Service Tax Return ST - 3 for the period 1st July to 30th September 2012.

After the introduction of negative list and major changes in the service tax law with effect from 1^st July 2012, the department found it difficult to combine both legal provisions in one return for the period from April to September 2012. Therefore the department decided to split the first half period return “ST-3” in to two from April to June and July to September and issued a notification in this regard (Notification No 47/2012-Service Tax).

Now, department has issued the Notification (NOTIFICATION NO. 01/2013-ST, DATED 22-2-2013) introducing the New ST-3 form for the period 1^st July 2012 to 30^th September 2012. The form ST-3 for this period is to be submitted before 25^th March 2013.

Click here to see the Notification.


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Point of Taxation in case of import of service from Associated Enterprise.

In case of import of service from associated enterprise (associated enterprise located outside India) , the reverse charge mechanism is applicable and the receiver of the service is liable to pay the service tax. The point of taxation in this shall be the date of credit in the books of account or the date of making the payment, whichever is earlier as per second proviso to Rule 7 of Point of taxation rules 2011. The service tax is payable even if the provision is created for expenses without crediting to the accounts of the associated enterprise.

This rule is not applicable if the payment is not made to the associated enterprise within 6 months from the date of Invoice and the point of taxation will be determined as if the rule 7 does not exist.

The taxpayer can take the cenvat credit of the service tax paid on such book entry based on the payment challan even if the amount for the service rendered is not paid to the associated enterprise.

Service Tax Return ST - 3 only for the period 1st April to 30th June 2012.

Service tax return (ST -3) which is to be filed before 25^th October 2012 will be only for the period the of 1^st April to 30^th June 2012. Department of Revenue has issued the notification (Notification No 47/2012-Service Tax).

Due to change in Service Tax law with the introduction of Negative list and other provision with effective from 1^st July 2012, the first half return will have two different legal provisions. Combining these two provisions will be difficult and will create problems in filing the return. Therefore the department is decided to cover the period of 1^st April to 30 June in the first half return.

The return for the period 1st July 2012 to 30th September 2012 shall be filed later in a new format. The revised format of the return and the last date for filing it will be indicated separately.