Notification No. 09/2014-Service Tax (N.T.), Dated: July 11, 2014 amends the definition of “person liable for paying  service tax” clause (i) in respect of the taxable services notified under sub-section (2) of section 68 of the Act, to come into effect from 11th July 2014, as follows:
a. Services provided by Recovery Agents to Banks, Financial Institutions and NBFC is being brought under the reverse  charge mechanism; service receiver will be the person liable to pay service tax. (New Entry AA)
b. Service provided by a Director to a body corporate is being brought under the reverse charge mechanism; service  receiver, who is a body corporate will be the person liable to pay service tax. This is in view of requests by body corporates such as the Reserve Bank of India. Entry EE substituted.
Notification No. 09/2014-Service Tax (N.T.), Dated: July 11, 2014 further amends Rule 6 regarding mode of payment of service tax and mandates every assessee to pay service tax electronically through internet banking unless allowed by  Deputy/ Assistant Commissioner to pay it in any mode other than internet banking. This will come into effect from 1 st
October 2014.

Notification No. 9/2014- Service Tax

New Delhi, the 11th July, 2014

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, 2014.

(2) Save as otherwise provided in these rules, they shall come into force on the 11th July, 2014.

2. In the Service Tax Rules, 1994 (hereinafter referred to as the said rules),–

(A) in rule 2, in sub-rule (1), in clause (d), in sub-clause (i),–

(a) after item (A), the following item shall be inserted , namely:- ― (AA) in relation to service provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company, the recipient of the service;‖;

(b) for item (EE),the following item shall be substituted, namely:- ―(EE) in relation to service provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate, the recipient of such service;‖;

(B) in rule 6 of the said rules, for sub-rule (2), the following sub-rule shall be substituted with effect from the 1st October, 2014, namely:- ―

(2) Every assessee shall electronically pay the service tax payable by him, through internet banking:

Provided that the Assistant Commissioner or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction, may for reasons to be recorded in writing, allow the assessee to deposit the service tax by any mode other than internet banking.‖.

[F.No. 334 /15/2014- 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-ST, dated the 28th June, 1994 vide number G.S.R. 546 (E), dated the 28th June, 1994 and last amended by notification No.16/2013-Service Tax, dated the 22nd November, 2013 vide number G.S.R. 749 (E), dated the 22nd November, 2013.

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