money changer service tax return

[satbir singhwahi]

A money changer is registered under banking and finance services category. While filing service tax return for  Oct 12 to march 2013.Rate of service tax was mentioned as.12 in Bi.15 as for Rupees1 lac transaction they have the option to pay 120 . However return was rejected because of the reason that this rate is not valid for Banking and finance services category. This category is  not covered in notification relating to abatement also. Should value  of Services provided be taken as one tenth of original value .Specific rates are applicable and to be shown in B1.16. This is  in terms of Rule 6, sub-rule 7B whish is reproduced herebelow.

(7B). The person liable to pay service tax in relation to purchase or sale of foreign currency, including  money changing, shall have the option to oay an amount calculated at the following rate  towards discharge of his service tax liability instead of paying service tax at the rate specified in  section 66B of  Chapter V of the Act, namely:]
(a) [0.12 per cent. of the gross amount of currency exchanged for an amount up to rupees 100,000,  subject to the minimum amount of [rupees 30] and;
(b) rupees [120 and 0.06 per cent. of the gross amount of currency exchanged for an amount of rupees  exceeding rupees 100,000 and up to rupees 10,00,000; and
(c) rupees [660 and [0.012] per cent.] of the gross amount of currency exchanged for an amount of  rupees exceeding 10,00,000, subject to maximum amount of rupees [6000]:

Kindly guide how data be filled in ST-3

AI Summary

Money Changer Faces Service Tax Return Rejection Due to Incorrect Rate; Seeks Guidance on ST-3 Form Submission. A money changer registered under the banking and finance services category faced issues while filing a service tax return for the period from October 2012 to March 2013. The return was rejected because the service tax rate used was not applicable to this category. The person inquired whether the value of services should be one-tenth of the original value and sought guidance on filling the ST-3 form. The applicable rates for currency exchange transactions were outlined, but clarification was still needed. Despite no response, the filer submitted the return using a grossed-up service tax rate of 12.36%.