RETURNS

1. STATUTORY PROVISIONS IN SERVICE TAX LAWS

Section 70 of Finance Act, 1994.

(1) Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency and with such late fee not exceeding two thousand rupees, for delayed furnishing of return, as may be prescribed

(2) The person or class of persons notified under sub-section (2) of section 69 shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.

Rule 7 of Service Tax Rules, 1994

(1)  Every assessee shall submit a half yearly return in From ‘ST-3’ or ‘ST-3A’, as the case may be, along with a copy of the Form TR-6, in triplicate for the months covered in the half-yearly return.

(2)  Every assessee shall submit the half yearly return by the 25th of the month following the particular half-year.

Provided that where an assessee has paid a total service tax of rupees ten lakh or more including the amount paid by utilisation of CENVAT credit, in the preceding financial year, he shall file the return electronically”.

Rule 7A of Service Tax Rules, 1994

Notwithstanding anything contained in rule 7, an assessee, in case of service provided by:

• goods transport operator for the period commencing on and from the 16th day of November, 1997 to 2nd day of June, 1998; and
• clearing and forwarding agents for the period commencing on and from the 16th day of July, 1997 to 16th day of October, 1998, shall furnish a return within a period of six months from the 13th day of May, 2003, in Form ‘ST-3B’ along with copy of Form TR-6 in triplicate, failing which the interest and penal consequences as provided in the Act shall follow.

Rule 7B of Service Tax Rules, 1994

An assessee may submit a revised return, in Form ST-3, in triplicate, to correct a mistake or omission, within a period of ninety days from the date of submission of the return under rule 7.

Rule 7C of Service Tax Rules, 1994

Where the return prescribed under rule 7 is furnished after the date prescribed for submission of such return, the person liable to furnish the said return shall pay to the credit of the Central Government, for the period of delay of-  

(i) fifteen days from the date prescribed for submission of such return, an amount of five hundred rupees;

(ii) beyond fifteen days but not later than thirty days from the date prescribed for submission of such return, an amount of one thousand rupees; and

(iii) beyond thirty days from the date prescribed for submission of such return an amount of one thousand rupees plus one hundred rupees for every day from the thirty first day till the date of furnishing the said return:

Provided that the total amount payable in terms of this rule, for delayed submission of return, shall not exceed the amount specified in section 70 of the Act:

Provided further that where the assessee has paid the amount as prescribed under this rule for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall be deemed to be concluded.

Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.

Explanation. - It is hereby declared that any pending proceedings under section 77 for delayed submission or non-submission of return that has been initiated before the date on which the Finance Bill, 2007 receives the assent of the President, shall also be deemed to be concluded if the amount specified for delay in furnishing the return is paid by the assessee within sixty days from the date of assent to the said Finance Bill.

1. ANALYSIS

(1)       Service tax return

The service tax return is required to be filed under Section 70 of the Act read with rule 7 of the Rules, by 'any person liable to pay the service tax'.  This return is required to be filed on a half yearly basis, in Form ST-3. For the periods from April to September and October to March, it must be filed by the 25th October and the 25th April respectively. Further, ‘Input Service Distributor’ is also required to file this return. Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return.

A single service tax return should be filed (in Form ST-3) in respect of all taxable services provided by an assessee.

(2)          Contents of the return

Apart from the general details, like financial year, half year period (April-September or

October-March), name of the assessee, registration number of the premises for which return is being filed, category of taxable services, the contents of the return inter alia, also include month-wise details of:

• amount received towards taxable service
• amount received in advance towards taxable service to be provided
• amount billed for exempted services and services exported without payment of tax
• amount billed for services on which tax is to be paid
• abatement claimed - value
• notification number of abatement and exemption
• service tax payable
• education cess payable
• TR-6 challan date and number
• credit details for service tax provider/recipient

Note: I personally think it is impossible to cram these items. But, I promise that if you have taken a glimpse of these items of form ST-3, then you would be able to write in exams with great confidence.

FORM ST-3

(IN TRIPLICATE)

(Return under Section 70 of the Finance Act, 1994)

(Please see the instruction carefully before filling the form)

ORIGINAL

/

REVISED

RETURN (Strike whichever is NOT applicable)]

Financial Year				2009-2010
For the period (Please tick the appropriate period)
	April-September		October-March

1A	Has the assessee opted to operate as large Taxpayer [Y/N]
(As defined under Rule 2 (ea) of the Central Excise Rules, 2002 read with rule 2(1)(cccc) of the Service Tax Rules, 1994)
1B	If reply to column 1A is 'Yes', name of large taxpayer unit(LTU) opted for (name of city)

2A

Name of assessee

2B

STC No.

2C

Premises code No.

2D	Constitution of assessee	(i) Individual/Proprietary		(ii) Partnership
	(Please tick the appropriate category)	(iii) Registered Public Ltd Company		(iv) Registered Pvt. Ltd. Comp.
		(v) Registered Trust		(vi) Society/ Co-op Society
		(vii) Others

3. Computation of Service Tax

(to be filled by a person liable to pay service/Not to be filled by input service distributor)

      (To be repeated for every category of taxable service on which service tax is payable by the assessee)

A1

Name of Taxable Service

A2	Assessee is liable to pay service tax on this taxable service as,	(please tick the appropriate category)
	(i) a Service Provider, or
	(ii) a Service receiver liable to make payment of Service tax

B

Sub-clause No. of clause (105) of section 65

(please see instruction)

C1

Has the assessee availed benefit of any exemption notification ('Y/N')

C2

If reply to column 'C1' is 'Yes', Please furnish notification Nos.

D

If abatement is claimed as per notification No. 1/2006-ST, Please furnish Sr. No. in the notification under which such abatement is claimed.

