PROJECT ONSERVICE TAX

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INDEX OF THE PROJECT: Definition Advantages Types of Forms How to File ST Forms Others Forms General Forms

DEFINITION OF SERVICE TAXService tax is a tax levied by the government on service providers on

certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the

Finance Act, 1994. In this case, the service provider pays the tax and recovers it from the

customer. Service Tax was earlier levied on a specified list of services, but in the 2012 budget, its scope was increased. Services provided by air-conditioned restaurants and short term accommodation provided by hotels, inns, etc. were also included in the list of services

It is charged to the individual service providers on cash basis, and to companies on accrual basis. This tax is payable only when the value of services provided in a financial year is more than Rs 10 lakh. This tax is not applicable in the state of Jammu & Kashmir.

Finance Minister while presenting the Budget 2015 has increased the Service Tax Rate from 12.36% to flat 14%

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ADVANTAGES:

 A large taxpayer (single PAN-based entity) can file all his direct taxes, excise and service tax returns at a single place, irrespective of the geographical location of their units

In a large scale, today government is earning a revenue which is utilized for the sake of public.

Every person who is participating in contribution of Service tax obtain a Service tax registration number which is linked with the income tax PAN number, which help to allocate the source of revenue.

Today, Service tax methodology help to describe the real world of service and managed to bifurcate the service into different segments.

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Forms of Service Tax Challan: GAR-7

- It stands for Government Account (Receipt and Payments)

- As per Rule 26 of the Central Government Account (Receipts and

Payments) Rules, 1983.

Name, Address, 15 digit Assessee Code, Commissionerate Name and 8 digit Accounting code is mandatory. The Assessee Code, Commissionerate Code, Division Code and Range Code can be verified from the

website http://exciseandservicetax.nic.in The Accounting codes for Tax and Interest/Penalty for each service is provided in the table below. The total

amount tendered should tally with the sum total of amounts for each accounting code. The total amount tendered should be written both in words and figures. The details filled in the challan and ‘Taxpayer’s Counterfoil’ should be identical. The Receiving Bank Branch Stamp should contain the following: i) BSR code of the receiving Bank Branch (7 digits) ii) Date of Deposit of Challan (DDMMYYYY) (8 digits) iii) Challan Serial Number (5 digits)

Instructions for filling up G.A.R-7 Challan Form

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ST-1 Form Application form for registration under Section 69 of the Finance Act, 1994

Procedures for Filing ST-1 Form:

For Filing Registration: Go to Link: https://www.aces.gov.in/STASE/switch.do?prefix=/ui/jsp/common&page=/loginpage.do Click on New user Fill the necessary columns which are mandatory Click on Submit button, The link will be send to your registered email. Go to your mail, click on the link and complete the remaining procedures

Documents Required: Copy of PAN Card of the assesse. Proof of address of the premises to be registered. Copy of Telephone bill/

Electricity bill/ Rent Agreement in the name of the Company/ Firm/Partner/proprietor

Partnership deed (In case of Partnership Firm) Copy of memorandum of Association. (In case of Private Limited and

Limited company only) No registration fee is required to be paid. Back

ST-2 Form Certificate of registration under Section 69 of The Finance Act, 1994 (32 of

1994)

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Form ST-3 Return under Section 70 of the Finance Act, 1994 read with Rule 7 of Service Tax Rules,

1994

Form ST-3A Memorandum for provisional deposit under rule 6 of the Service Tax Rules,

1994

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(1) Online Filing of data in Service Tax Return and Submit it i. Login into ACES by entering the user-id and password. Home page of the assessee will appear;

ii. Under ‘RET’ Main menu, click on the ‘fill’ option of ‘fill ST-3′ sub-menu i.e. RET Menu Fill ST-3 Fill.iii. A page will appear listing the Premises code and Address of the registered premises of the assesssee. Premises code will appear as hyperlink. Click on the hyperlink to prepare the ST-3 Return;iv. After filling the return correctly, Click on the ‘SAVE’ Button appearing on last page and confirmation page of ST-3

will appear;v. To Amend, Click on the ‘Modify’ button or ‘Save’ to store the Return in the database;vi. To submit the ST-3 Return to the department, press “SUBMIT” button. Confirmation will appear for successful submission of ST-3 Return displaying the Unique No. for such Return;vii. Return saved in ACES can be amended before submission by the assessee by clicking on the “Amend ST-3″

button under “Fill ST-3″ sub-menu.viii. In the same way, Return after submission can be revised once in 90 days by clicking on the “Revise ST-3″

option of “Fill ST-3″ submenu.

How to fill the Return Electronically

There are two methods of filling the return electronically, namely:1. Online filling of data in service tax return and then submit it.2. Offline filling of data using excel utility and then upload it.

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(2) Offline filling of data using excel utility and then upload it;i. Click on the ‘Download’ button provided on the left side of ACES Homepage and download excel utility

by clicking on the hyperlink “Download ST3 Return Excel Utility”;ii. Use the excel utility to prepare ST-3 return and click on “Validate & Submit” button on the last page to

generate XML file;iii. The XML file will be saved in the same folder where the download utility is saved by the user;iv. To upload the ST-3 Return, login into ACES by entering the user-id and password. Click on “Upload File”

option of “e-filing” submenu under “RET” Main Menu;i.e. RET Main Menu e-filing Upload filev. Click the “Save” button to save the return in the database of the assessee; Else click on “SUBMIT” button to

file the return;vi. Confirmation will appear for successful uploading of Return without any Unique No.;vii. After uploading, click on “View Status” option of “e-filing” submenu under “RET” Menu to view status of

Return. A return will be considered as filed only when its status is shown as ‘FILED’ which should be appeared on or before the last due date of 25th April/25th October, as the case may be, for treating the return ‘filed on time’.(3) THE ASSESSEES CAN ALSO ‘VIEW’, ‘SAVE’ AND ‘PRINT’ THEIR FIELD ST-3 RETURN AT ANY TIME BY CLICKING ON THE BUTTON ‘VIEW ST-3′ UNDER ‘RET’ MENU AFTER SUUCESSFUL LOGIN INTO ACES

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Other Major Forms are:

ST-4 : Form of Appeal to the Commissioner of Central Excise (Appeals)

ST-5 : Form of Appeal to Appellate Tribunal under sub-section (1) of section 86 of the Finance Act, 1994

ST-6 : Form of Memorandum of Cross-Objections to the Appellate Tribunal under sub-section (4) of section 86 of Finance Act, 1994

ST-7 : Form of Appeal to Appellate Tribunal under sub-section (2) of section 86 or sub-section (2A) of section 86 of the Finance Act, 1994

AAR(ST-1) : Application for Advance Ruling (Service Tax)

ASTR-1 : Application for filing a claim of rebate of service tax and cess paid on taxable services exported

ASTR-2 : Application for filing a claim of rebate of duty paid on inputs, service tax and cess paid on input services

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General Forms

Form A : Application for refund of CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004

Form A1 : Declaration by the SEZ Unit or Developer for availing ab initio exemption

Form A2 : Authorisation for procurement of services by a SEZ Unit/Developer for authorised operations

Form A3: Quarterly return to be furnished by the SEZ Unit/Developer furnishing the details of services procured without payment of service tax

Form A4: Application for claiming refund of service tax paid on specified services used for authorised operations in SEZ

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