This article discusses the important clauses required while Filing Service Tax Return:
|A1||Select “Yes” for Original Return or Revised Return, as the case may be.|
|A2||STC No. is the 15 digit PAN-based Service Tax Code number issued to assessee vide FORM ST-2 (Certificate of Registration issued by the Department).|
|A3||Name field has been disabled for any entry as it is auto fetched.|
|A4 / A5||Enter relevant financial year & period for which return is being filed.|
If the assessee has opted for Large Taxpayer Unit, then write its name. LTUs are self contained tax administration offices acting as a single window clearance point for al matters relating to excise/ service tax and direct taxes. Eligibility to opt for LTU scheme: Any person, engaged in the manufacture or production of goods, except the goods falling under chapter 24 or Pan Masala falling under chapter 21 of the First schedule of the Central Excise Tariff Act, 1985 (5 of 1986), or a provider of taxable service, has paid during the financial year 2004-05 or during the financial year preceding the year of filing of application under para 3(i), –
service tax of more than rupees five hundred lakhs in cash or through account current; or
advance tax of more than rupees ten hundred lakhs, under the Income Tax Act, 1961(43 of 1961),
|A7||Premises Code: This field has been disabled. No need to fill this field as it will be auto- fetched.|
|A8||Appropriate Constitution of business should be selected from the dropdown. In case of incorrect selection of Constitution, the return will be liable for rejection. Those assessees who have this field as ‘Others’ or a ‘-‘ in their registration, should immediately file amendment to correct the constitution in their registration data.|
Though with effect from 1st July 2012, classification of services has been dispensed with, the assessee is required to select the name(s) of taxable service(s). The details in the return have to be furnished service wise.
Assessees, registered or amended their registration on or after 01.07.2012 with the service description ‘Other than in the Negative List’ have to amend their Registration online to delete the said description and add the relevant description(s) of Taxable Service(s).
|Taxable services need not be selected in cases where the assessee is an exclusive ISD.|
|A10.1 to A10.5||
Select whether assessee is liable as Service Provider/Service receiver. Then select in the same column whether Partial reverse charge is applicable. If applicable, then give the percentage of Service tax payable.
*For better understanding refer Reverse Charge Mechanism.
|A11.1/11.2||If assessee has availed benefit of any exemption notification, the notification number and relevant Serial number (in the notification).|
If assessee has availed abatement from the value of services, he has to furnish the notification number and relevant Serial number (in the notification).
*Refer Abatement for rates.
Gross amount for which bills/invoices/challans are issued against taxable service provided or agreed to be provided or received/agreed to be received (in case of service receiver), which are taxable on accrual basis, as per the Point of Taxation Rules is to be mentioned in this column
(b) amount taxable on receipt basis, which is applicable to individuals and partnership firms whose aggregate value of taxable services during previous financial year was less than or equal to rupees fifty lakh and he opts to pay tax at the time when payment is received by him in respect of taxable value of rupees fifty lakh in the financial year to which return relates as per third proviso to
Rule 6(1) of Service Tax Rules, 1994, for which bills or invoices or challans or any other documents may not have been issued, because it has to be shown in column B1.3;
Amount received (or paid in case of service receiver) in advance is the total amount received (or paid in case of service receiver) for the particular taxable service before provision of service (including any amount received for continuous service), and
(A) it includes,-
(a) amount received towards exported service,
(b) amount received towards exempted service (other than export of service),
(c) amount received as Pure Agent, and
(d) amount received which is liable to be included in the value in terms of Rules 5(1) & 6(1) of the Service Tax (Determination of Value) Rules, 2006
(B) it excludes
(a) Service Tax,
(b) Education Cess, and
(c) Secondary and Higher Education Cess
|B1.3/ B2.3||This is applicable to individuals and partnership firms whose aggregate value of taxable services during previous financial year is less than or equal to rupees fifty lakh and he opts to pay tax at the time when payment is received by him in respect of taxable value of rupees fifty lakh in the financial year to which return relates.|
|B1.5/ B2.4||(i) The value of consideration charged (or paid in case of service receiver), other than money, is to be estimated in equivalent money value of such consideration in terms of the Service Tax (Determination of Value) Rules, 2006.|
|(ii) ‘Consideration’ includes any amount that is payable for the taxable services provided or to be provided, as defined in Explanation to Section 67 of the Act.|
Write the amount under Reverse Charge In case of some services, the liability to pay Service Tax has been placed on the recipient of service in terms of sub-section (2) of section 68 of the Finance Act, 1994 read with Rule 2(1)(d)(i) of the Service Tax Rules, 1994. In respect of such services, the amount on which Service Tax is payable has to be shown as calculated in terms of Rule 7 of Point of Taxation Rules, 2011.(Partial reverse charge).
*Refer Reverse Charge Mechanism table.
With effect from 01.07.2012, export of services are not to be taxed under Service Tax, as per Place of Provision of Services Rules, 2012. As it is included in Gross amount, therefore, fill up said amount in column B1.8 also for claiming deduction of said amount from the gross amount.
