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Service tax return

Debashis (MBA (Finance ) Asst. Manager Accounts SEALL LTD ) (65 Points)

20 December 2011

In my Company I am handling Service Tax Matters.

From April 11 onwards , Rule for ' Point of Taxation " has been changed .

Therefore it is obvious that there would be a change of Tax Liability .

However , while submitting Online return , it is seen that ST 3 - exel utility , available on the Service Tax official site has not been changed with respect to the change of aforesaid taxation rule.

In this juncture what should I do ? should I submit the ST 3 in previous format . or otherwise ?

Kindly suggest . it is urgent . LAST DATE OF FILLING RETURN IS 26.12.2011 .

Thanks and Regards

Debashis Banerjee

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4 Replies

Prasad (Sr. Manager) (617 Points)
Replied 21 December 2011

Debashis, even i had similar issue, as per my discussion with the PRO at service tax, we have filed the returns in the old format, however taking the tax liablity as per the point of taxation rules

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Debashis (MBA (Finance ) Asst. Manager Accounts SEALL LTD ) (65 Points)
Replied 21 December 2011

Dear Prasad ,

IF the ' new point of Taxation Rule is applied with old format of Return would it not be a problem specially where :

* in Point No. 1 of Payable Sheet >>>>> Gross amount received in money ....... to be filled up with teh value of Invoice raised during that period .

* in item No. b) of same point no . 1 >>>>>> money equivalent of Consideration received in form other than money .................... what it should be ?

Kindly reply .

Pavan Kumar (Manager - Finance) (126 Points)
Replied 22 December 2011

Dear Debashis,

There is no need to change in the return format (ST3) and you should filed the ST Returns in the old format only, however taking the tax liablity as per the point of taxation rules given under here:

Transitional Provisions.-

Nothing contained in these rules shall be applicable,-

(i) where the provision of service is completed; or

(ii) where invoices are issued prior to the date on which these rules come into force.

Provided that services for which provision is completed on or before 30th day of June, 2011 or where the invoices are issued upto the 30th day of June, 2011, the point of taxation shall, at the option of the taxpayer, be the date on which the payment is received or made as the case may be.

Debashis (MBA (Finance ) Asst. Manager Accounts SEALL LTD ) (65 Points)
Replied 22 December 2011

Dear Pavan ,

If we provide service to our Operator through out the year ....

in that case , ,,,,,,,,,,,,,,,,,, the Invoice issued on our before 30th June 11 , taxability may be on the basis of Payment Received .

However ,in the case of Invoices which are raised after 30. 6.11 .................. Taxability would be on the basis of value of Invoice raised and not on payment received / paid .

Am I right .