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

 Basics  Methods of Preparing Return  Steps prior to e-filing  Practical Issues CA Kejal V. Pandya2

 Applicability of filing Service Tax Return electronically: ◦ Vide Rule 7 amended by Notification No. 43/2011-ST dated 25/08/2011 ◦ With effect from 25 th August, 2011  Website ◦ CA Kejal V. Pandya3

 Prepare Return directly on website  Download Excel utility, prepare Return and upload XML  Use ready made software CA Kejal V. Pandya4

 File an application to the jurisdictional Asst./Deputy Commissioner of Service Tax, specifying – ◦ 15-digit PAN based registration number (STP Code) ◦ Valid address  Department will send User ID and Password to be used ◦ to file ST Return ◦ To avail other online facilities CA Kejal V. Pandya5

 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 CA Kejal V. Pandya6

 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 CA Kejal V. Pandya7

 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 CA Kejal V. Pandya8

 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and entry for all fields  Filing of Return under "Goods Transport Operators Service" allowed though this service has been replaced by "Transport of Goods by Road (GTA) Service"  This may lead to errors - ACES system should be updated in this regards CA Kejal V. Pandya9

 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 i.e. Returns of earlier years filed late? – law is silent CA Kejal V. Pandya10

 “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 CA Kejal V. Pandya11

 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 CA Kejal V. Pandya12

 Entries of more than one challans paid in the single month ◦ Excel utility Select Month/QuarterGAR-7 Challan(s) October October October CA Kejal V. Pandya13

 Online Utility CA Kejal V. Pandya14 (II) DETAILS OF CHALLAN (VIDE WHICH SERVICE TAX EDUCATION CESS, SECONDARYAND HIGHER EDUCATION CESS AND OTHER AMOUNTS PAID IN CASH) MonthGAR-7 Challan April , May ,

 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 CA Kejal V. Pandya15

 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 CA Kejal V. Pandya16

 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 CA Kejal V. Pandya17

 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) CA Kejal V. Pandya18

 This number will help field officers in knowing exact outstanding left against a particular order or report CA Kejal V. Pandya19

 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) CA Kejal V. Pandya20

Select Reference to adjustment and other Payment Head Source document Payment Type Month/ Quarter No./ PeriodDate Other amounts paid – Penalty October AAACL0566 HST001_AC_ 2011_000_O IO 17/11/ CA Kejal V. Pandya21

 If the returns are prepared directly online CA Kejal V. Pandya22 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) SelectS No. Entry in table Service tax, educational cess, secondary and higher education cess paid S. No.MonthNo./ PeriodDate 1 Other Amounts paid- Penalty AADRE98 70hST001 07/12/20 11

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 CA Kejal V. Pandya23

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 CA Kejal V. Pandya24

Practical Issues…Mismatch Course 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 !!! CA Kejal V. Pandya26