VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

CHAPTER: 1PAYMENT OF SERVICE TAX

1.1 INTRODUCTION:Service Taxis a tax imposed byGovernment of Indiaon services provided inIndia. The service provider collects the tax and pays the same to the government. It is charged on all services except the services covered in the negative list of services & services covered under Mega Exemption Notification. The current rate is 14% on gross value of the service. Service tax had been first levied at a rate of five per cent flat from 15 July 1994 till 13 May 2003, at the rate of eight percent flat w.e.f 1 plus an education cess of 2% thereon w.e.f 10 September 2004 le services provided by service providers. The rate of service tax was enhanced to 12% by Finance Act, 2006 w.e.f 18.4.2006. Finance Act, 2007 has imposed a new secondary and higher education cess of one percent on the service tax w.e.f 11.5.2007, increasing the total education cess to three percent and a total levy of 12.36 percent. The revenue from the service tax to theGovernment of Indiahas shown a steady rise since its inception in 1994. The tax collections have grown substantially since 1994-95 i.e. from Rs. 410 crores in 1994-95 to Rs.132518 crores in 2012-13. The total number of Taxable services also increased from 3 in 1994 to 119 in 2012. However, from 1 July 2012 the concept of taxation on services was changed from a 'Selected service approach' to a 'Negative List regime'. This changed the taxation system of services from tax on someSelected servicesto tax being levied on the every service other than services mentioned inNegative list. Sec 68. Payment of service tax: Every person providing taxable service to any person shall pay service tax at the rate specified in section 12[66B] in such manner and within such period as may be prescribed. Notwithstanding anything contained in sub-section (1), in respect of 5such taxable service as may be notified by the Central Government in the Official Gazette6, the service tax thereon shall be paid by such person and in such manner as may be prescribed at the rate specified in section 66 and all the provisions of this chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service. "Provided that the Central Government may notify the service and the extent of service tax which shall be payable by such person and the provisions of this Chapter shall apply to such person to the extent so specified and the remaining part of the service tax shall be paid by the service provider."

1.2 WHO IS LIABLE TO PAY SERVICE TAX:The following persons are liable to pay service tax:1. Service provider [Sec.68 (1)]:Every person providing taxable service to any person shall pay service tax at the rate specified in Section 66B in such manner and within such period as may be prescribed. Manner and p[period are prescribed vide Rule 6 of the Service Tax Rules,1994.2. Service receiver (Reverse charge mechanism) [Sec. 68(2)]:In respect of certain taxable services notified by the Central Government, the service tax thereon shall be paid by the service receiver and in such manner as may be prescribed and all the provisions of the Act shall apply to such person as if he is the person liable for paying the service tax in relation to such service.The services notified under this category and the persons liable to pay service tax thereon are shown in the below table:

PERSON LIABLE TO PAY SERVICE TAX (REVERSE CHARGE) In relation to service provided or agreedService provided to - Person liable to pay service tax

to be provided by-(i.e. Service Receiver)

1. An insurance agentTo any person carrying on the insurance business.The recipient of the Service.

2. A goods transport agency in respectwhere the person liable to pay freight is-Any person who pays or is liable

of transportation of goods by road(a) any registered factory; to pay freight either himself or

(b) any registered society;through his agent for the

( c) any co-operative society;transportation of such goods by

(d) any registered dealer;road in a goods carriage;

3. Way of sponsorshipanybody corporate or partnership firm located in the taxable territory.The recipient of such Service.

4. A director of a company.to the said company.The recipient of such service.

5. Any person which is located in a non- taxable territory.any person located in the taxable territory.The recipient of such service.

