-tax Act, with effect from the 1st day of June, 1994, -
(a) in sub-section (1), in clause (a), after the words "under this Act", the words, brackets, figures and letter ", or an intimation under sub-section (1) or sub-section (1B) of section 143, where the assessee objects to the making of adjustment," shall be inserted;
(b) in sub-section (2), in clause (a), for the words, brackets and figure "an order specified in sub-section (1) where such order", the words, brackets and figure "an intimation or order specified in sub-section (1) where such intimation is sent or such order" shall be substituted.
In section 269 of the income-tax Act, with effect from the 1st day of April, 1995, -
(a) clause (iii) shall be omitted;
(b) in clause (vi), the word "Goa", shall be omitted.
In section 273A of the Income-tax Act, after sub-section (6), the following sub-section shall be inserted, with effect from the 1st day of June, 1994, namely :-
"(7) Notwithstanding anything contained in sub-section (6), the provisions of sub-section (1), sub-section (2) or, as the case may be, sub-section (4) [as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1989 (3 of 1989)], shall apply in the case of reduction or waiver of penalty or interest in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, with the modifications that the power under the said sub-section (1) shall be exercisable only by the Commissioner and instead of the previous approval of the Board, the Commissioner shall obtain the previous approval of the Chief Commissioner or Director General, as the cas
In section 296 of the Income-tax Act, after the words "every rule made under this Act", the words, brackets, figures and letters ", the rules of procedure framed by the Settlement Commission under sub-section (7) of section 245F, the Authority for Advance Rulings under section 245V and the Appellate Tribunal under sub-section (5) of section 255" shall be inserted with effect from the 1st day of June, 1994.
The following amendments (being consequential in nature) shall be made in the Income-tax Act, -
(a) in section 44AB, in the Explanation, in clause (ii), in sub-clause (a), for the figures, letters and words "31st day of December", the figures, letters and words "30th day of November" shall be substituted;
(b) in section 80CC, in sub-section (1), -
(i) in clause (b), the word "or", occurring at the end, shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1978;
(ii) clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1978;
(c) in section 80CCA, in sub-section (1), -
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In section 2 of the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to as the Wealth-tax Act), -
(i) in clause (ea), in the Explanation, in clause (b), for the words "period of three years", the words "period of five years" shall be substituted with effect from the 1st day of April, 1995;
(ii) in clause (s), after the word '"Director",', the words and brackets '"Additional Director of Income-tax", "Additional Commissioner of Income-tax", "Additional Commissioner of Income-tax (Appeals)", "Deputy Director",' shall be inserted with effect from the 1st day of June, 1994.
In section 4 of the Wealth-tax Act, in sub-section (1), in clause (a), in sub-clause (ii), after the words "not being", the words, figures and letter "a minor child suffering from any disability of the nature specified in section 80U of the Income-tax Act or" shall be inserted with effect from the 1st day of April, 1995.
In section 46 of the Wealth-tax Act, in sub-section (4), after the words "every rule made under this Act", the words, brackets, figures and letter "and the rules of procedure framed by the Settlement Commission under sub-section (7) of section 22F" shall be inserted with effect from the 1st day of June, 1994.
In section 2 of the Gift-tax Act, 1958 (18 of 1958) (hereinafter referred to as the Gift-tax Act), in clause (xxv), after the word '"Director",', the words and brackets '"Additional Director of Income-tax", "Additional Commissioner of Income-tax", "Additional Commissioner of Income-tax (Appeals)", "Deputy Director",' shall be inserted with effect from the 1st day of June, 1994.
In section 5 of the Gift-tax Act, in sub-section (i), in clause (vii), for the words "thirty thousand", the words "one hundred thousand" shall be substituted with effect from the 1st day of April, 1995.
Interest-Tax
In section 3 of the Interest-tax Act, 1974, in sub-section (3), with effect from the 1st day June, 1994, -
(i) after the words "Income-tax Officer", the words "or Assistant Commissioner" shall be inserted;
(ii) for the words "Director of Inspection", the word "Director" shall be substituted;
(iii) for the words "Inspecting Assistant Commissioner", the words "Additional Commissioner of Income-tax or the Deputy Commissioner" shall be substituted.
In the Expenditure-tax Act, 1987 (35 of 1987) (hereinafter referred to as the Expenditure-tax Act), in section 4, in clause (a), for the words "twenty per cent.", the words "ten per cent." shall be substituted with effect from the 1st day of June, 1994.