*Refer Export of Service Guidelines
|B1.9/ B2.9||‘Exempted Service’ refers to the taxable service which is exempt, for the time being, from payment of Service Tax under a notification, other than by way of abatement. As it is included in Gross amount, therefore, fill up said amount in column B1.9 also for claiming deduction of said amount from the gross amount.|
‘Pure Agent’ has been defined in Explanation 1 to Rule 5 of the Service Tax (Determination of Value) Rules, 2006. Acc. To which ” “pure agent” means a person who–
(a) enters into a contractual agreement with the recipient of service to act as his pure agent to incur expenditure or costs in the course of providing taxable service;
(b) neither intends to hold nor holds any title to the goods or services so procured or provided as pure agent of the recipient of service;
(c) does not use such goods or services so procured; and
(d) receives only the actual amount incurred to procure such goods or services As it is included in Gross amount, therefore, fill up said amount in column B1.10 also for claiming deduction of said amount from the gross amount.
‘Abatement’ refers to the part of value of taxable service which is not includible in the taxable value for payment of Service Tax through notification, such as Notification No. 26/2012-ST, dated 20.06.2012 issued under Section 66B of the Finance Act, 1994 or any other notification applicable. As it is included in Gross amount, therefore, fill up said amount in column B1.11 also for claiming deduction of said amount from the gross amount.
*Refer Abatement Table
|B1.12/ B2.12||Any deduction, which is not mentioned in any other clause, from gross value of taxable service has to be provided (For example, deduction of property tax paid in respect of the taxable service of renting of an immovable property in terms of Rule 6(4C) of Service Tax Rules, 1994 read with Notification No. 29/2012-ST, dated 20th June, 2012). A text field has been provided for furnishing the details of such deductions claimed, which is mandatory.|
|B1.15/ B1.16 andB2.15/ B2.16||This table is for filling Advalorem Rate. When different rates are used Sum of Service Tax rate-wise break up of Value (B1.15 / B1.16) should be equal to Net Taxable Value (B2.14 / B2.16).|
|B1.16 / B2.16||
As per Rule 6 of the Service Tax Rules, 1994, the service Providers/Recipients in respect of some services assessee have an option to pay service tax at specific rates.
*Refer Specific Rate table
|B1.17to B1.21||The Service tax Payable, R&D cess deductible, Edu cess payable etc. shall be computed here.|
Amount charged for services received from Non-Taxable
Territory is to be entered in this column. This includes value on import of services.
B2.5 – Amount charged for services received from Non-Taxable territory – Imports
B2.6 – Amount charged for services received from Non-Taxable territory – Other than Imports
|D1||Here amount paid in cash against service tax payable is to be shown. It includes amount paid by cheque.|
|D2||Here amount of CENVAT Credit utilised by Service Provider (and not receiver) to pay Service tax is shown.|
|D3/ E3/ F3||If any amount has been paid in advance as Service Tax in terms of Rule 6(1A) of Service Tax Rules, 1994 and the assessee has adjusted that amount against his Service Tax liability, such adjustment has to be shown here.|
|D4/ E4/ F4||Rule 6(3) of Service Tax Rules, 1994 allows adjustment of Service Tax amount which was paid earlier in respect of taxable service not provided wholly or by the service provider or where the amount of invoice is re-negotiated. Such adjustment is to be shown here.|
|Example: A service provider receives an advance of Rs 1000/- on which he pays a Service Tax of Rs.120/-. However, later on he does not provide this service and refunds the amount to the person from whom the advance was received. He can, in this case, adjust the amount of Rs.120/- for any of his future liability of Service Tax.|
|D5/ E5/ F5||Rule 6(4A) of Service Tax Rules, 1994 allows adjustment of Service Tax amount paid in preceding months or quarter, which is in excess of the Service Tax liability for such month or quarter. Such adjustment is to be shown here.|
|Example: A service provider having centralized registration pays an amount of Rs 1000/- as Service Tax for services provided by him from his five branches. However, on receipt of information from these branches, the Service Tax liability is computed as Rs 900/-. In this case he has paid an excess amount of Rs.100/- as Service Tax. He can adjust this excess amount of Rs.100/- against Service Tax liability for succeeding month/quarter.|
|D6/ E6/ F6||Rule 6(4C) of Service Tax Rules, 1994 allows adjustment of Service Tax amount paid in preceding months or quarter, which is in excess of the amount required to be paid towards Service Tax liability for such month or quarter on account of non-availment of deduction of property tax paid in terms of Notification No. 29/2012-ST, dated 20th June, 2012 from the gross amount of rent charged for the immovable property. Such adjustment is to be shown here.|
|D7/ E7/ F7||Filled by specified Government Departments who are liable for service tax but the payment of the same is effected by way of ‘adjustment of entries’ and not by Cash.|
|G1 to G6||
Arrears of revenue paid now includes,-
(a) amount that was payable earlier but not paid;
(b) amount pending recovery on finalization of adjudication or appellant stage, as the case may be;
(c) amount pending in appeals without having any stay for recovery; or
(d) amount arising on finalization of provisional assessment etc.