3. Service tax to be paid partly by service provider and partly by service receiver:The Central Government may notify the service and the extent of service tax which shall be payable by the service receiver and the provisions of this chapter shall apply to him, to the extent so specified and the remaining part of the service tax shall be paid by the service provider.4. Point of taxation for the service recipient:According to Rule 7 of Point of Taxation Rules, 2011, the point of Taxation in respect of persons required to pay tax as recipients of service shall be the date on which payment is made provided payment of invoice is made by the service recipient within six months of the date of invoice. If the payment of invoice is not made by the service recipient within 6 months of the date of invoice, then point of Taxation will be date of invoice.5. Mode of calculating assessable value of services received by the service recipient:Service recipient is required to discharge its service tax liability on the basis of payments made by it to the service provider. Further, out of pocket expenses incurred or reimbursed by service recipient to the service provider are also required to be included in the assessable value of relevant services. Besides, in case of Works Contract Services, free or concessional cost of materials supplied by the service recipient to the service provider is also required to be included in the assessable value of relevant se4rvices.6. Liability of service provider and service recipient is independent of each other:Service tax liability of service provider and service recipient is for respective specified amounts, totally independent and different from each other. Accordingly, both are free to choose their own method for discharging their own specified share of service tax liability. For example, in works contract services, the service recipient has the option of choosing the valuation method as per his choice, independent of valuation method adopted by the provider of service.7. Impact of threshold exemption availed by the service provider on the service tax liability of the service recipient:The benefit of threshold exemption is not available to a service recipient. In other words, service recipient has to discharge its service tax liability irrespective of the value of services as there is no monetary limit of exemption when service tax liability is discharged under reverse charge mechanism.8. Discharging service tax liability only in cash by service recipient:Service recipient of specified services listed above is required to discharge his service tax liability in cash.

1.3 SERVICE TAX IS PAYABLE IN THE PRESCRIBED MANNER:1. Due Dates [Rule 6(1)]:(A)Payments through Bank:CategoryFrequencyDue Dates

In case of individuals, Proprietary Firms & Partnerships FirmsQuarterly as mentioned below:(i)For Q.E. 30th June(ii) For Q.E. 30th Sept.(iii) For Q.E. 31st Dec.(iv) For Q.E. 31st March-By 5th July-By 5th Oct-By 5th Jan -By 31st march

Others (e.g. Companies, Societies, Trusts etc.)MonthlyBy 5th of the month immediately following the month in which service is deemed to be provided. However, in case of March, the payment should be made before 31st march.

Form G.A.R.7 (previously known as TR6 Challan) should be used to make service tax payments at the bank. Payment of service tax may be made at the specified branches of the designated banks.(B) Electronic Payments through Internet:CategoryFrequencyDue Dates

In case of individuals, Proprietary Firms & Partnerships FirmsQuarterly as mentioned below:(i)For Q.E. 30th June(ii) For Q.E. 30th Sept.(iii) For Q.E. 31st Dec.(iv) For Q.E. 31st March-By 6th July-By 6th Oct-By 6th Jan -By 31st march

Others (e.g. Companies, Societies, Trusts etc.)MonthlyBy 6th of the month immediately following the month in which service is deemed to be provided. However, in case of March, the payment should be made before 31st march.

