Lenovo Mumbai = 1000 copyservice tax on reverse charge basis partly on service provider and partly...
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KMS KMS
Transcript of Lenovo Mumbai = 1000 copyservice tax on reverse charge basis partly on service provider and partly...
KMSKMS
KMS KMS
• Increase in rate of service tax from 10% to 12%
(w.e.f. 01 - 04 - 2012)
• Introduction of Negative List
(w.e.f. date to be notified after enactment of the Finance Bill, 2012)
• Introduction of Place of Provision of Service Rules, 2012
(Discussion paper released)
• Introduction of Settlement Commission
(w.e.f. enactment of the Finance Bill, 2012)
• New Reverse Charge Mechanism to be introduced to put
onus of payment of service tax partly on service provider
and partly on service receiver in 3 services
(w.e.f. date to be notified after enactment of the Finance Bill, 2012)
• Penalty waiver scheme for 6 Months on Renting of
Immovable Property Service
(w.e.f. enactment of the Finance Bill, 2012)
• Combined one page Excise & Service Tax (EST-1)
Return introduced
(Draft form released)
• Service Tax to be paid on monthly basis for Partnership/
Individual /LLP paying more than ̀ 25 Lacs in P. Y.
(Public Comments Invited )
• Payment of Service Tax on Receipt basis for Partnership
firms & Individuals having turnover up to ̀ 50 Lacs
(w.e.f. 01-04-2012)
SERVICE TAX
BUDGET - 2012
Quote :
It is said that in matters relating to taxes, questions rarely change,
but the answers do. Budget 2012 has, however, changed a
number of questions relating to Service Tax.
Source : D.O.F. No.334/1/2012-TRU dated 16-03-2012
1
KMS KMS2 3
© Authors
Price : Rs. 50/-
Law stated in this book is as amended
by the Finance Bill, 2012.
Published By :
KMS PUBLICATIONS
302-306, Devpath Building,
B/h. Lal Bunglow, Off C. G. Road,
Navrangpura, Ahmedabad - 380 009.
Phone : 6631 5450 , 3000 3583, 2646 1526
First Edition : March, 2006
Second Edition : March, 2007
Third Edition : March, 2008
Fourth Edition : July, 2009
Fifth Edition : March, 2010
Sixth Edition : March, 2011
Seventh Edition : March, 2012
Type Setting : Vaishali Graphics
(M) 96240 69110
Printed by : Shivkrupa Offset
Ahmedabad.
While every care has been taken to ensure
editing and printing without mistakes,
subscribers / readers are requested to note
that the publishers or authors shall not be
held responsible for any inadvertent mistake
or interpretation or the consequences of any
action taken on the basis of this book.
PREFACE
It is of immense pleasure to present the Seventh Edition of Service
Tax Budget Book.
The present book is an attempt to present the complex issues of
Service Tax so far as its taxability and taxable value is concerned
in a simple and lucid style for the benefit of practicing professionals,
company executives & small and medium enterprises.
The presentation of this Book is unique in its kind, keeping in mind
the need of readers and Service Tax assessees. The Book contains
various tabular forms covering the details about Service Tax. The
book also contains commentary and necessary material on the
changes brought out by the Finance Bill, 2012.
We are thankful to our Partner CA. Rashmin Vaja for meticuously
carrying out required analysis in a very short time. We are thankful
to our colleagues CA. Hardik Thakkar, CA. Vishwang Jadeja, CA.
Meet Jadawala, CA. Niranjan Shah, Mr. Kamlesh Patel and our
Article students Mr. Amit Prajapati, Mr. Priyank Fofadia and other
Staff Members for helping us in bringing out our venture in time.
We are also thankful to Mr. Kiran Shah for type setting and timely
printing the book.
We hope that the readers will find this publication of immense use
and utility. Your suggestions for further improvement are heartily
solicited.
Yours in Professional Fellowship,
CA. Amish Khandhar
CA. Gautam Mehta
CA. Tushar Shah
KHANDHAR MEHTA & SHAH
302-306, Devpath Building, B/h. Lal Bunglow,
Off C. G. Road, Navrangpura, Ahmedabad - 380 009.
Phone : 6631 5450, 3000 3583, 2646 1526
E-mail : [email protected]
19th March, 2012
Ahmedabad.
KMS KMS4 5
I N D E X
1. Negative List of Services ................................................................... 5
2. Highlights of Budget - 2012 ................................................................ 7
3. Effective date of amendments proposed by
Finance Bill - 2012 ............................................................................... 9
4. Amendment in CENVAT Credit Rules, 2004 .................................... 13
5. Payment of Service Tax on Receipt Basis ..................................... 15
6. Point of Taxation Rules, 2011 .......................................................... 16
7. Works Contract Services ................................................................. 17
8. Analysis about Threshold limit of Rs. 10 lacs ............................... 19
9. Tables
A Rate of Service Tax .................................................................. 21
B Rate of Interest ......................................................................... 21
C Works Contract Rate ................................................................ 22
D Basic Exemption limit ............................................................... 22
E Frequency Norms of Service Tax Audit .................................. 22
F Change in Service Tax Rates .................................................. 23
G Abatements (Existing) .............................................................. 24
G(a) Abatements (Proposed) ........................................................... 25
H Service Tax Payment Dates .................................................... 26
I Due Date for ST Payment & EST Return (Proposed) ............ 27
J Due Date for ST-3 Return Filing (Existing) .............................. 27
K Due Date for Return Filing for ISD ........................................... 27
L New Reverse Charge Mechanism........................................... 28
M Services with Effective Dates and Accounting Codes.......... 29
N Filing Fees for Appellate Tribunal ............................................ 34
O Service Tax Credit Availability ................................................. 34
P Penalties .................................................................................... 35
Q Service Tax Forms .................................................................... 37
R. SEZ Refund ................................................................................ 38
10. Definition of 'Service' ........................................................................ 39
11. Definition of 'Declared Service' ....................................................... 40
12. Exempted Services (Noti. No. 12/2012-ST) ..................................... 41
13. Place of Provision of Services Rules, 2012 (DRAFT) .................... 44
14. Amendments in Central Excise Act, 1944 ...................................... 45
15. Automation of Central Excise & Service Tax (ACES) .................... 52
16. Goods and Service Tax (GST) .......................................................... 54
17. Useful Websites ................................................................................ 56
NEGATIVE LIST OF SERVICES
(w.e.f. date to be notified after the enactment of Finance Bill, 2012)
1) Services by Government or a local authority
2) Services by the Reserve Bank of India (RBI).
3) Services by a foreign diplomatic mission located in India.
4) Services relating to agriculture
5) Trading of goods.
6) Any process amounting to manufacture or production of goods.
7) Service by way of access to a road or a bridge on payment of
toll charges.
8) Betting, gambling or lottery.
9) Admission to entertainment events or access to amusement
facilities.
10) Transmission or distribution of electricity by an electricity
transmission or distribution utility.
11) Services by way of -
(i) pre-school education and education up to higher secondary
school or equivalent;
(ii) education as a part of a curriculum for obtaining a
qualification recognized by law;
(iii) education as a part of an approved vocational education
course.
12) Services by way of renting of residential dwelling for use as
residence;
13) Services by way of -
(i) extending deposits, loans or advances in so far as the
consideration is represented by way of interest or discount;
(ii) inter-se sale or purchase of foreign currency amongst banks
or authorized dealers of foreign exchange or amongst banks
and such dealers;
KMS KMS
HIGHLIGHTS OF BUDGET 2012
1) The rate of service tax is being increased from 10% to 12%
(w.e.f. 01-04-2012)
2) Amendment in taxability of Life insurance service and service in relation
to Transport of passengers embarking in India for domestic and
international journey by air
(w.e.f. 01-04-2012)
3) Introduction of negative list approach
(w.e.f. a date to be notified after enactment of Finance Bill,2012)
4) Amendments in the Finance Act,1994
(w.e.f. the date of enactment of Finance Bill, 2012)
5) New scheme of reverse charge mechanism to put onus of payment of
service tax on reverse charge basis partly on service provider and
partly on service receiver in three services.
(w.e.f. date to be notified after enactment of Finance Bill, 2012)
6) Waiver of penalty in case of Renting of immovable property service for
those tax payers who pay the service tax as on 06.03.2012 in full
along with interest.
(w.e.f. the date of enactment of Finance Bill, 2012)
7) Retrospective exemptions in relation to
• service tax on repairs of roads (w.r.e.f. 16-06-2005),
• Management, maintenance or repair service undertaken in relation to
non-commercial Government buildings (w.r.e.f. 16-06-2005),
• Sub-Rule (6A) was inserted under rule 6 of CCR, 2004 on 01-03-2011
for non reversal of CENVAT Credit by service providers located in DTA,
when they supply taxable services to SEZ. (w.r.e.f. 10-02-2006)
• Service provided by an association of dyeing unit in relation to common
effluent treatment plants (w.r.e.f. 16-06-2005).
(w.e.f. the date of enactment of Finance Bill, 2012).
8) Service tax would be chargeable on Construction of roads not for
General Public Use (Private Road)
(w.e.f. date to be notified after enactment of Finance Bill, 2012)
14) Service of transportation of passengers, with or without
accompanied belongings, by -
(i) a stage carriage;
(ii) railways in a class other than First class or AC Coach
(iii) metro, monorail or tramway;
(iv) inland waterways;
(v) public transport in a vessel of less than fifteen tonne net,
other than predominantly for tourism purpose; and
(vi) metered cabs, radio taxis or auto rickshaws;
15) Services by way of transportation of goods -
(i) by road except GTA or Courier services
(ii) by an aircraft or a vessel from a place outside India to the
first customs station of landing in India; or
(iii) by inland waterways;
16) Funeral, burial, crematorium or mortuary services including
transportation of the deceased.
17) Selling of space or time slots for advertisements other than
advertisements broadcast by radio or television.
6 7
Non-Taxable
Sale of Space for advertisement in print
media
Sale of Space for advertisement in bill
boards, public places, buildings,
conveyances, cell phones, automated
teller machines, internet
Taxable
Sale of Space or time for
advertisement to be broadcast
on radio or television
Sale of time slot by a
broadcasting organization
Taxability of advertisement services can be summarized as under:
KMS KMS
9) Amendment in Cenvat Credit Rules, 2004
• Replacement of Rule 5 to simplify the procedure for refund of unutilized
credit on account of exports
• Credit is being allowed on motor vehicles except specified heading nos.
