Filling returns
This query is : Resolved
20 November 2012
Dear Experts,
one of my client have got service tax number in august 2012. but he is charging service tax on advance received on receipt basis for the period from april to june 2012, as his turnover is more than 10,00,000/-. so will he be liable to file return of first quarter or it will be filled from second quarter onwards. and how. please clarify me on the same.
one of my client have got service tax number in august 2012. but he is charging service tax on advance received on receipt basis for the period from april to june 2012, as his turnover is more than 10,00,000/-. so will he be liable to file return of first quarter or it will be filled from second quarter onwards. and how. please clarify me on the same.
20 November 2012
He has to file ST-3 for the period april to june 2012. The tax payment is to be made alongwith interest.
Plz download the new utility. Fill the details in service tax payable column - in advance for service to be provided section.
The point of taxation applies when he receives the money on advance basis.
Plz download the new utility. Fill the details in service tax payable column - in advance for service to be provided section.
The point of taxation applies when he receives the money on advance basis.
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20 November 2012
thank you expert.
20 November 2012
sir i have one more query in other case regarding service tax reverse charge mechanism
- In case of works contract service, if receiver is corporate then reverse charge mechanism will arise.
- now in this case i am service provider and sub contracting the same to 3rd person
- in this i am not body corporate hence my liability is to pay service tax of providing service to body corporate my cenvat credit will be on receiving service
- in this my cenvat credit is more than service tax liability
- so can i demand refund of excess cenvat credit. as it is excess because half of service tax liability is to be paid by service receiver (due to this only i have excess cenvat credit from sub contractor)as it is double taxation. i think there would be definatly some way to save from double taxation
Please clarify on the same
- In case of works contract service, if receiver is corporate then reverse charge mechanism will arise.
- now in this case i am service provider and sub contracting the same to 3rd person
- in this i am not body corporate hence my liability is to pay service tax of providing service to body corporate my cenvat credit will be on receiving service
- in this my cenvat credit is more than service tax liability
- so can i demand refund of excess cenvat credit. as it is excess because half of service tax liability is to be paid by service receiver (due to this only i have excess cenvat credit from sub contractor)as it is double taxation. i think there would be definatly some way to save from double taxation
Please clarify on the same
24 July 2024
Let's address your queries regarding service tax and works contract services:
### Query 1: Liability to File Service Tax Return
Your client obtained the service tax registration number in August 2012. However, he has been charging service tax on advance received on a receipt basis for the period from April to June 2012. Here's how it should be handled:
- **Period April to June 2012:** Since your client was not registered for service tax during this period, he should not have charged service tax on advances. Service tax should only be charged after obtaining the registration.
- **Service Tax Return Filing:**
- For the period from April to June 2012, your client was not liable to file service tax returns because he was not registered.
- From August 2012 onwards, he should file service tax returns for the quarters where the turnover exceeds the threshold limit of Rs. 10,00,000.
Therefore, your client should start filing service tax returns from the quarter in which he obtained the service tax registration number, which is August 2012 onwards.
### Query 2: Reverse Charge Mechanism (Works Contract Service)
In the case of works contract services where the recipient is a corporate entity, the reverse charge mechanism applies. If you are the service provider subcontracting the service to a third person, and you are not a body corporate, here's how it works:
- **Service Tax Liability:**
- As the service provider, you are liable to pay service tax on the services provided to the corporate recipient under the reverse charge mechanism.
- You can take CENVAT credit on the service tax paid by your subcontractor, provided that the services received by you are used for providing the same category of output service or for providing an output service of the same category as the service on which service tax has been paid.
- **Excess CENVAT Credit:**
- If your CENVAT credit exceeds your service tax liability, you can claim a refund of the excess credit. This is typically done through the refund process under the service tax rules.
- You would need to file a refund claim with the jurisdictional service tax authority.
### Conclusion:
1. **Service Tax Return Filing:** File service tax returns from August 2012 onwards, since your client obtained the service tax registration number in August 2012.
2. **Reverse Charge Mechanism:** As a service provider subcontracting works contract services to third parties, you are liable to pay service tax under reverse charge if the recipient is a corporate entity. You can claim a refund of excess CENVAT credit if your credit exceeds your service tax liability.
Ensure to comply with the latest GST regulations and guidelines applicable to your specific situation. If in doubt, consulting with a tax professional or GST expert would be advisable for precise guidance tailored to your circumstances.
### Query 1: Liability to File Service Tax Return
Your client obtained the service tax registration number in August 2012. However, he has been charging service tax on advance received on a receipt basis for the period from April to June 2012. Here's how it should be handled:
- **Period April to June 2012:** Since your client was not registered for service tax during this period, he should not have charged service tax on advances. Service tax should only be charged after obtaining the registration.
- **Service Tax Return Filing:**
- For the period from April to June 2012, your client was not liable to file service tax returns because he was not registered.
- From August 2012 onwards, he should file service tax returns for the quarters where the turnover exceeds the threshold limit of Rs. 10,00,000.
Therefore, your client should start filing service tax returns from the quarter in which he obtained the service tax registration number, which is August 2012 onwards.
### Query 2: Reverse Charge Mechanism (Works Contract Service)
In the case of works contract services where the recipient is a corporate entity, the reverse charge mechanism applies. If you are the service provider subcontracting the service to a third person, and you are not a body corporate, here's how it works:
- **Service Tax Liability:**
- As the service provider, you are liable to pay service tax on the services provided to the corporate recipient under the reverse charge mechanism.
- You can take CENVAT credit on the service tax paid by your subcontractor, provided that the services received by you are used for providing the same category of output service or for providing an output service of the same category as the service on which service tax has been paid.
- **Excess CENVAT Credit:**
- If your CENVAT credit exceeds your service tax liability, you can claim a refund of the excess credit. This is typically done through the refund process under the service tax rules.
- You would need to file a refund claim with the jurisdictional service tax authority.
### Conclusion:
1. **Service Tax Return Filing:** File service tax returns from August 2012 onwards, since your client obtained the service tax registration number in August 2012.
2. **Reverse Charge Mechanism:** As a service provider subcontracting works contract services to third parties, you are liable to pay service tax under reverse charge if the recipient is a corporate entity. You can claim a refund of excess CENVAT credit if your credit exceeds your service tax liability.
Ensure to comply with the latest GST regulations and guidelines applicable to your specific situation. If in doubt, consulting with a tax professional or GST expert would be advisable for precise guidance tailored to your circumstances.
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