2. Individual/ Firms [Rule6 (1) Prov.]:In case o individuals and partnership firms whose aggregate value of taxable services provided from one or more premises is 50 lakh rupees or less in the previous financial year, the service provider shall have the option to pay tax on taxable services provided or to be provided by him up to a total of rupees 50 lakhs in the current financial year, by the dates specified in this sub-rule with respect to the month or quarter, as the case may be, in which payment is received.3. Advance Payment of Service Tax [Rule6 (1A)]:The assessee has been provided a facility to make advance payment of service tax on his own and adjust the amount so paid against the service tax which he is liable to pay for the subsequent period. Such facility shall be available when the assess: intimates the details of the amount of service tax paid in advance, to the jurisdictional Superintendent of Central Excise within a period of 15 days from the date of such payment, and indicates the details of the advance payment made, and its adjustment, if any in the subsequent return to be filed under Section 70.4. E-Payment [Rule6 (2)]:E-Payment is a payment made through which a Taxpayer can remit this tax dues to the Govt. (CBSC) using internet Banking Service. It is an additional facility being offered by the banks besides conventional procedure. The e-payment is mandatory for the assesse who has paid service tax of Rs.1 lakh or above in the preceding financial year or has already paid service tax of Rs.1 lakh in the current financial year.5. Provisional payment of service tax (Rule6 (4), (5), (6)]:In case the assessee is unable to correctly estimate, at the time of the deposit, the actual amount of service tax for any month or quarter, he may make a written request to Assistant/Deputy Commissioner of Central Excise for making payment of service tax on provisional basis. Where an assessee request for provisional assessment he shall file a statement giving details of the difference between the service tax deposited and the service tax liable to be paid each month in a memorandum in From ST-3A with the return. The assessment in such a case may be completed after calling further documents and records.6. Adjustment of excess amount paid towards service tax liability (Rule6 (4A) & (4B)]:Where an assessee has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month of quarter, as the case may be, the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding month or quarter, as the case may be. However, self-adjustment of excess credit shall be subject to the condition that the excess amount paid is on account of reason not involving interpretation of law, taxability, valuation or applicability of any exemption notification.7. Adjustment of excess service tax on renting [Rule6 (4C)]:In case of renting of immovable property service, a deduction of property taxes paid in respect of the immovable property is allowed from the gross amount charged for renting of the said immovable property vide Notification Noi.29/2012 ST dated 20-60-2012. However, where any amount in excess of the amount required to be paid towards service tax liability has been paid in account of non-availment of such seduction, such excess amount may be adjusted against the service tax liability within 1 year from the date of payment of such property tax. The details of such adjustment shall be intimated to the Superintendent of Central Excise having jurisdiction over the service provider within a period of 15 days from the date of such adjustment.8. Recovery of the amount of servicer tax short paid/ not paid under self-assesseement [Rule6 (6A)]:Where an amount of service tax payable has been self-assessed under sub-section (1) of section 70 of the Act, but not paid, either in full or part, the same, shall be recoverable along with interest in the manner prescribed under section 87 of the Act.1.4 INTEREST AND PENALTY: 1. Interest:Every person, liable to pay the servicer tax in accordance with the provisions of section 68 of the Act or rules made there under, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed, shall pay simple interest @18% per annum w.e.f. 1-4-2011 [Notification No. 15/2011-ST]. The rate will be 15% for tax payers with turnover below Rs. 60 lakhs in the preceding year. Interest is payable for the period from the first day after the due date till the date of payment of any defaulted service tax amount.2. Penalty:If a person who is liable to pay service Tax fails to pay service tax, he shall pay in addition to such tax and interest in accordance with the provisions of section 75 of the act, a penalty which shall not be less than Rs.100/- for every day during which such failure continues or @1% of such tax per month, whichever is greater. However, the penalty amount payable shall not exceed 50% of the Amount of Service Tax payable.

1.5 SPECIAL PROVISIONS FOR PAYMNET OF SERVICE TAX:1. Air Travel Agent [Rule 6(7)]:Person liable for paying the service tax in relation to the services of booking of tickets amounts instead of paying service tax at the rate of 12%:In the case of Option to pay an amount calculated at the rate of

Domestic bookings of passage for travel by air0.6% of the basic fare

International bookings of passage for travel by air1.2% of the basic fare

Points to be noted:1. The option once exercised, shall apply uniformly in respect of all the bookings of passage for travel by air made by him and shall not be charged during a financial year under any circumstances.2. For the purpose of this sub-rule, the expression basic fare means that part of the air fare on which commission is normally paid to the air travel agent by the airline. 2. Life Insurance [Rule 6(7A)]:An insurer carrying on life insurance business shall have the option to pay tax:(i)on the gross premium charged from a policy holder reduced by the amount allocated for investment, or savings on behalf of policy holder, if such amount is intimated to the policy holder at the time of providing of service;(ii)where amount of the gross premium allocated for investment oir savings on behalf of policy holder is not intimated to the policy holder at the time of providing of servicer:First YearOn 3% of the gross amount of premium charged

