Baroda Branch of WIRC of ICAI
Young Members Clinic
Service Tax Returns
CA. Manilal Parsiya
19th September, 2014
Returns [Section 70 & Rule 7]
Returns have to be filed in Form ST-3 on half yearly basis by the 25th
of the month following the particular half-year[Rule 7(2)].


DUE DATES FOR FILING OF SERVICE TAX RETURN
For the half year
To be filed by
1st April to 30th September
25th October
1st October to 31st March
25th April
DATES FOR FILING OF ISD RETURN
[Rule 9(10) of CENVAT Credit Rules,
2004]

For the half year
To be filed by
1st April to 30th September
30th October
1st October to 31st March
30th April
Every assessee shall submit the half-yearly return electronically.
[Rule 7(4)]
Revise Return [Rule 7B]

Assessee is allowed to rectify mistakes or omission and file
revised return including CENVAT credit return within 90 days
from the date of filing of the original return.

We can file revised return even in case original return is filed
late.
Late Fee for Delay in Filling of Return
[Section 70] [Rule 7C]

The assessee is required to pay following amount of late fee
depending upon the period of delay, but not exceeding Rs.
20,000.
No. of days delay from due date for filing of
service tax return
Late Fees in Rs.
From 1st day up to 15th day
500
From 16th day up to 30th day
1000
Delay beyond 30 days
100/- per day
Whether Late Fee or Penalty is Leviable in case a Registered Assessee but not
Liable to Service Tax due to Threshold Exemption.

Furnishing of Returns - Section 70
(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 SCE, a
return…...
(2) The person or class of persons notified under sub-section (2) of
section 69, shall furnish to the SCE, a return…….

Rule 7(1) of Service Tax Rules, 1994

Every assessee shall submit a half yearly return in Form ST-3…..

Definition of Assessee – Section 65B(12)
“Assessee” means a person liable to pay tax and includes his agent.
Whether Late Fee or Penalty is Leviable in case a Registered
Assessee but not Liable to Service Tax due to Threshold
Exemption.

Circular No. 97/8/07-ST, dated 23-8-2007 Para 6.1 of the Circular “……….
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”.

Third proviso to Rule 7C of Service Tax Rule, 1994:
“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.”

If no service is rendered by service provider, there is no requirement to file ST3 Returns, as he is not liable to pay any service tax – Suchak Marketing (P.) Ltd.
v. CST, 35 taxmann 360 (Kolkata - CESTAT)

From reading of the above, a person, whose receipts are below Rs. 10 lacs or is
not rendering any services is not an assessee as he is not liable to collect any
service tax. Hence, merely by virtue of being registered with the Service Tax
Department would not render anybody liable to file a Return.
Service Tax Returns

How to fill Service Tax Return

How to file Service Tax Return
Structure of Service Tax Return
PART A – General Information
PART B – Value of Taxable Service and Service Tax
Payable
PART C – Service Tax Paid in Advance
PART D, E, F – Service Tax, EC, HSEC Paid in Cash
and through CENVAT Credit
PART G – Arrears, Interest, Penalty and any other
amount etc. paid
Structure of Service Tax Return

PART H1- Details of Challans

PART H2 - Source Documents for details of
payment made in advance and
adjustment

PART I – Details of CENVAT

PART J – Credit details for Input Service
Distributor

PART K –Self Assessment Memorandum
PART A –
General Information

Field with * (red asterisk) is compulsory to be filed for
validate the sheet

Some field like Name of the Assessee, premises code
shall come automatically while uploading the return

Most of fields except fields having amount to be filled
are having drop down selection

Most of grey fields are having pre-fixed selection
options
PART A –
General Information

Add all services for which registration has been taken.

Separate sheets shall be available for each services we
have added.

Service after added cannot be edited; it can be deleted by
“delete service” option keeping cursor on red colored cell.

Majority time assessee is either a service provider or a
service receiver for a particular category of service except
few exceptions.

After selecting option in green cells “Yes”, grey cells shall
be turned in to green and data can be entered in that
cell.
PART A –
General Information

Data is to be filled in respective sheet either as a service
receiver or as a service provider or for both.

More than one exemptions and/or abatement
notifications and serial nos. can be selected by “add
notification” menu.

Case of partial reverse charge is being treated as an
exemption and we have to select ‘Yes’ in exemption menu.

Rebate on service tax on export of services under
notification can be shown in Point B1.12 – Any other
amount claimed as deduction, please specify

Serial No. appears after selection of exemption
notification
PART B – Value of Taxable Service and Service Tax Payable
– Service Provider

Quarter/month wise gross amount(excluding ST) for which
bills/invoices/challans are issued less amount on which Service Tax has
already charged on advance receipt basis in earlier quarter/month and
bills/invoices/challans on which Service Tax charged on partial reverse
charge basis is to be shown against Sl. No. B1.1.
 Gross amount is the value of all services, other than those services specified in
the negative list provided any where except in the State of Jammu and
Kashmir(B1.1).
 Gross amount shall include amount charged towards export service, exempt
service, amount charged as pure agent, amount includible in terms of rule
5(1) (reimbursement of expenses ) and rule 6(1) of ST(Determination of
Value Rule), 2006 etc.

