Extension of date of filing of Service Tax Return for the quarter October-March of F.Y. 2016-2017

The Central Board of Excise and Customs has extended the date of submission of Form-ST-3 for the period 1st October, 2016 to 31st March, 2017 from 25/04/2017 to 30/04/2017 by Order No: 1/2017-Service Tax dated 25/04/2017.

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Point Of Taxation in case of Krishi Kalyan Cess (KKC), applicable from 1st June is a burning issue and should be noted as follows – For Service Providers – KKC Shall be covered under Rule 5 of Point of taxation Rules 2011 (POTR). It is amazing but true that even though KKC is new levy and not new service, yet the Government has extended the scope of this rule by inserting two explanations resulting which the new levy is covered under the ambit of Rule 5 from 1st March 2016. The GIST is as follows:


It is pertinent to note that it does not over the situation when both completion of service and date of issue of invoice are prior to the date from service becoming taxable. Only date of invoice and receipt of Payment are to be considered for the purpose of Rule 5.


Notification No: No. 14/2015-Service Tax

Section 66B of the Finance Act, 1994, prescribes the service tax rate. It has been amended by Section 108 of the Finance Act, 2015 .The rate of Service Tax is being increased from 12% to 14(including cesses).The increase in Service Tax rate will come into effect from 1st June, 2015. (Notification No.14/2015 -Service Tax, dated 19th May, 2015 refers)

Sections153 and 159 of the Finance Act, 2015 provide that section 95 of the Finance (No.2) Act, 2004 and section 140 of the Finance Act, 2007, levying Education Cess and Secondary and Higher Education Cess, respectively, on taxable services, shall cease to have effect from a date to be notified by the Central Government. The above provisions levying Education Cess and Secondary and Higher Education Cess should also cease to have effect from 1st June, 2015. (Notification No.14/2015-Service Tax, dated 19 May, 2015 refers), that is the date with effect from which the increase in the Service Tax rate comes into effect Read the rest of this entry »

No Service Tax Audit by Department or CAG

Hon’ble Delhi High Court in the case of Travelite (India) Vs. Union of India & Ors. [W.P. (C) 3774/2013, C.M. No. 7065/2013] on the following issue: Issue: Whether Rule 5A(2) of the Service Tax Rules, 1994 is ultra vires the provisions of the Finance Act, 1994 (“the Finance Act”)?Whether CBEC Instruction No: F.No.137/26/2007-CX.4 dated… Read the rest of this entry »

CBEC VCES Clarification Circular No.17492013

In connection with the Service Tax Voluntary Compliance Encouragement Scheme (VCES), the CBEC has issued Circular No.174/9/2013 – ST dated 25.11.2013 clarifying several issues that were raised in interactive sessions with the trade which have not been specifically clarified hitherto or clarified adequately.  Read the rest of this entry »

Service Tax Voluntary Compliance Encouragement Rules 2013

After enactment of the Finance Act 2013 with accent of the President of India on 10th May 2013, the Central Government announces rules and forms for the purpose of the Service Tax Voluntary Compliance Encouragement Rules 2013. Read the rest of this entry »

Service Tax Notification No. 01/2013 dated 22.02.2013

The much awaited announcement regarding the new ST-3 format has finally been made via Notification No. 01/2013 dated 22.02.2013 for the period between 01.07.2012 to 30.09.2013 only. The on-line form regarding the same is expected to be uploaded on the department server (aces.gov.in) anytime soon. The notification is silent about the ST-3 return for the period 01.10.2012 to 31.03.2013 and it is expected to be included in the coming budget on 28.02.2013 for the financial year 2013-14.

The new ST-3 format introduced has included the concept of reverse charge mechanism in a detailed manner. The ‘Gross Amount’ figure of taxable value of services filled previously in the returns has now been replaced to be filled in a detailed manner comprising of –

i.    Gross Amount (excluding amount received in advance or amount taxable on payment basis or for which bills/challans          have not been issued).

ii.         Amount received in advance

iii.       Amount taxable on a receipt basis

iv.        Amount taxable for services provided for which bills/invoices/challans have not been issued

v.          Amount on which service tax is payable under partial reverse charge.

In the Payment detail Sheet also, changes have been made to include-

i.  Payment by adjustment of excess amount paid earlier as service tax in respect of service of Renting of Immovable    Property, on account of non-availment of deduction of property tax paid and adjusted in this period under Rule 6(4C) of the ST Rules.

ii.   Payment by book adjustment in the case of specified Government departments.

The changes made in the current format of ST-3 return as detailed above has been made keeping in mind the changes in the Service Tax provisions. The new format is detailed and helps in giving a clear view of the status of the assessee and is expected to help in litigation matters with a clear and detailed view. Read the rest of this entry »