In the Expenditure-tax Act, in section 6, with effect from the 1st day of June, 1994, -
(i) in sub-section (1), for the words "Deputy Director", the words "Additional Director of Income-tax, Additional Commissioner of Income-tax Act, Deputy Director" shall be substituted;
(ii) in sub-section (3), for the words "Deputy Commissioner", the words "Additional Commissioner of Income-tax or Deputy Commissioner" shall be substituted.
In section 17 of the Expenditure-tax Act, in the proviso, for the words "Deputy Commissioner", the words "Additional Commissioner or, as the case may be, of the Deputy Commissioner" shall be substituted with effect from the 1st day of June, 1994.
In the Customs Act, 1962 (hereinafter referred to as the Customs Act),-
(1) for section 20, the following section shall be substituted, namely:-
'20.Re-importation of goods.- If goods are imported into India after exportation therefrom, such goods shall be liable to duty and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof;
Provided that if such importation (other than importation of goods exported in bond or of goods produced or manufactured in a free trade zone) takes place within three years after the exportation of such goods and it is shown to the satisfaction of the Assistant Collector of Customs that the goods are the same which were exported, the goods may be admitted-
&
The Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act) shall be amended in the manner specified in the Second Schedule.
The Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act),-
(a) shall be amended in the manner specified in the Third Schedule; and
(b) shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, be also amended in the manner specified in the Fourth Schedule.
In the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as the Additional Duties of Excise Act),-
(a) in section 3, for sub-section (3), the following sub-section shall be substituted, namely:-
"(3) The provisions of the Central Excise and Salt Act, 1944 (1 of 1944) and the rules made thereunder, including those relating to refunds, exemptions from duty, offences and penalties, shall, so far as may be, apply in relation to levy and collection of the additional duties as they apply in relation to the levy and collection of the duties of excise on the goods specified in sub-section (1).";
(b) the First Schedule shall be amended in the manner specified in the Fifth Schedule.
(1) This Chapter extends to the whole of India except the State of Jammu and Kashmir.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
(3) It shall apply to taxable services provided on or after the commencement of this Chapter.
In this Chapter, unless the context other wise requires,--
(1) "actuary" has the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938 (4 of 1938);
(2) "advertisement" includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas;
(3) "advertising agency" means any 55[person] engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant;
2[(3a) "aircraft" has the meaning assigned to it in clause (1) of section 2 of the Aircraft Act, 1934 (22 of 1934);
38[(3b) "aircraft operator" means any person who provi
(1)For the purposes of this Chapter, classification of taxable services shall bedetermined according to the terms of the sub-clauses ofclause (105)of section 65.
(2)When for any reason, a taxable service is, prima facie, classifiable under twoor more sub-clauses of clause (105) of section 65,classification shall be effected as follows:--
(a)the sub-clause which provides the most specific description shall be preferred to sub-clausesproviding a more general description;
(b)composite services consisting of a combination of different services whichcannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives themtheir essential character, insofar as this criterion is applicable;
(c)when a
1[66. Charge of Service Tax
6[There shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve per cent. of the value of taxable services referred to in sub-clauses (a), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (za), (zb), (zc), (zh), (zi), (zj), (zk), (zl), (zm), (Zn), (zo), (zq), (zr), (zs), (zt), (zu), (zv), (zw), (zx), (zy), (zz), (zza), (zzb), (zzc), (zzd), (zze), (zzf), (zzg), (zzh), (zzi), (zzk), (zzl), (zzm), (zzn), (zzo), (zzp), (zzq), (zzr), (zzs), (zzt), (zzu), (zzv), (zzw), (zzx), (zzy), (zzz), (zzza), (zzzb), (zzzc), (zzzd), (zzze), (zzzf), (zzzg), (zzzh), (zzzi), (zzzj), (zzzk), (zzzl), (zzzm), (zzzn), (zzzo), (zzzp), (zzzq), (zzzr), (zzzs), (zzzt), (zzzu), (zzzv), (zzzw), (zzzx), (zzzy), (zzzz), (zzzza), (zzzzb), (zzzzc), 7[(zzzzd), (zzzze), (zzzzf), (zzzzg), (zzzz
1[Section 66A - Charge of service tax on services received from outside India
(1) Where any service specified in clause (105) of section 65 is,--
(a) provided or to be provided by a person who has established a business or has a fixed establishment from which the service is provided or to be provided or has his permanent address or usual place of residence, in a country other than India, and
(b) received by a person (hereinafter referred to as the recipient) who has his place of business, fixed establishment, permanent address or usual place of residence, in India, such service shall, for the purposes of this section, be taxable service, and such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of this Chapter sh
67.1[Valuation of taxable services for charging service tax
(1) Subject to the provisions of this Chapter, service tax chargeable on any taxable service with reference to its value shall,--
(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;
(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration;
(iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.
