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Date 1-Mar-2015 Issuing Authority Service Tax
Notification Number 05/2015 Authority Type Notification
Subject Seeks to amend Service Tax Rules, 1994 so as to prescribe,- (i) definition of an ‘aggregator’ and the ‘brand name or trade name’ (ii) the person liable to pay service tax for certain specified services; (iii) for issuing digitally signed invoices and their authentication by means of digital signatures. (iv) for preserving records in electronic form by bay of authenticating by digital signatures. (v) To revise the alternative rates of service tax at which certain categories of service providers have an option to pay service tax.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,

SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

New Delhi, the 1st March, 2015

NOTIFICATION No.05/2015-Service Tax,

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, 2015.

(2) Save as otherwise provided in these rules, they shall come into force on the 1st day of

March, 2015.

2. In the Service Tax Rules, 1994,-

(a)in rule 2, in sub-rule (1),-

(i)after clause(a), the following clause shall be inserted, namely:-

‘(aa) “aggregator” means a person, who owns and manages a web based

software application, and by means of the application and a

communication device, enables a potential customer to connect with

persons providing service of a particular kind under the brand name or

trade name of the aggregator;’;

(ii) after clause (bc),the following clause shall be inserted, namely:-

‘(bca) “brand name or trade name” means, a brand name or a trade name,

whether registered or not, that is to say, a name or a mark, such as an

invented word or writing, or a symbol, monogram, logo, label,

signature, which is used for the purpose of indicating, or so as to

indicate a connection, in the course of trade, between a service and

some person using the name or mark with or without any indication

of the identity of that person;’;

(iii) in clause (d), in sub-clause (i),-

(I) after item (AA),the following item shall be inserted, namely:-



‘(AAA)in relation to service provided or agreed to be provided by a person

involving an aggregator in any manner, the aggregator of the service:

Provided that if the aggregator does not have a physical

presence in the taxable territory, any person representing the

aggregator for any purpose in the taxable territory shall be liable for

paying service tax;

Provided further that if the aggregatordoes not have a

physical presence or does not have a representative for any purpose

in the taxable territory, the aggregator shall appoint a person in the

taxable territory for the purpose of paying service tax and such

person shall be liable for paying service tax.’;

(II)in item(E), fromsuch date as the Central Government may, by a notification in

the Official Gazette, appoint, the word“support” shall be omitted;

(III) after item (EE), the following items shall be inserted with effect from the 1st

day of April 2015, namely:-

“(EEA)in relation to service provided or agreed to be provided by a mutual

fund agent or distributor to a mutual fund or asset management

company, the recipient of the service;

(EEB) in relation to service provided or agreed to be provided by a selling or

marketing agent of lottery tickets to a lottery distributor or selling

agent, the recipient of the service;”;

(b) in rule 4,-

(i) sub-rule (1A) shall be omitted.

(ii) after sub-rule (8), the following sub-rule shall be inserted, namely:-

“(9) The registration granted under this rule shall be subject to such

conditions, safeguards and procedure as may be specified by an order

issued by the Board.”;

(c) after rule 4B, the following rule shall be inserted, namely:-

“4C. Authentication by digital signature-

(1) Any invoice, bill or challan issued under rule 4A or consignment note

issued under rule 4B may be authenticated by means of a digital

signature.



(2)The Board may, by notification, specify the conditions, safeguards and

procedure to be followed by any person issuing digitally signed

invoices.”;

(d) in rule 5, after sub-rule (3), the following sub-rules shall be inserted, namely,-

“(4) Records under this rule may be preserved in electronic form and every page

of the record so preserved shall be authenticated by means of a digital signature.

(5) The Board may, by notification, specify the conditions, safeguards and

procedure to be followed by an assessee preserving digitally signed records.

Explanation – For the purposes of rule 4C and sub-rule (4) and (5) of this rule,-

(i) The expression “authenticate” shall have the same meaning as assigned

in the Information Technology Act, 2000 (21 of 2000).

(ii) The expression “digital signature” shall have the meaning as defined in

the Information Technology Act, 2000 (21 of 2000) and the expression

“digitally signed” shall be construed accordingly.”

(e)in rule 6,

(i)sub-rule (6A) shall be omitted, with effect from the date on which the Finance Bill,

2015, receives the assent of the President;

(ii) from such dates as the Central Government may, by a notification in the Official

Gazette, appoint,-

(a)in sub-rule (7),for the figures“0.6%” and “1.2 %”,the figures and

words“0.7 per cent.”and “1.4 per cent.” shall respectively be

substituted;

(b)in sub-rule (7A),in clause(ii), for the figures and words“3 per cent.” and

“1.5 per cent.”, the figures and words“3.5 per cent.” and “1.75 per

cent.” shall respectively be substituted;”;

(c)in sub-rule (7B),-

(i) in item (a), for the figures and words“0.12 per cent”and “rupees

30”,the figures and words“0.14 per cent” and “rupees 35” shall

respectively be substituted;

(ii)in item (b), for the figures and words“120 and 0.06 per cent”,the

figures and words “140 and 0.07 per cent.”shall be substituted;

(iii) in item (c), for the figures and words “660 and 0.012 per cent” and

“rupees 6,000”, the figures and words“770 and 0.014 per cent”

and “rupees 7,000” shall respectively be substituted;



(d)in sub-rule (7C),-

(A)in the Table, in column (2),-

(i)againstSl. No. 1, for the figures “7000”, the figures “8200” shall

be substituted;

(ii) against Sl. No. 2, for the figures “11000”, the figures “12800”

shall be substituted;

(B) in the Explanation, item (i) shall be omitted, with effect from the

date on which the Finance Bill, 2015, receives the assent of the

President.

[F.No. 334 /5/2015- 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-Service Tax, dated the 28thJune,

1994 videnumber G.S.R. 546 (E), dated the 28thJune, 1994 and last amended vide notification

No.23/2014-Service Tax, dated the 5th December, 2014 vide number G.S.R. 872(E)., dated the 5th

December, 2014.

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