24 September 2009
(VI) Changes in the Service Tax Rules, 1994: (1) Rule 6 is being amended to insert sub-rule (1A) to extend the facility to pay service tax in advance to all taxable persons. Service tax paid in advance is allowed to be self-adjusted towards service tax liable to be paid for the subsequent period; (2) Rule 6(4B)(iii) is being amended to allow self-adjustment of excess service tax paid upto Rs.1 lakh for a relevant month or quarter, as the case may be, instead of the earlier limit of Rs.50,000; (3) Rule 7B is being amended to allow an assessee to rectify mistakes and file revised return within 90 days, instead of the earlier limit of 60 days, from the due date for filing of original return; (4) Rule 7C is being amended to empower the Central Excise Officer to reduce or waive the penalty for delayed filing of return, where the gross amount of service tax payable is nil. [refer notification No.4/2008-Service Tax, dated 01.03.2008] The above changes will come into effect from 1st March 2008.
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