1. Text CONFIDENTIAL December, 2012 Service Tax in iON

2. 2 Service Tax – A Brief What is Service tax? Service Tax is tax on services Service Tax is leviable only if there is a provision of services Extent & Scope of Service Tax Extends to whole of India except the state of Jammu & Kashmir Service tax extended to territorial water of India (12 nautical miles from the land mass of India) Service tax extends to Continental Shelf & Exclusive Economic Zone

3. Service Tax – A Brief Salient features of levy of Service Tax a)ST is leviable on taxable services provided or to be provided by a service provider to other person b) ST is leviable on taxable services c) The value shall be computed in accordance with section 67, read with Service Tax (Determination of value) rules 2006 d)Rate of ST is 12% Education Cess 2% & higher education Cess 1% e)Date for determination of rate & point of taxation or determination of taxable event is as per Rule 5B of service tax rules 1994 & Point of Taxation rules 2011 f)Free services not taxable g) payment of service tax as per Service Tax Rules,1994 h)Well define procedure for registration, Collection etc of service tax i) CENVAT credit available j)Service provided by unincorporated association/Body to its members also taxable k) Performance of statutory activities/duties, not services l) "Person" includes Central/state governments, their departments and other agencies m) Import of services are taxable, whereas export of services are exempted n) Subcontracting attracts service tax

4. Service Tax – A Brief General Exemptions u/s 93 a)Exemption to export b)Exemption to certain services provided / received by RBI c)Exemption to services provided to United Nation (UN) or International organisation d)Exemption to taxable services provided for transmission or distribution of electricity e)Exemption to foreign diplomatic mission or consular post in India f)Exemption to services provided by Technology Business Incumbator(TBI) / Science & Technology Entrepreneurship Park or a entrepreneur in TBI/STEP g)Services provided to person holding authorisation rights to exhibit cinematograph film h)Exemption in respect of specified services used in export goods

5. Service Tax – A Brief SSI Exemption 1.Aggregate services render by Service provider from all the premises does not exceeds 10 lacs in preceding FY 2.100% exemption up to 10 lacs, Excess over 10 lacs will be taxable 3.Limit does not includes exempted services under any other notifications 4.Exemption not applicable to: a)Branded services b)Service provider is not liable to pay service tax 5.Conditions to be fulfilled: a)Exemption is optional b)No credit on Input Services c)No credit on Capital Goods d)No Credit on Inputs e) Exemption service provider wise & not service or premises wise

6. Service Tax – A Brief Forms Applicable to Service Tax 1.GAR 7 - G.A.R. Proforma for Service Tax paymentsGAR 7 2.ST1 - Application form for registration under Section 69 of the Finance Act, 1994ST1 3.ST2 - Certificate of registration under Section 69 of The Finance Act, 1994 (32 of 1994)ST2 4.ST3 - Return under Section 70 of the Finance Act, 1994ST3 5.ST3A - Memorandum for provisional deposit under rule 6 of the Service Tax Rules, 1994ST3A 6.ASTR1 - Application for filing a claim of rebate of service tax and Cess paid on taxable services exportedASTR1 7.ASTR2 - Application for filing a claim of rebate of duty paid on inputs, service tax and Cess paid on input servicesASTR2 8.SERVICE TAX INVOICE NO - 12.xls_ - Invoice for Input Credit Distributor under rule 4ASERVICE TAX INVOICE NO - 12.xls

7. Service Tax – A Brief Service Tax Return AssesseeDurationFormLast Date of filing return All AssesseesHalf YearlyST3/ST3A25 th Of Following month Input Credit DistributorHalf YearlyST3Last day of following month

8. General Procedure for filing Service tax Returns – ST3 1.One can directly upload data on ACES site 2.or can download Excel Utility from www.aces.gov.in & enter data off line convert the file in XML & then upload the same on CBEC site.www.aces.gov.in 3.If you upload the XML file then one will get acknowledgement & copy of return after 24 hours

9. Data Required for Filing Service Tax Returns – ST3 1.Excel Utility downloaded from ACES site – ST3ST3 2.Service Tax Registration No. 3.Premises code 4.Constitution of Assessee 5.List of Taxable Services Provided 6.Monthly Break up of : (these details are required for services provided & received separately) a)Service wise break of amount charged b)Service wise break up of Advance received c)Service wise break up of Export of services d)Service wise break up of Abatement if any e)List of different rates charged 7.Service Tax / Central Excise credit available 8.List of chalans paid (month, amount, Chalan no, date, BSR code) 9.Enter all these details in ST3, validate & covert the excel sheet in XML format and upload the same.

10. How Client can file Service Tax Return (ST3) using iON Data 1.Service tax Registration No. can Be entered manually. 2.For arriving service amount & service tax break up user has to follow following steps a)Go to MFG> Sales> Generate Report> Manufacturing> Sales> Sales Invoice> Sales invoice Register>Select Site, Select date range, select type as service, select output type as xls, bifurcate tax as basic, PEC, SEC - Ref to sample reportRef to sample report b)Go to FNA>Generate Report>GL Ledger – Detail Report (New) c)Tally output of step (a) with ledger in Step (b) if confirm freeze the amount 3.For Service Tax Input Credit & Central Excise Credit user has to follow following steps a)Go to FNA->General Ledger->Generate Report> Purchase Tax register> Select Site, Select date range, select output type as xls, b)Once this report is generated then we have to use some excel tools – Ref to Purchase Tax RegisterRef to Purchase Tax Register c)After completing this exercise again we should tally it with ledger 4. Enter this data in excel utility downloaded from ACES site, Validate the same, after validation convert the file in XML format & upload the return

11. Thank You