1. Returns

• Section 70(1) provides that every person liable to pay service tax shall himself assess the value of the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and of such frequency as may be prescribed.

Rule 7(1) provides that every assessee shall submit a half-yearly return in Form ST-3 or ST-3A as the case may be, along with a copy of the Form TR- 6, in triplicate for the month covered in the half-yearly return.
 

Rule 7(2) states that every assessee shall submit the half-yearly by the 25th of the month following the particular half-year.

• Section 70(2) provides that the person or class of person notified under sub-section (2) of section 69 shall furnish the return in such a manner and of such frequency as may be prescribed.

The following persons have been notified under section 69(2):

1. Input service distributor.
    

2. Small service provider; whose aggregate value of taxable service exceeds Rs. 3 lakhs.

Other important points relevant to the filing of return: –

• The ST-3 return should be filled completely. Following documents should be enclosed along with the return:—

1. Copy of TR-6 challan for each payment relevant to the return period and copy of TR-6 challan for payment of arrears for earlier period, if any
    

2. Working of interest calculation, if any
    

3. Month wise bill details/receipt details explaining the service tax liability
    

4. List of accounts maintained by the assessee (applicable only for the first return, as per Rule 5(2) mentioned above)
    

5. In case of centralized registrations, branch-wise details may be attached.
    

6. Memorandum in ST-3A in case the assessee has opted for provisional assessment under Rule 6(5)

• An assessee providing multiple services can opt to file a consolidated return covering all the service provided by him. However, the assessee has to attach separate annexure for each service provided as per the requirement of new Form ST-3.
   

• An assessee can now opt to file Form ST-3 electronically for all taxable services. CBEC Circular No. 71/1/2004-St, dated January 2, 2004 explains the procedure for electronic filing of returns.
   

• Unlike in Income Tax, there exist no provision for filing revised return of service tax. In case of any errors made by the assessee in Form ST-3, the assessee should intimate the service tax department along with the relevant details

2. Payment of service tax

Important points relevant to the payment of service tax:–

• Rule 6(1) provides for the payment of service tax by the 5th of the month immediately following the calendar month in which the payments are received, towards the value of taxable services. In case the assessee is an individual, proprietary firm or partnership firm, the service tax is payable by the 5th of the month immediately following the quarter in which the payments are received, towards the value of taxable services. The service tax on the value of taxable services received during the month of March of the quarter ending in March, as the case may be, shall be paid by the 31st day of March of the calendar year
   

• Notwithstanding the time of receipt of payment towards the value of services, no service tax shall be payable for the part or whole of the value of services, which is attributable to services provided during the periods when such services were not taxable.

• In case the value of taxable services is received before providing the said service (i.e., for advances), service tax shall be paid on the value of service attributable to the relevant month, or quarter, as the case may be.
   

• As per rule 6(2), the assessee is required to deposit the service tax liable to be paid by him with the bank designated by the Central Board of Excise and Customs for this purpose in Form TR–6 or in any other manner prescribed by the Central Board of Excise and Customs. Please note that the DGST has issued a D.O. letter stating that the Board has decided with effect from 1st October, 2006, payment of service tax electronically shall be mandatory for those persons who are required to pay services tax and paid more than Rs. 50 lakhs in the preceding financial year or paid more than Rs. 50 lakhs during the current financial year.
   

• The date of presentation of cheque to the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque

3. Records

Provisions relating to nature of records, maintenance of records, perseverance of records examination and inspection of records are prescribed vide Rule 5 of the Service Tax Rules, 1994.

• Rule 5(1) provides that the records including computerized data as maintained by an assessee in accordance with the various laws in force from time to time shall be acceptable.

The department have clarified vide CBEC FAQs that no specific records have been prescribed to be maintained by the assessee. Records maintained according to the Companies Act, 1956, or the Income-tax Act, 1961 or any other law in force would be considered as sufficient compliance.

• Rules 5(2) provides that every assessee shall furnish to the Superintendent of Central Excise at the time of filing his return for the first time a list of all accounts maintained by the assessee in relation to service tax including memoranda received from his branch offices.
   

• Rules 5(3) makes it mandatory for the assessee to preserve records for a period of at least five years succeeding the financial year relating to such records.
   

• Rule 5(4) directs an assessee to make available at the registered premises records maintained by him for examination and inspection to a Central Excise Officer so authorized in writing by the Assistant Commissioner or Deputy Commissioner of Central Excise.

• Documents as prescribed under Rule 9(1) of the Service Tax Rules, 1994 for availing cenvat Credit such as Manufacture’s Invoice, Dealer’s Invoice, etc
   

• Records as prescribed under Rule 9(5) relating to the receipt, disposal, consumption and inventory of input and capital goods.