68.1[Payment of service tax
(1) Every person providing taxable service to any person shall pay service tax at the rate specified in section 66 in such manner and within such period as may be prescribed
(2) Notwithstanding anything contained in sub-section (1), in respect of any taxable service notified by the Central Government in the Official Gazette, the service tax thereon shall be paid by such person and in such manner as may be prescribed at the rate specified in section 66 and all the provisions of this Chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service.]
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1. Substituted by the Finance (No. 2) Act, 1998, w.e.f. 16-10-1998. Earlier section 68 was amende
69.1 [Registration
2 [(1)]Everyperson liable to pay the service tax under this Chapter or the rules madethereundershall, within suchtime and in such manner and in such form as may be prescribed, make anapplication for registration to the 3 [Superintendentof Central Excise].
4 ["(2) The CentralGovernment may, by notification in the Official Gazette, specify such otherperson or class of persons, who shall make an application for registrationwithin such time and in such manner and in such form as may be prescribed.]
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1.Sections69 to 71 substituted by the Finance (No. 2) Act, 1998, w.e.f. 16-10-1998.
2.Section 69 re numbered as sub-section (1) thereof by the Finance Act, 2005 w.e.f.13.05.2
70. 1[Furnishing of returns
2[(1)] Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency 4[and with such late fee not exceeding 5[twenty thousand rupees], for delayed furnishing of return, as may be prescribed].
3[(2) The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of the Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.]
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1. Sections 70 and 71 sub
2[71. Scheme for submission of Returns through Service Tax Preparers.-
(1) Without prejudice to the provisions of section 70, the Board may, by notification in the Official Gazette, frame a Scheme for the purposes of enabling any person or class of persons to prepare and furnish a return under section 70, and authorise a Service Tax Return Preparer to act as such under the Scheme.
(2) A Service Tax Return Preparer shall assist the person or class of persons to prepare and furnish the return in such manner as may be specified in the Scheme framed under this section.
(3) For the purposes of this section,--
(a) "Service Tax Return Preparer" means any individual, who has been authorised to act as a Service Tax Return Preparer under the Scheme framed und
2[72. Best judgment assessment.
If any person, liable to pay service tax,--
(a) fails to furnish the return under section 70;
(b) having made a return, fails to assess the tax in accordance with the provisions of this Chapter or rules made thereunder, the Central Excise Officer, may require the person to produce such accounts, documents or other evidence as he may deem necessary and after taking into account all the relevant material which is available or which he has gathered, shall by an order in writing, after giving the person an opportunity of being heard, make the assessment of the value of taxable service to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment.]
_
1[73. Recovery of Service Tax Not Levied or Paid or Short lived or Short-paid or Erroneously Refunded.
(1) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the 2 [Central Excise Officer] may, within one year from the relevant date, serve notice on the person chargeable with the service tax which has not been levied or paid or which has been short-levied or short-paid or the person to whom such tax refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice:
Provided that where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of--
(a) fraud; or
(b) collusion; or
1[Section 73A - Service tax collected from any person to be deposited with Central Government
(1) Any person who is liable to pay service tax under the provisions of this Chapter or the rules made thereunder, and has collected any amount in excess of the service tax assessed or determined and paid on any taxable service under the provisions of this Chapter or the rules made thereunder from the recipient of taxable service in any manner as representing service tax, shall forthwith pay the amount so collected to the credit of the Central Government.
(2) Where any person who has collected any amount, which is not required to be collected, from any other person, in any manner as representing service tax, such person shall forthwith pay the amount so collected to the credit of the Central Government.
