RULE NO.5

This query is : Resolved

gurru (Querist)
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26 October 2009 WE ARE c&F AGENT AND DISTRIBUTOR OF PETROLEUM COMPANY.WE HAVE RECEIVED A NOTICE FROM SERVICE TAX DEPARTMENT UNDER RULE 5 OF SERVICE TAX ACT 1994. THEY HAVE ASKED US TO PROVIDE ALL DETAILS REGARDING SERVICE TAX AND REGARDING INPUT SERVICES. PLEASE GUIDE US WHAT IS THIS RULE 5.WHAT ARE INPUT SERVICES AND HOW CAN WE UTILIZE INPUT SERVICES.IF WE DO NOT PROVIDE INFORMATION TO DEPARTMENT.WHAT CAN THEY DO.

ANIL JANGID

ANIL JANGID (Expert)
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26 October 2009 please see the Service Rule 5. Records â€“

(1) The records including computerised data8 , as maintained by an assessee in accordance with the various laws in force from time to time shall be acceptable.
(2) [ Every assessee shall furnish to the Superintendent of Central Excise at the time of filing of return for the first time or the 31st day of January, 2008, whichever is later, a list in duplicate, of-
(i) all the records prepared or maintained by the assessee for accounting of transactions in regard to,-

(a) providing of any service, whether taxable or exempted;
(b) receipt or procurement of input services and payment for such input services;
(c) receipt, purchase, manufacture, storage, sale, or delivery, as the case may be, in regard of inputs and capital goods;
(d) other activities, such as manufacture and sale of goods, if any.

(ii) all other financial records maintained by him in the normal course of business.]15

[(3) All such records shall be preserved at least for a period of five years immediately after the financial year to which such records pertain.
(4) [x x x]16

Explanation. - For the purposes of this rule, â€œregistered premisesâ€ includes all premises or offices from where an assessee is providing taxable services.â€] 6

Rule 5A. Access to a registered premises.

(1) An officer authorised by the Commissioner in this behalf shall have access to any premises registered under these rules for the purpose of carrying out any scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.

(2) Every assessee shall, on demand, make available to the officer authorised under sub-rule (1) or the audit party deputed by the Commissioner or the Comptroller and Auditor General of India, within a reasonable time not exceeding fifteen working days from the day when such
demand is made, or such further period as may be allowed by such officer or the audit party, as the case may be,-

(i) the records as mentioned in sub-rule (2) of rule 5;
(ii) trial balance or its equivalent; and
(iii) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 ( 43 of 1961), for the scrutiny of the officer or audit party, as the case may be.â€™â€™.