how to file reverse charge mec return st 3

[ankit gupta]

how to file st 3 for reverse charge mechanism in service tax return

[Rajagopalan Ranganathan]

Sir,

In form ST-3 under the heading "PART B - VALUE OF TAXABLE SERVICE AND SERVICE TAX PAYABLE" there is a column 'B2 FOR SERVICE RECEIVER'. In this column you show the details of service tax paid by you under reverse charge mechanism.

[Ganeshan Kalyani]

It is very interesting to file return. In the first page an instruction is given. With cool mind if one reads it the return can be filed with joyful.

[Ganeshan Kalyani]

The filing of return is mandatory as per rule. More importantly it should be filed before due date.

[YAGAY and SUN]

You would have to put tick at the appropriate icon i.e. recipient of services while selecting the taxable service at the beginning of statutory return.

[Ravikumar muthusamy]

you can take cenvat credit also for the RCM payments made. i.e you have to file RCM taxable amount in PART B2 and it will show the tax payable amount and then file paid amount in PART D1 as you have to discharge the RCM liability by chalon only. Then you can take credit of the same in I3 and use it for service tax liabilities other than RCM

Hope I am clear

[Ganeshan Kalyani]

Yes service tax liability under reverse charge has to be paid in cash only and subsequently the credit of service tax paid under reverse charge can taken on challan basis.

AI Summary

Reverse charge mechanism: disclose RCM amount in ST 3, pay by challan in PART D1 and claim cenvat credit.
Report RCM taxable services in Form ST 3 PART B under column B2 as the service receiver, mark the recipient-of-services option when selecting the taxable service, pay the RCM tax in cash via challan and record the paid amount in PART D1, then claim the CENVAT credit for the RCM payment in I3 for use against other service tax liabilities; filing of ST 3 is mandatory and must be done before the due date.