Transcript Slide 1

Baroda Baroda Branch of WIRC of ICAI
- By CA. Manilal Parsiya
Service Tax rate is twelve per cent plus education cess (12.36%).
On the value of all services, except specified in the negative list.
Provided or agreed to be provided in the taxable territory.
By one person to another.
It includes declared services.
Collected in such manner as may be prescribed.
The definition provides that “service“ does not include—
(i)
any activity that constitute only a transfer of title in goods or
immovable property, by way of sale, gift or in any other
manner; or
(ii) such transfer, delivery or supply of any goods which is deemed
to be a sale as per clause (29A) of article 366 of the
Constitution; or
(iii) a transaction in money or actionable claim;
(iv) a provision of service by an employee to the employer in the
course of or in relation to his employment;
(v) fees taken in any Court or tribunal established under any law
for the time being in force.
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Explanation 3.—
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 4.—
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;
Notifi. No.
Nature of exemption
25/2012
Mega Exemptions
26/2012
Exemptions through abatement to specified services
27/2012
Exemptions to services to foreign diplomatic mission
29/2012
Exemption on property tax from renting of immoveable property
31/2012
Exemption to exporter for transport of goods from place of
removal to freight station, container depot, port, airport
Noti .No.
Nature of exemption
32/2012
Exemption of services provided by a Technology Business
Incubator(TBI) or a Science and Technology Entrepreneurship
Park(STEP)
33/2012
Exemption to small service provider(up to 10 lakh)
39/2012
Rebate on service tax on export of services
40/2012
Exemptions on services provided to SEZ authorized operations
41/2012
Rebate of service tax i) in case of excisable goods on services used
beyond place of removal and in other case taxable service used in
such export of goods
Notificatio
n No.
Nature of exemption
42/2012
Service provided by a commission agent located outside India and
engaged under a contract or agreement or any other document by the
exporter in India, to act on behalf of the exporter, to cause sale of goods
exported by him.
43/2012
1.
Service of transportation of passengers, with or without
accompanied belongings, by railways in --
(A) first class; or
(B) an air conditioned coach
2.
Services by way of transportation of goods by railways
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Usually, service provider is liable to Service tax.
In certain cases, service recipient is obliged to discharge service tax
liability. This is popularly known as ‘Reverse Charge Mechanism’
Reverse Charge mechanism – Applicability will depend on:
• Nature and description of Service
• Status of Service Provider
• Status of Service Recipient
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Government derives power to collect Service tax from recipient
under:
• Section 68(2) of the Finance Act, 1994
• Rule 2(1)(d) of Service Tax Rules, 1994
Sl.
No.
Description of Service
Liability of
Service
Provider
Liability of
Service
Recipient
1
Service by Insurance Agents to any person carry on
insurance business
Nil
100%
2
Goods Transport Agencies for transportation of
goods by road to specified person (person liable to
pay freight treated as service recipient)
Nil
100%
3
Sponsorship provided to partnership firm /
corporate entity
Nil
100%
4
Services Provided by Arbitral Tribunal to business
entity
Nil
100%
5
Services Provided by Individual Advocates or a firm
of advocates by way of legal services to a business
entity
Nil
100%
Sl.
No.
Description of Service
Liability of
Service
Provider
Liability of
Service
Recipient
5A
services provided or agreed to be provided by a
director of a company to the said company
Nil
100%
6
Support service by Government / Local Authority to
business entity excluding
1. Renting of immovable property
2. Postal services
3. Services in relation to an aircraft or vessel
4. Transport of goods or passengers
Nil
100%
7(a)
Rent-a-Cab (where abatement is availed) provided
by non-corporate entity to corporate business
entity not in a similar line of business
Nil
100%
Sl.
No.
Description of Service
Liability of
Service
Provider
Liability of
Service
Recipient
7(b)
Rent-a-Cab (where abatement is not availed)
provided by non-corporate entity to corporate
business entity not in a similar line of business
60%
40%
8
Supply of manpower for any purpose or security
services provided by non- corporate entity to
corporate business entity
25%
75%
9
Works Contract Service provided by non-corporate
entity to corporate business entity
50%
50%
10
Services provided by a person in non taxable
territory to a person located in taxable territory
(popularly know as import of service)
Nil
100%
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Explanation-I. - The person who pays or is liable to pay freight for the
transportation of goods by road in goods carriage, located in the taxable
territory shall be treated as the person who receives the service for the
purpose of this notification.
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Explanation-II. - In works contract services, where both service provider
