Filling ST3 amedment

[sandeep singh]

Dear Sir

We run a franchise of International company and while providing service whatever amount is collected 20% of that amount ( and ST on 20%) is returned to the company. we pay service tax on 80% and company on 20%. We are filing Service Tax on our own from last two years and we are paying ST on only 80%.While filing ST3 we mentioned collection figure of only 80% for each month. We did not filed on 100% of collection and took cenvat credit on 20% ( Pls note company paid taxes on 20% and provided us Invoice for that). Do we need to file ST3 amendment, if so how to do it?

Thanks for help.

AI Summary

Service tax liability on full consideration: franchisees must account for tax on entire receipts and adjust CENVAT accordingly.
The franchisee must account for service tax on 100% of receipts and may take CENVAT credit only on invoiced amounts from the franchiser, subject to the timeliness restriction on credit. Returns may be revised only within the statutory revision window. The franchisee should compute and pay the differential tax on the withheld portion, adjust admissible CENVAT credit per the CENVAT rules and time limits, pay applicable interest, and maintain records evidencing the calculations and adjustments.