Issue related filing of New ST-3 Return (Jul-Sep) 2012-13

[meil megha]

NEW ST-3 (JULY TO SEPT12)

Service Tax

Sir

We are the Service Provider paying 50% on Service tax on 40% of the Gross Value (under valuation rules 2A of S.T.) in Works Contract Service, while Filing New ST-3 For period of July to Sept 12 one issue arises i.e.

In row B1.1 - Gross amount

& In row B1.6 - Amount on which service tax is payable under partial reverse charge

B1.7 -  Gross Taxable Amount

 For example - i am filing sheet regarding Works Contract Service - 

My total bill amount is = 100 (Gross amount)

I am paying service tax on Rs. 40 (i.e on 40% on Gross Amount as per Valuation rules 2A of S.T

then My liability is 2.472% (i.e. 50% on Tax)

then in row B1.1, I AM WRITING Rs. 100

AND IN B1.6 , I AM WRITING Rs. 50

AND IN B1.7, It shows the total of B1.1 to B1.6 = 150 (Gross Taxable Amount)

And in B1.11, I am showing Rs.60 which is abated

Net Taxable Amount showing in B1.14 Rs. 90 which is wrong. kindly Advise in this regard at earliest

[Rakesh K Paliwal]

Sir,

you should put the amount In row B1.6 - Amount on which service tax is payable under partial reverse charge, only

 

AI Summary

Partial reverse charge reporting: enter the taxable amount only in the designated partial reverse charge field to avoid double-counting. When filing the ST-3 for Works Contract services where tax is computed on a portion of the gross value and part of the tax liability is under the partial reverse charge mechanism, enter only the amount in the designated field for service tax payable under partial reverse charge. Do not duplicate the gross contract value in both the gross amount and the partial reverse charge amount fields, as that causes the return template to sum them and produce an inflated Gross Taxable Amount; correct allocation yields an accurate net taxable amount after abatement.