Wrong value mention in Service tax return

[RAM SHARMA]

Dear Experts,

We have mention wrong value in service tax return by mistake but service tax paid on actual value in 2007-08. Now it is very difficult to reconcile st-3 value with balace sheet. Pl tell me how can i face service tax department.

Thanks 

[CASeetharaman KC]

Dear Sir

It seems fro your question that the value of taxable services metioned in ST3 return is wrong whereas the Service Tax paid is correct. I think if the period is 2007-08 the return should have been filed manually. Since there is no revenue leakage for the Government I would suggest that you file a corrected return mentioning the correct taxable value and also write a covering letter mentionig the reasons for filing the revised return and also stress on the fact that there is no revenue loss for the Department.Please also ensure you take acknowledgement of the letter.

[YAGAY andSUN]

Revised return can't be filed now.  You would have to approach to Commissioner in this regard with all material fact.  Otherwise, at the time of audit conducted by the Department, an additional demand of the Service Tax on the wrong value as mentioned in return for the period 2007-2008 will be raised, and you can validate the wrong value with your Balance Sheet.

Detail facts pertaining to this matter should be mentioned in your presentation and should be submitted before appropriate authority to show your bonafide.

[JAMES PG]

The proposal of Mr Khatri is the only feasible solution. The acknowledged copy of the letter may be kept on record so as to avoid invocation of suppression and allied litigations

AI Summary

Service tax return correction: document the error, obtain acknowledged correspondence, or represent to the Commissioner to avoid suppression claims. A taxpayer declared an incorrect taxable value in a service tax return though tax was paid correctly; advisers recommend either filing a corrected return with a covering letter and obtaining acknowledgement to show no revenue loss, or, if revision is unavailable, submitting a detailed representation to the Commissioner with supporting records and keeping acknowledged correspondence to counter suppression allegations during audit or demand proceedings.