 |
Who should be approached when an
assessee is aggrieved by an order/decision of the
Adjudicating Authority subordinate to the Commissioner
of Central Excise in respect of Service Tax? What is the
procedure for filing the Appeal? |
|
|
An assessee aggrieved by such
order/decision may file an Appeal to the Commissioner
(Appeals) in Form ST-4, in duplicate.
· A copy of the order/decision appealed against
should be enclosed.
· The appeal should be filed within 3 months from the
date of receipt of the order/decision.
· There is no fee for filing an Appeal before the
Commissioner of Central Excise (Appeals), even in
respect of Service Tax matters (Section 85 of the Act
and Rule 8 of the STR, 1994).
|
|
|
Can the time limit of three months for filing the
appeal to the Commissioner (Appeals) be extended? If
yes, under what circumstances? |
|
|
Yes, if the Commissioner (Appeals) is
satisfied that the appellant was prevented by sufficient
cause from presenting the Appeal within the statutory
period of three months, he may allow the Appeal to be
presented within a further period of three months. The
law does not provide for further extension of time
(Proviso to Section 85(3) of the Act). |
|
|
Can an Appeal be filed against the
order/decision of the Commissioner of Central Excise or
Commissioner (Appeals)? If so, what is the procedure for
that? |
|
|
Yes. The law provides for filing such an Appeal. The
procedure is an follows:-
· The Appeal against the order of the Commissioner of
Central Excise or Commissioner (Appeals) can be filed
with the Customs, Excise and Service Tax Appellate
tribunal (In short, CESTAT).
· The Appeal should be filed within three months of
the date of receipt of the order sought to be appealed
against.
· It should be filed in the prescribed Form (ST-5) in
quadruplicate.
· It should be accompanied by a certified copy of the
order appealed against.
· The Appeal should be accompanied by the prescribed
fee based on the amount of Service Tax and interest
demanded and penalty levied. Rs.1000/- if the amount
involved is Rs.5 lakhs or less, Rs.5000/- if the amount
involved is more than Rs.5 lakhs but not exceeding Rs.50
lakhs and Rs.10,000/- if the amount involved is more
than Rs.50 lakhs. (Section 86 of the Act and Rule 9 of
the Service Tax Rules , 1994). |
|
|
Who will pay Service Tax? |
|
|
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. |
|
|
Is there any exemption to Central/State Government
Departments/PSUs? |
|
|
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. |
|
|
In case, I am providing any of the specified services
am I required to pay Service Tax? |
|
|
yes |
|
|
What is the payment scheduled for Service Tax? |
|
|
(a) Monthly – Service Tax is to be paid by 5th of the
month immediately following 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. |
|
|
Whether any other tax is to be paid with the Service
Tax? |
|
|
Yes. Education cess @ 2% and higher secondary education
cess @ 1% of the Service Tax levied and collected is to
be paid. |
|
|
Is there any separate code number for payment of
education cess? |
|
|
Yes, the code number is 00440297, code no. for Higher
secondary education cess is 0252. Code numbers for 104
services are mentioned against each service as shown in
Annexure-I |
|
|
How and where to deposit Service Tax? |
|
|
Service Tax may be deposited in any authorized branch of
the designated banks through TR-6 challan. |
|
|
Whether Service Tax can be paid on line? |
|
|
Yes, e-payment of Service Tax can also be made |
|
|
What is the period for filing of ST-3/ST-3A return? |
|
|
The period for filing the return is 6 months. For the
period April to September due date is 25th October and
for the period October to March due date is 25th of
April. |
|
|
What are the prescribed records to be maintained by
me as a service provider? |
|
|
Records (including computerized data) as maintained by
you in accordance with various laws in force from time
to time are acceptable. 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. |
|
|
Whether any documents are required to be attached
with ST-3/ST-3A – (ST-3 A is to be filed in provisional
assessment cases)? |
|
|
Following documents are required to be filed along with
ST-3/ST-3A-
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. |
|
|
Whether ST-3 return is to be filed in case, no
services are provided during half-year period? |
|
|
Yes. In such cases a nil return is to be filed. However,
if any outstanding value of taxable service is realized
during 6 months period, it is be declared and tax
thereof is to be discharged and so ST-3 return is to be
filed in such cases. |
|
|
What if I do not declare the value of outstanding
taxable services realized during the half year period
when no services are provided? |
|
|
This will amount to suppression of value of taxable
service or mis-declaration and in such cases demand can
be made by the department for past five years in terms
of proviso one to section 73(1) of Chapter V of Finance
Act, 1994, as amended and penalty under Section 78 is
also leviable. |
|
|
What if I do not pay my Service Tax by the due date? |
|
|
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. |
|
|
Who can avail facility of e-filing of returns? |
|
|
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). |
|
|
Can the department ask more information than what
assessee is submitting to it in the form ST-1 and ST-3? |
|
|
Yes. If required, the department can always ask for
additional information. |
|
|
What should a bill or invoice issued by service
provider contain? |
|
|
Invoice, Bill or Challan issued by the service provider
should be serially numbered and should contain:-
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. |
|
|
On what amount Service Tax is to be paid? |
|
|
The gross amount charged by the service provider shall
be the value of
(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. See
Notification No. 12/2003-Service Tax dt. 20th June 2003
(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. |
|
|
Whether Service Tax is payable after providing the
service or after the receipt of service charges? |
|
|
Service Tax is payable once the amount/value of taxable
service is received by the service provider for the
service so provided or to be provided. |
|
|
Is the Service Tax payable by the assessee even in
cases where his clients do not pay for the service(s)
rendered or when the client pays only a part of the bill
raised in this regard? |
|
|
Service Tax is required to be paid at the rate in force
(which at present 12 %) 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. Along with Service Tax, an
education cess @ 2% + higher secondary education cess @
1% 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. |
|
|
Can any adjustment of tax liability be made? |
|
|
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, assessee 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>> |
