Rejection of s. t. return oct - mar'2013

This query is : Resolved

SUJIT BANERJEE (Querist)
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23 October 2013 EXPERTS,
We are FOREX DEALER on submission of Return we charged service tax rate as follows but the authority rejected the same with remarks "Rate of Tax"
Please guid us the actual rate so that we can submit revised return.
Service tax Rate wise break up of Net Taxable Value (B1.14): Advalorem Rate Charged

Service tax Edu Cess HEdu Cess
12.000 2.000 1.000
0.1024 2.00 1.000
0.1058 2.000 1.000
0.1059 2.000 1.000
0.1022 2.000 1.000
0.1061 2.000 1.000
0.1049 2.000 1.000

Once again we would request you to kindly reply immediately so that we can submit revised return

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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23 October 2013 The Excel Facility provided at the ACES sit for offline / online filing of ST-3 has some bugs which have not yet been resolved. The ST-3 form has been created with only the provisions of the Act in mind. The various differential rates for various services like Air travel agents, Forex dealers, Organizer / Distributor of Lotteries, etc. have not been addressed. Row B 1.15 is programmed to receive only one advalorem rate 12.36% (i.e 12+2+1). The Net Taxable Value in row B 1.14 should be such that computing the tax @ 12.36% the amount equals the Service Tax Payable.

For this an Excel Worksheet should be prepared monthwise with the following detail: Amount Transacted - Other Deductions - Net Taxable Value - Service Tax. Column (1) should be first filled up and then ST (column 4)at the rates applicable should be calculated. Dividing Column (4)by 12.36% fill up column (3) Net Taxable Value. The difference between Transaction Amount & Net Taxable Value is the deduction to be claimed.

The transaction value is filled up in B 1.1 and the amount of deduction is shown in B 1.12 (specify column should be Rule 7B) and then proceed to finalize and upload the return.

I hope this clarification serves your purpose.