• Allow credit of insurance and service station service to insurance
companies and manufacturers.
• Allow service provider to take credit of inputs or capital goods whenever
the goods are delivered to him, subject to specified conditions.
• In case of input service distributor, credit of service tax attributable to
service used wholly in a unit shall be distributed only to that unit and
that the credit of service tax attributable to service used in more than
one unit shall be distributed prorata basis.
• In case of CENVAT Credit availed wrongly, interest on such amount is
not payable unless the credit availed wrongly has been utilised by the
assessee.
10) Amendment in Service Tax Rules, 1994 (w.e.f. 01-04-2012)
• Time period for issuance of invoice increased from 14 days to 30 days.
For banks and financial institutions, the period shall be 45 days.
• To allow unlimited amount of permissible adjustments.
• In case of exporters, the period extended by the Reserve Bank of India
on specific requests is also being included in the period for which the
tax liability is allowed to be deferred.
• Payment of Service Tax on Receipt basis for Partnership firms &
Individuals upto Rs. 50 Lacs in Current Year, only if Taxable turnover is
Rs. 50 Lacs or less in Previous Year. This Provision of Payment of
Service Tax on Receipt basis is shifted with amendment the Point of
Taxation Rules to the Service Tax Rules.
11) Amendment Point of Taxation Rules,2011 (w.e.f. 01-04-2012)
• Change in the definition of continuous supply of service.
• New rule 2A inserted to define "the date of payment"
• To give an option to determine the point of taxation in respect of
advances up to Rupees one thousand received in excess of the amount
indicated in the invoice, on the basis of invoice or completion of service
rather than payment; and
• Incorporate a new residual rule to ascertain point of taxation in cases
where the same cannot be ascertained by the rules prescribed.
8 9
Effective Date
01.04.2012
w.e.f. notified
date after
enactment of
Finance Bill,
2012
w.e.f.
enactment of
Finance Bill,
2012
w.e.f. notified
date after
enactment of
Finance Bill,
2012
EFFECTIVE DATES OF AMENDMENTS
PROPOSED BY FINANCE BILL, 2012
Sr. Particulars
1. Increase in Rate of Service tax
1.1 Service tax rate is increased from 10% to 12%
1.2 Works Contract composite rate increased from
4% to 4.8%
2. Introduction of Negative List of Services
3. Retrospective Exemptions is granted to:
3.1 service tax on repairs of roads
(w.e.f. 16-06-2005)
3.2 Management, maintenance or repair service
undertaken in relation to non-commercial
Government buildings (w.e.f. 16-06-2005)
3.3 Non reversal of Cenvat Credit on Taxable services
provided to the authorized operations of SEZ
(w.e.f. 10-02-2005)
3.4 Service provided by an association of dyeing unit
in relation to common effluent treatment plants
(w.e.f. 16-06-2005)
4. New Reverse Charge Mechanism
4.1 If service provider is in J&K and service receiver
is in taxable territory then service tax shall be
collected from service recipient.
4.2 For the specified three services where service
provider is either an individual or a firm or LLP
and service recipient is a body corporate, both
service provider and service recipient shall be liable
for service tax on specified amount as under:
KMS KMS10 11
Sr. Description of Service Service Service
Recipient Provider
(Corporate) (Ind/firm)
1 Hiring of a motor vehicle
designed to carry passengers:
(a) With abatement 100% Nil
(b) Without abatement 40% 60%
2 Supply of Manpower 75% 25%
for any purpose
3 Works Contract Service 50% 50%
5. Penalty waiver scheme for Renting of Immovable
Property Services
New section 80A introduced for the purpose of waiver
of penalty if taxpayers pay service tax due as on
06-03-2012 within six months from the date of
enactment of Bill, 2012
6. Introduction of single combined Excise and
Service Tax (EST) Forms
(a) New return is introduced namely:
"EST1 Return for Central Excise and Service Tax"
(b) Combined Registration Form
(c) Monthly Return for Large Assessees
7. Amendment in prov is ion of payment of
Service tax:
Monthly Service Tax Payment
1. Individual/firm/company who have paid service
tax more than Rs. 25 lacs in previous year
2. If new assessee is other than Individual / firm
(Corporate Assessee)
Quarterly Service Tax Payment
1. Individual/firm/company have paid service tax
less than Rs. 25 lacs in previous year
2. If new assessee is individual or firm
Sr. Particulars Effective Date
w.e.f.
enactment of
Finance Bill,
2012
Draft forms
released for
Public
Comments
Public
comments
invited
Sr. Particulars Effective Date
8. Payment of Service Tax on Receipt basis for
Partnership firms & Individuals upto Rs. 50 Lacs
in Current Year, only if Taxable turnover is Rs. 50
Lacs or less in Previous Year.
9. Amendment in Point of Taxation Rules, 2011
9.1 Change in the definition of continuous supply of
service;
9.2 To give an option to determine the point of
taxation in respect of advances up to Rupees
one thousand received in excess of the amount
indicated in the invoice, on the basis of invoice
or completion of service rather than payment;
9.3 New rule 2A inserted to define "the date of payment"
9.4 Rule 5 and Rule 7 has been substituted.
10. Amendments in the Service Tax Rules, 1994
10.1 Definition of partnership firm modified to include
Limited Liability Partnership (LLP)
10.2 Time period of issuing invoice/challan/ bill is
increased from 14 days to 30 days. In case of
banking and financial service days increased
from 14 days to 45 days
10.3 Rule 6 (4A) is being amended to allow unlimited
amount of permissible adjustment.
11. Service Tax (Determination of Value) Rules, 2006
Clause (x) to be inserted in Rule 6 (1) to include any
amount realized in the name of demurrage, or by any
other name, for the provision of service beyond the
period originally contracted for service tax.
w.e.f. notified
date after
enactment of
Finance Bill,
2012
01-04-2012
01-04-2012
01-04-2012
w.e.f. date to
be notified after
enactment of
Finance Bill,
2012
KMS KMS12 13
12. Introduction of Place of Provision of Service
Rules, 2012
The new rules will replace the existing Export of
Services Rules, 2005 and the Taxation of Services
(Provided from Outside India and Received in India)
Rules, 2006.
13. Introduction of Settlement Commission
14. Introduction of provision of Special Audit by
CA/ICWA (Section 72A)
15. Time Limit for Issuance of Show Cause Notice
(SCN) increased from 12 months to 18 months
16. Time Period for filing of appeal with
Commissioner (Appeals) reduced from 3 Months
to 2 Months. (Section 85 (3A))
17. Power to condone the delay in filing of appeal
before Commissioner (Appeals) reduced from 3
months to 1 month. (Section 85 (3A))
Amendments in CENVAT Credit Rules, 2004
Particulars
Rule 2: Amendment in Definition of Capital Goods
The definition of "capital goods" given in Rule 2 of the
CENVAT Credit Rules, 2004 is being amended to include
"motor vehicles other than those falling under tariff headings
8702, 8703, 8704, 8711 and their chassis"
Sub Rule 5A of Rule 3 : to be replaced as
For Capital goods, on which CENVAT credit has been taken,
removed after being used, as scrap or waste, the
manufacturer or provider of output services shall pay an
amount equal to the CENVAT Credit taken reduced by the
percentage calculated by Straight Line Method for each
quarter of a year or part thereof from the date of taking the
CENVAT Credit, instead of Transaction value.
However, if the amount so calculated is less than the amount
equal to the duty leviable on transaction value, the amount to
be paid shall be equal to the duty leviable on transaction value.
Rule 5 : Refund of CENVAT Credit (Rule substituted)
The refund of CENVAT Credit shall be allowed as per the
below formula:
Refund Amount =
(Export t/o of goods + Export t/o of services) x Net CENVAT Credit
Total Turnover
However,
1. Refund shall be allowed within period of one year.
2. Refund shall not be allowed if the assessee avails
duty drawback or claims rebate of service tax.
Effective Date
01-04-2012
17-03-2012
01-04-2012
Amendments in CENVAT Credit Rules, 2004 has been notified vide
Notification No. 18/2012 CE(NT) dated 17-03-2012
Sr. Particulars Effective Date
Discussion
paper released
w.e.f.
enactment of
Finance Bill,
2012
w.e.f.
enactment of
Finance Bill,
2012
w.e.f.
enactment of
Finance Bill,
2012
w.e.f.
enactment of
Finance Bill,
2012
w.e.f.
enactment of
Finance Bill,
2012
KMS KMS14 15
Particulars
Rule 6 : Taxability of Dutiable and Exempted Goods &
Services
If assessee does not maintain separate books of accounts
for dutiable and exempted goods and/or taxable and
exempted service, assessee shall pay an amount equal to
6% of the value of Exempted goods and output services.
Rule 7 : Input Service Distributor (ISD)
Credit attributable to service used wholly in a unit shall be
distributed only to that unit while services used in more than
one unit shall be distributed prorata basis of the turnover of
the unit to sum of total turnover of the all units.
New Rule 10A : Transfer of CENVAT Credit of additional
duty leviable under Sub section 5 of section 3 of
Customs Tariff Act 1985
A manufacturer or producer, having more than one premises
registered under a common PAN, may transfer, unutilised
CENVAT credit of additional duty under section 3(5) of the
Customs Tariff Act, 1985 at the end of a quarter, to his other
registered premises by making an entry for such transfer,
issuing a transfer challan.
Rule 14 : Recovery of CENVAT Credit wrongly taken
In case of CENVAT Credit availed wrongly, interest on
such amount is not payable unless the credit availed
wrongly has been utilised by the assessee.
