service tax- ST3

[CAGOPALJI AGRAWAL]

Surenderji,

Kindly enlighten us the purpose behind ST 3 asking for 3 months data. Whether return is required to be filed quarterly.

[YAGAY andSUN]

The MOF is working on the concept of Quarterly Returns under Service Tax laws for the purpose of getting the information pertaining to revenue generated by Service Sector to enable them to make policies and Finalization of GST.

[CAGOPALJI AGRAWAL]

Thank you pradeep ji.

[NEERAJ KUMAR, RANCHI]

In my view, this has been done because from on and after 01.07.2012 service tax law has been changed and negative list has ttaken place. The present format of ST 3 was not suitable enough to accomodate changes occured in between the half yearly period , therefore the board has decided to bifurcate this period in two part and upto 30.06.2012 one return as per the old system and thereafter a new set of format may come to be used for the period after 01.07.2012.

[YAGAY andSUN]

Neeraj Sir,

Thanks for up-dating us.

Best Regards,

Pradeep Khatri

[CASeetharaman KC]

To give an example of the changes which may be ocassioned in the ST3 , the best issue which comes to mind is the Reverse Charge mechanism and sharing of the service tax payable between the service receiver and the service provide. The ST3 return would have to be modified suitably to accomodate this amendement so that cross checking of taxes paid by Service Provider and Service Receiver is possible and the same are reflected separately probably collected in different codes for different heads so that anamolies could be detected. Although this is my own wishful imagination I do expect someting in this line

AI Summary

Quarterly returns under service tax to capture updated format and reverse-charge reporting after law changes. The Ministry of Finance is considering quarterly returns under service tax to gather revenue data and finalise GST policy; the ST-3 format was modified to collect three-month segment data to address transitional reporting after the move to a negative-list regime, and to accommodate reporting of the reverse charge mechanism and sharing of tax liability between service providers and service recipients for cross-checking.