and service recipient is the persons liable to pay tax, the service recipient
has the option of choosing the valuation method as per choice,
independent of valuation method adopted by the provider of service.
1)
Value of Taxable Services:
a)
b)
c)
2)
3)
4)
Where consideration is money – Gross amount charged by the service
provider
Where consideration is not wholly or partly consisting money – amount with
addition to service tax charged, is equivalent to the consideration
Where consideration is not ascertainable – amount may be determined in the
prescribed manner
Where gross amount charged inclusive of ST – value shall be such amount
as, with addition of tax payable, is equal to the gross amount.
Gross amount of taxable service shall include amount received before,
during and after provision of such service
Subject to the provisions sub-sections 1, 2 and 3 of Sec. 67 value shall be
determined in such a manner as may be prescribed
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"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, repair, maintenance, renovation, alteration of any
movable or immovable property or for carrying out any other
similar activity or a part thereof in relation to such property.
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New Rule 2A of Service Tax (Determination of Value) Rule,
determine the value in case of the works contract as under:
a) The first determination will be the value of service being the
total amount charged for the contract reduced by the value of
property transferred in goods for State VAT purpose; [Clause (i)].
Even if value of goods is not intimated to State VAT, the assessee
can still calculated the actual value of goods and the same will
be relevant to deduce the value of the service involved in the
works contract.
b) Where the value is not determinable under Clause (i), it shall be
determined on the basis of statutorily prescribed percentage.
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Valuation of service portion of a works contract on the basis of
statutorily prescribed percentage:
Type of works contract
Percentage of value of the service
portion
(A) Execution of original works
40 % of the total amount charged
for the works contract
(B) Maintenance, repair, reconditioning,
restoration or servicing of any goods
70 % of the total amount charged
for the works contract
(C) In case of other contracts including
contracts for maintenance, repair,
completion and finishing services such as
glazing, plastering, floor and wall tiling,
installation of electrical fittings
60 % of the total amount charged
for the works contract
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Explanation 1: "original works" means—
i.
ii.
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all new constructions;
all types of additions and alterations to abandoned or damaged structures
on land that are required to make them workable;
iii. erection, commissioning or installation of plant, machinery or equipment or
structures, whether pre-fabricated or otherwise;
"total amount" means the sum total of the gross amount charged for the works
contract and the fair market value of all goods and services supplied in or in
relation to the execution of the works contract, whether or not supplied under the
same contract or any other contract, after deducting—
i.
the amount charged for such goods or services, if any; and
ii.
the value added tax or sales tax, if any, levied thereon.
Explanation 2:
• CENVAT credit of duties or cess paid on any inputs, used in or in relation to the
said works contract, shall not be available
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Rule 2C provides for Determination of value of service portion
involved in supply of food or any other article of human
consumption or any drink in a restaurant or as outdoor catering
◦ At restaurant Value of Service
◦ As Outdoor Catering Value of Service
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40%
60%
CENVAT will not be available on goods classifiable under Chapter 1
to 22 of Central Excise tariff
(live animals, animal products, vegetable products, prepared food
stuffs, beverages, spirits and vinegar or animal or vegetable fats
and oils and their cleavage products, prepared edible fats, animal or
vegetable waxes)
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Rule 3 – where such value is not ascertainable shall be determine by
service provider –
a) Value of similar service
b) if it cannot be determined as (a) the equivalent money, which shall in
no case be less than cost of provision of service
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Rule 5
1) Where any expenditure or costs are incurred by the service provider in
the course of providing taxable service, all such expenditure or costs
shall be treated as consideration.
2) Except the expenditure or cost s incurred as pure agent
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Rule 6
(1)
New Inclusions added – The amount realized as demurrage for the provision
of service beyond the period originally contracted
(2) Exclusions –
a) Initial deposit made by the subscriber of telephone/mobile
b) Air fair collected by air travel agent
c)
Rail fair collected by rail travel agent
d) Interest on delayed payment of any consideration for the provision of