Effective Date
01-04-2012
01-04-2012
01-04-2012
17-03-2012
PAYMENT OF SERVICE TAX ON RECEIPT BASIS
New provisions
(w.e.f. 01-04-2012)
RECEIPT BASIS
upto Rs. 50 Lacs
in Current Year,
only if Taxable
turnover is Rs. 50
Lacs or less in
Previous Year
ACCRUAL BASIS
RECEIPT BASIS
upto Rs. 50 Lacs
in Current Year,
only if Taxable
turnover is Rs. 50
Lacs or less in
Previous Year
ACCRUAL BASIS
Existing
Provisions
from 01-04-11
to 31-03-12
RECEIPT BASIS
ACCRUAL BASIS
ACCRUAL BASIS
ACCRUAL BASIS
Description
Specified 8 Service like Architect/
Interior Decorator/ CA/ CS/ ICWA/
Advocate / Consulting Engineer/
Scientific and Technical Consultant
Provided by Individual / Firm /
LLP
Specified 8 Service like Architect/
Interior Decorator/ CA/ CS/ ICWA/
Advocate / Consulting Engineer/
Scientific and Technical Consultant
Provided by Assessee other than
Individual / Firm / LLP
Individual / Firm / LLP providing
services other than Specified 8
Services
Assessee other than Individual
/ Firm / LLP providing services
other than Specified 8 Services
KMS KMS16 17
Definition of Works Contract
As per Section 65B (54) "works contract" means a contract wherein transfer
of property in goods involved in the execution of such contract is leviable to
tax as sale of goods and such contract is for the purpose of carrying out
construction, erection, commissioning, installation, completion, fitting out,
improvement, repair, renovation, alteration of any building or structure on
land or for carrying out any other similar activity or a part thereof in relation
to any building or structure on land;
Rule 2A of the Service Tax (Determination of value) Rules, 2006
(i) The value of the service portion is the gross amount charged for the
works contract less the value of transfer of property in goods involved in the
execution of the said works contract.
WORKS CONTRACT SERVICE
Gross Amount includes
Labour charges for execution of the
works
Amount paid to a sub-contractor for
labour and services
Charges for planning, designing and
architect's fees
Charges for obtaining on hire or
otherwise, machinery and tools used
for the execution of the works
contract
Cost of consumables such as water,
electricity, fuel, used in the execution
of the works contract
Cost of establishment of the
contractor relatable to supply of
labour and services and other similar
expenses relatable to supply of labour
and services
Profit earned by the service provider
relatable to supply of labour and
services
Gross Amount does not include
Value of transfer of property in goods
involved in the execution of the said
works contract.
Note:
Where Value Added Tax has been
paid on the actual value of transfer
of property in goods involved in the
execution of the works contract,
then such value adopted for the
purposes of payment of ValueAdded
Tax, shall be taken as the value of
transfer of property in goods involved
in the execution of the said works
contract.
ValueAdded Tax (VAT) or sales tax,
as the case may be, paid, if any, on
transfer of property in goods involved
in the execution of the said works
contract
Rule 3 : Determination of point of Taxation
Sr. Service Invoice Payment Point of
No. Provided on Issued on Received on Taxation
1 5th May, 2012 25th May, 2012 20th June, 2012 25th May, 2012
2 5th May, 2012 10th Aug, 2012 15th Aug., 2012 05th May, 2012
3 5th May, 2012 05th April, 2012 15th Aug., 2012 05th April, 2012
4 5th May, 2012 01th May, 2012 05th April, 2012 05th April, 2012
5 5th May, 2012 05th April, 2012 10th April, 2012 05th April, 2012
Rule 4 (a) : Where Taxable Service is provided before the change of rate
Sr. Invoice Issued on Payment Point of
No. Received on Taxation
1 After change of rate After change of rate Whichever is earlier
2 Before change of rate After change of rate Invoice date
3 After change of rate Before change of rate Payment date
Rule 4(b) : Where Taxable Service is provided after the change of rate
Sr. Invoice Issued on Payment Point of
No. Received on Taxation
1 Before change of rate After change of rate Payment Date
2 Before change of rate Before change of rate Whichever is earlier
3 After change of rate Before change of rate Invoice Date
POINT OF TAXATION RULES, 2011
Rule 7 : Associated enterprises :
In case of transactions between associated enterprises; the point of
taxation shall be the date on which the payment is received or invoice is
issued or the date of debit or credit in books of accounts of the person
liable to pay service tax is made, whichever is earlier.
KMS KMS18 19
ANALYSIS ABOUT THRESHOLD LIMIT OF RS. 10 LACS
1. Suppose M/s. XYZ Pvt. Ltd. has issued invoices for Taxable
Service below Rs. 10 lacs during the Financial Year 2011-12
(i.e. from 01-04-2011 to 31-03-2012) then
A. During the financial year 2012-13 it will not have to pay any
service tax upto the amount of Rs. 10 lacs.
B. If the taxable service rendered exceeds Rs. 10 lacs during
the financial year 2012-13 then above the limit of Rs. 10
lacs, service tax would be charged @ 12.36% and will be
paid to Government.
C. As the taxable service rendered has exceeded Rs. 10 lacs
in the financial year 2012-13, M/s. XYZ Pvt. Ltd. will not
enjoy the benefit of Rs. 10 lacs limit during financial year
2013-14 and will have to pay the service tax from the very
first bill.
2. Suppose M/s. XYZ Pvt. Ltd. has provided taxable service above
Rs. 10 lacs during the Financial Year 2011-12. (i.e. from 01-
04-2011 to 31-03-2012) then it will not get any benefit of
Threshold limit of Rs. 10 lacs during the Financial Year 2012-
13 and will have to pay service tax from the very first bill.
Determination of value in case of service of food and drinks in a
restaurant or as outdoor catering.
Sr. Description
1. Service involved in the supply of food or
any other article of human consumption
or any drink at a restaurant
2. Service involved in the supply of food or
any other article of human consumption
or any drink as outdoor catering service
Value of service as a
% of total Amount *
40%
60%
* Total amount means the sum total of the gross amount and the value of all
goods, excluding the value added tax, if any, levied on goods or services supplied
free of cost for use in or in relation to the supply of food or any other article of
human consumption or any drink, under the same contract or any other contract.
Note :
1) "Original works" means (i) all new constructions (ii) all types of additions and
alternations to abandoned or damaged structures on land that are required to
make them workable;
2) CENVAT credit of excise on input goods used is not available, whereas,
CENVAT credit of input services and duties on capital goods used is available.
3) 'Total Amount' referred to in the second column of the table above would be
the sum total of gross amount and the value of all goods and services supplied
free of cost for use in or in relation to the execution of works contract, under the
same contract or any other contract and, in case of (ii) in the table above, including
the value of land charged as a part of the total consideration.
Scheme for determining the value of service portion in a Works Contract :
(ii) Where the value has not been determined as per clause (i), the same
shall be determined in the manner explained in the table below :
Where works contract is for…
(i) execution of original works
(ii) execution of original works and the
gross amount charged includes the value
of land
(iii) works contracts, other than contracts
for execution of original works, including
contracts for completion and finishing
services such as glazing, plastering, floor
and wall tiling, installation of electrical
fittings.
Value of the service portion shall be…
40% of the total amount charged for
the works contract
25% of the total amount charged
including such gross amount
60 % of the total amount charged
for the works contract
KMS KMS20 21
T A B L E S
Period Rate of Tax
01-07-1994 to 13-05-2003 5%
14-05-2003 to 09-09-2004 8%
10-09-2004 to 17-04-2006 10.20% (ST+EC)
18-04-2006 to 10-05-2007 12.24% (ST+EC)
11-05-2007 to 23-02-2009 12.36%
(ST+EC+SHEC)
24-02-2009 to 31-03-2012 10.30%
(ST+EC+SHEC)
01-04-2012 Onwards 12.36%
(ST+EC+SHEC)
Period Rate of Interest
01.07.1994 to 15.07.2001 1.5% p.m. and part thereof
16.07.2001 to 15.08.2002 24% p.a.
16.08.2002 to 09.09.2004 15% p.a.
10.09.2004 to 31.03.2011 13% p.a.
01.04.2011 onwards 18% p.a.
15% p.a. (for assessees having
turnover upto Rs.60 lakhs)
TABLE - A
Table of Rates of Service Tax & Cess
TABLE - B
Table of Rates of Interest
EC = Education Cess
SHEC = Secondary and Higher Education Cess
M/s
. X
YZ
Pv
t. L
td.
Du
rin
g F
ina
ncia
l Y
ea
r 2
011
-12
Ta
xa
ble
Se
rvic
e p
rovid
ed
is l
ess t
ha
n R
s.
10
la
cs
Du
rin
g t
he
Fin
an
cia
l Y
ea
r
20
11
-12
Ta
xa
ble
Se
rvic
e
is m
ore
th
an
Rs.
10
la
cs
Du
rin
g th
e F
ina
nc
ial
Ye
ar
20
12
-13
, S
erv
ice
Ta
x w
ill
be
p
ay
ab
le
@ 1
2.3
6%
fro
m th
e v
ery
firs
t b
ill. T
he
re w
ill b
e n
o
be
ne
fit o
f th
resh
old
lim
it
of
Rs.
10
la
cs.
Du
rin
g F
ina
nc
ial
ye
ar 2
01
2-1
3, If
ta
x-
ab
le s
erv
ice
is le
ss
tha
n R
s.
10
la
cs
the
n th
ere
will
be
no
se
rvic
e ta
x lia
bility
If ta
xa
ble
s
erv
ice
is
m
ore
th
an
Rs.
10
la
cs d
uri
ng
th
e F
ina
ncia
l
Ye
ar
20
12
-13
(A)
No
se
rvic
e ta
x u
pto
Rs. 1
0 la
cs
(B)
Se
rvic
eTa
x @
12
.36
% a
bo
ve
Rs.
10
la
cs w
ill b
e c
ha
rge
d.
(C)
No
be
ne
fit
of
thre
sh
old
lim
it o
f
Rs.
10
la
cs f
or
the
Fin
an
cia
l
Ye
ar
20
13
-14
.
