OFFICE OF THE COMMISSIONER OF SERVICE TAX

6th Floor, MHU COMPLEX, 692, ANNA SALAI, NANDANAM, CHENNAI 600035

 

Trade Notice No. 15/2007 ST                                             Dated: 21.05.2007

 

SUB:- Levy of 1% Secondary and Higher Education Cess – Regarding.

 * * * * * *

                                                A Secondary and Higher Education Cess @ 1%  has been levied w.e.f. 11.05.2007 in the case of all services which are taxable services.  It is levied on the service tax payable on such services.  This Cess is in addition to the existing Education Cess of 2%  imposed in budget 2004.

 

                        The Secondary and Higher Education Cess is to be calculated in the same manner as Education Cess of 2% imposed in budget 2004. 

 

                        The Credit of the Education cess can be used for the payment of the Education Cess.  The Credit of Secondary and Higher Education Cess can be used for the payment of  the Secondary and Higher Education Cess. [Copy of  Notification No. 27/07-CE (NT) dated 12.5.07 is enclosed in this regard.]

 

                        Consequent to the imposition of this  Secondary and Higher Education Cess, relevant  amendments have been made in Notification No.11/2005 ST dated 19.4.2005 regarding Rebate of duty on export to all countries other than Nepal and Bhutan  and No.12/2005 ST dated 19.4.2005 regarding Rebate of Central Excise duty paid on inputs or Service Tax paid on all taxable input service used in providing taxable service exported to any country other than Nepal and Bhutan.  Copy of  respective notifications Nos. 21/2007-ST and 22/2007-ST both dated 12.5.2007 enclosed for information.

 

                        All the Trade Associations are requested to bring the contents of the Trade Notice to the attention of  their members, in particular, and the trade and all other concerned in general. 

 

                          ( Issued from file  C.No. IV/16/01/2007-STC )

 ( P.K.JAIN )

  COMMISSIONER

Encl:- As above

 

To

1. As per mailing list. (Both Trade and Department.)

2. Members of the R.A.C.

3. Copy to : Superintendent, Computer Section for publishing in the Departmental WEB-Site

 

 

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

 

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

                                   (Department of Revenue)                                 

 New Delhi, the 12th May, 2007

  22 Vaisakha, 1929 (Saka)

Notification  No. 27/2007-Central Excise (N.T.)

 

G.S.R.     (E). In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

 

1.         (1) These rules may be called the CENVAT Credit (Sixth Amendment) Rules, 2007.

            (2)  They shall come into force on the date of their publication in the Official Gazette.

 

2.         In the CENVAT Credit Rules, 2004, in rule 3,

            (i) in sub-rule (1),  

                    (a) for clause (via), the following clause shall be substituted, namely:-

                            “(via) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 

                             (22 of 2007);”;   

(b) after clause (x), the following clause shall be inserted, namely:-

                            “(xa) the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 

                            (22 of 2007); and”;

 

            (ii) in sub-rule (7), in clause (b),-

                       

                    (a) for sub-clause (iiia), the following sub-clause shall be substituted, namely:-

 

                            “(iiia) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007

                              (22 of 2007);”;

 

                    (b) after sub-clause (vi), the following sub-clause shall be inserted, namely:-

 

                        “(via) the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007

                         (22 of 2007); and”;

 

                    (c) after sub-clause (vii), for the portion beginning with the words “shall be utilized only towards payment of duty of excise” and ending with the words 

                        “after being partially processed or on any output service”, the following shall be substituted, namely:-

 

 

                         “shall be utilised towards payment of duty of excise or as the case may be, of service tax leviable under the said Additional Duties of Excise 

                        (Textiles and Textile Articles) Act, 1978 or the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), 

                        or the education cess on excisable goods leviable under section 91 read with section 93 of the said Finance (No.2) Act, 2004 (23 of 2004), 

                        or the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007

                         (22 of 2007) or the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003), or the education cess on taxable 

                        services leviable under section 91 read with section 95 of the said Finance (No.2) Act, 2004 (23 of 2004), or the Secondary and Higher Education 

                        Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007), or the additional duty of excise 

                        leviable under section 85 of the Finance Act, 2005 (18 of 2005) respectively, on any final products manufactured by the manufacturer or for payment 

                        of such duty on inputs themselves, if such inputs are removed as such or after being partially processed or on any output service”;

                       

                    (d) for the proviso, the following provisos shall be substituted, namely:-

 

                        “Provided that the credit of the education cess on excisable goods and the education cess on taxable services can be utilized, either for payment 

                        of the education cess on excisable goods or for the payment of the education cess on taxable services:

 

 

                        Provided further that the credit of the Secondary and Higher Education Cess on excisable goods and the Secondary and Higher Education 

                        Cess on taxable services can be utilized, either for payment of the Secondary and Higher Education Cess on excisable goods or for the payment 

                        of the Secondary and Higher Education Cess on taxable services.”

   [F.No.B1/6/2007-TRU]

                                               

(R. Sriram)

Deputy Secretary to the Government of India

 

Note: The principal rules were published in the Gazette of India, Extraordinary vide notification No. 23/2004-Central Excise (N.T.), dated the 10th September, 2004, vide GSR 600 (E), dated the 10th September 2004, and were last amended vide notification No.26/2007-Central Excise (N.T.), dated the 11th May, 2007, vide G.S.R.    (E), dated the 11th May, 2007.

 

 

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

 

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

                                   (Department of Revenue)                                 

 New Delhi, the 12th May, 2007

  22 Vaisakha, 1929 (Saka)

Notification  No. 21/2007 – Service Tax

 

G.S.R.      (E). In exercise of the powers conferred by rule 5 of the Export of Services Rules, 2005, the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.11/2005-Service Tax, dated the 19th April, 2005 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 239(E) dated the 19th April, 2005, namely:-

 

In the said notification, in the Explanation, after paragraph (b), the following paragraph shall be inserted, namely:-

 

“(c) Secondary and Higher Education Cess on taxable services levied under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007).”

 

 

[F. No. B1/6/2007-TRU]

(R. Sriram)

                                           Deputy Secretary to the Government of India

 

Note.-  The principal notification No.11/2005-Service Tax, dated the 19th April, 2005 was published in the Gazette of India, Extraordinary, vide number G.S.R. 239(E), dated the 19th April, 2005;

 

 

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

 

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

                                (Department of Revenue)                                 

 New Delhi, the 12th May, 2007

 22 Vaisakha, 1929 (Saka)

Notification No. 22/2007 – Service Tax

 

G.S.R.      (E). In exercise of the powers conferred by rule 5 of the Export of Services Rules, 2005, the Central Government hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.12/2005-Service Tax, dated the 19th April, 2005 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 240(E) dated the 19th April, 2005, namely:-

 

In the said notification, in Explanation 1, after paragraph (b), the following paragraph shall be inserted, namely:-

 

“(c) Secondary and Higher Education Cess on taxable services levied under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007).”

 

 

[F. No. B1/6/2007-TRU]

(R. Sriram)

                                           Deputy Secretary to the Government of India

 

Note.-  The principal notification No.12/2005-Service Tax, dated the 19th April, 2005 was published in the Gazette of India, Extraordinary, vide number G.S.R. 240(E), dated the 19th April, 2005, and was last amended vide notification No. 14/2005-Service Tax, dated the 13th May, 2005 vide G.S.R. 302(E), dated the 13th May, 2005;