Service Tax - Furnishing of List of Records and Access to Registered Premises - Service Tax Rules, 1994 amended "

Vide notification no. 45/2007 dated 28-12-2007 service tax, legislature has made the following three amendments in the Service Tax Rules, 1994:

1 Furnishing of Records maintained by the Assessee

It is common understanding that as per Service Tax Provisions, since there are no prescribed statutory formats, an assessee may keep any record in any manner having the details of Services provided or Services received. In these records all the relevant details and particulars should be mentioned.

However, sub rule (2) to the rule 5 has been substituted to let the department know about the records being maintained by the assessee for the purpose of Service Tax and Cenvat Credit.

Therefore an assessee is required to furnish the list of records maintained by him:

-  Pertains to services on which he is liable to pay service tax.

- Pertained to Cenvat Credit

-  Pertains to other activities like Manufacturing and / or sales of goods.

-  Financial records

The list of records must be furnished either at the time of filing of return for the first time or the 31st day of January, 2008 whichever is later.

List of records shall be furnished before Superintendent.

List of records shall be furnished in Duplicate.

List of records shall be furnished only once during the lifetime.

Further, since there is prescribed format, an assessee is required to furnish the list of records on a simple letter head / paper containing the details as above.

2 Omitted Sub Rule (4) to the Rule 5

Sub rule (4) to the Rule 5 of Service Tax Rules, 1994 has been omitted. The provisions of this sub-rule were to enable Central Excise Officer or Audit Party to access all the records for Inspection and Examination.

Now this provision has been deleted and new rule 5A has been inserted as below.

3  Insertion of New Rule 5A

With the introduction of rule 5A, following provisions have been made:

•  Scrutiny, verification and checking of records;

- Any officer authorized by the Commissioner an access the premises of the assessee.

- Such access shall be for the purpose of carrying out any scrutiny, verification and checks

- Such scrutiny, verification and checks shall be necessary to safeguard the interest of revenue

• Revenue Audit of Records

-  Who can audit the records of the assessee:

o  Any officer authorized by the Commissioner, or

o   The audit party deputed by the Commissioner, or

o The Comptroller and Auditor General of India

- Every assessee shall be required to make available the following records for the purpose of Audit or Scrutiny:

(i)   All the Records maintained by him

(ii)   trial balance or its equivalent;  and

(iii) Tax Audit Report u/s 44AB

Furnishing of records requirement mandates list submission and authorises commissioner authorised officers to access premises for revenue scrutiny. Assessees must furnish a list of records pertaining to service tax, Cenvat credit, manufacturing/sales and financial records in duplicate to the Superintendent once; Rule 5A authorises officers authorised by the Commissioner, deputed audit parties, or the Comptroller and Auditor General to access premises for scrutiny and revenue audit, and requires production of all records, the trial balance or equivalent, and the Tax Audit Report under section 44AB.