Seeks to amend Service Tax Rules, 1994 so as to,(i) Specify the importer as defined under clause (26) of section 2 of the Customs Act, 1962 (52 of 1962) of goods as the person liable for paying service tax in case of services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of such goods by a vessel from a place outside India up to the customs station of clearance in India. (ii) Provide an alternate mechanism for calculating and paying service tax, Swachh Bharat Cess and Krishi kalyan Cess.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
NOTIFICATION No. 16/2017-Service Tax
New Delhi, the 13th April, 2017
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 (Third Amendment) Rules, 2017.
(2) Save as otherwise provided, they shall come into force on the 23rd day of April, 2017.
2. In the Service Tax Rules, 1994,-
(i) in rule 2, in sub-rule (1), in clause (d), in sub-clause(i), for item (EEC), the following shall be substituted, namely:-
“(EEC) in relation to services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India, the importer as defined under clause (26) of section 2 of the Customs Act, 1962 (52 of 1962) of such goods;”;
(ii) in rule 6,-
(a) after sub-rule (7C), the following sub-rule shall be inserted with effect from 22nd January, 2017, namely :-
“(7CA) The person liable for paying service tax for the taxable services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India, shall have the option to pay an amount calculated at the rate of 1.4% of the sum of cost, insurance and freight (CIF) value of such imported goods.”
(b) in sub-rule (7D) and (7E), for the brackets, words and figures “(7B) or 7(C)” wherever they occur, the brackets, word and figures “(7B), (7C) or (7CA)” shall be substituted with effect from 22nd January, 2017.”
[F. No. 354/42/2016-TRU]
(Mohit Tewari)
Under Secretary to the Government of India
Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 2/94-Service Tax, dated the 28th June, 1994 vide number G.S.R. 546 (E), dated the 28th June, 1994 and last amended vide notification No. 6/2017-Service Tax, dated the 30th January, 2017 vide number G.S.R. 73 (E), dated the 30th January, 2017.
Please let me know what are the implications of notification no. 15/2017-ST and 16/2017-ST in regards to paying service tax for import of goods.
Can the department ask for 1.4 % of CIF value of imported goods?
Thanks
Jay poddar
FTC Exim Pvt Ltd, Kolkata
9830006694
jay@ftcexim.com