Every person, providing any of the specified taxable service is required to pay Service Tax. Service Tax being an indirect tax, its burden is to be borne by the person who receives services, but it is to be collected and paid to Government Exchequer by the service provider.

No. There is no general exemption provided to Central/State Government Departments/PSUs. Government department whether Central or State have to pay Service Tax to the provider of the service from whom any of the specified services are received by the Government department/PSUs.

the calendar month in which the payments are received.

(b)             Quarterly – In case of an individual or proprietary firm or partnership firm by  the 5th of the month immediately following the quarter in which payments are received.

(c)             In all cases the tax payable for the month of March or quarter ending March shall be paid by 31st March of the calendar year.

However, every service provider in terms of Rule 5(2) of Service Tax Rules, 1994 is required to furnish to the jurisdictional Superintendent of Service Tax/jurisdictional Superintendent of Central Excise, a list of all accounts maintained by the assessee in relation to Service Tax including memorandum received from his branch offices at the time of filing his return for the first time.
 

1. Copy of TR-6 Challans indicating payment of Service Tax.

2. In case of ST-3A return (Provisional Assessment) a memorandum indicating tax payable and tax paid every month is to be filed.

3. A sheet indicating calculation of interest in case of delayed payment of Service Tax.
 

In terms of Section 76 of Chapter V of Finance Act, 1994 as amended a penalty of Rs.200/- per day for every day of delay of payment of Service Tax or @ 2% of Service Tax per month, whichever is higher, can be levied. This is subject to a maximum penalty of   In addition to the penalty; interest has also to be paid for the period of delay. In terms of Section 75 of Finance Act, 1994 rate of interest are to be specified. The interest rate enforce at present is 13% per annum. Interest is payable for the period from the first day after the due date till the date of payment of such defaulted service tax amount or part thereof.

Any assessee who has 15 digits STP code and who has been indicating this 15 digits STP code on the TR-6 challan used by them during the period for which the returns are being filed can opt for e-filing of returns. Such assessees who have not been quoting 15 digits STP code on TR-6 challans can also opt for e-filing of ST-3 returns, but they will have to submit copies of Challans evidencing payment of Service Tax to the concerned Service Tax/Central Excise formations after indicating their 15 digits code number of each Challan. An application for permission to file ST 3 return electronically has to be made to the jurisdictional Assistant Commissioner/Deputy Commissioner (Proforma of application is given at Annexure-11).

1. Name, address and registration number of such person

2. Name and address of the person receiving taxable service

3. Description, classification and value of taxable service provided or to be provided; and the service tax payable thereon.

4. In case of GTA the invoice should also contain the details of the consignment note number date and gross weight of the consignment.

There is special provision for Banking & Financial services. Banking and Financial service providers need not mention all the aforementioned particulars invoice/bills/Challans.
 

(a) taxable service for the purpose of computation of Service Tax.

(b) No Service Tax is leviable if service provided is free of change.

(c) Invoice should show the amount of Service Tax separately. If not shown
separately, the gross amount may be taken to be cum-tax price or inclusive of Service Tax.

(d) Cost of goods and materials sold to customer during the course of providing
service is to be excluded from the value of service.

(e) This exclusion is allowed only if the sale and value of such goods is indicated
separately in the invoice. The assessee is expected to maintain documentary proof of the value of such goods.

(f) Further, the assessee cannot claim abatement specific to any service, under any
notification, if the above exclusion is claimed.
 

Service Tax is required to be paid at the rate in force (which at present 10. %) only on the value / amount of taxable service received in a particular month or quarter as the case may be, and not on the gross amount billed to the client. Alongwith Service Tax, an education cess @ 2% of the Service tax is also required to be paid in respect of all taxable services.

However, in all such cases when the amount received is less than the gross amount charged / billed to the client, the Service Tax assessee is required to amend the bills either by rectifying the existing bill or by issuing a revised bill or a credit voucher / note and by properly endorsing such change in the billed amount. In case an assessee fails to do so, his liability to pay Service Tax shall be on the amount billed by him to the client for the services rendered.

Yes. Where an assessee has paid to the credit of the Government in respect of a taxable service, which is not so provided by him, either wholly or partially for any reason, the assessee may adjust the excess Service Tax so paid by him (calculated on a pro-rata basis) against his Service Tax liability for the subsequent period, if the assessee has refunded the value of taxable service and the Service Tax thereon to the person from whom it was received (Rule 6(3) of the Service Tax Rules, 1994).

Further, assessees having centralized registration who paid excess amount of Service Tax, on account of non-receipt of details regarding the receipt of gross amount for the services at his other premises or offices, may adjust such excess amount against the Service Tax liability for the subsequent period and furnish the details of such adjustment to the Jurisdictional Superintendent of Service Tax within 15 days from the date of such adjustment (Rule 6(4A) of the Service Tax Rules, 1994 refers).

In all other cases of excess payment, refund claims have to be filed with the Department. The refund claims would be dealt as per the provisions of Section lIB of the Central Excise Act 1944, which is made applicable to Service Tax under Section 83 of the Finance Act 1994.

It is important to note that any amount of Service Tax paid in excess of the actual liability, is refundable, only if it is proved that the claimant of refund had already refunded such amount to the person from whom it was received or had not collected at all (Section 11 B of the Central Excise Act, 1944which is applicable to Service Tax matters under Section 83 of the Act).
 

Back>>