Service Tax

Service Tax

Notification No. 5/2015-Service Tax dated 01.03.2015 prescribes the authentication of invoices by digital signature by way of introduction of Rule 4C and sub-rule (4) of Rule 5 in service Tax Rules ,1994

“Rule 4C. Authentication by digital signature– (1) Any invoice, bill or challan issued under rule 4A or consignment note issued under rule 4B may be authenticated by means of a digital signature.

(2) The Board may, by notification, specify the conditions, safeguards and procedure to be followed by any person issuing digitally signed invoices.”;

“In Rule 5, sub-rule (4)

Records under this rule may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature.

(5) The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee preserving digitally signed records.

Explanation – For the purposes of rule 4C and sub-rule (4) and (5) of this rule,- (i) The expression “authenticate” shall have the same meaning as assigned in the Information Technology Act, 2000 (21 of 2000). (ii) The expression “digital signature” shall have the meaning as defined in the Information Technology Act, 2000 (21 of 2000) and the expression “digitally signed” shall be construed accordingly.”

Note –

a. manual signature will not be required rather a digital signature can be used for all authentications on the invoices.
b. the records which are maintained electronically shall be preserved with digital signature on each and every page of such record.

c. The aforesaid provisions shall be effective from 1^st March 2015