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1[Section 73B - Interest on amount collected in excess
Where an amount has been collected in excess of the tax assessed or determined and paid for any taxable service under this Chapter or the rules made thereunder from the recipient of such service, the person who is liable to pay such amount as determined under sub-section (4) of section 73A, shall, in addition to the amount, be liable to pay interest at such rate not below ten per cent. and not exceeding twenty-four per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first day of the month succeeding the month in which the amount ought to have been paid under this Chapter, but for the provisions contained in sub-section (4) of section 73A, till the date of payment of such amount:
Provided that in such cases w
1[Section 73C - Provisional attachment to protect revenue in certain cases
(1) Where, during the pendency of any proceeding under section 73 or section 73A, the Central Excise Officer is of the opinion that for the purpose of protecting the interests of revenue, it is necessary so to do, he may, with the previous approval of the Commissioner of Central Excise, by order in writing, attach provisionally any property belonging to the person on whom notice is served under sub-section (1) of section 73 or sub-section (3) of section 73A, as the case may be, in such manner as may be prescribed.
(2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1):
Provided that the Chief Commissioner of Centra
1[Section 73D - Publication of Information in respect of persons in certain cases
(1) If the Central Government is of the opinion that it is necessary or expedient in the public interest to publish the name of any person and any other particulars relating to any proceedings under this Chapter in respect of such person, it may cause to be published such names and particulars in such manner as may be prescribed.
(2) No publication under this section shall be made in relation to any penalty imposed under this Chapter until the time for presenting an appeal to the Commissioner (Appeals) under section 85 or the Appellate Tribunal under section 86, as the case may be, has expired without an appeal having been presented or the appeal, if presented, has been disposed of.
Explanation.--In the case of a
(1) With a view to rectifying any mistake apparent from the record, the1[Central Excise Officer] who passed any order under the provisions of this Chapter may, within two years of the date on which such order was passed, amend the order.
(2) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the1[Central Excise Officer] passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.
(3) Subject to the other provisions of this section, the1[Central Excise Officer] concerned--
(a) may make an amendment under sub-section (1) of his own mot
75. 1[Interest on delayed payment of service tax
Every person, liable to pay the tax in accordance with the provisions of section 68 or rules made thereunder, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed, shall pay simple interest2[at such rate not below ten per cent. and not exceeding thirty-six per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette,] for the period by which such crediting of the tax or any part thereof is delayed.
3[Provided that in the case of a service provider, whose value of taxable services provided in a financial year does not exceed sixty lakh rupees during any of the financial years covered by the notice or during the last preceding financial year, as the case may be, such rat
75A. 1[***]
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1. Omitted by the Finance (No. 2) Act, 2004 w.e.f 10.09.2004. Prior to omission it read as under:-
"75A. [Penalty for failure of registration.--
Any person, liable to pay service tax in accordance with the provisions of section 68 or the rules made thereunder, fails to make an application for registration under section 69, shall pay, by way of penalty, a sum of five hundred rupees.]"
1[Section 76 - Penalty for failure to pay service tax
Any person, liable to pay service tax in accordance with the provisions of section 68 or the rules made under this Chapter, who fails to pay such tax, shall pay, in addition to such tax and the interest on that tax amount in accordance with the provisions of section 75, a penalty which shall not be less than 2[one hundred rupees] for every day during which such failure continues or at the rate of 3[one per cent.] of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax:
Provided that the total amount of the penalty payable in terms of this section shall not exceed 4[fifty per cent.] the service tax payable.
5[Illustration
&nb
1[77. Penalty for contravention of rules and provisions of Act for which no penalty is specified elsewhere-
(1) Any person,--
(a) who is liable to pay service tax, or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this Chapter shall be liable to pay a penalty which may extend to 2[ten thousand rupees] or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;
(b) who fails to keep, maintain or retain books of account and other documents as required in accordance with the provisions of this Chapter or the rules made thereunder, shall be liable to a penalty which may extend to 2[ten thousand rupees];<
5[(1) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of--
(a) fraud; or
(b) collusion; or
(c) wilful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or of the rules made thereunder with the intent to evade payment of service tax,
the person, liable to pay such service tax or erroneous refund, as determined under sub-section (2) of section 73, shall also be liable to pay a penalty, in addition to such service tax and interest thereon, if any, payable by him, which shall be equal to the amount of service tax so not levied or paid
79. 1[***]
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1. Omitted by the Finance (No. 2) Act, 2004 w.e.f 10.09.2004. Prior to omission it read as under:-
" 79. Penalty for failure to comply with notice .--
[If the Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise in the course of any proceedings under this Chapter is satisfied that any person has failed to comply with the provisions of section 71,] he may direct that such person shall pay, by way of penalty, in addition to any service tax and interest, if any, payable by him, a sum which shall not be less than ten per cent, but which shall not exceed fifty per cent, of the amount of the service tax, if any, which would have been avoided if the value of taxable servi
Notwithstanding anything contained in the provisions of 1[section 77 or 2[first proviso to subsection (1) of section 78]], no penalty shall be imposable on the assessee for any failure referred to in the said provisions, if the asses see proves that there was reasonable cause for the said failure.