>
>
>
>
>
KMS KMS22 23
Period Rate of Tax
01-06-2007 to 28-02-2008 2.06%
01-03-2008 to 31-03-2012 4.12%
01-04-2012 onwards 4.944%
TABLE - C
Table for Works Contract Rate
Period Basic Exemption Limit
Before 01.04.2005 No Limit
01.04.2005 to 31.03.2007 Rs. 4 Lakhs
01.04.2007 to 31.03.2008 Rs. 8 Lakhs
01.04.2008 to till date Rs. 10 Lakhs
TABLE - D
Table for Basic Exemption Limit
Quantum of Service tax paid
(Either cash or Credit)
Above Rs. 3 crores
More than Rs.1 crore and
upto Rs.3 crore
More than Rs.25 lacs and
upto Rs.1 crore
Upto 25 lacs
Frequency of Audit
Once in every year
Once in every two years
Once in every five years
2% of tax payer to be
audited every year
Frequency Norms of Service Tax Audit
Note : Individual and sole proprietor assessees with a turnover upto Rs.60
lakhs shall not be subject to Service Tax Audit.
Sr.
No.
1.
2.
3.
4.
TABLE - E
Sr.
No.
1.
2.
3.
4.
Nature of
services
Life
insurance
Sale or
purchase of
foreign
currency
Distributor or
selling agent
of lotteries
Air travel
agent service
Existing rate
1.5% of gross amount of
premium charged from
Policy holder
Gross amount of currency
exchanged is Rs. 1,00,000/-
Rs. 25/- or 0.1% of amount
of currency exchanged.
Gross amount of currency
exchanged is Rs. 1,00,000/-
to Rs. 10,00,000/-
Rs. 100/- and 0.05% on
amount of currency
exchanged between Rs.
1,00,000/- to Rs. 10,00,000/-
Gross amount of currency
exchanged exceeds Rs.
10,00,000
Rs. 550/- and 0.01% on
currency exchanged
exceeding Rs. 10,00,000/-
OR Rs. 5000/- whichever is
lower.
Guaranteed prize pay out is
more than 80% - Rs. 6,000/
- per payout of Rs. 10 Lacs
or part thereof.
Guaranteed prize pay out
less than 80% - Rs. 9,000
per payout of Rs. 10 Lacs or
part thereof.
Domestic booking - 0.6% of
basic fare
International booking - 1.2%
of basic fare
Proposed rate
3.0% of gross amount of
premium charged from Policy
holder
1.5% of gross amount of
premium charged from Policy
holder
Gross amount of currency
exchanged is Rs. 1,00,000/-
Rs. 30/- or 0.12% of amount
of currency exchanged.
Gross amount of currency
exchanged is Rs. 1,00,000/-
to Rs. 10,00,000/-
Rs. 120/- and 0.06% on
amount of currency
exchanged between Rs.
1,00,000/- to Rs. 10,00,000/-
Gross amount of currency
exchanged exceeds Rs.
10,00,000
Rs. 660/- and 0.012% on
currency exchanged
exceeding Rs. 10,00,000/-
OR Rs. 6000/- whichever is
lower.
Guaranteed prize pay out is
more than 80% - Rs. 7,000/
- per payout of Rs. 10 Lacs
or part thereof.
Guaranteed prize pay out less
than 80% - Rs. 11,000/- per
payout of Rs. 10 Lacs or part
thereof.
Uniform ad-valorem levy at
standard rate with an
abatement of 60% on taxable
service
CHANGE IN SERVICE TAX RATES (W.E.F. 01-04-2012)
TABLE - F
KMS KMS
No. Taxable Service
1 Financial leasing services including equipment
leasing and hire purchase
2 Transport of goods by rail
3 Transport of passengers, with or without
accompanied belongings by rail
4 Supply of food or any other article of human
consumption or any drink, in a premises, including
hotel, convention center, club, pandal, shamiana or
any place specially arranged for organizing a function
5 Transport of passengers by air, with or without
accompanied belongings
6 Renting of hotels, inns, guest houses, clubs,
campsites or other commercial places meant for
residential or lodging purposes.
7 Transport of goods by road by Goods TransportAgency
8 Services provided in relation to chit fund
9 Renting of any motor vehicle designed to carry
passengers
10 Transport of goods in a vessel from one port in
India to another
11 Tour Operator
(i) If Packaged tour
(ii) If only arrangement, booking,
accommodation service
(iii) Services other than Services specified in
(i) & (ii) above
Abatement
90%
90%
70%
30%*
60% #
40%
75% ^
30%
40%
50%
75% ^
90% ^
60% ^
Taxable
10%
10%
30%
70%
40%
60%
25%
70%
60%
50%
25%
10%
40%
Abatement is entitled only if -
* CENVAT credit on any goods classifiable under chapter 1 to 22 of CETA,1985 is not availed.
# CENVAT credit on Input & capital goods is not availed.
^ CENVAT credit on Input, capital goods and input service is not availed.
Sr. Taxable Service
1. Mandap Keeper Service
1A. Hotels providing Services of Mandap Keeper
2. Tour Operator
(i) If Packaged tour
(ii) If only arrangement, booking,
accommodation service
(iii) Services other than Services specified in
(i) & (ii) above
3. Rent-a-cab Services
4. Convention Services
4A. Business Auxiliary Services in relation to
production or processing of spare parts and
accessories of cycle, cycle rickshaw & hand
operated sewing machines
5. Erection, Commissioning and Installation Services
6. Goods Transport Agency
7. Commercial & Industrial Construction Services
7A. Commercial & Industrial Construction Services
(incl. land cost)
8. Outdoor Catering Services
9. Pandal & Shamiana Service
10. Construction of Residential Complex Service
10A. Construction of Residential Complex Service
(incl. land cost)
11. Transport of Goods by Rail
12. Service in relation to transport of Coastal Goods,
Goods through National Waterway or Goods
through inland water
13. Service provided by Air-Conditioned Restaurant
14. Hotel Service
Abatement
40%
40%
75%
90%
60%
60%
40%
70%
67%
75%
67%
75%
50%
30%
67%
75%
70%
25%
70%
50%
Taxable
60%
60%
25%
10%
40%
40%
60%
30%
33%
25%
33%
25%
50%
70%
33%
25%
30%
75%
30%
50%
24 25
TABLE - G
TABLE OF ABATEMENTS (Proposed)
(w.e.f. date to be notified after enactment of the Finance Bill, 2012)
TABLE - G(a)
TABLE OF ABATEMENTS (Existing)
KMS KMS
Service Tax Payable by Corporate Entities / Trusts /
Institutions and Societies and so on
Payable on amount received Due Date
during the Month
April 5th
May 6th
May
May 5th
June 6th
June
June 5th
July 6th
July
July 5th
August 6th
August
August 5th
Sept. 6th
Sept.
September 5th
Oct. 6th
Oct.
October 5th
Nov. 6th
Nov.
November 5th
Dec. 6th
Dec.
December 5th
Jan. 6th
Jan.
January 5th
Feb. 6th
Feb.
February 5th
March 6th
March
March 31st
March 31st
March
TABLE - H
Manual E-payment
E-Payment will be considered valid up to 8:00 P.M. of the respective day.
Due Dates Chart for Payment of Service Tax and filing of EST-1 Return:
(Proposed changes by Finance Bill, 2012)
Due Date for ST-3 Return Filing
For the Half Year To be Filed by
1st April to 30th September 25th October
1st October to 31st March 25th April
TABLE - J
Due Date for Return Filing for Input Service Distributor (ISD)
For the Half Year To be Filed by
1st April to 30th September 30th October
1st October to 31st March 30th April
TABLE - K
Service Tax Payable by Individuals / Proprietary Concerns /
Partnership Firms
Payable on Amounts received Due Date
during the quarter
1st
April to 30th
June 5th
July 6th
July
1st
July to 30th
Sept. 5th
October 6th
October
1st
Oct. to 31st
Dec. 5th
January 6th
January
1st
Jan. to 31st
March 31st
March 31st
March
Manual E-payment
Existing Provisions
TABLE - I
26 27
KMS KMS
1 Advertising Agency e 01-11-1996 00440013 00440016
2 Air Travel Agent l 01-07-1997 00440032 00440033
3 Airport Services zzm 10-09-2004 00440258 00440259
4 Architect Services p 16-10-1998 00440072 00440073
5 Asset Management Services zzzzc 01-06-2007 00440418 00440419
6 ATM Operations, Maintenance or zzzk 01-05-2006 00440346 00440347
Management Services
7 Auctioneer's Services zzzr 01-05-2006 00440370 00440371
8 Service Station zo - 00440181 00440182
Motor Car / Two Wheeler 16-07-2001
Light Motor Vehicle 01-07-2003
9 Banking & Financial Services zm 16-07-2001 00440173 00440174
Forex Broking zzk - -
10 Beauty Parlour Services zq 16-08-2002 00440209 00440210
11 Broadcasting Services zk 16-07-2001 00440165 00440166
12 Business Auxiliary Services zzb 01-07-2003 00440225 00440226
13 Business Exhibition Services zzo 10-09-2004 00440254 00440255
14 Business Support Services zzzq 01-05-2006 00440366 00440367
15 Cable Operator Services zs 16-08-2002 00440217 00440218
16 Cargo Handling Services zr 16-08-2002 00440189 00440190
17 Cleaning Activity Services zzzd 16-06-2005 00440318 00440319
18 Clearing & Forwarding Services j 16-07-1997 00440045 00440046
19 Club or Association Services zzze 16-06-2005 00440322 00440323
20 Commercial or Industrial zzq 10-09-2004 00440290 00440291
Construction Services
21 Commercial Training & Coaching zzc 01-07-2003 00440229 00440230
Centre
22 Construction of Residential zzzh 16-06-2005 00440334 00440335
Complex Services
23 Consulting Engineer Services g 07-07-1997 00440057 00440058
24 Convention Services zc 16-07-2001 00440133 00440134
Category of Service Effective
Date
Accounting CodeSub-
Clause
No. TaxInt., Penalty,
e tc .
TABLE - M
Table of Services with Effective Dates & Accounting Codes
Sr.
No.
No. Description of a service
1 Services provided by an insurance agent to
any person carrying on insurance business
2 Services provided by a goods transport agency
in respect of transportation of goods by road
3 Services provided by way of sponsorship
4 Services provided by an arbitral tribunal
5 Services provided by an individual advocate
6 Services provided by way of support service #
by Government or Local Authority
7 (a) Services provided by way of renting or
hiring any motor vehicle designed to carry
passenger on abated value.
(b) Services provided by way of renting or
hiring any motor vehicle designed to carry
passenger on non abated value.
