Indirect Taxes- Proecedural Aspects
Transcript of Indirect Taxes- Proecedural Aspects
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Procedural Aspect Under
Service
Himanshu AhireRoll No 13
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Procedures of Service Tax
Registration
Maintenance of Records
Payment of Service Tax
Half Yearly Returns
No Prescribed form of RecordsRecords Maintain under income tax,company lawor vat are acceptable
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Registration &Maintenance of Records
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Registration
A person liable for paying service tax has to registerwith Superintendent of Central Excise under whosejurisdiction your premises fall.
He should register within 30 days from date of
commencement of the business of providing taxableservice.
The person will have to apply for registration in formST-1.
If a person is providing more than one taxable service, hemay make a single application.
He should mention in the application all the taxable
services provided by him.4
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Documents Required for registration
Applicant should submit following at the time of filingapplication for registration
copy of PAN
proof of residence and
Constitution of applicant.
Copy of memorandum of association or partnership deedand a list of partners/directors
The registration certificate will be granted bySuperintendent of Central Excise in seven days
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Service Tax Code (STC)
Service Tax Code(STC) is a fifteen digit PANbased number. Also know as Registration No
Premises code:- This number is used for easyidentification of location of registration of tax payer
Changes to be informed in form ST-1 within 30 days
Cancellation/surrender of registration: If the
assessee ceases to carry on the activity for which he isregistered, he should surrender the registrationcertificate to the Superintendent of Central Excise [Rule4(7)].
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Centralised Registration
A person liable for paying service tax
Provides such service from more than one premises oroffices (e.g. providing banking service or maintenance
service from various branches/offices); or
receives such service in more than one premises oroffices
He should have centralised billing system or centralisedaccounting system in respect of such service.
Such centralised billing or centralised accounting systemsare located in one or more premises.
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Centralised Registration
He can register such premises or offices from wherecentralised billing or centralised accounting systems are
located More than one centralised registration of regional/zonal
offices at various places is permissible
Centralised Registration will be granted byCommissioner in whose jurisdiction the premises oroffices, from where centralised billing or accounting isdone, are located
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Invoice by service provider
Assessee should prepare invoice in respect of hisservices.
The Invoice should be prepared within 14 days from dateof completion of taxable service or receipt of paymenttowards the value of taxable service, whichever is earlier.
Details required to be shown in invoice/bill/challan
(1)Name, address and registration number of person providing taxable service(2) Name and address of person receiving taxable service(3) Description, classification and value of taxable service provided or to be provided(4) Service tax payable on the taxable service(5) signed by authorised person of provider of input services.
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Invoice by service provider
Education cess and SAH education cess to be shownseparately
Relaxation in case of banking and financialservices - e.g. name of person receiving service notrequired
Invoice in case of continuous service :-Periodically e.g. telephone bill
Invoice at end of billing period - end of billingperiod
Advance payment from customers:-service taxwill be payable as soon as advance is received
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Payment Of Tax
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Payment of tax
A person liable to pay tax shall pay the same inprescribed manner [section 68(1)].
The service tax is payable 5th (6th in case of e-payment)of the month following the month in which payments arereceived toward value of taxable services except inMarch
If the assessee is an individual or proprietary firm orpartnership firm, the tax is payable on quarterly basiswithin 5 days (within 6 days if e-payment is made) at theend of quarter except in March.
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Payment of tax
Exception in March : paid by 31st March.
Payment of tax on amounts actuallyreceived : Service tax is not payable on amountscharged in the bills/invoice, but on amounts actuallyreceived.
Payment of tax in advance: A person liable to payservice tax can pay any amount in advance towards futureservice tax liability.
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Self Adjustment of excess tax paid
Facility of self-adjustment of excess service tax paid hasbeen allowed to all assessees subject to the followingconditions prescribed in rule 6(4B)
Self adjustment only in case of reasons like calculationmistake, exact amount not known etc.
Adjustment in subsequent month/quarter
Inform details of adjustment within 15 days to theSuperintendent of Central Excise
Assessees having centralized registration : no limit onadjustment on account of delayed payment receipt.
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Returns
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Returns
Every assessee has to submit half yearly return in formST-3 in triplicate within 25 days of the end of the half-year.
Half year means 1st April to 30th September and 1stOctober to 31st March of financial year.
Details in respect of each service are to be provided
separately.
Last date for filing return is a bank holiday:- NextWorking Day
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Returns
Revised return:- Rule 7B- Allow an assessee torectify mistakes and file revised return within 90 daysfrom the date of filing of the original return.
What is to be done if mistake comes to noticeafter 90 days?
There is no provision for submission of revised returnafter 90 days.
In such cases, he should pay the amount by GAR-7challan and inform department suitably.
If he has paid excess amount by mistake, he is required tofile refund claim.
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Returns
Electronic filing of return :- Department hasintroduced e-filing of service tax return on experimentalbasis from April, 2003. It is optional.
Late fee and penalty for filing late return :-
The late fee payable is as follows
(a) Delay Upto 15 days Rs 500
(b) Beyond 15 days and upto 30 days Rs 1,000
(b) Delay beyond 30 days Rs 1,000 plus Rs 100 per day of delay beyond 30 days,
from 31st day maximum Rs 2,000
Department is required to accept late return even if late fee is not paid
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Returns
Provisional assessment
Assessee can make request in writing for provisionalassessment to Assistant/Deputy Commissioner.
Provisions of Central Excise Rules in respect ofprovisional assessment are applicable
After such request is made, assessee has to submitmemorandum in form ST-3A showing difference between
service tax collected and deposited.
Provisional assessment can be finalised by Assistant/Deputy Commissioner after calling further documents asmay be necessary
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Thank You