services etc.
e) Taxes levied by any Govt. on air travelling and shown separately.
f)
Accidental damages due to unforeseen actions not relatable to provision
of services
g) Subsidy and grants disbursed by Govt.
Description of taxable service
Taxable
Percent
Conditions
financial leasing including hire purchase
10
Nil
Transport of goods by rail
30
Nil
Transport of passengers by rail
30
Nil
Bundled service by way of supply of food or any
other article of human consumption or any drink, in
a premises (including hotel, convention centre, club,
pandal, shamiana or any other place, specially
arranged for organizing a function) together with
renting of such premises
70
CENVAT on any
goods classifiable
under Chapter 1 to
22 of Central Excise
Tariff Act, 1985 has
not been taken
Transport of passengers by air
40
CENVAT credit on
inputs and capital
goods has not been
taken
Description of taxable service
Taxable
Percent
Conditions
Renting of hotels, inns, guest houses, clubs,
campsites or other commercial places meant for
residential or lodging purposes.
60
CENVAT credit on
inputs and capital
goods has not been
taken
Services of goods transport agency
25
CENVAT has not
been taken
Services provided in relation to chit
70
Same as above
Renting of any motor vehicle designed to carry
passengers
40
Same as above
Transport of goods in a vessel
50
Same as above
Package tour by tour operator
25
Same as above
services solely of arranging or booking
accommodation for any person in relation to a
tour
10
Same as above
Description of taxable service
Taxable
Percent
Conditions
Services by a tour operator in case other than
above
25
Same as above
Construction of a complex, building, civil
structure or a part thereof, intended for a sale to
a buyer, wholly or partly except where entire
consideration is received after issuance of
completion certificate by the competent
authority
1. CENVAT credit on
inputs used has
not taken.
(i) For residential unit having carpet area up to
25
2000 square feet or where the amount charged is
less than rupees one crore;
(ii) For other than the (i) above
30
2. The value of land is
included in the
amount charged
from the service
receiver.
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“Point of Taxation Rules” (‘POTR’) prescribes the point of taxation
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“Point of Taxation” (‘POT’) means the point of time when service shall be
deemed to have been provided (occurrence of taxable event) [Rule 2(e)]
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Due date for tax payment linked with POT (Rule 6(1) of Service Tax Rules)
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Pre POTR, tax obligation was on realization of consideration (Cash basis)
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Post POTR, tax obligation generally arises on accrual or realization of
consideration, whichever is earlier (subject to few exceptions)
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POT under reverse charge mechanism U/s 68(2) / Rule 2(1)(d) shall be the
date of payment and where payment for service is not made within period
of 6 months of date of invoice, POT shall be determined as per General
Rule - 3 (Rule 7)
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In case where service provider is located outside India and is an associated
enterprise of service recipient, POT will be earlier of (Proviso to Rule 7):
• Date of payment
• Date of debit in books of account of person liable to pay tax
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This Proviso does not apply to an Indian service provider providing service
to associated enterprise located in or outside India
‘Associated Enterprise’ has the same meaning assigned to it in Section 92A
of Income Tax Act, 1961 (Section 65(7b) of Act)
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In general, POT would be earlier of [Rule 3]:
• Date of issue of invoice – where invoice is issued within 30 days from completion
of service
• Date of completion of service – where invoice is not issued within 30 days from
completion of service
• Date of receipt of consideration (including receipt of advance)
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Continuous supply of service falls under General Rule w.e.f. 01.04.2012
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Where service provider receives a payment up to Rs. 1,000/- in
excess of the amount indicated in the invoice, POT for such excess
amount, at the option of the service provider, shall be earlier of:
• date of issue of invoice, or
• date of completion of service, where invoice not issued within 30 days
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Amendment vide Notification No 37/2012-ST dated 20.06.2012
• Where service provider opting receipt as POTR in respect of an amount of Rs.
1,000/- in excess of the amount indicated in the invoice, no invoice is required to
be issued to such an extent
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Continuous supply of service would mean [Rule 2(c) of POTR]:
• Services provided/agreed to be provided continuously, or recurrent basis,
 Under a contract
 for a period exceeding 3 months
 With the obligation for payment periodically or from time to time
• Any service notified as continuous supply of service

