SERVICE TAX (AMENDMENT) RULES, 2013 - AMENDMENT IN RULE 7 AND SUBSTITUTION OF FORM ST-3

A new ST- 3 form has been substituted vide notification no. 01/2013-ST, Dt. 22-2-2013, but care has not been taken to amend www.aces.gov.in, neither the online version of ST- 3 return is available nor is the Excel utility on the website to file the return.

When the Budget 2012 was announced, government had proposed a single return for Central Excise and Service Tax and that proposed return was supposed to be a small 2 page simple return. However the new ST- 3 is more than 10 pages and it is more complex than the previous ST- 3.

In this new return assessee is required to categorize the service under which taxable values are received.The confusion for classification is on the assessee. If the service provider chooses not to classify its service and submits entire data under only ‘other than negative list’ then the department can create issue at the service receiver’s end and may deny the credit altogether.

Assessee is liable to pay service tax and identify that payment is done in what capacity. As a –

(i)    Service Provider

(ii)   Service Receiver under Section 68(2),

(iii)  Service Provider under partial reverse charge under proviso to Section 68(2),

(iv)   A Service Receiver under partial reverse charge under proviso to Section 68(2),

(v)  If covered by (iii) above, then the percentage of service tax Payable as provider of service, 

(vi) If covered by (iv) above, then the percentage of service tax Payable as recipient of service.

If any payment is made for Research and Development Cess, the same should be shown in the Service Tax Return.

If Service Tax payable on account of tax payment on receipt basis, which is applicable to individuals and partnership firms whose aggregate value of taxable services during previous financial year was less than or equal to rupees 50 Lakhs as per third proviso to Rule 6(1) of Service Tax Rules, 1994, it has to be shown in separately.




HIGHLIGHTS OF "NOTIFICATION NO. 01/2013-ST, DATED 22-2-2013"

• A new ST-3 form with the existing form; and
• The Form ST- 3 for the period between the 1st day of July 2012 to the 30th day of September 2012, shall be submitted by the 25th day of March, 2013

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