8 Services provided by way of supply of
manpower for any purpose
9 Services provided by way of works contract
10 Services provided by any person who is
located in a non-taxable territory and received
by any person located in the taxable territory
Service
Provider
Nil 100%
Nil 100%
Nil 100%
Nil 100%
Nil 100%
Nil 100%
Nil 100%
60% 40%
25% 75%
50% 50%
Nil 100%
Service Tax
to be paid by
Service
Receiver
28 29
# "support services" means infrastructural, operational, administrative, logistic, marketing
or any other support of any kind comprising functions that entities carry out in ordinary
course of operations themselves but may obtain as services by outsourcing from others
for any reason whatsoever and shall include advertisement and promotion, construction
or works contract, renting of immovable property, security, testing and analysis.
TABLE - L
NEW REVERSE CHARGE MECHANISM
(w.e.f. date to be notified after enactment of the Finance Bill, 2012)
KMS KMS30 31
49 Internet Cafe zzf 01-07-2003 00440241 00440242
50 Internet Telephony Services zzzu 01-05-2006 00440382 00440383
51 Investment Management Services zzzzf 16-05-2008 00440430 00440431Provided Under ULIP
52 Legal Consultancy Services zzzzm 01-09-2009 00440480 00440483
53 Life Insurance Services zx 10-09-2004 00440185 00440186
54 Mailing List Compilation and zzzg 16-06-2005 00440330 00440331
Mailing Services
55 Maintenance of Medical Records zzzzp 01-07-2010 00440601 00440602
Services
56 Management Consultant Services r 16-10-1998 00440116 00440117
57 Management, Maintenance and zzg 01-07-2003 00440245 00440246Repair Services
58 Mandap Keeper m 01-07-1997 00440035 00440036
59 Manpower Recruitment Agency k 07-07-1997 00440060 00440061
60 Market Research Agency y 16-10-1998 00440112 00440113
61 Mechanised Slaughter House Services 16-10-1998 00440080 00440081
62 Mining Services zzzy 01-06-2007 00440402 00440403
63 Online Information & database zh 16-07-2001 00440153 00440154
Retrieval Services
64 Opinion Poll Services zzs 10-09-2004 00440274 00440275
65 Outdoor Catering Services zzt 10-09-2004 00440051 00440052
66 Packaging Activities zzz f 16-06-2005 00440326 00440327
67 Pandal or Shamiana Services z z w 10-09-2004 00440054 00440055
68 Photogaphy Services zb 16-07-2001 00440129 00440130
69 Port Services 00440177 00440178
Major Ports zn 16-07-2001Other Ports zzl 01-07-2003
70 Practising Chartered Accountant s 16-10-1998 00440092 00440093
71 Practising Company Secretary u 16-10-1998 00440100 00440101
72 Practising Cost Accountant t 16-10-1998 00440096 00440097
73 Promoting a ‘brand’ of goods, zzzzq 01-07-2010 00440604 00440605services, events, etc.
Sr.
No.Category of Service Effective
Date
Accounting CodeSub-
Clause
No. TaxInt., Penalty,
etc.
25 Cosmetic and Plastic Surgery zzzzk 01-09-2009 0044 0044
Serivces 0460 0463
26 Courier Services f 01-11-1996 00440014 00440018
27 Credit Rating Agency x 16-10-1998 00440088 00440089
28 Credit Card & Debit Card zzzw 01-05-2006 00440394 00440395
related Services
29 Custom House Agency h 15-06-1997 00440026 00440027
30 Design Service zzzzd 01-06-2007 00440422 00440423
31 Development & Supply of Content zzzzb 01-06-2007 00440414 00440415
Services
32 Dredging Services zzzb 16-06-2005 00440310 00440311
33 Dry Cleaning Services zt 16-08-2002 00440221 00440222
34 Erection, Commissioning & zzd 01-07-2003 00440233 00440234
Installation Services
35 Event Management Services zu 16-08-2002 00440197 00440198
36 Fashion Designing Services zv 16-08-2002 00440213 00440214
37 Forward Contract Services zzy 10-09-2004 00440282 00440283
38 Franchise Services zze 01-07-2003 00440237 00440238
39 Games of Chance (including lottery) zzzzn 01-07-2010 00440595 00440597
Services
40 General Insurance Services d 01-07-1994 00440005 00440006
41 Goods Transport by Road zzp 01-01-2005 00440262 00440263
42 Health Club & Fitness Centre z w 16-08-2002 00440205 00440206
43 Health Services by Hospitals or zzzzo 01-07-2010 00440598 00440599
Medical Establishments
44 Information Technolory Software zzzze 16-05-2008 00440452 00440450
Services
45 Insurance Auxiliary Services 00440169 00440170
General Insurance zl 16-07-2001
Life Insurance zy 16-08-2002
46 Intellectual Property Services zzr 10-09-2004 00440278 00440279
47 Interior Decorator Services q 16-10-1998 00440076 00440077
48 International Air Travel Service zzzo 01-05-2006 00440362 00440363
Sr.
No.Category of Service Effective
Date
Accounting CodeSub-
Clause
No. TaxInt., Penalty,
etc.
KMS KMS32 33
98 Storage & Warehousing Services zza 16-08-2002 00440193 00440194
99 Supply of Tangible Goods for zzzzj 16-05-2008 00440445 00440447Use Services
100 Survey & Exploration of Minerals zzv 10-09-2004 00440270 00440271Services
101 Survey and Mapmaking Services zzzc 16-06-2005 00440314 00440315
102 Technical Inspection and zzi 01-07-2003 00440249 00440250Certification Services
Technical Testing & Analysis Services zzh
103 Telecommunication Services zzzx 01-06-2007 00440398 00440399
104 Television & Radio Programme Services zzu 10-09-2004 00440286 00440287
105 Tour operator n 01-09-1997 00440063 00440064
106 Transport of Coastal Goods; and zzzzl 01-09-2009 0044 0044transported through Inland Water & 0470 0473National Waterways
107 Transport of Goods by Air Services zzn 10-09-2004 00440266 00440267
108 Transport of Goods in Containers zzzp 01-05-2006 00440390 00440391by Rail Services
109 Transport of Goods in Containers zzzp 01-04-2010 00440390 00440391by Rail Services includingGovernment Railways
110 Transport of goods through zzz 16-06-2005 00440302 00440303Pipeline and Conduit
111 Transport of Persons by Cruise zzzv 01-05-2006 00440386 00440387Ship Services
112 Travel Agents (Other than Air & Rail) zzx 10-09-2004 00440294 00440295
113 Under Writer Services z 16-10-1998 00440084 00440085
114 Video Tape Production Services zi 16-07-2001 00440157 00440158
115 Works Contract Services zzzza 01-06-2007 00440410 00440411
NOTE :
Accounting Code for Education Cess (EC) 00440298 00440299
Accounting Code for Secondary and 00440426 00440427
Higher Education Cess (SHEC)
Sr.
No.Category of Service Effective
Date
Accounting CodeSub-
Clause
No. TaxInt., Penalty,
etc.
74 Public Relation Sevices zzzs 01-05-2006 00440374 00440375
75 Rail Travel Agent zz 16-08-2002 00440201 00440202
76 Real Estate Agent v 16-10-1998 00440104 00440105
77 Recovery Agent Service zzzl 01-05-2006 00440350 00440351
78 Registrar to an Issue zzzi 01-05-2006 00440338 00440339
79 Rent - A - Cab Scheme Operator o 16-07-1997 00440048 00440049
80 Renting of Immovable Property zzzz 01-06-2007 00440406 00440407
81 Scientific and Technical za 16-07-2001 00440125 00440126Consultancy Services
82 Security Agency w 16-10-1998 00440108 00440109
83 Services of Permitting Commercial zzzzr 01-07-2010 00440607 00440608
use or Exploitation of any Event
84 Services provided by zzzzv 01-05-2011 00441067 00441068Air-conditioned restaurants
85 Services Provided by Electricity zzzzs 01-07-2010 00440610 00440611
Exchanges
86 Services related to Cinematographic zzzzt 01-07-2010 00440613 00440614films and Sound recording.
87 Services related to Preferential zzzzu 01-07-2010 00440616 00440617
location or Development of Complexes
88 Share Transfer Agent Service zzzj 01-05-2006 00440342 00440343
89 Ship Management Services zzzt 01-05-2006 00440378 00440379
90 Short-term accommodation zzzzw 01-05-2011 00441070 00441071
provided by a hotel, guesthouse etc.
91 Site Formation Services zzza 16-06-2005 00440306 00440307
92 Sound Recording Services zj 16-07-2001 00440161 00440162
93 Space or Time Selling Services for zzzm 01-05-2006 00440354 00440355
Advertisements
94 Sponsorship Services zzzn 01-05-2006 00440358 00440359
95 Steamer Agent i 15-06-1997 00440029 00440030
96 Stock Broker a 01-07-1994 00440008 00440009
97 Stock Exchange, zzzzg 16-05-2008 00440434 00440435
Commodity Exchange and zzzzh 00440438 00440439Processing & Clearing House zzzzi 00440442 00440443
Services
Sr.
No.Category of Service Effective
Date
Accounting CodeSub-
Clause
No. TaxInt., Penalty,
etc.
KMS KMS
Duration Appplicability
1. Before 16-08-2002 No Service Tax credit was allowed.
2. 16-08-2002 to Service Tax credit was allowed
13-05-2003 only if the input and output service
falls under the same category.
3. 14-05-2003 to Service Tax credit is allowed to all
09-09-2004 the services.
4. 10-09-2004 onwards An assessee will be allowed to
take credit of excise duty and
service tax across goods and
services.