Notification No. 38/2012-ST dated 20.06.2012 notifies following services
as “continuous service”:
• Telecommunication Service
• Service portion of Works Contract
 Date of completion of continuous service would be completion of an event
which requires service receiver to make payment as per contract.
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TRU Circular No.F.No.341/34/2010-TRU dated 31.03.2011 explaining applicability
of POTR in regular cases:
Completion Invoice Payment
of service
date
received
Point of
Taxation
Remarks
16.07.11
26.07.11
06.08.11
26.07.11
Invoice issued in 30 days and
before receipt of payment
16.07.11
18.08.11
21.08.11
16.07.11
Invoice not issued within 30 days
and payment received after
invoice date
16.07.11
26.07.11
21.07.11
21.07.11
Invoice issued in 30 days but
payment received before invoice
16.07.11
18.08.11
11.07.11
(part) and
21.07.11
(remaining)
11.07.11 and
16.7.11 for
respective
Amounts
Invoice not issued in 30 days.
Part payment before completion,
remaining later.
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New services (other than continuous service), not liable to tax if (Rule 5):
• Invoice raised and payment received before effective date; or
• Payment received before effective date and invoice raised within 30 days from
effective date
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‘Effective date’ would mean notified date on which Services become
taxable
Consider following example:
•
•
•
•
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Hotel Accommodation Service is taxable w.e.f. 01.05.2011.
Hotel opts for POT from inception (i.e. 01.05.2011)
A person stays in hotel from 16.04.2011 to 10.05.2011
Hotel makes bill / guest makes payment on check out (i.e. 10.05.2011)
In terms of above Rule, service tax is payable on entire billing though the
service was not taxable for the period 16.04.2011 to 30.04.2011

