Workshop for Accountants 23 rd February, 2012 CA Kejal V. Pandya Partner Kejal Pandya & Associates Chartered Accountants

Workshop for Accountants23rd February, 2012

CA Kejal V. PandyaPartner

Kejal Pandya & Associates Chartered Accountants

Basics Methods of Preparing Return Steps prior to e-filing Practical Issues

23.02.2012CA Kejal V. Pandya 2

Applicability of filing Service Tax Return electronically:◦ Vide Rule 7 amended by Notification No. 43/2011-

ST dated 25/08/2011◦ With effect from 25th August, 2011

Website◦ http://servicetaxefiling.nic.in


Prepare Return directly on website Download Excel utility, prepare Return and

upload XML Use ready made software


File an application to the jurisdictional Asst./Deputy Commissioner of Service Tax, specifying –◦ 15-digit PAN based registration number (STP

Code)◦ Valid e-mail address

Department will send User ID and Password to be used ◦ to file ST Return◦ To avail other online facilities


Log on to the Service Tax e-filing home page Upon entering the Service Tax code, user ID

and password, you will be permitted to access the e-filing facility.

Follow the instructions given therein for filing the Returns

Obtain the acknowledgement.


Download latest excel utility before filing ST Return every time to cover the updates provided by the department in the utility

Read instructions before preparing Return


No facility to segregate Service wise credit available (b/f and c/f)

No facility to attach any document to provide additional information/clarification from assessee’s side

After uploading the Return, the amount in the Return is shown as zero. Contact department immediately and

confirm the Return amount ASAP


In excel utility, auto calculation not available resulting into manual calculation and entry for all fields

Filing of Return under "Goods Transport Operators Service" allowed though this service has been replaced by "Transport of Goods by Road (GTA) Service"

This may lead to errors - ACES system should be updated in this regards.


Can a public holiday be considered as "grace day" for counting penal clause of non-filing of service tax Returns? That too in an 24*7 online era of Return filing?

No clarification from law in this regard. Penalty of Rs.20,000 even in case of NIL

Return Penalty to be paid for all Returns filed after

01.04.2011 i.e. Returns of earlier years filed late? – law is silent


“Save” option available only at the end of the online Return

Page number not available making it difficult to verify if anything is missed out

Direct access to any particular page not available, hence whole Return has to be scrolled for editing


In case of centralized registration, Return is to be filed with consolidated data under the premises code of the address which is registered for centralized billing and accounting.

Option for all premises code is provided for selection instead of the main code… may result in error


Entries of more than one challans paid in the single month◦ Excel utility

SelectMonth/Quarter GAR-7 Challan(s)

October 69103330909201050025

October 69103330909201050036

October 02001880710201100097


Online Utility


(II) DETAILS OF CHALLAN (VIDE WHICH SERVICE TAX EDUCATION CESS, SECONDARYAND HIGHER EDUCATION CESS AND OTHER AMOUNTS PAID IN CASH)Month GAR-7 Challan

April

00033210407201100011,02001880707201100086

May

00033210410201100033,02001880710201100086

Is it required to add "Trading values" in column of total billing or total receipts received while filing ST-3◦ No. The assessee shall avoid trading values or

total excluded values of services while totaling the gross billing required to be shown in ST-3.


Incorporating Source Document in service tax return?

The source document is reference of document against which payment of service tax, interest or penalty is paid either in cash or in credit.

The document could be audit report, order of any service tax authority or demand notice.


If assessee does not know against which document payment is made or lost/misplaced the document, assessee can generate a dummy number to feed the source document data field.


The source document number consists five variables as follows:• Service Tax Number • Authority against which payment is made (i.e. AC

= Assistant Commissioner) • year of order or report • Serial number of order or report (in three digit) • Prefix OIO (i.e. Order in Original).


This number will help field officers in knowing exact outstanding left against a particular order or report.


Entry number 4B requires source document If the returns are filed

through Excel Utilities: 4B. Source documents details for entries at

column 4A(I)(a) (iii), 4A(I)(a) (iv), 4A(I)(b) (iii), 4A(I)(b) (iv), 4A(I)(c) (iii), 4A(I)(c) (iv), 4A(I)(d) (i) to (vii) (To be filled only if any entry is made against column 4A(I)(a) (iii), 4A(I)(a) (iv), 4A(I)(b) (iii), 4A(I)(b) (iv), 4A(I)(c) (iii), 4A(I)(c) (iv), 4A(I)(d) (i) to (vii)


Select

Reference to adjustment

and other Payment Head

Source document

Payment Type

Month/Quarter

No./ Period Date

Other amounts paid – Penalty

October

AAACL0566HST001_AC_2011_000_OIO

17/11/2011


If the returns are prepared directly online


4B. SOURCE DOCUMENT DETAILS FOR ENTRIES AT COLUMN 4A(I)(a)(iii), 4A(I)(a)(iv), 4A(I)(b)(iii),4A(I)(b)(iv), 4A(I)(c)(iii), 4A(I)(c)(iv), 4A(I)(d)(i) to (vii)

Select S No.

Entry in table Service tax, educational cess, secondary and higher education cess paid

S. No. Month No./ Period Date

1 Other Amounts paid-Penalty

AADRE9870hST001

07/12/2011

Mismatch in Service Tax Payable and Paid

while Filing Service Tax Return or Generating

XML Service Tax paid & payable figures are not

matching Education Cess paid & payable figures are not

matching Secondary Ed. Cess paid & payable figures are

not matching


Reason for Mismatch error: The online service tax returns (whether filed

directly online or through Excel Utilities) does a reconciliation between service tax payable and service tax paid (either in cash or credit).

If there is any difference or mismatch it shows the above errors.


Practical Issues…MismatchPractical Issues…Mismatch

Practical Issues…MismatchPractical Issues…MismatchCourse of action to remove these errors: These errors are avoidable and returns can be

filed with these errors One must check the calculations of service

tax payable and actually paid. If there is any major mismatch the same should

be solved first and then move on to file the returns.

!!! Thank You !!!

!!! Never Give Up !!!


Documents

Workshop for Accountants 23 rd February, 2012 CA Kejal V. Pandya Partner Kejal Pandya & Associates Chartered Accountants