Service Tax, Interest and Penalty involved Filing Fees
Rs. 5,00,000 or less Rs. 1,000
Rs. 5,00,000 to Rs. 50,00,000 Rs. 5,000
In excess of Rs. 50,00,000 Rs.10,000
TABLE - N
Filing Fees for appeal to Appellate Tribunal
TABLE - O
Service Tax Credit Availability
3534
No. Section Nature of Default Amount
1 70 Fees for late filing of return
(u/s. 70 r.w. rule 7C)
Delay upto 15 days Rs. 500/-
Delay > 15 days & < 30days Rs. 1000/-
Delay > 30 days Rs. 1000/- + Rs.100/- for
each delay day but not
exceeding Rs. 20,000/-
2 77 Penalty for default in obtaining Upto Rs. 10,000/- or
Service Tax registration Rs. 200 per day till failure,
certificate and payment of whichever is higher
service tax
3 77 Assessee who fails to keep, Upto Rs. 10,000/-
maintain or retain books of
account and other documents
as required
4 77 Assessee fails to: Upto Rs. 10,000/- or
(i) furnish information called Rs. 200 per day till failure,
by an officer; or whichever is higher
(ii) produce documents called
for by a Central Excise Officer
(iii) appear before the Central
Excise Officer, when issued
with a summon for
appearance to give evidence
or to produce a document
in an inquiry
5 77 Assessee fails to pay Service Upto Rs. 10,000/-
Tax Electronically
6 77 Assessee issues invoice in Upto Rs. 10,000/-
accordance with the provisions
of the Act or rules made
thereunder, with incorrect or
incomplete details or fails to
account for an invoice in his
books of account
7 77 Penalty for contravention of Upto Rs. 10,000/-
any provision for which no
penalty is provided
PENALTIES
TABLE - P
KMS KMS36 37
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SERVICE TAX FORMS
1. Service Tax At the time of within 30 days ST-1
Registration starting of from the date of
business starting of
business/
Commandments
of new levy
2. Service Tax To be Given by within 7 days ST-2
Registration Certificate Service Tax from the date of
Department application
3. Service Tax Return Half yearly within 25 days ST-3
after completion
of half year.
25th October
25th April
4. Appeal to Commissioner Assessee within 3 months ST-4
of Central Excise from the date of
(Appeals) receipt of order
5. Appeal to CESTAT Assessee within 3 months ST-5
from the date of
receipt of order
6. Cross Objections Assessee/ within 45 days ST-6
Department from the date
of order
7. Appeal to CESTAT Department within 3 months ST-7
from the date of
receipt of order
Sr.
No.Liability
When and
by whom
Time
PeriodForm
TABLE - Q
KMS KMS38 39
8. Payment of Service Tax Corporate Within 5 days GAR-7
assessee from the end of challan
month.
Within 6 days
from end of
month incase
of e-payment
9. Payment of Service Tax Non Corporate Within 5 days GAR-7
assessee from the end of challan
Quarter.
Within 6 days
from end of
quarter incase
of e-payment
Sr.
No.Liability
When and
by whom
Time
PeriodForm
Section 65B (44) "service" means any activity carried out by a person for another
for consideration, and includes a declared service, but shall not include-
(A) an activity which constitutes merely,
i. a transfer of title in goods or immovable property, by way of sale, gift or
in any other manner; or
ii. a transaction in money or actionable claim;
(B) a provision of service by an employee to the employer in the course of or
in relation to his employment;
(C) fees taken in any Court or tribunal established under any law for the time
being in force.
Explanation 1 :- For the removal of doubts, it is hereby declared that nothing
contained in this clause shall apply to,
(A) the functions performed by the Members of Parliament, Members of
State Legislative, Members of Panchayats, Members of Municipalities
and Members of other local authorities who receive any consideration in
performing the functions of that office as such member; or
(B) the duties performed by any person who holds any post in pursuance of
the provisions of the Constitution in that capacity; or
(C) the duties performed by any person as a Chairperson or a Member or a
Director in a body established by the Central Government or State
Governments or local authority and who is not deemed as an employee
before the commencement of this section.
Explanation 2 :- For the purposes of this Chapter,
(a) an unincorporated association or a body of persons, as the case may
be, and a member thereof shall be treated as distinct persons;
(b) an establishment of a person in the taxable territory and any of his other
establishment in a non-taxable territory shall be treated as
establishments of distinct persons.
Explanation 3 :- A person carrying on a business through a branch or agency or
representational office in any territory shall be treated as having an
establishment in that territory;
DEFINITION OF 'SERVICE'
Changes proposed in Budget 2012
1) Combined application form for Excise and Service Tax Registration (EST)
is proposed to be introduced.
2) Combined one page EST-1 Return form for Excise and Service Tax Return
filing is proposed to be introduced.
3) ST-4 shall be filed by appellant within a period of Two Months from the date
of receipt of order.
4) ST-7 shall be filed by department within a period of Four Months from the
date of receipt of order.
Refund by SEZ Developer or Unit in SEZ :
TABLE - R
Period Wholly Within SEZ Wholly/ Partly
outside SEZ
31-03-2004 to 01-03-2009 Complete Exemption Chargeable to tax
02-03-2009 to 19-05-2009 Refund Mechanism Refund Mechanism
20-05-2009 to 28-02-2011 Complete Exemption Refund Mechanism
01-03-2011 onwards Complete Exemption Refund Mechanism
in the ratio of Export
Turnover to Total T/o
KMS KMS
DEFINITION OF 'DECLARED SERVICE'
Section 66E The following shall constitute declared services, namely :
(a) renting of immovable property;
(b) construction of a complex, building, civil structure or a part thereof, including
a complex or building intended for sale to a buyer, wholly or partly, except
where the entire consideration is received after issuance of completion-
certificate by the competent authority.
Explanation :- For the purposes of this clause,
(I) the expression "competent authority" means the Government or any
authority authorized to issue completion certificate under any law for the
time being in force and in case of non requirement of such certificate from
such authority, from any of the following, namely:-
(A) architect registered with the Council of Architecture constituted under
the Architects Act, 1972; or
(B) chartered engineer registered with the Institution of Engineers (India);
or
(C) licensed surveyor of the respective local body of the city or town or
village or development or planning authority;
(II) the expression "construction" includes additions, alterations,
replacements or remodeling of any existing civil structure;
(c) temporary transfer or permitting the use or enjoyment of any intellectual
property right;
(d) development, design, programming, customisation, adaptation,
upgradation, enhancement, implementation of information technology
software;
(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a
situation, or to do an act;
(f) transfer of goods by way of hiring, leasing, licensing or in any such manner
without transfer of right to use such goods;
(g) activities in relation to delivery of goods on hire purchase or any system of
payment by instalments;
(h) service portion in the execution of a works contract;
(i) service portion in an activity wherein goods, being food or any other article
of human consumption or any drink (whether or not intoxicating) is supplied
in any manner as a part of the activity.
EXEMPTED SERVICES VIDE NOTI. NO 12/2012-ST
(w.e.f. date to be notified after the enactment of Finance Bill, 2012)
(A) Services Provided by Specified Category of Service providers
1. Clinical establishment in relation to Health Care.
2. Veterinary clinic in relation to healthcare of animals or birds.
3. Charitable Institution registered under section 12AA of Income Tax Act,
1961.
4. An Individual as an advocate or representational services before arbitral
tribunal to any person other than business entity.
5. Educational institution by way of catering under mid-day meals scheme;
transportation of students or staff.
6. Performing artist in folk or classical art forms of music, dance or theatre,
excluding services provided as a brand ambassador.
7. Independent Journalist, Press Trust of India or United News of India in
relation to collecting or providing of news.
8. Restaurant, eating joint or a mess other than those having air-conditioning
facility and which has a license to serve alcoholic beverages.
9. An incubate upto a total business turnover of Rs. 50 Lakhs in a financial
year.
10. An unincorporated body or an entity registered as society to own members
by way or reimbursement of charge or share of contribution as a trade
union.
11. Service provided by
(i) a sub-broker or an authorized person to a stock broker;
(ii) an authorized person to a member of a commodity exchange;
(iii) a mutual fund agent or distributor to mutual fund or asset management
company for distribution or marketing of mutual fund;
(iv) a selling or marketing agent of lottery tickets to a distributer or a selling
agent;
(v) a selling agent or a distributer of SIM cards or recharge coupon
vouchers; or
(vi) a business facilitator or a business correspondent to a banking
company or an insurance company in a rural area;
12. An organisor to any person in respect of a business exhibition held outside
India.
40 41
KMS KMS42 43
(B) Services Provided to specified category of Service recipients :
1. United Nations or a specified International Organization.
2. Recognised sports body by individual as a player, referee, umpire, coach
or manager or by another recognised sports body.
3. Government or local authority in relation to erection, construction,
maintenance, repair, alteration, renovation or restoration of a civil structure,
historical monument, pipeline conduit or residential complex for residential
use of their employees or other persons.
4. Government or local authority by way of repair of ship, boat or vessel,
effluents and sewerage treatment etc.
5. Government, local authority, charitable trust or an individual in relation to
any purpose other than industry, business or commerce by a service
provider located in a non-taxable territory.
(C) Services provided by way of / in relation to :
1. Renting of precincts of a religious place meant for general public.
2. Technical testing or analysis of newly developed drugs on human
participants by an approved clinical research organisation.
3. Training or coaching in recreational activities relating to art, culture or sports.
4. Sponsorship of tournaments or championship organised by various sports
federation, Universities, Sports Boards, Associations etc.
5. Erection, construction, maintenance, repair, alteration, renovation or
restoration of road, bridge, tunnel or terminal for road transportation,
building of charitable institution, pollution control or effluent treatment plant,
electric crematorium.
6. Erection or construction or original works pertaining to airport, port or
railways, single residential unit, low cost houses upto carpet area of 60
Sq. Mtrs., post-harvest storage infrastructure of agricultural produce,
mechanized food grain handling system.
7. Temporary transfer of a copyright relating to original literary, dramatic,
musical etc.
8. Renting of hotel, inn, guest house, club, campsite etc for lodging purposes,
having declared tariff of below Rs. 1,000/- per day.
9. Transportation of petroleum or petroleum products, relief for victims of
natural calamities or man-made disaster, defence or military equipments,
postal mails or household effects, newspaper or magazine, railway
equipments, agricultural produce etc.
10. Transportation of fruits, vegetables, eggs, milk, food grains or pulses or
gross amount charged not exceeding Rs. 750/- for single consignee or
Rs. 1500/- otherwise.
11. Services by way of giving on hire to state transport undertaking or to a
goods transport agency.
12. Transport of passengers by air in to and from specified states of India or
by a contract carriage.
13. Motor vehicle parking to general public.
14. General Insurance Service provided under various notified insurance
schemes.
15. Carrying out intermediate production process as job work in relation to
agriculture, printing, textile processing, cut and polished diamonds and
gemstones or any goods on which duty is payable by the manufacturer or
process of electroplating, zinc plating etc.