Subsequent YearOn 1.5% of the gross amount of premium charged

Towards the discharge of his service tax liability instead of paying service tax at the rate of 12%. Such option shall not be available in cases where the entire premium paid by the policy holder is only towards risk cover in life insurance.Life insurance business means the business of effecting contracts of insurance upon human life, including any contract whereby the payment of money is assured on death or the happening of any [Rule 2(ccb)].3. Sale/Purchase of Foreign Currency Including Money Changing [Rule 6(7B)]:Person liable to pay service tax in relation to purchase or a sale of foreign currency, including money changing, has an option to pay an amount at the following rates instead of paying service tax at the rate of 12%:S.No.For an AmountService tax shall be calculated at the rate of

1.Upto Rs.1000000.12% of the gross amount of currency exchangedOrRs.30 whichever is higher

2.Exceeding Rs.100000And upto Rs.1000000Rs. 120 + 0.06% of the gross amount of currency exchanged

3.Exceeding Rs.1000000Rs.660 + 0.012% of the gross amount of currency exchanged OrRs.6000 whichever is lower

However, the person providing the service shall exercise such option for a financial year and such option shall not be withdrawn during the remaining part of that financial year.

CHAPTER: 2REGISTRATION OF SERVICE TAX

2.1 MEANING:As per Sec.64 & Rule 4,Every person liable to pay the service tax under this chapter or the rules made there under shall, within such time and in such manner and in such form as may be prescribed, make an application for registration to the Superintendent of Central Excise. The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.1. Application:The following persons should apply for registration under the Service Tax Act-(i)Every person who has provided a taxable service of value exceeding Rs.9 lakhs, in the preceding financial year, is required to register with the Service tax office having jurisdiction over the premises or office of such service provider.,(ii)A recipient who is liable to pay service tax.(iii)The Input Service Distributors.

2. Need:

Registration is identification of an assessee. Identification is necessary to deposit service tax, file returns and undertake various processes ordained by law relating to service tax. A person liable to pay service tax must apply for registration before he starts paying service tax and filing of return. Service provider should apply well in advance to obtain registration, which is normally granted within 7 days of filing of application. If registration is not granted within 7 days, it is deemed to have been granted. Failure to obtain registration would attract penalty upto Rs.20000 or Rs.200 for every day during which such failure continues, whichever is higher. It should be noted that assessee means a person liable to pay Service Tax and includes his agent.3. Period:a) (a)When a person commences business of providing a taxable service, he is required to register himself within 30 days of such commencement of business.b) (b)In case service tax is extended to a new service provider must register himself, unless he is eligible for exemption under any notification, within a period of 30 days from the date of new levy.It should be noted that the word person shall include an company or association or body of individuals whether incorporated or not. Thus, this expression includes any individual, HUF, proprietary firm or partnership firm, company, trust, institution, society, etc.4.Procedure:5.Registration Certificate:6.Multiple locations:7.Multiple Services:8.Multiple locations and services:9.PAN:

2.2 DOCUMENTS REQUIRED FOR REGISTRATION UNDER SERVICE TAX:

Documents Required For Decentralized/Centralized Registration-Trade Notice No.16/ ST/ 2012 Dated18.06.2012issued by Delhi Commissionerate

Documents required for fresh Decentralized Registration

2. Print out of the filled ST-1 form duly signed by the Director/partner/proprietor/authorized person at the end of the application.

2. Copy of PAN Card of the assessee.

3. Documents Required for the premises for which registration is sought; Proof of Address: Any one of the following:

a) In case of self-owned property, any document like Annual Property tax payment return/receipt showing name of applicant, or copy of sale deed etc. may be provided.Orb) In case of a rented premises, Lease License/rent agreement or rent receipt of Registered Co. Op. Housing Society.Orc) In any other case, NOC (No objection certificate) from either the owner of property or the person in whose name the rent or lease agreement has been made along with evidence of ownership/tenancy as the case may be.

4. Memorandum of Association/Partnership deed as per Companies Act, 1956, if applicable.

5. Power of attorney would be required in respect of authorized person(s) by the Partner/Proprietor/Director of the firm. In the case of a company, submit Board Resolution.

Documents required for fresh Centralized Registration or conversion from single to Centralized Registration

2.3 ANNEXURE-I :LIST OF DOCUMENTS AND THE CHECK-LIST FOR APPLICATION OF CENTRALISED REGISTRATION(For fresh Centralized Registration or conversion from single registration to Centralized Registration)Sr.No.PARTICULARSYES/NOPAGE No.

