Embed Size (px)
Citation preview
4/16/2011
1
CA Rajesh Kumar TR
B’com, LLB, FCA, DISA(ICA)
“input service” means any service, - ◦ used by a provider of taxable service for providing an
output service, or ◦ used by the manufacturer, whether directly or indirectly,
in or in relation to the manufacture of final products and clearance of final products upto the place of removal,
and includes ◦ services used in relation to
setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such
factory or premises,
◦ advertisement or sales promotion, ◦ market research, ◦ storage upto the place of removal, ◦ procurement of inputs,
4/16/2011
2
◦ activities relating to business, such as – (removed) accounting,
auditing,
financing,
recruitment and quality control,
coaching and training,
computer networking,
credit rating,
share registry, and
security,
◦ inward transportation of inputs or capital goods and
◦ outward transportation upto the place of removal
"input service" means any service, - ◦ used by a provider of taxable service for providing an output service; or ◦ used by a manufacturer, whether directly or indirectly, in or in relation to
the manufacture of final products and clearance of final products upto the place of removal,
• and includes
◦ services used in relation to modernization, renovation or repairs of (setting up is removed)
a factory, premises of provider of output service or an office relating to such factory or premises,
◦ advertisement or sales promotion, ◦ market research, ◦ storage upto the place of removal, ◦ procurement of inputs, ◦ accounting, ◦ auditing,
4/16/2011
3
◦ financing, ◦ recruitment and quality control, ◦ coaching and training, ◦ computer networking, ◦ credit rating, ◦ share registry, ◦ security, ◦ business exhibition, - New ◦ legal services, - New ◦ inward transportation of inputs or capital goods
and ◦ outward transportation upto the place of
removal;
But Excludes – ◦ Port Services or Airport Services; Commercial of Industrial
Construction Services; Residential Complex Services; Works Contract Services in so far as they are used for- Construction of a building or a civil structure or a part
thereof; or Laying of foundation or making of structures for support
of capital goods, ◦ Exception – it is used for providing one or more of the
above said specified services; ◦ Insurance, Rent-a-cab, authorised service station & supply
of tangible goods services relating to motor vehicle ◦ Exception – courier, tour operator, rent-a-cab, cargo
handling, GTA, outdoor catering & Pandal and shamiana services
4/16/2011
4
• Services in relation to following
outdoor catering,
beauty treatment,
health services,
cosmetic and plastic surgery,
membership of a club,
health and fitness centre,
life insurance,
health insurance and
travel benefits
• extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;
“exempted services” means taxable services which are exempt from the whole of the service tax leviable thereon, and includes services on which no service tax is leviable under section 66 of the Finance Act and taxable services whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken.
Explanation.- For the removal of doubts, it is hereby clarified that "exempted services" includes trading
4/16/2011
5
Rule 6 of the Cenvat credit Rules 2004 major change Sub Rule 1-Cenvat credit benefit would not be
allowed on inputs or input services used in or in relation to manufacture of exempted goods or for provision of exempted service. Except as per SR-2
sub rule 2 provides for maintenance of separate records in more detailed manner in respect of receipt, consumption an inventory of inputs and the receipt and use of input services used for exempted & dutiable/taxable goods and services
If separate accounts not maintained any of the following three options: pay 5% on the value of exempted goods or service
Follow the procedure as per SR-3A – proportionate as per formula.
For inputs maintain separate accounts and for input service follow procedure as per SR-3A.
4/16/2011
6
In case of banking company or a financial institution, including NBFC, providing banking and financial services ◦ pay an amount equal to 50% of the credit availed.
In case of services relating to life insurance or management of ULIPs ◦ Pay an amount equal to 20% of credit availed
Rule 6(5) which provided full credit on 16 common input services is omitted
Application of Rule 6 is removed for services provided without payment of service tax to SEZ unit or developers for authorized operations.
Earlier this provision was applicable only where excisable goods could be cleared to SEZ unit or developers for authorized operations
4/16/2011
7
The system of availing credit on making payment is changed w.e.f. 01.04.2011
where the service tax is paid on reverse charge by the recipient of the service, the CENVAT credit in respect of such input service shall be allowed after the day on which payment is made.
The payment made within three months
If not the credit availed has to be reversed/paid.
It can be taken again on making payment.
Credit on the invoices issued prior to 01.04.2011 by the service provider would continue to be eligible only on payment basis
4/16/2011
8
FILING OF ST 3 RETURNS
Half Yearly Returns
Due date 25th of April/October
Should accompany GAR-7 Challan
Option to file either electronically or manually
If Total ST paid in the previous FY is more than 10 lakhs electronic filing is compulsory
4/16/2011
9
Revision of ST-3 returns already filed is permissible
Manually – in Triplicate
To correct mistake or omission
Time period – 90 days from the date of submission of return
Issue – whether belated return can be revised – No restriction.
Upto 15 days – Rs. 500
After15 days upto 30 days – Rs.1000
After 30 days – Rs. 1000 + Rs. 100/day – maximum of Rs. 2000/20000
The returns to be filed upto 08.04.2011 it is Rs.2,000/- and after that date Rs. 20,000/-
4/16/2011
10
Two options ◦ Prepare offline and Upload
◦ Fill online
Download Excel Utilities ◦ From main menu or from the RET Menu
◦ Enable Macros
◦ Fill & Validate
◦ Convert into XML
◦ Upload
4/16/2011
11
List of inputs and their usage in specific services
Inputs/ Capital goods and Input service Credits not availed due to doubt listing.
Capital Goods location register.
Credit %age for the month as compared to previous year.
Others
4/16/2011
12
4/16/2011
13
4/16/2011
14
4/16/2011
15
4/16/2011
16
Only online Revision is possible
RET Menu
Fill ST-3
Revise ST-3
Acknowledgement
4/16/2011
17
Each category of Taxable Output Service on monthly/quarterly basis.
The information required for compilation of return on category wise is
Value of invoices raised in month ◦ Value of taxable service provided in the month ◦ Value of taxable service received in the month. ◦ Service Tax payable on such amounts received.
The total tax payable arrived on all category should be aggregated.
The return should accompany GAR-7 challan and Service Tax credit Return.
It need not accompany invoices or other document unless voluntarily filed for disclosure purpose.
![DISA MODULE III Adv. Prashant Mali [BSc(Phy),MSc(Comp Sci),CNA,ISO 27001 LA,LLB] President – Cyber Law Consulting Board Member – Amity University’s Amity](https://img.dokumen.tips/doc/110x75/56649e895503460f94b8ec0e/disa-module-iii-adv-prashant-mali-bscphymsccomp-scicnaiso-27001-lallb.jpg)
![Management and Administration By: CA Kamal Garg [B. Com (H), FCA, DISA (ICAI), LLB]](https://img.dokumen.tips/doc/110x75/56649dda5503460f94ad0767/management-and-administration-by-ca-kamal-garg-b-com-h-fca-disa-icai.jpg)
