Service tax B Y SATENDRA

Registration under service tax 1.Person who starts business of providing taxable service shall make an application for registration within 30 days from the commencement of such business. 2.Notification No. 26/2005-ST dated provides that following persons shall make an application for registration under the provisions of section 69 of the Finance Act.  Input service distributor  Provider of taxable service whose aggregate value of taxable service in a financial year exceeds Rs. 9 Lac.

Types of registration

Issue of invoice

Adjustment of excess amount paid

Periodicity of payment Due date of payment Category of assesseePeriodicity of payment In case of Individual, proprietorship, partnership firm, LLP Quarterly Other assesseesMonthly If payment is made by cheque/cash5 th of next month/ next month of the quarter If payment is made electronically6 th of next month/ next month of the quarter In case month/quarter ending 31 st March31 st March P AYMENT OF SERVICE TAX Note: If assessee has paid service tax of Rs 10 Lacs or more including the amount paid by utilization of CENVAT credit, in the preceding financial year, he shall deposit the service tax electronically through internet banking

Filing of return Period of DelayPenalty Upto 15 days Rs. 500/- More than 15 days but upto 30 days Rs 1,000/- More than 30 days Rs. 1,000/- + Rs 100/- per day for every day from the 30 days till the date of filing of the return (Maximum Penalty can be Rs 20,000/-)

Revision of return – rule 7B A return in ST-3 to correct a mistake or omission within a period of 90 days from the date of submission of return under rule 7. Explanation: Where an assessee submits a revise return the relevant date for the purpose of recovery of service tax under section 73 of the act shall be date of submission of such revise return.

Proposed system of Filing of return & payment of tax MonthlyQuarterly All Assessees who have paid service tax of Rs 25 Lacs or more in previous year All assessees who have paid less than Rs 25 Lacs tax in previous year All new assessees other than individual and firm New Individual & firm assessee

Sec 75 – Interest on delayed payment of service tax

Penalties under Service Tax * Total amount of the penalty payable u/s 76 shall not exceed 50% of the service tax payable ContraventionAmount of penalty Penalty for failure to pay service tax (Sec. 76) Rs. 100 per day or 1% of such tax per month, whichever is higher* Penalty for failure to take registration [Sec. 77 (1)(a)] Rs 10,000/- or Rs 200/- per day (Which ever is higher) Penalty for failure to keep books of accounts [Sec. 77 (1)(b)] Upto Rs 10,000/- Penalty for failure to furnish information/produce document/appear before officer [Sec.77 (1)(c)] Rs 10,000/- or Rs 200/- per day (Which ever is higher) Penalty for failure to pay the tax electronically[Sec. 77 (1)(d)] Upto Rs 10,000/- Penalty for issuance of invoice with incorrect details [Sec. 77 (1)(e)] Upto Rs 10,000/- Penalty for contravention of rules and provisions of act for which no penalty is specified elsewhere [Sec. 77(2)] Upto Rs 10,000/-

Penalties under Service Tax If true & complete details of the transactions are available in the records then penalty shall be reduced to 50%. [ 1 st Proviso to Sec 78(1)] If service tax, interest & such penalty is paid within 30* days then penalty shall be reduced to 25%. Waiver of Penalty (Sec 80) No penalty shall be imposable on the assessee for any failure under section 76, 77 & 1 st Proviso to Sec 78(1) if the assessee proves that there was reasonable cause for the said failure. ContraventionAmount of penalty Penalty in case of fraud/collusion/willfull misstatement/ suppression of facts/ contravention of any section/rule with the intention to evade service tax (Sec. 78) Equal to amount of service tax * If total value of taxable service does not exceed Rs. 60 Lac, the period of 30 days shall be extended to 90 days

Sec 84 - Departmental appeal to commissioner (Appeals)

Sec 85 - appeal to commissioner (Appeals)

Sec 86 - appeal to appellate tribunal

appeal to appellate tribunal Total demandFees Rs 5 Lac or lessRs. 1,000/- More than Rs 5 Lac but less than Rs 50 LacRs. 5,000/- More than Rs 50 LacRs. 10,000/- In case of stay application or restoration of appeal or Misc Petition Rs 500/-

Sec 89 - prosecution

Note: A person shall not be prosecuted for any offence under this section except with the previous approval of the Chief Commissioner of Central Excise

Thanks

Proposed Changes made in budget 2012 Point of taxation is the date of payment for individuals and partnership firms (including LLP) up to a turnover of Rs 50 Lac in a financial year provided the taxable turnover did not exceed this limit in the previous financial year. The point of taxation in respect of the persons required to pay tax as recipients of service shall be the date on which payment is made. where the payment is not made within a period of six months of the date of invoice, the point of taxation shall be determined as if this rule does not exist. Periodicity of payment MonthlyQuarterly All Assessees who have paid service tax of Rs 25 Lacs or more in previous year All assessees who have paid less than Rs 25 Lacs tax in previous year All new assessees other than individual and firm New Individual & firm assessee