Post POTR, tax obligation generally arises on accrual or realization of
consideration, whichever is earlier (subject to few exceptions). Amount
received in advance for service whether taxable or exempt is to be
shown against S. No. B1.2.
PART B – Value of Taxable Service and Service Tax
Payable – Service Provider

As per third proviso to Rule 6(1) of Service Tax Rules, 1994, in case of individual
and partnership firms whose aggregate value of taxable services is fifty lakh
rupees or less in the previous financial year, the service provider shall have the
option to pay tax up to a total of rupees fifty lakhs in the current financial year
on receipt basis.

If assessee has opted to pay Service Tax on receipt basis as above than such
amount taxable on receipt basis is to be shown against Sl. No. B1.3.

Amount taxable for service provided for which no bills, invoices, challans or any
other documents have been issued under Rule 4A(1) of ST Rules, is to be shown
against Sl. No. B1.4

The value of consideration charged other than in money, is to be estimated in
equivalent money value of such consideration in terms of the Service Tax
(Determination of Value) Rules, 2006 is to be shown against Sl. No. B1.5.

Gross amount on which Service Tax is payable on partial reverse charge whether
on accrual or advance basis is to be shown against Sl. No. B1.6.
PART B – Value of Taxable Service and
Service Tax Payable – Service Receiver

Quarter/month wise gross amount(excluding ST) for which bills/invoices/challans are received less
amount on which Service Tax already charged on advance payment in earlier quarter/month and
bills/invoices/ challans on which Service Tax charged on partial reverse charge basis is to be
shown against Sl. No. B2.1.

Amount paid in advance for service whether taxable or exempt is to be shown against S. No.
B2.2.

Sl. No. B2.3 is not relevant in case of service receiver since third proviso to rule 6(1) of Service
Tax Rules, 1994 is applicable only to service provider

The value of consideration paid other than in money, is to be estimated in equivalent money
value of such consideration in terms of the Service Tax (Determination of Value) Rules, 2006 is to
be shown against Sl. No. B2.4.

Amount paid for service received from non-taxable territory – imports is to be shown against Sl.
No. B2.5.

Amount paid for service received from non-taxable territory – other than imports is to be shown
against Sl. No. B2.6.

Amount on which Service Tax is payable on partial reverse charge whether on accrual or advance
basis is to be shown against Sl. No. B2.7.
PART B – Value of Taxable Service and Service
Tax Payable – Exemption and Deductions

Amount of service exported is to be shown against Sl. No. B1.8.

Amount charged for exempted service other than export (and amount paid in
case of service receiver) including non-taxable portion of value of service
included under partial reverse charge is to be shown against Sl. No. B1.9 and
B2.9 respectively.

Against Sl. No. B1.10 and B2.10 amount received/paid as pure agent (for
example Taxes, Duties, Fees etc paid on behalf of service receiver and claim
reimbursement through bills/invoices).

Abatement on specified services under Notification such as 26/2012-ST dated
20.06.2012 (details as per earlier slides) is to be shown against Sl. No. B1.11
and B2.11

Sl. No. B1.12 and B2.12 covers any deductions which is not mentioned in any
other clause. (For example, deduction of property tax paid in respect of the
taxable service of renting of immovable property in terms of 6(4C) of Service Tax
Rules, 1994 read with Notification No. 29/2012-ST. or exemption in case of
taxable service involving import of technology under Notification No. 14/2012-ST
dated 17.07.2012)
PART B – Value of Taxable Service and Service
Tax Payable – Service Tax Rate wise Break up

Different rate of Service Tax like 12%, 10%, 8%, 5% can be entered by adding
row and quarter/month wise Net Taxable Value is to be entered for advalorem
rate and specific rate (Rule 6 of ST Rules provides for specific rate in case of air
travel agent service, foreign exchange broker service and service of promotion,
marketing, organizing lottery).

Taxable amount is to be converted into taxable unit in case of specific rate(For
ex. In case of the distributor or selling agent, liable to pay service tax for the
taxable service of promotion, marketing, organising or in any other manner
assisting in organising lottery, shall have the option to pay an amount at the rate
Rs. 7000 on every Rs. 10 lakh (or part of Rs. 10 lakh) of aggregate face value of
lottery tickets printed by the organising State for a draw, during any calendar
month or quarter.)

Aggregate quarter/month wise total of service tax rate wise break up value must
match with Net Taxable Value at B1.14 & B2.14.

