Mismatch of Classification of service in ST-3 with ST-2

[MANASH MUKHERJEE]

Dear Sur,

An assessee is registered as a provider of service under Erection, Commissioning and Installation service, while ST3 Return is being filed as Work Contract Service and service tax is also being paid under WCS. Also, in ST-3 Return, as a service receiver some other services like Rent-a-Cab , Manpower recruitment supply is being shown, but there is no mention about these in their ST1 or ST-2. How these can be solved ? By amending the registration only or there is any other way. Is there any revenue implication due to mis-classification.

[Ganeshan Kalyani]

There is no other way than to amend the service tax registration certificate.

[Ganeshan Kalyani]

There is no penalty for wrong classification. But is essential to disclose correct type of service provided.

[YAGAY andSUN]

Right and appropriate Classification of services do matter where any exemption or any abatement is being availed. So be remain cautioned in this matter.

[YAGAY andSUN]

If required necessary amendments can be incorporated in the Service Tax Registration Certificate.

[DR.MARIAPPAN GOVINDARAJAN]

The changes in services may be incorporated in certificate of registration by applying online.

[Rajagopalan Ranganathan]

Sir,

Rule 7 B (1) of Service Tax Rules, 1994 provides that " an assessee may submit a revised return, in Form ST-3, in triplicate, to correct a mistake or omission, within a period of ninety days from the date of submission of the return under rule 7. This rule was inserted on 1.3.2007. Now there is requirement of filing the return in triplicate since now all service tax assessees are required to file ST-3 return on line. You can make use of this rule for correcting the mistakes committed by you while filing the return.

[Ganeshan Kalyani]

If ninety days time period has elapsed then I think only amending the certificate is an option left out.

[YAGAY andSUN]

However, in any case, amendment in ST RC is mandatory.

AI Summary

Service classification errors require amended registration or revised return within the prescribed period to correct filings and disclosures. When service classification in ST-3 differs from the registration, the operative remedies are to file a revised ST-3 within the prescribed period to correct mistakes or, if that period has passed, to amend the Service Tax Registration certificate (online amendment available). Correct classification is essential where exemptions or abatements are claimed, and disclosure of the accurate service type is mandatory; there is no automatic penalty for misclassification.