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1. Substituted for the words "section 76, section 77, section 78 or section 79" by the Finance (No. 2) Act, 2004 w.e.f 10.09.2004.
2. Substituted by the Finance Act, 2011 for the following : - "section 78"
81. 1[***]
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1. Omitted by Finance (No. 2) Act, 2004 w.e.f 10.09.2004. Prior to omission it read as under:-
"81. Offences by companies.--
(1) Where an offence under this Chapter has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Chapter, if he proves that the offence was committed without his
5[Penalty for suppressing, etc., of value of taxable services.
(i) for the words "Commissioner of Central Excise", the words "Joint Commissioner of Central Excise" shall be substituted;
(ii) for the words "Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise", the words "Superintendent of Central Excise" shall be substituted;]
(2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches, shall, so far as may be, apply to searches under this section as they apply to searches under that Code.
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1. Substituted for
The provisions of the following sections of the Central Excise Act, 1944 ( 1 of 1944 ), as in force from time to time, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise:--
7[9A, 9AA, 9B, 9C, 9D, 9E, 11B, 11BB, 11C, 12, 12A, 12B, 12C, 12D, 12E, 14, 14AA, 15, 33A, 34A, 35F'] 6[35FF] to 35-O (both inclusive), 35Q, 8[35R], 36 , 36A, 36B , 37A, 37B , 37C, 37D5[, 38A] and 40 .
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1. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 16-10-1998.
2. Substituted for "11D," by the Finance Act, 2003, w.e.f. 14-5-2003. Earlier, it was amended by the Finance Act, 2002, w.e.f. 16-8-2002.
&nb
1 [83A.Power of adjudication
Where under this Chapteror the rules made thereunder any person is liable to a penalty, such penalty maybe adjudged by the Central Excise Officer conferred with such power as theCentral Board of Excise and Customs constituted under the Central Boards ofRevenue Act, 1963(54 of 1963), may, by notification in the Official Gazette,specify.]
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1.Inserted by theFinance Act, 2005 w.e.f. 16.06.2005.
3[(1) The Commissioner of Central Excise may, of his own motion, call for and examine the record of any proceedings in which an adjudicating authority subordinate to him has passed any decision or order under this Chapter for the purpose of satisfying himself as to the legality or propriety of any such decision or order and may, by order, direct such authority or any Central Excise Officer subordinate to him to apply to the Commissioner of Central Excise (Appeals) for the determination of such points arising out of the decision or order as may be specified by the Commissioner of Central Excise in his order.
(2) Every order under sub-section (1) shall be made within a period of three months from the date of communication of the decision or order of the adjudicating authority.
(3) Where in pursuance of an order under sub-section (1), the a
1 ["(1) Any person aggrieved by any decision or order passed by an adjudicating authority subordinate to the Commissioner of Central Excise may appeal to the Commissioner of Central Excise (Appeals).]
(2) Every appeal shall be in the prescribed form and shall be verified in the prescribed manner.
(3) An appeal shall be presented within three months from the date of receipt of the decision or order of the 2 [such adjudicating authority], relating to service tax, interest or penalty under this Chapter:
Provided that the Commissioner of Central Excise (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months.
(1) Any assessee aggrieved by an order passed by a Commissioner of Central Excise under 1[section 73 or section 83A 13[***]], or an order passed by a Commissioner of Central Excise (Appeals) under section 85 , may appeal to the Appellate Tribunal against such order.
8[(1A) (i) The Board may, by notification in the Official Gazette, constitute such Committees as may be necessary for the purposes of this Chapter.
(ii) Every Committee constituted under clause (i) shall consist of two Chief Commissioners of Central Excise or two Commissioners of Central Excise, as the case may be.]