16. Making telephone calls from departmentally run public telephones,
guaranteed public telephones for local calls, free telephone at airport and
hospitals.
17. Slaughtering of bovine animals.
--------- x --------- x ---------
KMS KMS44 45
1) Place of Provision of Services Rules, 2012 have been proposed to be
introduced to determine the place where the service shall be deemed
to be provided. These Rules are expected to replace the existing
Export of Services Rules, 2005 and Taxation of Services (Provided
from Outside India and Received in India) Rules, 2006.
2) At present taxability of services is determined on the basis of
categorization of the services under one of the following criteria:
• Location of immovable property
• Place of performance of the service
• Location of the recipient of the service.
3) The place of provision of a service shall generally be the location of
the service receiver. The exception for the same would be a case
where location of the service receiver is not available in the ordinary
course of business. In such cases, the place of provision shall be the
location of the service provider.
4) In addition, the place of provision of a service would be determined on
the basis of categorization of the various services under one of the
following criteria:
• Where the services are actually performed
• Where the immovable property is located or intended to be located
• Where the event is actually held
• Taxable territory where the greatest proportion of the service is
provided
• Location of the service provider
• Where the goods are destined
• Where the passenger embarks on the conveyance for a
continuous journey
• Scheduled point of departure of a conveyance for the journey.
5) Where the place of provision of service is prima facie determinable in
terms of more than one rule, it shall be determined in accordance
with the rule that occurs later among the rules that merit equal
consideration.
PLACE OF PROVISION OF SERVICES RULES, 2012 (DRAFT)
1. Effective Date of the changes proposed in the Finance Bill, 2012
Changes in
Rates of BED
Budget Tariff Notifications
Budget Non-Tariff Notifications
Central Excise Rules, 2002 and Cenvat Credit
Rules, 2004
the provisions of the Central Excise Act,1944
The provisions of the Central Excise Tariff Act
(other than changes in rate of duty)
Effective from
17/03/2012
Date of enactment of
Finance Bill, 2012
2. Changes in rate of Basic Excise Duty (BED)
New Rate
12%
6%
2%
Old Rate
10%
5%
1%
Rate (Ad valorem)
Normal Rate
Concessional Rate
(with availment of Cenvat Credit)
Concessional Rate
(without availment of Cenvat Credit)
3. Highlights of changes proposed in the Finance Bill, 2012
• No change in the rate of Education Cess (EC) and Secondary and
Higher Education Cess (SHEC)
• Harmonization between Central Excise and Service Tax in respect of
return by introduction of EST returns of only 1 page and common
simplified registration form.
• Enhancement of BED on motor vehicles falling under heading no.
8702 or 8703.
• Support to the Airline Industry by providing full exemption from BED
to new and retreaded aircraft tyres.
(Note: The above Rates are not applicable for petroleum, coal, fertilizers,
articles of jewellery and mobile handsets and cellular phones.)
AMENDMENTS IN CENTRAL EXCISE ACT, 1944
KMS KMS
• Increase in rate of BED and abatement of branded ready-made
garments
• Full Exemption from BED to six specified life-saving drugs/ vaccines
• BED on processed soya foods products, iodine, matches
manufactured by semi-mechanised units and LED lamps are reduced
to 6%
• Imposition of BED @ 1% on non-branded jewellery (other than silver
jewellery)Full exemption from duty to branded silver jewellery
• Duty on Refined gold increased from 1.5% to 3%
• Increase in duty on "De-merit Goods" like cigarettes, bidis, pan
masala, gutkha, chewing tobacco, unmanufactured tobacco and
zarda scented tobacco in pouches
4. Exemptions from BED
Full exemption
1. Specified raw materials namely
steel tube and wire, cobalt chromium tube, hayness Alloy-2,
polypropylene mesh for manufacture of, coronary stents/ coronary
stent system and artificial heart valve
2. Fertilizers
3. Refills and inks in bulk packs (not for retail sale) used for manufacture
of pens of value < 200/piece
4. Intraocular lens
5. Parts, components and specified accessories viz. battery chargers,
PC connectivity cable memory cards and hands-free headphones
required for manufacture of mobile phones
Reduction in the rate of BED from 10% to 6%
1. Matches manufactured by "semi-mechanized" units
2. LED lamps
3. Iodine
4. Processed food products of soya
5. Parts of Blood Pressure Monitors and Blood glucose monitoring
systems
46 47
5. Summary of Notifications of Central Excise dated 17.03.2012
[A] Tariff NotificationsSr.
No.
Notification
No.
Particulars Major Impact
1 05/2012 Amends Notification No. 23/2003
Increase in the rate of excise duty on the DTA [Domestic Tariff Area] clearances of
plain gold jewellery manufactured by an EOU/EHTP/STP on some goods
2 06/2012 Amends in Notification No.
64/1995
Exemption extended to bullet proof helmets
3 07/2012 Supersedes Notification No.
29/2004 and provides exemption
Goods of pure cotton other than bearing brand name,subjected to concessional
rate of 6% duty of excise
4 08/2012 Amends Notification No, 31/2011
Exemption extended to garments returned for repair, reconditioning, etc.
5 09/2012 Provides
concessional rate on additional duty of excise levied u/s 85(1) of Finance Act
Rs. 70 per thousand for cigarettes
containing tobacco (other than filter cigarettes) of the length up to 65 millimetres.
6 10/2012 Provides concessional rate of basic excise duty
Rs. 509 per thousand for cigarettes containing tobacco of the length up to 65 millimetres
7 11/2012 Provides
concessional rate of NCCD levied u/s 136(1) of Finance
Act
Rs. 90 per thousand for cigarettes
containing tobacco (other than filter cigarettes) of the length up to 65 millimetres.
8 12/2012 Prescribes effective rate of basic excise duty
Exempts various goods prescribed in the list annexed to the Notification subject to conditions specif ied therein
9 13/2012 Amends Notification
No. 42/2008
The rates of excise duty on Pan Masala
and Guthka classified under CETSH No. 2106 90 20 and 2403 99 90 respectively and notified under section 3A is being
enhanced
10 14/2012 Amends Notification No. 16/2010
Rate of excise duty on some tobacco products notified under section 3A is being enhanced.
11 15/2012 Amends Notification
No. 8/2003
Calculation of value of clearances for
articles of jewellery (other than silver jewellery) based on tariff value fixed in the not ification no. 09/2012
12 16/2012 Amends Notification
No. 01/2011
Change in the rate of duty from 1% to
2% (if Cenvatcredit is not availed)
13 17/2012 Rescinds following Notifications02/2008, 59/2008
and 18/2009
Notifications, providing concessional rate of duty on var ious goods, are rescinded to give effect of increase in rate of duty.
14 18/2012 Provides effective rate of duty on various goods
15 19/2012 Amends Notification No. 02/2011
Change in rate of duty from 5% to 6% (Ad Valorem) (Cenvat Credit can be availed)
�
KMS KMS
[B] Non - Tariff Notifications
48 49
Sr.
No.
Notification
No.
Particulars Major Impact
1 07/2012 Amends Notification No. 49/2008
Cigarettes, portland cement have been notified under section 4A of
the Central Excise Act. Abatement would be 50% and 30% respectively. Rate of
abatement for all kinds of footwear is uniformed at 35%
2 08/2012 Amends the Central Excise Rules, 2002
Please refer page no. 53 of this booklet
3 09/2012 Fixes tariff value as
referred in Notification No. 15/2012
Tariff Value in respect of articles
of jewellery (other than silver jewellery) = 30% of transaction value as per Section 4 of Central
Excise Act
4 10/2012 Amends Chewing Tobacco and Un-manufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010.
5 11/2012 Amends Pan Masala Packing Machines (Capacity
Determination and Collection of Duty) Rules, 2008
6 12/2012 Amends Notification No. 16/2011
Inclusion of credit taken from inter-unit transfer of credit under rule 10A of CENVAT Credit
Rules, 2004 in the excise return
7 13/2012 Amends the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. Return under sub-rule 5 of the said
rule is to be filed quarterly instead of monthly.
8 14/2012, 15/2012,
16/2012
In the Notification No. 45/2001, 31/2007and 42/2001. In place of Section 11AB, Section 11AA shall be substituted.
9 17/2012 Amends Notification No. 20/2001
Change in fixing tariff value in respect of articles of apparel, not knitted or crocheted, all sorts, falling under sub-heading No.
6201 00 from 45% to 30% of RSP
10 18/2012 Amends Cenvat Credit Rules, 2004
Please refer page no. 13 of this booklet
�
6. Proposed changes in the provisions of Central Excise Act, 1944
Amendments
Incorporation the definition of "inter-connected
undertakings" contained in MRTPAct, 1969 as the latter
has been repealed
In case of evasion when duty leviable exceeds Rs. 30
Lacs (in place of earlier Rs. 1 Lac) shall be punishable
with aterm of imprisonment extending to seven years
and with fine
Period of stay by an order of a court or tribunal to be
excluded in computing the period of one year or five
years, for issuance of show cause notice.
Benefit shall be available only if reduced penalty is also
paid within the specified period of thirty days
The Notification provides exemption from Central Excise
duty to goods cleared from new units or units that have
undertaken substantial expansion in the State of Jammu
and Kashmir. It is being amended retrospectively from
the date of issue of the said notification to provide that
for units undertaking substantial expansion in terms of
the notification, the exemption period of ten years would
be computed from the date of commercial production
from the expanded capacity.
(Retrospective effect from 06/02/2010)
Section
Section 4
Section 9
Section 11A
Section 11AC
Amendment in
Notification
No.1/2010-CE
7. Proposed changes in The Central Excise Tariff Act, 1985
(other than changes in rate of duty)
Amendments
Man-made fibre such as polyester staple fibre and
polyester filament yarn manufactured from plastic and
plastic waste including waste polyethylene, terephthalate
bottles shall be classified as textile material under
Chapter 54 or Chapter 55, as the case may be"
(Retrospective effect from the 29th June, 2010)
Particulars
Insertion of a new
Chapter Note 1A
in Chapter no. 54
KMS KMS50 51
Commodity
Name
Impact
Precious metals and jewellery
� BED of 1% without CENVAT credit facility is being imposed on all articles of jewellery other
than silver jewellery which is being fully exempted.