1Print out of the filled in ST-1 duly signed by the Director /Partner /proprietor/authorized person at the end of the application,

2Information with regard to the branches for which single registration has already been taken as per Annexure-II.

3Documents Required for new branches and Centralized Registration office which is not registered with Service Tax Deptt:a) List of new branches, which are not registered so far (Name and Address of branches sought to be centrally registered).b) Name and Address of the place from where centralized accounting/billing is sought to be donec) Address proof of (a) and (b) above.(No address proof required for existing branches, for which ST-2 Certificate has been issued, if address remains the same as per the existing ST-2.Address proof is required only for branches and office which are not registered with service tax department)

A.Proof of Address: Two documents are required. One document for each category A & B is required.Any one of the following documents :1. Land line Telephone Bill not older than 3 months,2.Electricity Bill not older than 3 months,3.Copy of Bank Account statement showing the name of the applicant and address of the premises as mentioned with application, not older than 3 months,

AND

B

I) Any one of the following documents: In case of self owned property any document like Annual tax payment receipt showing name of applicant, or copy of sale deed etc. may be provided.(II) In case of a rented premises :a) Lease License/rent agreement or rent receipt of Registered Co. Op. Housing Society, at least for a tenure not less than one year from the date of application for Registration, and in case the Annual Rent amount payable is more than Rs10 Lakhs, the Service Tax Registration number of owner.

OR

(b)In case the Lease License Agreement or Rent Receipt is not made in the name of the applicant and the Lessee is related /associate person of the tenant/lessee, then the Rent Agreement between original lessor and applicant shall be produced along with following document/detailsi. Relationship between applicant and lessee/tenant, andii. No objection Certificate for carrying out the business of applicant from the owner of the premises, andiii. Photo ID proof of the person giving NOC i.e., owner of the premises, andiv. If the Annual Rent payable by applicant to lessee/tenant and in case Annual Rent is more than Rs 10 Lakhs, the Service Tax Registration Number of lessee/tenant,

4Details of the Director/ Partners / Proprietors/Authorized Signatory(a)Name and address of the Directors / Partners /Proprietor, (Note II),(b)Name and address of Authorised signatory (Note I),(c)Copy of PAN Card of (a) &(b) above,(d)Identity Proof of (a) & (b)(submit any one of the following).1. Passport,2. Voter Identity Card,3. Driving Licence,4. Bank Passbook showing name and address, along with photograph,Note - I) In case of Authorized Signatory submits the Authorisation by the Partner/Proprietor/Director of the Firm. In the case of a Company submit the Board Resolution,Note - II) In case of partnership Firm, Company under the Companies Act or Association of persons (Like Trust), Co-operative Societies, please give the identity proof and copy of PAN documents only for 3 partners/directors/trustees, who are actively involved in running the affair of business

5Copy of PAN Card of the applicant -

6Details of at least one Bank Account of the Applicant (attach photocopy of blank cheque)(a)Name of the Bank and Address(b)Account Number

7Memorandum of Association/ Partnership Deed

8Notarized Affidavit certifying of keeping centralized accounting or billing

9Undertaking in Annexure III for centralized registration and Annexure V forsingle registration

2.4 ANNEXURE II:INFORMATION WITH RESPECT TO BRANCHES WHICH ARE ALREADYREGISTERED WITH SERVICE TAX(1) Details of branches for which S.T. registration has been taken (Please give the details in the table below)Address ofBranchesSTC No.(Please alsoAttach copy of ST-2)Address ofJurisdictional C.Ex./Service Tax Authorities (Commissioner,Divn, Range)Date ofRegistrationDate andPeriod forwhich last ST-3 returnfiledClosingbalance ofCENVATcredit as perlast ST-3return filed (as per col. 5)

123456

(2) Details of SCN issued which are pending adjudication-Address of BranchesSTCNo.SCNNo.&DatePeriodcoveredIssue in briefAmountdemanded(in Rs)Authority to whom SCN isAnswerable i.e., Comm.,/ADC/JC/DC/AC/Supdt.