2[(2) The 9[Committee of Chief Commissioners of Central Excise] may, if it objects to any order passed by the Commissioner of Central Excise under1[section 73 or section 83A 13[***]], direct the Commissioner of Central
1[Section 87 - Recovery of any amount due to Central Government.
Where any amount payable by a person to the credit of the Central Government under any of the provisions of this Chapter or of the rules made thereunder is not paid, the Central Excise Officer shall proceed to recover the amount by one or more of the modes mentioned below:--
(a) the Central Excise Officer may deduct or may require any other Central Excise Officer or any officer of customs to deduct the amount so payable from any money owing to such person which may be under the control of the said Central Excise Officer or any officer of customs;
(b) (i) the Central Excise Officer may, by notice in writing, require any other person from whom money is due or may become due to such person, or who holds or may subsequently hold
1[Notwithstanding anything to the contrary contained in any Central Act or State Act, any amount of duty, penalty, interest, or any other sum payable by an assessee or any other person under this Chapter, shall, save as otherwise provided in section 529A of the Companies Act, 1956(1 of 1956) and the Recovery of Debts Due to Banks and the Financial Institutions Act, 1993(51 of 1993) and the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security Interest Act, 2002(54 of 2002), be the first charge on the property of the assessee or the person as the case may be.]
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1. Inserted by the Finance Act, 2011.
1[(1) Whoever commits any of the following offences, namely,--
(a) provides any taxable service chargeable to service tax under sub-section (1) of section 68 or receives any taxable service chargeable to tax under sub-section (2) of said section, without an invoice issued in accordance with the provisions of this Chapter or the rules made thereunder; or
(b) avails and utilises credit of taxes or duty without actual receipt of taxable service or excisable goods either fully or partially in violation of the rules made under the provisions of this Chapter; or
(c) maintains false books of account or fails to supply any information which he is required to supply under this Chapter or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that t
[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 16-10-1998.]
[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 16-10-1998.]
[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 16-10-1998.]
93.1[Power to grant exemption from service tax
( 1 ) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or sub ject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax leviable thereon.
( 2 ) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special ord er in each case, exempt any taxable service of any specified description from the payment of whole or any part of the service tax leviable thereon, under circumstances of exceptional nature to be stated in such ord er.]
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1[Section 93A
Where any goods or services are exported, the Central Government may grant rebate of service tax paid on taxable services which are used as input services for the manufacturing or processing of such goods or for providing any taxable services and such rebate shall be subject to such extent and manner as may be prescribed:
Provided that where any rebate has been allowed on any goods or services under this section and the sale proceeds in respect of such goods or consideration in respect of such services are not received by or on behalf of the exporter in India within the time allowed by the Reserve Bank of India under section 8 of the Foreign Exchange Management Act, 1999, such rebate shall 2[except under such circumstances or such conditions as may be prescribed,] be deemed never to have been allowed and the Central Governm
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.
1[(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :--
(a) collection and recovery of service tax under sections 66 and 68;
7[(aa) the determination of amount and value of taxable service under section 67;];
(b) the time and manner and the form in which application for registration shall be made 2 [under sub-sections (1) and (2) of section 69];
8[(c) the form, manner and frequency of the returns to be furnished under sub-sections (1) and (2) and the late fee for delayed f
95. 1[Power to remove difficulties
(1) If any difficulty arises in respect of implementing, or assessing the value of, any taxable service incorporated in this Chapter by the Finance Act, 2002 , the Central Government may, by order published in the Official Gazette, which is not inconsistent with the provisions of this Chapter, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of the Finance Act, 2002 incorporating such taxable services in this Chapter come into force.
2[(1A) If any difficulty arises in respect of implementing, or assessing the value of, any taxable service incorporated in this Chapter by the Finance Act, 2003 , the Central Government may, by order published in the Official Gazette,
In the Economic Offences (Inapplicability of Limitation) Act, 1974 (12 of 1974), in the Schedule, after entry 7 relating to the Central Excise Act, 1944 (1 of 1944), the following entry shall be inserted, namely :--
"7A. Chapter V of the Finance Act, 1994".
In this Chapter, unless the context otherwise requires,--
(a) "advance ruling" means the determination, by the Authority, of a question of law or fact specified in the application regarding the liability to pay service tax in relation to a service proposed to be provided, by the applicant;
1[(b) "applicant" means any person who,--
(i) (a) is a non-resident setting up a joint venture in India in collaboration with a nonresident or a resident; or
(b) is a resident setting up a joint venture in India in collaboration with a non-resident; or
(c) is a wholly owned subsidiary Indian company, of which the holding company is a foreign company,
who or which, as the case
No proceeding before, or pronouncement of advance ruling by the Authority under this Chapter shall be questioned or shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the Authority.
