CA Rajesh Kumar TR B com, LLB, FCA, DISA(ICA)

Transcription

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, 1

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, 2

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 3

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

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. 5

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 6

7 The system of availing credit on making payment is changed w.e.f 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 by the service provider would continue to be eligible only on payment basis 7

8 FILING OF ST 3 RETURNS Half Yearly Returns Due date 25 th 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 8

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 Rs. 100/day maximum of Rs. 2000/20000 The returns to be filed upto it is Rs.2,000/- and after that date Rs. 20,000/- 9

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 10

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 11

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16 Only online Revision is possible RET Menu Fill ST-3 Revise ST-3 Acknowledgement 16

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. 17

18 Thank You Hiregnage 4/16/