Service Tax shall be paid immediately after the end of month/quarter:
 By the 6th of the subsequent month, if the same is deposited electronically
through internet
 By the 5th of the subsequent month, in any other case
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
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For quarter ending in March service tax is to be deposited by the 31st day
of March
In case of individual and partnership firms whose aggregate value of
taxable services is fifty lakh rupees or less in the previous financial year,
the service provider shall have the option to pay tax up to a total of rupees
fifty lakhs in the current financial year on receipt basis.
Where an assessee has paid a total service tax of rupees 10 lakhs or more
including utilization of CENVAT Credit, in preceding financial year, he shall
deposit the service tax electronically, through internet.
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The date of presentation of cheque to the bank shall be deemed to be the
date of service tax payment.
Where an assessee has issued an invoice, or received any payment, against
a service to be provided which is not so provided by him either wholly or
partially for any reason or where the amount of invoice is renegotiated
due to deficient provision of service, or any terms contained in a contract,
the assessee may take the credit of such excess service tax paid by him, if
the assessee,—
a) has refunded the payment or part thereof, so received for the service provided
to the person from whom it was received; or
b) has issued a credit note for the value of the service not so provided to the
person to whom such an invoice had been issued.
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Asessee may adjust excess payment of service tax against his service tax
liability for the succeeding month / quarter and the excess amount paid is
on account of reasons not involving interpretation of law, taxability,
valuation or applicability of any exemption notification.
In respect of service of renting of immovable property any excess payment
of service tax for a month or quarter, on account of non-availment of
deduction of property tax paid in terms of Notification No. 29/2012Service Tax , the assessee may adjust such excess amount paid within one
year from the date of payment of such property tax and the details of such
adjustment shall be intimated to the Superintendent within a period of
fifteen days from the date of such adjustment.
Assessee may pay service tax in advance against his liability for the
subsequent period provided:
 He intimates to Superintendent within 15 days from the date of payment
 Indicate details of advance payment and its adjustment in the subsequent return
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)
Sec.
Nature of default
Amount of penalty
76
Failure to pay Service Tax
1% of the tax p.m. or Rs. 100 per day, up to
50% of tax*
77
Assessee fails to pay ST
electronically
Up to Rs. 10,000/-
78
Penalty for suppressing value
of taxable service
50% of tax amount (if records captured are
true**)
100% of tax amount (if not recorded in
books)^
* Totally mitigated if tax and interest paid before issue of notice – Sec 73(3)
** Mitigation
(a) 1% per month; maximum upto 25% if all dues paid before notice– Sec. 73(4)
(b) 25% of tax if all dues paid within 30 days of issuance of notice (90 days fore small assessees)
^ No mitigation
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Every person liable for paying the service tax shall make an application in
Form ST-1 for registration within a period of 30 days from the date on
which the service tax is levied.
Where a person commences the business after such service has been
levied, he shall make an application for registration within a period of 30
days from the date of such commencement.
Every small scale service provider are required to obtain registration at the
moment the aggregate value of taxable service in a financial year exceeds
Rs. 9 Lakhs.
If the same assessee provides more than one category of taxable service,
he may apply for single registration for all the taxable service. Single
application mentioning therein all the taxable services provided shall be
sufficient.
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Separate application has to be made for registration of each premises
from which taxable services are rendered.
Even within single premises, if there are multiple firms, all of them have to
be separately registered.
Also, if an individual carries on the activity in two different names under
sole proprietorship, both the proprietary concerns have to get separately
registered.
Where person liable to pay service tax from more than one premises and
has a centralized billing systems or centralized accounting systems and
such centralized billing systems or centralized accounting systems are
located in one or more premises he may, at his option, register such
premises or office where such centralized billing systems or centralized
accounting systems are located.
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Where there is a change in any information or details furnished by
an assessee in form ST-1 at the time of obtaining registration or he
intends to furnish any additional information or details than
assessee has to mandatorily intimate such change to the Central
Excise Officer within 30 days of the said change. [Rule 4(5A)]
The new registration is required when there is a change in the
constitution of business as the Service Tax Registration Certificate is
not transferable.
When a registered assessee transfers his business to another person
than transferor shall surrender the registration certificate and the
transferee shall obtain a fresh certificate of registration. [Rule 4(6)]
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After registering with Aces, Fill in the form ST-1 given on site. After
filling the same, take a print out of ST-1 form and then submit the
form and take the print out of E acknowledgement receipt.
Within 15 days of such, submit the print outs along with all other
documents to the relevant department.
Failing to submit this within time lead to rejection of the application
itself.
After department receives the documents, it processes the
application and a new registration certificate (Form ST-2) is send via
email.
Take the print out of form ST-2 and get the stamp and signature
from the jurisdictional Superintendent.
• Register with ACES & fill the form ST-1
Step 1 • Fill the form & Submit form ST-1 online
• Take print out of E-acknowledgement
Step 2 • Submit it with other documents to the department
• Department will issues Form ST-2 via e-mail.
• Take signature and stamp on form ST-2 from jurisdictional
Step 3
Superintendent
All the following documents including ST-1 shall be Self certified.
1.
Attested Copy of the PAN Card
2.
Proof of Address of the premises, which is required to be
registered
3.
Copy of the Document governing the constitution of the
organization (partnership deed in case of a partnership firm,
Memorandum of Association in case of a company, Trust Deed in
case of a trusts or associations, etc.)
4.
Power of Attorney on stamp paper in case the documents are
signed by an authorized representative/ Director of the company/
Partner of Firm.
In respect of Centralised registration following additional
documents or details are also require
5. Previous year’s audited balance sheet, if any.
6. Address proof of all the Directors of a company
7. Attested copy of TAN Nos.