(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and in such manner as may be prescribed, stating the question on which the advance ruling is sought.
(2) The question on which the advance ruling is sought shall be in respect of,--
(a) classification of any service as a taxable service under Chapter V;
(b) the valuation of taxable services for charging service tax;
(c) the principles to be adopted for the purposes of determination of value of the taxable service under the provisions of Chapter V;
(d) applicability of notifications issued under Chapter V;
(e) admissibility of credit of service tax.
(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the Commissioner of Central Excise and, if necessary, call upon him to furnish the relevant records:
Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the Commissioner of Central Excise.
(2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application:
Provided that the Authority shall not allow the application where the question raised in the application is,--
(a) already pending in the applicant's case before any Central Excise Officer, the Appellate Tribunal or any Court;
&n
(1) The advance ruling pronounced by the Authority under section 96D shall be binding only--
(a) on the applicant who had sought it;
(b) in respect of any matter referred to in sub-section (2) of section 96C;
(c) on the Commissioner of Central Excise, and the Central Excise authorities subordinate to him, in respect of the applicant.
(2) The advance ruling referred, to in sub-section (1) shall be binding as aforesaid unless there is a change in law or facts on the basis of which the advance ruling has been pronounced.
(1) Where the Authority finds, on a representation made to it by the Commissioner of Central Excise or otherwise, that an advance ruling pronounced by it under sub-section (4) of section 96D has been obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Chapter shall apply (after excluding the period beginning with the date of such advance ruling and ending with the date of order under this sub-section) to the applicant as if such advance ruling had never been made.
(2) A copy of the order made under sub-section (1) shall be sent to the applicant and the Commissioner of Central Excise.
(1) The Authority shall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908).
(2) The Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974), and every proceeding before the Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code (45 of 1860).
The Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure in all matters arising out of the exercise of its powers under this Act.
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the form and manner for making application, under sub-section (1) of section 96C;
(b) the manner of certifying a copy of advanced ruling pronounced by the Authority under sub-section (7) of section 96D;
(c) any other matter which, by this Chapter, is to be or may be prescribed.
(3) Every rule made under this Chapter shall be laid, as soon as may be, after it is made, before each House of Parliament, while it is in se
1[(1) Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of membership fee collected by a club or association formed for representing industry or commerce, during the period on and from the 16th day of June, 2005 to the 31st day of March, 2008 (both days inclusive).
(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected if sub-section (1) had been in force at all material times.
(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within six months from the date on which the Finance Bill, 2011 receives the assent of the President.]
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In the Finance Act, 1979, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, -
(a) after section 35, the following section shall be inserted, namely :-
"35A. Interest for default in payment of foreign travel tax. - (1) Where any carrier or other person fails to pay the foreign travel tax to the credit of the Central Government under sub-section (2) of section 35, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent. and not exceeding thirty per cent. per annum, as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(2) Where, on or
In the Finance Act, 1989, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, -
(a) after section 43, the following section shall be inserted, namely :-
"43A. Interest for default in payment of inland air travel tax. - (1) Where any carrier or other person fails to pay the inland air travel tax to the credit of the Central Government under sub-section (2) of section 42, in accordance with the rules made under this Chapter, he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent. and not exceeding thirty per cent. per annum, as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(2) Whe
In the Indian Stamp Act, 1899, -
(i) in section 9, in sub-section (1), in clause (b), after the words "or other body corporate", the words and brackets "or of transfers (where there is a single transferee, whether incorporated or not)" shall be inserted;
(ii) in Schedule I, -
(a) in article No. 14, in the second column, for the words "One rupees", the words "Two rupees" shall be substituted;
(b) in article No. 53, -
(1) in the first column, for the words "twenty rupees", the words "five hundred rupees" shall be substituted;
(2) in the second column, for the words "Twenty paise", the words "One rupee" shall be substituted.
THE FIRST SCHEDULE
[See section 2]
PART I
Income-Tax
Paragraph A
Sub-Paragraph I
In the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies, -
RATES OF INCOME-TAX
(1) Where the total income does not exceed Rs. 30,000 Nil;
(2) where
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