|G7||Any amount collected in excess of the Service Tax assessed or determined and paid on any taxable service from the recipient of taxable service in any manner, has to be paid to the credit of the Central Government as per the provisions of Section 73A of the Finance Act, 1994. Assessee may furnish any such amount here.|
In case of delayed payment of service tax, there is a mandatory simple interest under section 75 for the
Amount of Penalty under section 77 , which is not exceeding Rs. 10,000.
|G11||Any other amount paid may be specified. (It may include amount paid in terms of any Adjudication Order, any Appellate Order, etc.)|
|H1||Any cash payment made by way of Challan should be entered here, even if entry has been made in any other section / row. The amount entered here is validated with the cash payment entered in the PAID section in D / E / F / G sections of the return. If any amount is entered as paid by cash, such amount should have a contra entry in Challan Details section in H1. The Challan No. should be correctly entered in this section. In case of incorrect CIN, the return will be marked for Review on validation.|
|H2||Source document details for adjustment made in accordance with Rule 6(1A), Rule 6(3), Rule 6(4A), Rule 6(4C),entry adjustment for Government Department, Arrear, Interest, Penalty, Late fee paid.|
|I||Enter here Detail of Input CENVAT Credit only by Service Provider.|
|I1.1||Exempted Services are taxable Services which are Exempt by Notification whereas Non- taxable Services are Services in Negative List.|
|I1.2||Details of Exempt excisable goods by a manufacturing concern.|
|I1.3||If any of I1.1 or I1.2 is Yes then: Rule 6(2) of CENVAT Credit Rules 2004: Where a manufacturer or provider of output service avails of CENVAT credit in respect of any inputs or input services, and manufactures such final products or provides such output service which are chargeable to duty or tax as well as exempted goods or services, then, the manufacturer or provider of output service shall maintain separate accounts for receipt, consumption and inventory of input and input service meant for use in the manufacture of dutiable final products or in providing output service and the quantity of input meant for use in the manufacture of exempted goods or services and take CENVAT credit only on that quantity of input or input service which is intended for use in the manufacture of dutiable goods or in providing output service on which service tax is payable.|
|I1.4.1||Rule 6(3)(i) of CENVAT Credit Rules 2004: the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, pay an amount equal to 6%. of value of the exempted goods and the exempted services and pay an amount equal to 2% in case of services of transportation of passenger or goods by rail.|
|I1.4.2||Rule 6(3)(ii) of CENVAT Credit Rules 2004:the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, shall pay an amount as determined under sub-rule (3A).|
|I1.4.3||Rule 6(3)(iii) of CENVAT Credit Rules 2004: maintain separate accounts for the receipt, consumption and inventory of inputs and take CENVAT credit only on input which are used for the provision of output services excluding exempted services. Further in respect of input services , an amount as determined under rule 6(3A) is required to be paid i.e. proportionate reversal of the amount of CENVAT credit attributable to exempted services. In simple word, this is combination of Rule 6(2) and Rule 6(3)(ii). In respect of input, separate account for receipt, consumption and inventory are to be kept and CENVAT credit is to be taken only on those input which are used for provision of output services excluding exempted services . On the other hand , in respect of input services, the amount of CENVAT credit attributable to exempted services is required to be proportionately reversed.|
|I2||The amount payable under Rule 6 (3) of CENVAT Credit Rule 2004 as enunciated above should be filled accordingly.|
|I3.1.1 to I3.1.5||
(i) Enter the details of CENVAT credit availed on input/ capital goods/ input services received directly by the assessee, are to be shown.
(ii) Against Sl. No. I 184.108.40.206, furnish the details of Service Tax credit as received from ‘Input Service Distributor’.
(iii) Against Sl. No. I 220.127.116.11, details have to be filled only by Large Taxpayer Unit who has opted to operate as LTU.
|I18.104.22.168 to I22.214.171.124||Enter details of CENVAT Credit utilised for Service tax, Edu cess, S&H Edu cess etc. For utilisation against excise duty by an assessee who is service provider as well as manufacturer of excisable goods, the CENVAT credit on inputs, capital goods and input services which are used for manufacture of goods or for provision of services is available in a common pool and can be used for payment of excise duty and/or service tax. Therefore, the amount of CENVAT credit taken during a period, which is shown in ER-1 or ST-3 return, should be same. Also, give CENVAT utilisation for payment for clearance of input goods and inter unit transfer of LTU|
|I 126.96.36.199||CENVAT Credit utilized for payment made under rule 6(3) of CENVAT Credit Rules to be mentioned here.|
|I3.2 and I3.3||Details of CENVAT credit taken and utilised in respect of Secondary and Higher Education Cess has to be shown separately in these columns. The details correspond to I3.1.|
|I188.8.131.52/I184.108.40.206 /I220.127.116.11||The Assessee can enter Credit taken other than for the reasons listed along with the reasons in the Text box.|
|J1/ J2/ J3||This information has to be furnished by an input service distributor who has availed CENVAT credit of the Service Tax paid on the services used in a unit which is exclusively engaged in manufacturing of exempted excisable goods or providing exempted services, as such credit is not liable to be distributed in terms of Rule 7(b) of the CENVAT Credit Rules, 2004.|
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