E1

Whether provisionally assessed('Y/N')

E2   Prov. assessment order No.('if any')

F

Value of taxable service, service tax payable and gross amount charged.

Month/Quarter**

Oct

Nov

Dec

Jan

Feb

March

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(I)

Service tax payable

(a)

Gross amount received/(paid #) in money

(i) against service provided

(ii) in advance for service to be provided

(b)

Money equivalent of consideration received/(paid #) in a form other than money

(c)

Value on which service tax is exempt/not payable

(i) Amount received against export of service ^

(ii) Amount received/(paid #) towards exempted service        (other than export of service i.e. (i above)

(iii) Amount received as/(paid to #) pure agent (Please see instructions)

(d)

Abatement amount claimed

(e)

Taxable value=(a+b) minus (c+d)

(f)

Service tax rate wise break-up of taxable value =(e)

(i) Value on which service tax is payable          @ 5 %

(ii) Value on which service tax is payable          @ 8 %

(iii) Value on which service tax is payable          @ 10 %

(iv) Value on which service tax is payable          @ 12 %

(v) other rate, if any (please specify)

(g)

Service tax payable= (5 % of f(i)+ 8% of f(ii) + 10 % of f(iii) +12 % of f(iv) + f(v) X other rate)

(h)

Education cess payable (@ 2% of service tax)

(i)

Secondary and higher education cess payable (@ 1% of Service Tax)   (Please see instruction))

(II)	Taxable amount charged
(j)	Gross amount for which bills/invoices/challans are issued relating to service provided/to be provided (including export of service and exempted service)
(k)	Money equivalent of other consideration charged, if any, in a form other than money
(l)	Amount charged for exported services provided/to be provided ^
(m)	Amount charged for exempted service provided/to be provided (other than export of service given at (1) above)
(n)	Amount charged as pure agent (please see instruction)
(o)	Amount claimed as abatement
(p)	Net taxable amount charged = (j+k) minus (l+m+n+o)

**Assessee liable to pay service tax on quarterly basis may furnish details quarter wise i.e. Apr-Jun, Jul-Sep, Oct-Dec, Jan-Mar

# Applicable when service receiver is liable to pay service tax; ^ Not applicable to service receiver liable to pay service tax.

4. Amount of Service tax paid in advance under sub-rule(1A) of rule 6

	Month/Quarter**	Oct	Nov	Dec	Jan	Feb	Mar
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
(a)	Amount deposited in advance
(b)	Challan Nos
(c)	Challan dates

4A. Service Tax, education cess and other amounts paid (To be filled by a person liable to pay service tax / not to be filled by input service distribution)

	Month/Quarter**	Oct	Nov	Dec	Jan	Feb	Mar
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
(I)	Service tax, education cess, secondary and higher education cess paid
(a)	Service Tax paid:-
	(i) in cash
	(ii) by CENVAT credit ^
	(iia) by adjustment of amount earlier paid in advance and adjusted in this period under rule 6(1A)
	(iii) by adjustment of excess amount paid earlier and adjusted in this period under Rule 6(3) of ST Rules
	(iv) by adjustment of excess amount paid earlier and adjusted in this period under Rule 6(4A) of ST Rules

(b)	Education cess paid:-
	(i) in cash
	(ii) by CENVAT credit ^
	(iia) by adjustment of amount earlier paid in advance and adjusted in this period under rule 6(1A)
	(iii) by adjustment of excess amount paid earlier and adjusted in this period under Rule 6(3) of ST Rules
	(iv) by adjustment of excess amount paid earlier and adjusted in this period under Rule 6(4A) of ST Rules

(c)	Secondary and higher education cess paid:-
	(i) in cash
	(ii) by CENVAT credit ^
	(iia) by adjustment of amount earlier paid in advance and adjusted in this period under rule 6(1A)
	(iii) by adjustment of excess amount paid earlier and adjusted in this period under Rule 6(3) of ST Rules
	(iv) by adjustment of excess amount paid earlier and adjusted in this period under Rule 6(4A) of ST Rules

(d)	Other amount paid:-
	(i) Arrears of revenue paid in cash
	(ii) Arrears of revenue paid by credit ^
	(iii) Arrears of education cess paid in cash
	(iv) Arrears of education cess paid by credit ^
	(v) Arrears of Sec & higher edu cess paid by cash
	(vi) Arrears of Sec & higher edu cess paid by credit
	(vii) Interest paid
	(viii) Penalty paid
	(ix) Section 73A amount paid ^
	(x) Any other amount (please specify)
(II)	Details of challan (Vide which service tax education cess, secondary and higher education cess and other amount paid in cash)
(a)	Challan Nos	(1)
		(2)
		(3)
		(4)

(a)	Challan Date	(1)
	(May please be furnished in the order of Challan	(1)
	Nos furnished above)	(2)
		(3)

**Assessee liable to pay service tax on quarterly basis may give detail quarter wise i.e. Apr-Jun, Jul-Sep, Oct-Dec, and Jan - Mar

^Not Applicable to service receiver liable to pay service tax

4B.  Source documents details for entries at column 4A(I)(a)(iii), 4A(I)(a)(iv), 4A(I)(b)(iii), 4A(I)(b)(iv), 4A(I)(c)(iii), 4A(I)(c)(iv), 4A(I)(d)(i) to (vii)

(To be filled only if any entry is made against column 4A(I)(a)(iii), 4A(I)(a)(iv), A(I)(b)(iii), 4A(I)(b)(iv), 4A(I)(c)(iii), 4A(I)(c)(iv), 4A(I)(d)(i) to (vii)

Entry in table 4A above		Source documents No./Period	Source documents date
S.No.	Month / Quarter
1
2
3

4C.	Details of amount of service tax payable but not paid as on the last day of the period for which return is filed......................

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