1234567

(3) Whether any case is pending with Appellate Authorities/Court. If yes, provide following details with regard to each authority as mentioned below, in the prescribed format as under: Authoritiesa. Commissioner (Appeals),b.Tribunal,c. Settlement Commission,d. High Court,e. Supreme Court,AddressofBranchesSTC No.Order No. & Date appealedagainstAuthority and place whereappeal ispendingIssue inbriefAmountdemanded(showing duty & penaltyseparately)

Date of filingappealIf filed with StayApplication, the Stay Order No. & date,

12345678

(4) Details of cases which have been decided and where No appeal has been filed,Address ofBranchesSTC No.OrderNo. & DateIssueIn briefAmountconfirmed(in Rs)Whether S.Tax/interest/penalty paid, if yes, the amount thereof

123456

(5) Whether audit has been conducted by Service Tax/Central Excise authorities of the concerned Branch. If yes, provide following details for all branches :Address of BranchesSTC No.Whether Audited or Not

If audited, period covered in Audit

1234

(6) Whether Audit has been conducted by CERA for the Branch? If yes, provide following details Branch wise:Address of BranchesSTC No.Whether Audited or Not

If audited, period covered in Audit

1234

(7) Branch wise details of any investigations initiated against the said branch on the issue of Service Tax where search has taken place or statement has been recorded. Please furnish details.

(8) The details of merger/amalgamation of any company/entity if any.2.5 ANNEXURE III:ANNEXURE-IIIUNDERTAKING

(on the letter head of applicant)

I/We, M/s. _______________________________ (Name & Address) hereby undertake that on being acceptance of my/our application dated _____________________ for centralised registration in term of proviso to rule 4(2)(iii) of Service Tax Rules, 1994 read with section 69 of the Finance Act, 1994, I/We shall follow and comply with the below mentioned acts-

i. I/ We agree that a proper branch wise record of all the bills/invoices/challans issued and contract/agreement entered into by each branch and the proper accounting of all the transaction shall be maintained at our proposed centralized registered office and will make available to the Department as and when called for;

ii. I/We agree that all the records namely invoices/bills/Cenvat availment documents challans/contract/agreementand other financial records for the past five years for all the branches would be kept at the centralized registered office;

iii. I/We shall provide all the documents and information relating to provision of output services, availment of Cenvat credit and all other relevant financial or other records, at the time of audit and for any other enquiry,

iv. I/We agree that the service tax department, either through their local officers or from officers of other Commissionerates may carry out audit/ any other enquiry at the branch level and for this purpose all records and documents and other necessary support to the audit staff would be provided by us;

v. I/We would provide the information to the Department regarding the activities of the branches including financial information for the purpose of issue of Show Cause Notice or in regard to any enquiry by the Department within 15 days time of receipt of letter by the department;

vi. I/We, after communication of granting of Centralized Registration, we shall surrender the single registration for all branches and intimate to the jurisdictional Divisional A.C./ D.C.-in-charge of proposed Centralized Registration within a period of two months:

vii. I/We shall inform the amount of Cenvat Credit lying in balance as on the date of granting Centralized Registration for all branches within a period of 15 days to the jurisdictional Divisional A.C. /D.C. under whose jurisdiction the proposed Centralized Registration falls and seek permission for transfer of the same,

viii. We also undertake that we do not have any objection for Show Cause Notice to be adjudicated by the officers having jurisdictions over the Centralized Registered office, where SCN has been issued by and answerable to the Competent Authority having jurisdiction of any of our branches as declared in Annexure-II.

ix. We agree to the condition that in case of non-compliance of any of the above mentioned acts or condition or the provisions of the Service Tax law or rules, the Centralized Registration permission may be withdrawn by the department.

2.6. ANNEXURE-IV:CHECKLIST FOR AMENDMENT IN CENTRALISED REGISTRATION

(Please tick whatever is applicable)(a)Change of Address of Centralised Premises/Branches.(b)Addition/ Deletion of Branches.(c)Addition / Deletion of Services.(d)Addition/deletion of director/partner/authorized person OR their addressesSI.NoParticularsYes/NoPage No.

