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Service Tax

Service Tax-Returns

Filing of Half Yearly Return

Section 70

Every person liable to pay service tax shall submit a half yearly return.

The return shall be furnished in Form - ST3.

For the half year ending 30th September return shall be submitted by 25th October.

For the half year ending 31st March, return shall be submitted by 25th April.

The following documents to be enclosed with the ST-3 return:

- Copy of TR-6 challans
- Copy of Cenvat Credit Register.
- Interest calculation worksheet wherever applicable u/s 75

Return in case of provisional assessment

Where is person is allowed to assessee the service tax provisional he has to file a return in Form ST-3A alongwith a return in Form ST-3 and relevant documents.

Details of the account maintained

While filing the fist return of service tax, every assessee must furnish a list of all accounts maintained by the assessee in relation to service tax, including memoranda received from his branch offices. Ruel 5(2)

It is a one time exercise.

Where to file the return and details of account

The return in Form ST-3 and details of accounts to be filed before the jurisdictional Superintendent of Central Excise.

Electronic filing of ST-3 return

With effect from 2-1-2004, the facility of e-filing of ST-3 return has been extended to all the taxable services. Circular No. 71/1/2004 ST dated 2/1/2004

The following steps to be followed to file ST-3 return electronically

- Obtain 15 digit STP code.
- Use STP code on all the TR-6 challans
- An application for permission of e-filing of ST-3 to be filed before A/C or D/c in Annexure I.

For further details see the above circular.

Nil Return

If a person gets himself registered with the service tax department, he has to follow all the procedures and submit all the relevant documents which are necessary, even if he is not providing any services during the concerned half year.

Therefore, even if he is not providing any service or not liable to pay any service during the corresponding Half Year for which return is due to be submitted, he is required to file return in Form ST-3 or ST-3A as the case may be, as a NIL return.

However, in various instances, the tribunal has taken liberal stand for non filing or late filing of NIL return and rejected the penalty proceedings for the same. (Re. SAJJAN KUMAR KARIWALA v. CCE 2003 (159) E.L.T. 1131 -Tri. - Del.)

Return in case of Multiple Services or Multiple Locations

It may be possible that an assessee is providing more than one services which are liable to be taxed under different categories of sub clauses of clause 105 of section 65 of the act.

In this circumstances, he is allowed to take a single registration for all the services and accordingly he is allowed to file a single service tax return in form ST-3. However, vide circular no. 72/2/2004 St dated 2/1/2004 it has been clarified that details in each of the column in Form ST-3 has to be furnished separately for each of the taxable service rendered by the assessee.

Where a person took single registration for multiple locations

Where a single registration has been taken for multiple locations, the assessee is required to file single ST-3 return. Though there is no specific provision has been made in the Act or rules, Commissioner of Customs & Central Excise, Hyderabad-IV has issued a Trade Notice notice no. 76/2003 dated 6/11/2000, addressing this issue and accordingly:

- Centralised Office premises should submit a monthly statement branch wise based on the daily monthly sales receipt submitted by the Branch Offices to the main office.

- The centralised office shall consolidate the monthly statement showing branch-wise receipt and arrive at the total Service Tax payable and pay on monthly/quarterly basis depending on the type of the assessee.

- The monthly statements of centralised office with the branch reports and payment details should be submitted before the Superintendent of Central Excise along with ST-3 return.

Penalty for Non Filing or Late filing of Return

Section 77There is no specific penalty for non filing or late filing of return under the Act. A general penalty has been provided under section 77 where a person contravenes any of the provisions of the Act or rules made there under.

The penalty under section 77 is applicable where there is no penalty is separately provided.

Maximum penalty is Rs. 1000/-.

Therefore, for non-filing or late filing of service tax return there can be a maximum penalty of Rs. 1000/-. But before imposing penalty under section 77, the proper officer has to issue a show cause notice.

Revision of Service Tax Return

There is no provision in the Act or rules for revising the return which has filed earlier and found incorrect later by the assessee. Also department can not direct the assessee to file a revise return.

Therefore a question arises that when a mistake is revealed or wrong particulars have been submitted in the return, what are the options are available to the assessee?

Where service tax has been paid less than due

Where assessee found that the service tax was payable more than that he has deposited, he is advised to deposit the difference amount and intimate the service tax department in the appropriate manner.

When service tax has been deposited in excess

He may file an refund application stating all the facts and circumstances in which excess amount has been paid.

(Note: - also see a detailed discussion on "Refund of Service Tax")