� Such duty is to be paid on tariff value which is
being fixed at 30% of the transaction value as declared in the invoice
� Full exemption from BED is being provided for gold coins of purity 99.5% and above and silver
coins of purity 99.9% and above, on which the appropriate duty of customs or excise has been
paid.Cement � The graded excise duty structure based on RSP
slabs applicable to cement manufactured and cleared in packaged form is being removed for both mini-cement plants and non-mini cement
plants. � BED on such cement as well as cement cleared
other than in packaged form is also being revised.
� BED on cement clinkers is also being revised.
Cigarettes and biris
� A 10% ad valorem duty is being imposed in addition to the existing specific duty on all slabs
of cigarettes other than filter and non-filter cigarette of length not exceeding 65 mm.
� The excise duty on Cigars, Cheroots and
Cigarillos is also being enhanced. The rate of excise duty on Biris is being increased by Rs.2 per thousand for both handmade and machine
made biris.
�
8. Amendments in the Central Excise Rules, 2002
9. Major Effects of the Finance Bill, 2012 on Industry
Amendments
Substitution of section 11AA in place of section 11AB
Option to the job-worker to register, if he so desires, has
been deleted. Every person who gets articles of jewellery
of heading no.7113 produced or manufactured on job-work
shall comply with the provisions of Central Excise, as if he
is the manufacturer.
Rule
Rule 8, 8A
and 12BB
Rule 12AA
Sr.
No. Description of goods
Earlier rate
(Ad Valorem)
Revised rate
(Ad Valorem)
Length not exceeding 4 metres
1
Engine capacity not
exceeding 1200cc (petrol, LPG or CNG)
10% 12%
2 Engine capacity not exceeding 1500 cc (diesel)
10% 12%
Others
1 Engine capacity not exceeding 1500 cc
22% 24%
2 Engine capacity exceeding 1500 cc
22% + Rs. 15000/Unit
27%
�
Motor Vehicles (falling under Heading No. 8702 or 8703)
Ready-
Made Garments,
made-up articles and textiles
� BED is being enhanced to 12% on readymade garments bearing a brand name or sold under a brand name.
� Rate of abatement on such readymade garments and made-ups is being increased from 55 % to 70%. Tariff value for purposes of charging duty
would be @ 30% of the RSP. Footwear � Exemption limit available to non-leather footwear is
being increased to MRP Rs. 500. � For footwear exceeding Rs. 500, the applicable
duty would be 12%.
Crude Petroleum
� The rate of cess leviable as a duty of excise on crude petroleum under the Oil Industries Development Act has been increased from Rs.
2500/MT to Rs. 4500/MT
Mobile Phones
� Parts, components and specified accessories viz. Battery chargers required for PC Connectivity Cable manufacture of
Memory cards mobile phones exempt hands-free headphones are fully exempt � However, standard rate is chargeable when such
goods are cleared as spares. � Concessional rate of excise duty of 2% is now
being provided for such spares (provided Cenvat credit is not availed)
Coal � Continues to enjoy concessional rate of BED @ 1%
�
KMS KMS
Ø In the login details feed that user id and password, so they will
give the option to change the password and assessee can keep
password as he wish but can’t change his user id.
Ø Now if assessee is new assessee, he should be registered first in
service tax by ST -1 form.
Ø Navigation path to fill ST -1 is:
User id + Password = Login àREGàFill ST -1
Fill all details precisely and submit it.
Ø After filing Form ST-1 electronically, assessee is required to submit
the physical documents with the department along with the copy
of acknowledgement generated after filing ST-1.
2) Benefits of ACES:
Ø Online Registration and Amendments and E-filing of Returns
Ø Electronic filing of documents such as Returns, Claims, Intimations
and Permissions
Ø Assesses can File, Track, View, Know the Status of documents
online, Instant e-acknowledgement
Ø Online tracking of the status of applications, claims and
permissions
Ø Online facility to view documents like registration certificate,
Returns, SCN, Order-in-Original etc.
Ø Online authentication of PAN with the Income Tax Department.
Ø Uniformity of Process across India
Ø Single Window Service - E-payment
Ø Reduce Physical Interface with Department
Ø All these services come free of cost
3) ACES – Modules:
Ø Registration
Ø Returns
Ø ST3A
Ø Refunds
Ø Dispute Resolution
Ø Accounting
Ø Audit
4) INTERFACE:
Ø INCOME TAX – Verification of PAN
Ø EASIEST – Verification of Payment Particulars (GAR 7 Challans)
from Banks through NSDL.
AUTOMATION OF CENTRAL EXCISE &
SERVICE TAX (ACES)
1) REGISTRATION:
On-line Registration for assessee
• Existing Assessee
• New Assessee
1.1 Existing Assesses – Procedure to access ACES
Ø For the existing assessees, there is no need to get reregistered
in the ACES but just give the details as well as email id to the
department
Ø For all the Existing Assesses, the system would generate TPINs
(Temporary Personal Identification Number) and passwords for
initial access to the application. The format of TPIN would be T +
9 digit number’ (e.g. T012345678)
Ø An email message with details for accessing ACES will be sent
to the email Id of the Assesses with a hyperlink to connect the
User Name Creation Screen in ACES.
Ø Assessee should also check “Spam” or “Bulk Mail”
Ø Assessee uses the hyperlink provided and clicks on it
Ø A screen opens up, in which the assessee fills in the t-pin &
password provided and chooses a new user-id and password
Ø User-id once selected cannot be changed
Ø Now assessee can login into ACES
1.2 New Assesses – Procedure to access ACES
Ø Open ACES at http://www.aces.gov.in and choose Service Tax
Ø Select the link “New Users to Click Here to Register with ACES”
to go for Creation of User Name.
Ø This Screen enabl es creation of User Name (ID) & Password
(given by the User) after entry of valid E-mail ID and other basic
details of the person registering with the ACES Application.
Ø User ID once selected is Permanent, Password can be changed
Ø After getting the request, department will send the user id and
password to the concerned email id.
52 53
KMS KMS54 55
GST is the integration of all taxes on Goods and Service Tax. GST is
introduced in order to implement a single act for goods and service tax to
phase out cumbersome implementation of various acts. According to white
paper issued by the competent authority, GST will be levied by both i.e.
Central and by state.
Objectives:
• To remove the short comings in current tax structures such as tax
cascading, complexity, double taxation and composite contracts.
• To remove cascading effect between central and state level.
• To imply such a tax system, which is similar to most part of the
world.
Following Central Taxes should be, to begin with, subsumed under
the Goods and Services Tax :
(i) Central Excise Duty
(ii) Additional Excise Duties
(iii) The Excise Duty levied under the Medicinal and Toiletries Preparation Act
(iv) Service Tax
(v) Additional Customs Duty, commonly known as Countervailing Duty (CVD)
(vi) Special Additional Duty of Customs - 4% (SAD)
(vii) Surcharges, and
(viii) Cesses.
Following State taxes and levies would be, to begin with, subsumed
under GST :
(i) VAT / Sales tax
(ii) Entertainment tax (unless it is levied by the local bodies).
(iii) Luxury tax
(iv) Taxes on lottery, betting and gambling.
(iv) State Cesses and Surcharges in so far as they relate to supply of
goods and services.
(v) Entry tax not in lieu of Octroi.
Goods and Service Tax (GST)For better clarity, here is an example to present the difference
between present tax structure and the same under GST-
Goods from producer to wholesaler Present taxes (Rs.) GST (Rs.)
Cost of production 80,000 80,000
• Producers margin of profit 20,000 20,000
Producer’s price 1,00,000 1,00,000
• Central Excise duty at 14% 14,000 Nil
• VAT at 12.5% 14,250 Nil
• Central GST at (expected rate )12% Nil 12,000
• State GST at (expected rate) 8% Nil 8,000
Total price 1,28,250 1,20,000
Goods from wholesaler to retailer Present taxes (Rs.) GST (Rs.)
• Cost of goods to wholesaler 1,14,000 1,00,000
• Profit margin at 5% 5,700 5,000
Total 1,19,700 1,05,000
• VAT at 12.5% 712.5 Nil
• Central GST (expected rate )12% Nil 600
• State GST at (expected rate) 8% Nil 400
Total Price 1,20,412.5 1,06,000
Goods from retailer to consumer Present taxes (Rs.) GST (Rs.)
• Cost of goods to retailer 1,20,412.5 1,06,000
• Profit margin at 10% 12,041.25 10,500
Total 1,32,453.75 1,16,500
• VAT at 12.5% 1505.15 Nil
• Central GST (expected rate )12% Nil 1,050
• State GST at (expected rate) 8% Nil 840
Total price to the final consumer 1,33,958.9 1,18,390
Tax component in the price to the
Final consumer 30,467.65 22,890
Final price exclusive of taxes 1,03,491.25 95,500
KMS KMS56
Useful Websites
Area Description website
Income Tax Official Website http://www.incometaxindia.gov.in/
e-Filing https://incometaxindiaefiling.gov.in/
Services To Tax Payer http://www.incometaxindiapr.gov.in
Tax Information NetWork http://www.tin-nsdl.com/
ITAT http://itat.nic.in/
Service Tax Official Website http://www.servicetax.gov.in/
E-Filing http://www.aces.gov.in/
Corporate Law MCA http://www.mca.gov.in/
LLP http://www.llp.gov.in/
Supreme Court Official Website http://www.supremecourtofindia.nic.in/
RBI Official Website http://www.rbi.org.in/home.aspx
Ombudsman Banking http://secweb.rbi.org.in/bo/compltindex.htm
Ministry of Finance Official Website http://www.finmin.nic.in/
Provident Fund Official Website http://www.epfindia.nic.in/
ESIC Official Website http://www.esic.nic.in/
Central Board of Official Website http://www.cbec.gov.in/
Excise & Customs
Directorate General Official Website http://www.dgft.gov.in/
of Foreign Trade
Right to information Official Website http://www.rti.gov.in
Central Vigilance Official Website http://www.cvc.nic.in
Commission
XBRL International Official Website http://www.xbrl.org
XBRL India Official Website http://www.xbrl.org/in
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