Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: cpt :: form 3cd :: TDS :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: due date for vat payment :: articles on VAT and GST in India
 
 
News Headlines »
 How to link your Aadhaar and PAN details to file income-tax returns
 How to calculate capital gains tax on property sold at less than stamp value?
 Return Filing - Under GST, this is how you will file tax returns from July 1
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits

Service Tax Assessees To File Annual Return
March, 22nd 2016

Although, with the government resorting to implement unified taxation regime GST in near future, it was hoped that the number of returns to be filed by an assessee would reduce substantially and this has been done in case of Central Excise Assessees which is highly appreciated by the trade and industry. However, at the same time, service tax assessees will be required to file Annual Return in addition to the half yearly returns presently filed by them. This has been done by amending Rule 7 of the Service Tax Rules, 1994 which will be applicable with effect from 01.04.2016. This article is an attempt to analyse the probable consequences of the amendment.

Glimpse of the Amendment:- Vide notification no. 19/2016-ST dated 01.03.2016, the Central Government has amended the Rule 7 of the Service Tax Rules, 1994 by inserting certain new sub rules after sub rule (3) which read as follows:-

“(3A) Notwithstanding anything contained in sub-rule (1), every assessee shall submit an annual return for the financial year to which the return relates, in such form and manner as may be specified in the notification in the Official Gazette by the Central Board of Excise and Customs, by the 30th day of November of the succeeding financial year;

(3B) The Central Government may, subject to such conditions or limitations, specify by notification an assessee or class of assesses who may not be required to submit the annual return referred to in sub-rule(3A).”

Apart from this, amendments have been made in Rule 7B in order to facilitate revision of annual returns and in Rule 7C so as to impose late fees in case of delay in filing of annual return which is specified as amount calculated at the rate of one hundred rupees per day for the period of delay subject to maximum of twenty thousand rupees.

Analysis of the Amendment:-

  • Every assessee shall file an annual return in prescribed form. Government may exempt class of assessees who may not be required to submit annual return subject to conditions of limitations prescribed in the notification. It is pertinent to note that as per Notification no. 17/2006-C.E. (N.T.) dated 01.08.2006 as amended by Notification no. 42/2008-C.E. (N.T.), a Central Excise Assessee, who has paid duty of excise less than one hundred lakh rupees during the financial year to which Annual Financial Information Statement relates is exempted from filing the said statement in Form ER-4 that is required to be filed latest by 30thNovember of the succeeding year as per the provisions of Rule 12(2)(a) of the Central Excise Rules, 2002. Accordingly, it may be hoped that similar exemption is provided to service tax assessees based on the quantum of service tax paid in a financial year. However, as the small scale exemption limit in excise is much higher than that prevalent in service tax, there is possibility that the limit of service tax payment may be specified on lower side.
  • The last date for filing of annual return is 30th November of the succeeding financial year with the option to revise the return within one month from the date of filing of original return. The provision enabling revision of return is welcomed.
  • Late filing of annual return will invite late fees at the rate of ₹ 100/- per day during the period of delay subject to maximum of ₹ 20,000/-

Before Parting:-

Although, the requirement of Annual Return is akin to the ER-4 return to be filed by Central Excise assessees, but there will be substantial difference in the details to be submitted in the annual return filed by the service tax assessees. Moreover, in service tax laws, not only service providers but service receivers are also liable to pay service tax under special circumstances which is commonly known as ‘reverse charge mechanism’ or ‘partial charge mechanism’. Consequently, the assessees paying service tax under ‘reverse charge mechanism’ should be exempted from filing Annual Returns as the return would normally require assessees to provide information as regards income/expenditure incurred by them.  

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions