Service Tax Act and RULES and Current Rates of Service Tax

 What is Service Tax and who pays this tax?

Service tax is, as the name suggests, a tax on Services. It is a tax levied on the transaction of certain services specified by the Central Government under the Finance Act, 1994.
It is an indirect tax (akin to Excise Duty or Sales Tax) which means that normally, the service provider pays the tax and recovers the amount from the recipient of taxable service.

Who is liable to pay service tax?

Normally, the "person" who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act). However, in the following situations, the receiver of the Services is responsible for the payment of Service tax :

(i) Where taxable services are provided by foreign service providers with no establishment in India , the recipient of such services in India is liable to pay Service Tax.
(ii) For the services in relation to Insurance Auxiliary Service by an Insurance Agent, the Service Tax is to be paid by the Insurance Company
(iii) For the taxable services provided by a Goods Transport Agency for transport of goods by road, the person who pays or is liable to pay freight is liable to pay Service Tax , if the consignor or consignee falls under any of the seven categories viz. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society (f) a registered dealer of excisable goods (g) a body corporate or a partnership firm.
(iv) For the taxable services provided by Mutual Fund Distributors in relation to distribution of Mutual Fund the Service Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service.

Refer: Sec. 68(2) of the Act read with Rule 2(1)(d) of the Service Tax Rules, 1994.]

Under what authority service tax is levied?

Vide Entry 97 of Schedule VII of the Constitution of India, the Central Government levies
service tax through Chapter V of the Finance Act, 1994. The taxable services are defined in Section 65 of the Finance Act, 1994. Section 66 is the charging section of the said Act.

What are the taxable service

Taxable Services have been specified under Section 65(105) of the Finance Act, 1994. All the taxable services as on 01.05.2011 are listed in Appendix-1. The list also shows the relevant Accounting Heads required to be mentioned on the tax payment documents (GAR-7), while depositing the Service Tax and other related dues in the banks.

How to decide whether Service Tax is payable by a person?

A. If you are engaged in providing a service to any person, please check:-

(i) Whether the service rendered by you is falling under the scope of any of the taxable services listed in the Appendix-1.; and
(ii) Whether there is a general or specific exemption available for the category of service provided under any notification issued under section 93 of the Finance Act, 1994.
(iii) Whether you are entitled to the value based exemption available for small service providers under notification No.6/2005-ST dated 1.3.05 as amended from time to time. Details are explained in para 8.1 of this Booklet.
(iv) Whether the service charges were received for the services provided or to be provided.
In case the service provided by a person falls within the scope of the taxable services and if such service is not fully exempted, the service tax is payable on the value of the taxable service received, subject to the eligible abatements, if any (as discussed at para 1.7 of this Booklet).

B. If you are availing the services of the service provider, please check:-

a. Whether the service received by you is falling under the scope of any of the services where the recipient of the service is liable to pay Service Tax in terms of Section 68(2) of the Act read with Rule 2(d) of the Service Tax Rules, 1994 (Please also see Para 1.2 of this Booklet)
b. In case the service received by recipients of such service is falling under the scope of any of the taxable services defined under section 65 of the Finance Act, 1994, the recipients of the service shall pay Service Tax after considering specific exemptions/abatement admissible, if any.
c. Please note that the value based exemption for small scale service providers under Notification No.6/2005 ST dated 01.03.2005 as amended is not admissible to such recipients of taxable services. (For further details, please see para 7.1 of this Booklet).

What is the rate of Service Tax?

At present, the effective rate of Service Tax is 10.3% on the value of the taxable service. The above effective rate comprises of Service Tax @10% payable on the “gross value of taxable service”, Education Cess @ 2% on the service tax amount, and Secondary and Higher Education Cess @ 1% on the service tax amount.


Service Tax (Compounding of Offences) Rules, 2012
Service Tax (Settlement of Cases) Rules, 2012
Point of Taxation Rules, 2011
Service Tax (Determination of Value) Rules, 2006 Dispute Resolution Scheme Rules, 2008
Service Tax Dispute Resolution Scheme, 2008
Export of Service Rules, 2005
Service Tax (Provisional Attachment of Property) Rules, 2008
The Service Tax (Publication of Names) Rules, 2008
Service Tax (Advance Rulings) Rules 2003
Service Tax Return Preparer Scheme, 2009
Service Tax Rules, 1994
Website of Directorate of Service Tax, Mumbai

Point of Taxation Rules, 2011

Point of Taxation Rules, 2011

[18/2011-Service Tax dated 01.03.2011]
[as amended by 25/2011-Service Tax dated 31.03.2011 and corrigendum dated 04.04.2011]

1. Short title and commencement.-
(1)    These rules shall be called the Point of Taxation Rules, 2011.
(2)    They shall come into force on the 1st day of April, 2011.

2. Definitions.- In these rules, unless the context otherwise requires,-
(a)  “Act” means the Finance Act, 1994 (32 of 1994);
(b)  “associated enterprises” shall have the meaning assigned to it in section 92A of the Income Tax Act, 1961 (43 of 1961);
(c)  “continuous supply of service” means any service which is provided, or to be provided continuously, under a contract, for a period exceeding three months, or where the Central Government, by a notification in the Official Gazette, prescribes provision of a particular service to be a continuous supply of service, whether or not subject to any condition;
(d)   “invoice” means the invoice referred to in rule 4A of the Service Tax Rules, 1994 and shall include any document as referred to in the said rule;
(e)  “point of taxation” means the point in time when a service shall be deemed to have been provided;
(f)   “taxable service” means a service which is subjected to service tax, whether or not the same is fully exempt by the Central Government under Section 93 of the Act;

3. Determination of point of taxation.- For the purposes of these rules, unless otherwise provided, ‘point of taxation’ shall be,-

1. (a)  the time when the invoice for the service provided or to be provided is issued:

 Provided that where the invoice is not issued within fourteen days of the completion of the provision of the service, the point of taxation shall be date of such completion.

1. (a)  in a case, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment, to the extent of such payment.

Explanation .- For the purpose of this rule, wherever any advance by whatever name known, is received by the service provider towards the provision of taxable service, the point of taxation shall be the date of receipt of each such advance.”.

4. Determination of point of taxation in case of change in effective rate of  tax - Notwithstanding anything contained in rule 3, the point of taxation in cases where there is a change in effective rate of  tax in respect of a service, shall be determined in the following manner, namely:-
(a) in case a taxable service has been provided before the change in effective rate of tax,-
(i)   where the invoice for the same has been issued and the payment received after the change in effective rate of  tax, the point of taxation shall be date of payment or issuing of invoice, whichever is earlier; or
(ii)  where the invoice has also been issued prior to change in effective rate of  tax but the payment is received after the change in effective rate of  tax, the point of taxation shall be the date of issuing of invoice; or
(iii)  where the payment is also received before the change in effective rate of  tax, but the invoice for the same has been issued after the change in effective rate of  tax, the point of taxation shall be the date of payment;
(b)  in case a taxable service has been provided after the change in effective rate of  tax,-
(i)  where the payment for the invoice is also made after the change in effective rate of  tax but the invoice has been issued prior to the change in effective rate of  tax, the point of taxation shall be the date of payment; or
(ii)  where the invoice has been issued and the payment for the invoice received before the change in effective rate of  tax, the point of taxation shall be the date of receipt of payment or date of issuance of invoice, whichever is earlier; or
(iii)  where the invoice has also been raised after the change in effective rate of  tax  but the payment has been received before the change in effective rate of  tax , the point of taxation shall be date of issuing of invoice.
Explanation.- For the purposes of this rule, “change in effective rate of tax” shall include a change in the portion of value on which tax is payable in terms of a notification issued under the provisions of Finance Act, 1994 or rules made thereunder.

5. Payment of tax in cases of new services.- Where a service, not being a service covered by rule 6,
is taxed for the first time, then, –
(a)      no tax shall be payable to the extent the invoice has been issued and the payment received against such invoice before such service became taxable;
(b)      no tax shall be payable if the payment has been received before the service becomes taxable and invoice has been issued within the period referred to in rule 4A of the Service Tax Rules, 1994.

6.  Determination of point of taxation in case of continuous supply of service.- Notwithstanding anything contained in rules 3,4 or 8, in case of continuous supply of service, the `point of taxation’ shall be,-
(a)   the time when the invoice for the service provided or to be provided is issued:
Provided that where the invoice is not issued within fourteen days of the completion of the provision of the service, the point of taxation shall be date of such completion.

(b)  in a case, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment, to the extent of such payment.
        Explanation 1. – For the purpose of this rule, where the provision of the whole or part of the service                 is determined periodically on the completion of an event in terms of a contract, which requires the service receiver to make any payment to service provider, the date of completion of each such event as specified in the contract shall be deemed to be the date of completion of provision of service.
          Explanation 2.- For the purpose of this rule, wherever any advance, by whatever name known, is received by the service provider towards the provision of taxable service, the point of taxation shall be the date of receipt of each such advance.

7. Determination of point of taxation in case of associated enterprises.- Notwithstanding anything contained in these rules, the point of taxation in respect of,-
(a)    the services covered by sub-rule (1) of rule 3 of Export of Services Rules, 2005;
(b)    the persons required to pay tax as recipients under the rules made in this regard in respect of services notified under sub-section (2) of section 68 of the Finance Act, 1994;
(c)    individuals or proprietary firms or partnership firms providing taxable services referred to in sub-clauses (p), (q), (s), (t), (u), (za), (zzzzm) of clause (105) of section 65 of the Finance Act, 1994,
shall be the date on which payment is received or made, as the case may be:
            Provided that in case of services referred to in clause (a), where payment is not received within the period specified by the Reserve Bank of India, the point of taxation shall be determined, as if this rule does not exist.
Provided further that in case of services referred to in clause (b) where the payment is not made within a period of six months of the date of invoice, the point of taxation shall be determined as if this rule does not exist.
Provided also that in case of “associated enterprises”, where the person providing the service is located outside India, the point of taxation shall be the date of credit in the books of account of the person receiving the service or date of making the payment whichever is earlier.

8. Determination of point of taxation in case of copyrights, etc. .- In respect of royalties and payments pertaining to copyrights, trademarks, designs or patents, where the whole amount of the consideration for the provision of service is not ascertainable at the time when service was performed, and subsequently the use or the benefit of these services by a person other than the provider gives rise to any payment of consideration, the service shall be treated as having been provided each time when a payment in respect of such use or the benefit is received by the provider in respect thereof, or an invoice is issued by the provider, whichever is earlier.

9. Savings.-Nothing contained in these rules shall be applicable,-
(i)     where the  provision of service is completed; or
(ii)    where invoices are issued
prior to the date on which these rules come into force.
         Provided that services for which provision is completed on or before 30th day of June, 2011 or here the invoices are issued up-to the 30th day of June, 2011, the point of taxation shall, at the option of the taxpayer, be the date on which the payment is received or made as the case may be.

Service Tax Act and RULES and Current Rates of Service Tax
Service Tax (Compounding of Offences) Rules, 2012
Service Tax (Settlement of Cases) Rules, 2012
Point of Taxation Rules, 2011 -----------------------------------------------------------------------------
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Service Tax (Settlement of Cases) Rules, 2012

Service Tax (Settlement of Cases) Rules, 2012

[16/2012- Service Tax dated 29-05-2012]

1. Short title and commencement. -(1)These rules may be called the Service Tax (Settlement of Cases) Rules, 2012.
(2) They shall come into force on the date of publication in the Official Gazette. 
2. Definitions.- In these rules, unless the context  otherwise requires,-
(a) “Act” means Chapter V of the Finance Act, 1994 (32 of 1994);
(b) “Excise Act” means the Central Excise Act, 1944 (1 of 1944);
(c) “Form SC(ST)-1” means the form appended to these rules;
(d)  “section” means a section of the Act ;
(e) words and expressions used herein and not defined but defined in the Act or Excise Act, shall have the respective meanings assigned to them in those Acts.
3. Form and manner of Application. - (1) An application under sub-section (1) of section 32E  of Excise Act, made applicable to service tax vide section 83 of the Act, shall be made in the Form SC(ST)-1.
(2) The application referred to in sub-rule (1), the verification contained therein and all relevant documents accompanying such application shall be signed,-
(a)   in the case of an individual, by the individual himself or where the individual is absent from India, by the individual concerned or by some person duly authorised by him in this behalf; and where the individual is a minor or is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;
(b)   in the case of a Hindu undivided family, by the Karta of such family and, where the Karta  is absent from India or is mentally incapacitated from attending to his affairs, by  the senior most adult member of the family available;
(c)   in the case of a company or local authority, by the principal officer thereof;
(d)  in the case of a firm, by any partner thereof, not being a minor;
(e)  in case of any other association, by any member of the association or the principal officer thereof; and
(f)   in the case of any other person, by that person or some person competent to act on his behalf.
 
(3) Every application in the Form SC(ST)-1 shall be filed in quintuplicate and shall be accompanied by a fee of one thousand rupees.
 
(4)  The additional amount of service tax accepted by the applicant along with interest due thereon, shall be deposited by him in any of the authorized bank under TR-6, referred to in the Service Tax Rules, 1994 (hereinafter referred to as TR-6 Challan) in quintuplicate, or  G.A.R.-7 and shall be disclosed by him in the Form.
4.   Disclosure of information in the application for settlement of cases. -  The Settlement Commission shall, while calling for a report from the Commissioner of Central Excise having jurisdiction or Commissioner of Service Tax having jurisdiction, under sub-section (3) of section 32F of Excise Act, made applicable to service tax vide section 83 of the Act, forward a copy of the application referred to in sub-rule (1) of rule 3 along with the Annexure to the application and the statements and other documents accompanying such Annexure.
5.  Manner of provisional attachment of property. -  (1) Where the Settlement Commission orders attachment of property under sub-section (1) of section 32G of Excise Act, made applicable to service tax vide section 83 of the Act, it shall send a copy of such order to the Commissioner of Central Excise or Commissioner of Service Tax having jurisdiction over the place in which the applicant owns any movable or immovable property or resides or carries on his business or has his bank account.
(2) On receipt of the order referred to in sub-rule (1), the Commissioner may authorize any officer subordinate to him and not below the rank of an Assistant Commissioner of Central Excise or Service Tax to take steps to attach such property of the applicant.
(3) The officer authorised under sub-rule (2) shall prepare an inventory of the property attached and specify in it, in the case of the immovable property, the description of such property sufficient to identify it and in case of the movable property, the place where such property is lodged or kept and shall hand over a copy of the same to the applicant or to the person from whose charge the property is attached.
(4) The officer authorised under sub-rule (2) shall send a copy of the inventory so prepared each to the Commissioner of Central Excise and the Settlement Commission.
6.    Fee for copies of reports. – Any person who makes an application under section 32J of Excise Act, made applicable to service tax vide section 83 of the Act, for obtaining copies of reports made by any Central Excise Officer, shall pay a fee of five rupees per page of each report or part thereof.

Form No. SC(ST)-1

[See rule 3 of the Service Tax (Settlement of Cases) Rules, 2012]

Before the Customs and Central Excise Settlement Commission

____________ Bench at  __________

Form of application for settlement of a case under section 32E of Excise Act made applicable to service tax vide section 83 of the Finance Act, 1994 (32 of 1994)

1.	Full name of the applicant:
2.	(i)    Postal address of the applicant (ii)   E- mail address of the applicant, if any
3.	(i)     Address for communication: (ii)    Telephone No.
4.	(i)    Permanent Account No: (ii)   Service Tax registration No: (iii)  Status: (See note 2)
5.	(i) Commissioner of Central Excise/Service Tax having jurisdiction over the applicant: (ii) Postal address of the Commissioner of Central Excise/Service Tax having jurisdiction over the applicant:
6.	Details of Show Cause Notice issued to the applicant (a) Show Cause Notice No and date (b) Period of dispute in the notice (c) Service tax demanded in the notice ( in Rs. ) (d) Dispute in connection with which the application for settlement is made. (e)  Adjudicating authority before whom the notice is pending adjudication.
7.	(i)   Whether service tax returns were filed for the period of dispute: (ii)  Whether the invoices on taxable services are duly entered in the books of accounts.  If so, details thereof.  Note: Self-attested copies of relevant service tax returns and extracts from books of accounts/register to be enclosed.
8.	Brief facts of the case and particulars of the issues to be settled and terms of settlement sought by the applicant:
9.	(a)    Amount of service tax accepted as payable for settlement (in Rs) (b)    Interest on the said admitted service tax (in Rs.): (Detailed calculations of (a) and (b) above to be enclosed as Annexure-I)
10.	Payment details of the service tax accepted, by the applicant, along with interest as at (9) above (TR-6 challan  or G.A.R.-7 number and date)  (Details to be enclosed as Annexure-II)
11.	Whether any application for settlement (other than the present one) has been filed by the applicant before any Bench of Settlement Commission.   If yes, the following information may be provided : (a)  Application No. and date (b) Amount admitted for settlement (c)  Show cause notice No. and date (d)   Status of the application, if decided, then details of the final order of the Commission: (i)  Settlement order No. and date (ii) Details of deposit of settlement amount (iii) Whether settlement amount has been paid in terms of the order (e)  If any application of the applicant was sent back/rejected by the Settlement Commission, the reference number and date of the order (f) Reference number and date of the order, if any, in case the applicant was convicted of any offence under Chapter V of the Act in relation to a case settled earlier by the Settlement Commission
12.	(i) Details of the order, if the applicant was ever debarred from making further application for settlement under section 32-O of Excise Act made applicable to Service Tax vide section 83 of the Act, by any of the Benches of the Settlement Commission (ii)  Details of the order, if any settlement in respect of the applicant has ever been made void under section 32L of Excise Act made applicable to Service Tax vide section 83 of the Act, by any of the Benches of the Settlement Commission

 Signature of the applicant

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Verification

I……………..son/daughter/wife of …………………. residing at……………. do solemnly declare that I am making this application in my capacity as………….and I am competent to verify it.
That the contents of this application are true and that I have not filed any application for settlement in contravention of the provisions of the Chapter V of Excise Act made applicable to service tax vide section 83 of the Act, before the Settlement Commission and also that no information relevant to the facts of the case has been suppressed.  Annexures of the documents accompanying the application are true copies of the originals and the tables showing financial transaction are correct and are duly attested by me.
That no proceeding in respect of the case for which settlement is being sought, is pending before Commissioner (Appeal), Customs, Excise and Service Tax Appellate Tribunal or the courts, as the case may be, or has been remanded back to the adjudicating authority by the said appellate authorities.
Verified today the………..day of……….(mention the month and year) at ………(mention the place)

Deponent

Note:    
1. The application fee should be credited in a branch of the authorised bank or a branch of the State Bank of India or a branch of Reserve Bank of India and the triplicate copy of the challan sent to the Settlement Commission with the application.  The Settlement Commission will not accept cheques, drafts, hundies or other negotiable instruments.
2. Please state whether individual, Hindu undivided family, company, firm, an association of persons, etc.
3.  Details of the additional amount of Service Tax accepted as payable and interest thereon referred to in item 9 of the application shall be furnished in Annexure to this application. 
4.  Original copy of the of the TR-6 challan indicating amount of service tax  accepted as payable for settlement and interest thereon referred to in item 9 be retained by the applicant, duplicate be endorsed to the Central Excise Officer having jurisdiction over the applicant, triplicate be endorsed to the jurisdictional Chief Accounts Officer of the Central Excise or Service Tax Commissionerate as the case may be, quadruplicate be retained by the bank and quintuplicate copy be enclosed with this application form. In the case of G.A.R.-7, photocopies of tax payer’s counterfoil, attested by the jurisdictional Central Excise Officer, may be furnished to various authorities.

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Annexure

Statement containing particulars, referred to in item 8 of the application, made under section 32E (1) of Excise Act made applicable to service tax vide section 83 of the Act.
1.      Details of information which has not been correctly declared in the periodical return;
2.      Service tax liability accepted out of the total service tax demanded in the show cause notice issued and the manner in which such service tax liability has been derived;
3.      Full and true disclosure of the facts regarding the issues to be settled including the terms of settlement sought for by the applicant.

Signature of the applicant

Place
Date

Service Tax Act and RULES and Current Rates of Service Tax
Service Tax (Compounding of Offences) Rules, 2012
Service Tax (Settlement of Cases) Rules, 2012
Point of Taxation Rules, 2011

Service Tax (Compounding of Offences) Rules, 2012

Service Tax (Compounding of Offences) Rules, 2012

[17/2012-Service Tax, dated 29-05-2012] 

 G.S.R. (E).- In exercise of the powers conferred by clause (i) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994)(hereinafter referred to as “the Act”) read with sub-section (2) of section 9A of the Central Excise Act, 1944 (1 of 1944), made applicable to service tax vide section 83 of  the Act, the Central Government hereby makes the following rules, namely :

1. Short title and commencement.-

(1)   These rules may be called the Service Tax (Compounding of Offences) Rules, 2012.
(2)   They shall come into force on the date of publication in the Official Gazette.

2. Definitions.- In these rules, unless the context otherwise requires,-
(a)  “Act” means Chapter V of the Finance Act, 1994 (32 of 1994);
(b)  “applicant” means any assessee or any other person, but shall not include officers of Central Excise appointed for exercising the powers under the Act under rule 3 of the Service Tax Rules, 1994;
(c)  “compounding authority” means the Chief Commissioner of Central Excise, having jurisdiction over the place where the offence under the Act, have been or alleged to have been committed;
(d)  “Excise Act” means the Central Excise Act, 1944 (1 of 1944);
(e)  “form” means the form appended to these rules;
(f)   “reporting authority” means, the Commissioner of Central Excise or Commissioner of Service Tax, having jurisdiction over the place where the offences under the Act have been or are alleged to have been committed or any other officer as may be authorised in this regard by the Chief Commissioner of Central Excise having jurisdiction over the place where such offences under the Act, have been or are alleged to have been committed;
(g)  “section” means a section of the Act; and
(h)  words and expressions used in these rules and not defined but defined in the Act or Central Excise Act, 1944 shall have the respective meanings assigned to them in the Act or Central Excise Act, 1944, as the case may be.

3. Form and manner of application.- An applicant may, either before or after the institution of prosecution, make an application under sub-section (2) of section 9A of  Excise Act, made applicable to service tax vide section 83 of the Act, in the form appended to these rules, to the compounding authority to compound the offence.
Explanation.- Where an offence under the Act has been committed at more than one place falling under the jurisdiction of more than one compounding authority, then the Chief Commissioner of Central Excise having jurisdiction over such place where the amount of service tax evaded is more than the others, shall be the competent authority.

4. Procedure on receipt of application under rule 3.- (1) On receipt of an application under rule 3, the compounding authority shall call for a report from the reporting authority with reference to the particulars furnished in the application, or any other information, which may be considered relevant for examination of such application.
(2) Such report shall be furnished by the reporting authority within a period of one month or within such extended period as may be allowed by the compounding authority, from the date of receipt of communication from the compounding authority.
(3) The compounding authority, after taking into account the contents of the said application, may, by order, either allow the application indicating the compounding amount in terms of rule 5 and grant him immunity from prosecution in terms of rule 6 or reject such application:
  Provided that application shall not be rejected unless an opportunity has been given to the applicant of being heard and the grounds of such rejection are mentioned in such order:
            Provided further that application shall not be allowed unless the service tax, penalty and interest liable to be paid have been paid for the case for which application has been made.
(4) A copy of every order under sub-rule (3) shall be sent to the applicant.
(5) The applicant shall, within a period of thirty days from the date of receipt of order under sub-rule (3) allowing the compounding of offences, pay the compounding amount, as ordered to be paid by the compounding authority and shall furnish the proof of such payment to the compounding authority.
(6) The compounding amount once paid shall not be refunded except in cases where the court rejects grant of immunity from prosecution.
(7) The applicant shall not claim, as of right, that his offence be compounded.