In respect of registration of input service distributor, address of all
the premises to which credit of input services is distributed or
intended to be distributed along with attested copy of proof of
address of all such premises to be attached.
Pre-Budget Proposal – Penal liability for
failure to obtain Service Tax Registration
Up to Rs. 10,000/- or Rs. 200/- per day till
failure continue, whichever is higher.
Post Budget Proposal – Penal liability for
failure to obtain Service Tax Registration
Up to Rs. 10,000/-

Every registered assessee, who ceases to provide the taxable service
for which he is registered, shall surrender his registration certificate
immediately with concerned Superintendent of Central Excise.
Certificate has to be surrender online by filing the forms available at
WWW.ACES.GOV.IN. Following is the process for surrender of ST2
a. Fill in the form given online for surrender of registration certificate.
After filling in the same, take a print of the form and then submit
form online. Along with print out of Surrender form ST2 E
acknowledgement of successful submission of the same shall be
submitted to jurisdictional Superintendent along with following
further documents.
b. declaration form.
c. Original ST-2 certificate
d. Latest Income Tax return for three years
e. Latest copy of ST-3 return

After receiving the aforesaid documents and after ensuring that
assessee has paid all monies due to government, concerned
Superintendent of Central Excise shall cancel the registration.
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

Service provider of taxable service shall issue Invoice within 30 days
from date of completion such taxable services or receipt of
payment towards the value of such taxable service, whichever is
earlier.
In case of continuous supply of service, every person providing such
taxable service shall issue an invoice, bill or challan, as the case may
be, within 30 days of the date when each event specified in the
contract, which requires the service receiver to make any payment
to service provider, is completed.
The invoice, bill or, as the case may be, challan issued by service
provider of taxable service shall be serially numbered and shall
contain the following, namely:-
I.
II.
III.
IV.
The name, address and the registration number of such person;
The name and address of the person receiving such taxable service;
Description and value of taxable service provided or to be provided; and
The service tax payable thereon.
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The invoice issued shall be sign by authorised person. Service tax,
Education cess and Secondary and higher education cess shall also
be shown separately on the invoice.

BANKING & OTHER FINANCIAL SERVICES: Invoice, a bill or, as the case
may be, should be issued within 45 days. Invoice/bill/challan issued by
banking company, Financial institution including NBFC is not require to be
serially numbered and address of the person receiving the taxable service,
but it should contain other information.
Returns have to be filed in Form ST-3 in triplicate on half yearly basis by
the 25th of the month following the particular half-year.
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DUE DATES FOR FILING OF SERVICE TAX RETURN
For the half year
To be filed by
1st April to 30th September
25th October
1st October to 31st March
25th April
DATES FOR FILING OF ISD RETURN
For the half year
To be filed by
1st April to 30th September
30th October
1st October to 31st March
30th April
Every assessee shall submit the half-yearly return electronically.
Download Return preparation utility of Form ST-3 from the site
Fill the form ST-3 Return preparation utility
Validate the utility and thereafter XML file will be generated
Logs in to the site using user Id an password
Upload the XML file generated

Assessee is allowed to rectify mistakes or omission and file revised
return including CENVAT credit return within 90 days from the date
of filing of the original return.

The assessee is required to pay following amount of late fee
depending upon the period of delay, but not exceeding Rs. 20,000.
No. of days delay from due date for filing of
service tax return
Late Fees in Rs.
From 1st day up to 15th day
500
From 16th day up to 30th day
1000
Delay beyond 30 days
100/- per day
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.
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)
f)
g)
h)
i)
agreeing to the obligation to refrain from an act, or to tolerate an
act or a situation, or to do an act;
transfer of goods by way of hiring, leasing, licensing or in any such
manner without transfer of right to use such goods;
activities in relation to delivery of goods on hire purchase or any
system of payment by instalments;
service portion in the execution of a works contract;
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.
1)
Unless otherwise specified, reference to a service (herein referred
to as main service) shall not include reference to a service which is
used for providing main service.
2)
Where a service is capable of differential treatment for any
purpose based on its description, the most specific description shall
be preferred over a more general description.
3)
Subject to the provisions of sub-section (2), the taxability of a
bundled service shall be determined in the following manner,
namely:—

a)
if various elements of such service are naturally bundled in the ordinary
course of business, it shall be treated as provision of the single service which
gives such bundle its essential character;
b)
if various elements of such service are not naturally bundled in the ordinary
course of business, it shall be treated as provision of the single service which
results in highest liability of service tax.
["bundled service" means a bundle of provision of various services
wherein an element of provision of one service is combined with an
element or elements of provision of any other service or services.]