Digital Mode of
Payment while Making Financial Transactions – Past Assessment
[Service Tax Circular F.No.
137/155/2012-Service Tax (Part-I) dated 9th December 2016]
Recent initiatives of the government to curb
black economy in the country encourage people to shift towards digital mode of
payment while making financial transactions. By adopting a digital mode of
payment, no financial transaction would remain undisclosed and consequently an
enhanced turnover might get reflected in the books of accounts. Under the circumstances
an apprehension has been raised that increased turnover on account of use of digital
means of payment may lead to demands for the earlier period. It is hereby
clarified that in indirect taxes, past assessments will not be reopened for
this reason alone.
[Service
Tax Notification No. 52 dated 8th December 2016]
In
exercise of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government being satisfied that it
is necessary in the public interest so to do, hereby makes the following
further amendments in the notification of the Government of India in the
Ministry of Finance (Department of Revenue) No.25/2012-Service Tax, dated the 20th
June, 2012, published in the Gazette of India, Extraordinary, Part II, Section
3, Sub-section (i) vide number G.S.R. 467 (E),
dated the 20th June, 2012, namely:-
In
the said notification, in the opening paragraph, after entry 63, the following
entry shall be inserted, namely,-
“64.
Services by an acquiring bank, to any person in relation to settlement of an
amount upto two thousand rupees in a single
transaction transacted through credit card, debit card, charge card or other
payment card service.
Explanation.
— For the purposes of this entry, “acquiring bank” means any banking company,
financial institution including non-banking financial company or any other
person, who makes the payment to any person who accepts such card.”
[F.
No. 356/21/2016-TRU]
[Service
Tax Notification No. 53 dated 19th December 2016]
In
exercise of the powers conferred by sub-section (1), read with sub-section (2)
of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government
hereby makes the following rules further to amend the Service Tax Rules,
1994,namely:-
1.
(1) These rules may be called the Service Tax (Fifth
Amendment) Rules, 2016.
(2)
They shall come into force on the date of their publication in the official gazette.
2.
In the Service Tax Rules, 1994, in rule 4C, in sub-rule (1), the following
proviso shall be inserted, namely:-
‘Provided
that a person located in non-taxable territory providing online information and
database access or retrieval services to a non-assesse online recipient located
in taxable territory may issue online invoices not authenticated by means of a
digital signature for a period upto 31st January,
2017’
[F.
No.354/149/2016 -TRU]