Amount can only be entered against R & D Cess cell, if exemption Notification
No. 36/2010-ST has been selected at exemption menu.
PART C – Service Tax Paid in Advance
Rule 6(1A) provides that every person liable to pay service
tax, may, on his own volition, pay an amount as service tax
in advance and adjust the amount so paid against the
service tax which he is liable to pay for the subsequent
period :
Provided that the assessee shall,—
(i)
intimate the details of the amount of service tax paid in
advance, to the jurisdictional Superintendent of Central
Excise within a period of fifteen days from the date of
such payment; and
(ii)
indicate the details of the advance payment made, and
its adjustment, if any in the subsequent return to be filed
under section 70 of the Act.]
PART D, E, F – Service Tax, EC, HSEC Paid in Cash
and through CENVAT Credit
1
Amount paid by challan
2
Amount paid by CENVAT (not applicable in case of service receiver)
3
Amount of Service Tax paid in Advance adjusted in terms of Rule 6(1A) of ST Rules.
4
Rule 6(3) of ST Rules allows adjustment of Service Tax amount which was paid earlier in
respect of taxable service not provided wholly or partially by the service provider or where the
amount of invoice is re-negotiated. Such adjustment is to be shown here.
5
Rule 6(4A) of ST Rules 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.
6
Rule 6(4C) of ST Rules 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 from the gross amount of rent charged for the immovable
property. Such adjustment is to be shown here.
7
Details of Source Documents relating to Sl. No. D,E&F(3,4,5,6&7) are to be provided in Part
H2 of the return.
PART G – Arrears, Interest, Penalty and any
other amount etc. paid
1. Arrears of revenue includesa) 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.
PART G – Arrears, Interest, Penalty
and any other amount etc. paid
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 as
per the provisions of Section 73A of the Finance Act, 1994.
Assessee may furnish such amount here.
G8
Interest paid (in cash only)
G9
Penalty paid (in cash only)
G10
Amount of late fee paid for any delayed filing of return has to
be entered here as prescribed under Rule 7C of ST Rules.
G11
Any other amount paid may be specified. (It may include
amount paid in terms of any adjudication order, any appellate
order, etc.)
PART H Details of Challans and
Source Documents

Source document details for payment made in advance or
adjustment, for entries made at Sl. No. D, E & F (3, 4, 5, 6 & 7)
and G1 to G11.

Enter relevant Sl. No. D, E & F (3, 4, 5, 6 & 7) or G1 to G11 for
adjustment or payment of ST at source document detail sheet.

Enter month/quarter in which adjustment or payment is shown at
Sl. No. D, E & F (3, 4, 5, 6 & 7) or G1 to G11.

Against source documents, following details may be furnished,i)
For adjustment under rule 6(3) of Service Tax Rules, 1994,
furnish details of earlier return, from where excess amount
is derived
(ii)
For adjustment under rule 6(4A), furnish details of earlier
return, from where excess amount is derived
PART H Details of Challans and
Source Documents
(iii)
For arrears, interest and penalty, the source document/period
is as follows,(a) in case these are paid suo moto by the assessee, the period for which such amount is
paid may be furnished
(b) if paid consequent to a show cause notice (SCN) or order, the source document is
relevant SCN No./Demand Notice No., Order-in-Original No. or Order-in-Appeal No., or
any other order , etc.;
(iv)
For adjustment of excess amount of service tax paid on the
service of ‘Renting of Immovable Property’ in case the taxpayer
has not availed the deduction of property tax paid in terms of
Rule 6(4C) of the Service Tax Rules, 1994 read with
Notification No. 29/2012-ST, dated 20th June, 2012 and he opts
to avail such deduction against his service tax liability within 1
year from the date of payment of such property tax, the source
document is original receipt issued by the concerned
department of State Government showing the payment of
such property tax.
PART I – Details of CENVAT

Details at Sl. No. I1 is to be given only in case of
assessee provides exempted and non-taxable service
or manufacturing exempted excisable goods.

Rules 6(2) of CENVAT Rules, 2004 provides 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 including receipt
and consumption of input service and input goods…
PART I – Details of CENVAT

Rule 3 of CENVAT Rules, 2004 provides if the manufacturer of
goods or the provider of output service, opting not to maintain
separate accounts, then he shall follow any one of the following
options, as applicable to him, namely:—
(i)
pay an amount equal to six per cent of value of the exempted
goods and exempted services; or
(ii)
pay an amount as determined under sub-rule (3A); or
(iii)
maintain separate accounts for the receipt, consumption and
inventory of inputs and pay an amount as determined under subrule (3A) in respect of input services;
(Note: Rule 3A prescribed method of deriving CENVAT reversal amount
on the basis of formulae and procedure to be followed including
advance intimation to Superintendent of Central Excise)
PART I –
Details of CENVAT

Details at Sl. No. I2 is only to be provided if
separate books are not maintained.

Always check last return for opening CENVAT
balance available.

CENVAT Credit can be carried forward upto
six months.

Service Tax paid under reverse charge by
challan, if CENVATable, can be claim as
CENVAT in the same month/quarter.
How to file Service Tax Return
1.
Fill up the return data
2.
Validating sheets
3.
Validate return and generate XML
4.
Upload XML file in to ACES Application
5.
Status can be Uploaded, Filed or Rejected
6.
If rejected, it needs to be corrected and
uploaded again.