Workshop for Accountants
23rd February, 2012
CA Kejal V. Pandya
Partner
Kejal Pandya & Associates
Chartered Accountants




Basics
Methods of Preparing Return
Steps prior to e-filing
Practical Issues
CA Kejal V. Pandya
23.02.2012
2

Applicability of
electronically:
filing
Service
Tax
Return
◦ Vide Rule 7 amended by Notification No. 43/2011-ST
dated 25/08/2011
◦ With effect from 25th August, 2011

Website
◦ http://servicetaxefiling.nic.in
CA Kejal V. Pandya
23.02.2012
3



Prepare Return directly on website
Download Excel utility, prepare Return and
upload XML
Use ready made software
CA Kejal V. Pandya
23.02.2012
4

File an application to the jurisdictional
Asst./Deputy Commissioner of Service Tax,
specifying –
◦ 15-digit PAN based registration number (STP Code)
◦ Valid e-mail address

Department will send User ID and Password to
be used
◦ to file ST Return
◦ To avail other online facilities
CA Kejal V. Pandya
23.02.2012
5




Log on to the Service Tax e-filing home page
Upon entering the Service Tax code, user ID
and password, you will be
permitted to
access the e-filing facility.
Follow the instructions given therein for filing
the Returns
Obtain the acknowledgement.
CA Kejal V. Pandya
23.02.2012
6


Download latest excel utility before filing ST
Return every time to cover the updates
provided by the department in the utility
Read instructions before preparing Return
CA Kejal V. Pandya
23.02.2012
7
No facility to segregate Service wise credit
available (b/f and c/f)
 No facility to attach any document to
provide additional information/clarification
from assessee’s side
 After uploading the Return, the amount in
the Return is shown as zero.


Contact
department
immediately
confirm the Return amount ASAP
CA Kejal V. Pandya
23.02.2012
and
8



In excel utility, auto calculation not available
resulting into manual calculation and entry for
all fields
Filing of Return under "Goods Transport
Operators Service" allowed though this service
has been replaced by "Transport of Goods by
Road (GTA) Service"
This may lead to errors - ACES system should
be updated in this regards.
CA Kejal V. Pandya
23.02.2012
9




Can a public holiday be considered as
"grace day" for counting penal clause of nonfiling of service tax Returns? That too in an
24*7 online era of Return filing?
No clarification from law in this regard.
Penalty of Rs.20,000 even in case of NIL Return
Penalty to be paid for all Returns filed after
01.04.2011 i.e. Returns of earlier years filed
late? – law is silent
CA Kejal V. Pandya
23.02.2012
10



“Save” option available only at the end of the
online Return
Page number not available making it difficult
to verify if anything is missed out
Direct access to any particular page not
available, hence whole Return has to be
scrolled for editing
CA Kejal V. Pandya
23.02.2012
11


In case of centralized registration, Return is to
be filed with consolidated data under the
premises code of the address which is
registered
for
centralized
billing
and
accounting.
Option for all premises code is provided for
selection instead of the main code… may
result in error
CA Kejal V. Pandya
23.02.2012
12

Entries of more than one challans paid in the
single month
◦ Excel utility
Select Month/Quarter
October
October
October
GAR-7 Challan(s)
69103330909201050025
69103330909201050036
02001880710201100097
CA Kejal V. Pandya
23.02.2012
13

Online Utility
(II) DETAILS OF CHALLAN (VIDE WHICH SERVICE TAX EDUCATION
CESS, SECONDARYAND HIGHER EDUCATION CESS AND OTHER
AMOUNTS PAID IN CASH)
Month
April
May
GAR-7 Challan
00033210407201100011,02001880707201100086
00033210410201100033,02001880710201100086
CA Kejal V. Pandya
23.02.2012
14

Is it required to add "Trading values" in column
of total billing or total receipts received while
filing ST-3
◦ No. The assessee shall avoid trading values or total
excluded values of services while totaling the gross
billing required to be shown in ST-3.
CA Kejal V. Pandya
23.02.2012
15



Incorporating Source Document in service
tax return?
The
source
document
is
reference
of document against which payment
of service tax, interest or penalty is paid either
in cash or in credit.
The document could be audit report, order of
any service tax authority or demand notice.
CA Kejal V. Pandya
23.02.2012
16

If
assessee
does
not
know
against
which document payment is made or
lost/misplaced the document, assessee can
generate a dummy number to feed the
source document data field.
CA Kejal V. Pandya
23.02.2012
17

The source document number consists five
variables as follows:
• Service Tax Number
• Authority against which payment is made (i.e. AC =
Assistant Commissioner)
• year of order or report
• Serial number of order or report (in three digit)
• Prefix OIO (i.e. Order in Original).
CA Kejal V. Pandya
23.02.2012
18

This number will help field officers in knowing
exact outstanding left against a particular
order or report.
CA Kejal V. Pandya
23.02.2012
19



Entry number 4B requires source document
If the returns are filed through Excel Utilities:
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), 4A(I)(b) (iii), 4A(I)(b) (iv),
4A(I)(c) (iii), 4A(I)(c) (iv), 4A(I)(d) (i) to (vii)
CA Kejal V. Pandya
23.02.2012
20
Reference to adjustment
and other Payment Head
Select
Payment
Type
Other
amounts
paid –
Penalty
Month/
Quarter
October
Source document
No./ Period
Date
AAACL0566
HST001_AC_
17/11/2011
2011_000_O
IO
CA Kejal V. Pandya
23.02.2012
21

If the returns are prepared directly online
4B. SOURCE DOCUMENT 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)
Entry in table Service
tax, educational
cess, secondary and
higher education
cess paid
Select
S. No.
S No.
Other Amounts paid1
Penalty
Month
No./ Period
Date
AADRE98 07/12/20
70hST001 11
CA Kejal V. Pandya
23.02.2012
22
Mismatch in Service Tax Payable and Paid
while Filing Service Tax Return or Generating
XML



Service Tax paid & payable figures are not
matching
Education Cess paid & payable figures are not
matching
Secondary Ed. Cess paid & payable figures are not
matching
CA Kejal V. Pandya
23.02.2012
23
Reason for Mismatch error:
 The online service tax returns (whether filed
directly online or through Excel Utilities) does a
reconciliation between service tax payable
and service tax paid (either in cash or credit).
 If there is any difference or mismatch it shows the
above errors.
CA Kejal V. Pandya
23.02.2012
24
Course of action to remove these errors:
 These errors are avoidable and returns can be
filed with these errors
 One must check the calculations of service
tax payable and actually paid.
 If there is any major mismatch the same should
be solved first and then move on to file the
returns.
!!! Thank You !!!
!!! Never Give Up !!!
CA Kejal V. Pandya
23.02.2012
26