Service Tax

Prepared By :- Arvind Kumar Bochiwal

THE AREAS OF INTEREST (link)

Administration of Service TaxRegistrationCentralized registrationRefunds/RebatesST3 Returns – filling & filingAuditAnti-evasion– DGCEI & CommissionerateInterpretations/ Clarifications

Commissioners of Central excise headed by chiefs

Chief Commissioners of Central Excise

Central Board of Excise & Customs

Department of Revenue

Ministry of Finance

ADMINISTRATION OF SERVICE TAX

RegistrationDOCUMENTS REQUIRED

ST1- Properly filledPAN Number proofProof of address:

Office to be registered Utility bills - telephones, electricity rent/lease deed along with NOC from landlord Any other document which proves the address

Residence of Director/Partner/Proprietor Driving license, Passport, utility bills

Power of attorneyDocumentary proof in case of specific services eg

Stock Brokers, Forward Contract service, CA etc.Memorandum/Articles of Association/ Partnership

deed

Registration – Some PointersOne registration for all services provided

or receivedCentralized receipt of ST1 in divisionsOnly complete forms are accepted –

Deficiency memos in all other cases.Registration is being granted within 7

days and delivered to your address by speed post

Application for Registration & returns are being accepted by 22 Post offices in Delhi only (pilot project) – on payment of Rs 100/-

Centralized RegistrationProper Documentation as per TNLead Time as verification at Division,

Commissionerate and DGST levelService Receivers Proper filing of ST1 - is considered a

fresh registrationPayment, Returns & AuditCenvat Utilization – Transfer to

manufacturing Units

Refund/Rebate Procedure Rebate:

Declaration to be filed as per Not 12/2005-STDeclaration to be timely & proper containing the

details mentionedRebate to be filed along with proper documents –

original invoices & BRC must Eligibility of inputs/input services for rebate

Refund:Bank Realization CertificateProof of duty payment – invoice & Record for

accumulation and utilization of creditEligibility of input/input service for refundDetails of Export and total turnover

ST3 Return – filling & filingValue:

Billed: Gross Exempt Services Exported Service Net on which tax is to be paid

Abatement ClaimedAmount Received:

taxable service rendered Advance received

Service Tax Payable (CALCULATOR.XLS)

ST3 – Contd. Details of Other Payments:

ArrearsEducation Cess InterestPenaltyMiscellaneousExcess amount paid and adjusted subsequently

CreditOpening BalanceCredit availed on inputs/capital goods/ input servicesCredit recd from Input Service DistributorCredit UtilizedClosing Balance

E-filing of Service Tax Return File an application to the concerned Division at

least 1 month before the date of filing of return.

A user id and password should be issued to him within 10 days along with technical details

Assesses to download ST3 and TR6 challans and enter the necessary details and file the returns

Receipt is generated along with a key number which is a proof enough

No documents required to be filed

Audit Criterion – service tax payment (Cash + Credit)

Payment > 50L : yearly 25L < Payment < 50L : Once in 2 years 10L < Payment < 25L : Once in 5 Years Payment < 10L : Risk assessment –2% of total assesses

Procedure : Prior intimation Supply of Documents – balance sheet, returns etc Visit, scrutiny, pointing out of discreperancies, discussion,

recovery, draft audit para Audit Board Meeting approves each para before issue Issue of para – dispute resolution – SCN & Adjudication

Anti-evasionCommissionerate & DGCEI have

concurrent jurisdictionSummons in case there is reason to

believe that there is evasion of Service Tax

Documents/ Accounting Statements / Invoices

Dispute resolution – SCN & Adjudication

Interpretations/ ClarificationsClarifications in case of doubts regarding

specific applicability of law to a particular case Prefer not to talk in terms of hypothetical cases

Letter should be accompanied by necessary documents/ contracts etc.

Clarifications being issued solely by the commissionerate headquarters

In doubt, further reference is made or practice ascertained from other commissionerate

Forms of Service Tax

Form STR3Form STR3AForm STR3EForm ASTR2Form STR5Form STR6Form STR7

Thank You!

THANK-YOU

From -> Arvind Kumar Bochiwal