1.Printout of amendment application as obtained from ACES, duly signed by the Director/Partner/Authorised person

2.FOR (a):- (Change of address)I. For the branches where ST-2 is already taken : Please submit details as per annexure -III.II. For new addition of branches or change of Centralized registered office, Please submit details as per Sr. No. 3 of Annexure-I,

3.For (b) Only:- (Addition/ deletion of branches)(a) For deletion, Detail and information of branches being deleted., as per Annexure-II(b) For addition of new branch, Details as per serial No. 3 of Annexure -1 and a fresh undertaking as per Annexure IV

4.For (d) Only:- (Addition/ deletion of Director/partner or their address) In case of change in address of director/partner/authorized person or addition/deletion' of Director/partner etc.I. Details with Proof of address as given in Sr. No. 4 of Annex. 1,II. In case of change in Authorised Signatory, please provide details and documents as given in Sr. No. 4 in Annex. 1III. Please also produce the documents filed with Registrar of Firms/ Registrar of Companies/ Registrar of Societies or like other Govt. authorities intimating the addition/ deletion/ change of address of Directors/ partners/member, (like Form 32 filed with Registrar of companies)

5It is clarified that for addition/ deletion of service, no document other than (1) is required.

2.7 ANNEXURE-V:ANNEXURE-VUNDERTAKING FOR SINGLE REGISTRATION(on the letterhead of applicant)

I/We, M/s._______________(Name & Address) hereby undertake that on being acceptance of my / our application dated____________for registration in term of proviso to rule 4(1) of Service Tax Rules, 1994 read with section 69 of the Finance Act,1994, I/We shall follow and comply with the below mentioned acts-

I. I/ We agree that record of all the bills/invoices/challans issued and contract/agreement entered into the proper accounting of all the transaction shall be maintained at our proposed registered office and will make available to the Department as and when called for;

II. I/We agree that all the records namely invoices/bills/cenvat availment documents/Challans/Contract/Agreement and other financial records for the past five years would be kept at the registered office;

III. I/ We shall provide all the documents and information relating to provision of output services, availment of cenvat credit and all other relevant financial or other records, at the time of audit and for any other enquiry.

IV. I/ We agree that the service tax department, either through their local officers or from officers of other Commissionerate may carry out audit/any other enquiry at the registered premises and for this purpose all records and documents and other necessary support to the audit staff would be provided by us;

V. I/We would provide the information to the Department regarding the activities of the registered premises including financial information for the purpose of issue of Show-Cause Notice or with regard to any enquiry by the Department.

(Signature)(Name of Partner/Proprietor/Director)(Seal of company)Place:Date:

2.8 ANNEXURE VI:ANNEXURE -VICHECKLIST FOR SURRENDER OF REGISTRATIONSI.NoParticularsYes/NoPage No.

1.Printout of the filled application for surrender with signature of the Director/partner/ proprietor/ authorized person at the end of application.

2.Copy of ST-2 issued by the Department.

3.Copy of last ST-3 returns filed as on the date of surrender.

4.Reason for surrender. ;

5.Declaration for the surrender of ST-2.

2.9 FORM OF DECLARATIONS SURRENDER OF ST-2:

FORM OF DECLARATIONS SURRENDER OF ST-2(In terms of sub-rule (7) & (8) of Rule 4 of Service Tax Rules, 1994)

To, The Superintendent of Service Tax ___________

Sir/Madam,

Sub: Surrender of Service Tax Registration ST-2 Certificate bearing No.------for cancellation-reg.

I/We___________________________Proprietor /Partner /Director of M/s____________________ situated at hereby declare that, I/ We was / were engaged in providing the services, namely ____________from the above said premises. I/We have paid all the Service Tax and Education Cess along with interest (If applicable) till date.

