Update on Indirect Tax - Service Tax and Excise for the month of Nov 2014

A. Service Tax

1. Service Tax payment for the month of October, 2014 is due for payment on 6th November, 2014 for assesses excluding Individual, Proprietary Firm, Partnership Firm or LLP. It is now mandatory for all assesses w.e.f. October 1, 2014, to pay their dues through internet banking (e-payment) (In case the assessee wants to use any mode other than internet banking, a specific permission may be taken from the Assistant Commissioner/ Deputy Commissioner).

2. ST 3 Return – Half Yearly Service Tax Return (ST-3) for the period April – September 2014 was due on October 25th, 2014. The Excel Utility can be downloaded from thewww.aces.gov.in/ downloads. The Government has extended the date for filing of returns tillNovember 14, 2014 (Order No.2/2014-ST, Dated 24-10-2014).

3. Payment under VCES – Assesses who had opted for the recently concluded VCES would have paid the 2nd and final installment by 30-6-14 (without interest). In case the same has not been paid in full, the balance can be paid till 31-12-14 (with interest).

4. VCES 3 – Assessees who had availed the VCES scheme and have done their payments in full, need to apply to the Department for VCES 3 (Discharge Certificate) giving copy of VCES 2 and all Challans. The Department has started issuing VCES 3 for assessees who have applied.

5. The old service specific codes have been restored thus assesses are required to classify the services rendered by them as per the new notification and pay accordingly in the respective accounting codes. 

6. Please note that in case you are liable to pay Service Tax (in case of services under reverse charge), you are not allowed to set it off against available balance of CENVAT credit. You need to pay the same. You can however avail CENVAT credit of this payment as in normal cases.

7. Amendment in the registration certificate is mandatory to reflect the complete set of services provided/ availed under reverse charge as per the new accounting codes.

B. Central Excise

1. Excise payment for the month of October, 2014 is due for payment on 6th November, 2014 for assesses excluding SSIs. It is now mandatory for all assesses w.e.f. October 1, 2014, to pay their dues through internet banking (e-payment) (In case the assessee wants to use any mode other than internet banking, a specific permission may be taken from the Assistant Commissioner/ Deputy Commissioner).

2. Excise Returns – Last date for filing of ER 1, ER 2 and ER 6 is 10th November, 2014.

C. Major Amendments in Oct 2014

Service Tax

1. Audit by Officers of Central Excise - It has been clarified that in Central Excise there is adequate statutory backing for audit by the Central Excise Officers (Circular No.986/10/2014-CX, DATED 9-10-2014)

2. Appointment of officers to the various field formations (Notification No. 30/C.E.(N.T.)

3. Levy of Service Tax on Activities involved in relation to Inward Remittances from Abroad to Beneficiaries in India through MTSOs (Circular No. 180/06/2014-ST, Dated 14-10-2014)

4. Constitution of Review Committee of Chief Commissioners of Central Excise & Chief Commissioners of Service Tax (Office Order No. 4/2014-ST, Dated 15-10-2014)

5. Constitution of Review Committee of Commissioners of Central Excise and Service Tax - OFFICE ORDER - 6 / 2014-ST dt. 22.10.2014

Central Excise

1. Audit by Officers of Central Excise - It has been clarified that in Central Excise there is adequate statutory backing for audit by the Central Excise Officers (Circular No.986/10/2014-CX, DATED 9-10-2014)

2. Appointment of officers to the various field formations (Notification No. 30/C.E.(N.T.)

3. Constitution of Review Committee of Chief Commissioners of Central Excise (Office Order No. 2/2014-C.E, Dated 15-10-2014)

4. Jurisdiction of Principal Chief Commissioners of Central Excise, Chief Commissioners of Central Excise, Principal Commissioners of Central Excise, Commissioners of Central Excise, Commissioners of Central Excise (Appeals) or Commissioners of Central Excise (Audit) - Amendment in Notification No. 27/2014-C.E. (N.T.), Dated 16-9-2014 (Notification No. 31/2014-C.E. (N.T.), Dated 15-10-2014)

5. Clarifications on Relevant Considerations to Ascertain Place of Removal - Circular No.988/12/2014-CX, Dated 20-10-2014

This is for your kind information.

Best Regards

CA. Tarun Kr. Gupta

FCA, FCS, PGDBM, B.Com (Hons.)