08 June 2016
I am now filing the service tax return for Oct to March 16 and as per Notification No. 22/2015 - CE (NT) dated 29.10.2015 - from 01.06.2015 any credit received pertaining to Education Cess and SHEC can be utilised for payment of service tax. After 1.6.2016 i received the input credit of EC & SHEC - Rs. 10000.So, now I am utilising the EC & SHEC Rs.5000 for payment of service tax. But at the time of validating and generating XML in offline utility the error comes that since Ecess and SHEC is 0 payable and it is showing as Rs. 5000 paid and now do you want to submit the return and generate XML.
So, pls guide as to whether i should file the return with this error. Is it ok?
08 June 2016
As per the provisionas of CENVAT Credit Rules 2004 for E.Cess and S&HE Cess can only be utilized for paying the output liability of the respective cess and not for payment of Service Tax.
In the section I 3 CENVAT CREDIT TAKEN AND UTILIZED of the ST - 3 Return in row I 3.1.2.6 [any other credit taken (please specify)] fill up the amount of credit and show it as transfer from E.Cess and S&HE Cess, and the payment of this amount should be adjusted in row I 3.1.3.1 [for payment of Service Tax]
In rows I 3.2.3.4 and I 3.3.3.4 [any other payments / adjustments / reversal (please specify)] enter Transfer to service Tax of the full amount of E.Cess and S&HE Cess. The balance in rows I 3.2.4 and I 3.3.4 i.e. closing balances would become "NIL" and the ST - 3 Returns XML would then be generated without errors.
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