5.  Fixation of the compounding amount. - For the purpose of compounding of offences under the provisions of the Act, the compounding amount shall be as provided in the following Table, namely:-

Table

S.No.	Offence	Compounding amount
(1)	(2)	(3)
1.	Offence specified under section 89 (1)(a) of the Act	Up to fifty per cent. of the amount of service tax evasion, subject to minimum of ten per cent. of amount of tax evaded
2.	Offence specified under section 89 (1)(b) of the Act	Upto fifty per cent. of the amount of CENVAT Credit wrongly taken or utilised, subject to minimum of ten per cent. of said amount.
3.	Offence specified under section 89 (1)(c) of the Act	Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence
4.	Offence specified under section 89 (1)(d) of the Act	Upto twenty five per cent. of the amount of service tax not deposited subject to a minimum of two per cent. for each month for which the amount has not been so deposited.

            Provided that if a person has committed offences falling under more than one category specified above and where the amount of service tax evasion or amount of CENVAT Credit wrongly taken or utilised is the same for all such offences, the compounding amount, in such cases, shall be the amount as determined for the offence for which a higher compounding amount has been prescribed.

6.  Power of compounding authority to grant immunity from prosecution. - The compounding authority, if he is satisfied that any person who has made the application for compounding of offence under these rules has co-operated in the proceedings before him and has made full and true disclosure of facts relating to the case, grant such person, subject to such conditions as he may think fit to impose, immunity from prosecution for any offence under the Act, with respect to the case covered by the compounding of offence.

7. Withdrawal of immunity from prosecution in certain conditions. - (1) An immunity granted to a person under rule 6 shall stand withdrawn if such person fails to pay any sum specified in the order of compounding passed by the compounding authority, under sub-rule (3) of rule 4 within the time specified in the order or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of the Act, shall apply as if no such immunity had been granted.
(2) An immunity granted to a person under sub-rule (1) may, at any time, be withdrawn by the compounding authority, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any material particulars, or had given false evidence, and thereupon  the person may be tried for the offence with respect to which immunity was granted or for any other offence that appears to have been committed by him in connection with the compounding proceedings and, thereupon, the provisions of the Act, shall apply as if no such immunity had been granted.

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FORM

(See rule 3)

Application for Compounding of Offence

1. Full Name and permanent address of the applicant:
2. Address for communication:
3. (i) Permanent Account Number (PAN):
    (ii) Service Tax Registration No:
4. Commissioner of Central Excise/Service Tax having jurisdiction over the applicant:
5. Specific provision(s) of  Chapter V of the Finance Act, 1994, against whose violation, prosecution is instituted or contemplated for which application of compounding is being filed:
6. Details of Adjudication Order in relation to the case for compounding:
7. Brief facts of the case and particulars of the offence (s) charged:
8. Whether Show Cause Notice issued:
9. If yes, details of service tax demanded:
10. Whether Show Cause Notice has been adjudicated:
11. If yes, adjudication details:
(a) Amount of service tax confirmed:
(b) Amount of CENVAT credit to be recovered/denied:
(c) Penalty imposed:
12. Whether this is the first offence under Chapter V of the Finance Act, 1994, if not, details of previous cases:
13. Whether any proceedings for the same offence contemplated under any other law, if so, the details thereof:

Name and Signature of the applicant.

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DECLARATION

1. I shall pay the compounding amount, as may be fixed by the compounding authority under sub-rule (3) of rule 4 of the Service Tax (Compounding of Offences) Rules, 2012.
2. I understand that I shall not claim, as of right that the offence committed by me under the Act be compounded.

Name and Signature of the applicant.

VERIFICATION

I,  _______  son/daughter/wife of ____________  residing at __________do solemnly declare that I am making this application in my capacity as ______ and I am competent to verify it.
That the contents of this application are true to the best of my knowledge and belief and no information relevant to the facts of the case has been suppressed. The documents accompanying the application are true copies of the originals and the tables showing financial transactions are correct and are duly attested by me.
Verified today the _____________ day of (month) __________ (year) at_________.

Name and Signature of the applicant.

Place:   
Date:


Service Tax Act and RULES and Current Rates of Service Tax
Service Tax (Compounding of Offences) Rules, 2012
Service Tax (Settlement of Cases) Rules, 2012
Point of Taxation Rules, 2011