Amends Notification No. 18/2002-Service Tax - Exemption to service provided by consulting engineer on transfer of technology. - 46/2011 – Service Tax - Service Tax

Research and Development cess condition: exemption tied to timely payment and maintenance of linking records for transfer-of-technology services.

The Service Tax exemption for consulting-engineer services on transfer of technology is conditioned on payment of the Research and Development Cess payable under section 3 of the Research and Development Cess Act, 1986 and on maintaining records linking the invoice or credit entry to the cess payment challan. The cess must be paid within six months of the invoice or, for associated enterprises, the date of credit, and the exemption is available only if the cess is paid at or before payment for the service.