Neither any Government dues nor any liability/demand of Service Tax/ Interest/ proceedings are pending against me/us. I/We have also filed the half yearly Returns in the form ST-3 covering the period up to_________ The total turnover of my/ our firm/Company for the financial year___________was amounting to Rs._________.

I/ We hereby undertake that if any, Government dues are found to be recoverable from us in future and demanded by the Department, I/We shall pay the same immediately along with Interest.

I/We hereby surrender the ST-2 Certificate bearing No.__________for cancellation as I/ we cease to provide taxable service and/or availing the exemption under Notification No._______________.(Signature)(Name of Partner/ Proprietor/ Director)

Place:Date:

CHAPTER 3FILING OF RETURNS OF SERVICE TAX

3.1 MEANING: Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency and with such late fee not exceeding for delayed furnishing of return, as may be prescribed. The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.3.2 SCHEME FOR SUBMISSION OF RETURNS THROUGH SERVICE TAX PREPARERS: 1. Without prejudice to the provisions of section 70, the Board may, by notification in the Official Gazette, frame a Scheme for the purposes of enabling any person or class of persons to prepare and furnish a return under section 70, and authorise a Service Tax Return Preparer to act as such under the Scheme. 2. A Service Tax Return Preparer shall assist the person or class of persons to prepare and furnish the return in such manner as may be specified in the Scheme framed under this section. 3. For the purposes of this section, a) Service Tax Return Preparer means any individual, who has been authorised to act as a Service Tax Return Preparer under the Scheme framed under this section; b) person or class of persons means such person, as may be specified in the Scheme, who is required to furnish a return required to be filed under section 70. 4. The Scheme framed by the Board under this section may provide for the following, namely:a) the manner in which and the period for which the Service Tax Return Preparer shall be authorized under sub-section (1); b) the educational and other qualifications to be possessed, and the training and other conditions required to be fulfilled, by a person to act as a Service Tax Return Preparer; c) the code of conduct for the Service Tax Return Preparer; d) the duties and obligations of the Service Tax Return Preparer; e) the circumstances under which the authorization given to a Service Tax Return Preparer may be withdrawn; f) any other matter which is required to be, or may be, specified by the Scheme for the purposes of this section.]3.3 FILING OF RETURNS OF SERVICE TAX:1. Types:A service tax assessee has to file the following returns- ST-3 Return- For all the registered assessee, including Input Service Distributors. ST-3A Return- The assessee who is making provisional assessment. 2. Due Date: Form ST-3 Return is requird to be filled twice in a financial year-half yearly. Return for half year ending 30th September is required to be filed by 25th October and return for half year ending 31st march is required to be filed by 25th aprill, respectively.Filing of return within the prescribed time limit is compulsory, even if it may be a nil return, failing which penal action is attracted.3.Details: The details in respect of each month/quarter, as the case may be, of the period for which the return is filed, should be furnished in the from ST-3, separately.The instructons for filing return are mentoned in the Form itself. It should be accompanied by copies of all the GAR-7 Challans for payment of service tax during the relevant period. A single return is sufficient even when an assessee provides more than one service because the form ST-3 is designed to capture details of each service separately with in the same return.4.Revised return:There is a provision to file a revised return. An assessee may submit a revised return, in Form ST-3 in triplicate, to correct a mistake or omission, within a period of 90 days from the date of submission of the original return. However, where an assessee submits a revised return, the relevant date for the purpose of recovery of service tax, if any, shall be the date of submission of such revised return.5.Submission:ST-3 or ST-3A is filed in triplicate to the Superintendetn of Central Excise/Service Tax with whom the assessee has registered himself.6.E-filing of service tax returns:a) The e-filing is a facility for electronic filing of service tax returns through the internet.b) Any service Tax assessee having a 15 digit service tax payer code can filr rerunr electronically.c) The procedure for filing e-return is as follows-i.

CHAPTER 4PROBLEMS AND SOLUTIONS

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ILLUSTRATION 3

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BIBLIOGRAPHY

Websites:

www.google.com

Books:

Direct and Indirect TaxesDr. Varsha M.Ainapure

PAYMENT, REGISTRATION AND RETURNS OF SERVICE TAX PAGE 29