Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 49/2010 - Service Tax
New Delhi, the 8th October, 2010
G.S.R. (E).- In exercise of the powers conferred by sub-sections (1) and (2) of
section 94 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the
said Act), the Central Government hereby makes the following rules further to
amend the Service Tax Rules, 1994, namely :-
- (1) These rules may be called the Service Tax (Second Amendment) Rules, 2010.
(2) They shall come into force on the date of their publication in the Official
Gazette.
- In the Service Tax Rules, 1994 (hereinafter referred to as the said rules),
in rule 6, after sub-rule (7B), the following shall be inserted, namely:-
“(7C) The distributor or selling agent, liable to pay service tax for the
taxable service of promotion, marketing, organising or in any other manner
assisting in organising lottery, referred to in sub-clause (zzzzn) of clause
(105) of section 65 of the said Act (hereinafter referred to as the said
sub-clause), shall have the option to pay an amount at the rate specified in
column (2) of the Table given below, subject to the conditions specified in the
corresponding entry in column (3) of the said Table, instead of paying service
tax at the rate specified in section 66 of Chapter V of the said Act:
Table
| Sl. No. |
Rate |
Condition |
| (1) |
(2) |
(3) |
| 1. |
Rs 6000/- on every Rs 10 Lakh (or part of Rs 10 Lakh) of aggregate face value of
lottery tickets printed by the organising State for a draw |
If the lottery or lottery scheme is one where the
guaranteed prize payout is more than 80% |
| 2. |
Rs 9000/- on every Rs 10 Lakh (or part of Rs 10 Lakh) of aggregate face value of
lottery tickets printed by the organising State for a draw |
If the lottery or lottery scheme is one where the
guaranteed prize payout is less than 80% |
Provided that in case of online lottery, the aggregate face value of lottery
tickets for the purpose of this sub-rule shall be taken as the aggregate value
of tickets sold, and service tax shall be calculated in the manner specified in
the said Table.
Provided further that the distributor or selling agent shall exercise such
option within a period of one month of the beginning of each financial year and
such option shall not be withdrawn during the remaining part of the financial
year.
Provided also that the distributor or selling agent shall exercise such option
for financial year 2010-11, within a period of one month of the publication of
this sub-rule in the Official Gazette or, in the case of new service provider,
within one month of providing of service under the said sub-clause and such
option shall not be withdrawn during the remaining part of that financial year.
Explanation.- For the purpose of this sub-rule-
- “distributor or selling agent” shall have the meaning assigned to them in
clause (c) of the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the
Government of India in the Ministry of Home Affairs published in the Gazette of
India, Part-II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st
April, 2010 and shall include distributor or selling agent authorised by the
lottery organising State.
- “draw” shall have the meaning assigned to it in clause (d) of the rule 2 of
the Lottery (Regulation) Rules, 2010 notified by the Government of India in the
Ministry of Home Affairs published in the Gazette of India, Part-II, Section 3,
Sub-section (i) vide number G.S.R. 278(E) dated 1st April, 2010.
- “online lottery” shall have the meaning assigned to it in clause (e) of
the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of
India in the Ministry of Home Affairs published in the Gazette of India,
Part-II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April,
2010.
- “organising state” shall have the meaning assigned to it in clause (f) of
the rule 2 of the Lottery (Regulation) Rules, 2010 notified by the Government of
India in the Ministry of Home Affairs published in the Gazette of India,
Part-II, Section 3, Sub-section (i) vide number G.S.R. 278(E) dated 1st April,
2010.
(Prashant Kumar)
Under Secretary to the Government of India
[F. No.B-1/21/2010 -TRU]
Note.- The principal rules were notified vide notification No. 2/94-Service Tax,
dated the 28th June 1994 and published in the Gazette of India, Extraordinary
vide number G.S.R.546 (E), dated the 28th June 1994 and were last amended vide
notification
No. 39/2010-Service Tax, dated the 28th June, 2010 which was
published vide number G.S.R. 560 (E), dated the 28th June, 2010.