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Corporate News *   RTI applicant in Madhya Pradesh asked to pay GST for information *   India’s GST collection drops to Rs93,960cr in August *   Karnataka Taxmen arrest two Bengaluru businessmen in GST related fraud *  Govt may soon impose IGST on ex-factory sales; decision in September. *  Niti Aayog Suggests Slashing Import Duty, GST On Gold *  Kerala Floods: Relief Goods Exempted From Customs Duty, IGST *  No GST On Petrol, Diesel In Near Future As Centre, States Not In Favour. *  Kerala plans to raise Rs 7.5 bn through hiked liquor duty & 10% cess on GST. *  Orissa HC directs authorities not to take action against importers on GST. *  Firms can't be selective in passing on rate cut benefits under GST regime *  Technical glitches continue to haunt the Goods and Services Tax Network *  GST Annual Return: Everything you need to know about the format, eligibility & rules around GSTR 9  *  Post GST, J&K’s own tax collection drops by Rs 1,300 crore since July 2017 *  GST Council may replace 12% and 18% slabs with 14-15% one: Sushil Modi *  Domino’s lands in trouble for not passing on GST cuts *   Higher oil prices, GST may boost states revenue by Rs 37,400 crore in FY19  *   These taxpayers no more at mercy of GST intermediaries *  Budget 2018: No fiscal derailment, but a lot rides on GST; expect caution from RBI *  GST: E-way bill implementation deferred due to glitches *  Homebuyers must avoid traps on the name of NO GST Impact *   Govt will formulate a comprehensive gold policy to develop gold as an asset class *   Government to evolve to asign a unique id to every individual enterprise. *   1.48 lakh crore for rail budget. *   7148 Crore to be sanctioned to textile sector. *   3700 corore for SME industry *  16000 crore for free electricity connection *   Government ignored warnings over GST rollout: sources *  GSTR 3B questionaire introduced- To be filled before filing return *  Advisory mail  to all the taxpayers received from GSTN *   Advisory group on GST submits report, suggests changes
Subject News *  Consumer durables firms, GST body continue to spar over profiteering *   225 million e-way bills generated across India since GST rollout *   September last month to fix GST filing errors *   Due date of TRAN-1 and TRAN-2 is extended *   Extension of Due date for GSTR-3B only for newly migrated taxpayers *   Extension of Due date for GSTR-1 *   Taxpayer with turnover over Rs 2 cr need GST audit certificate, will be arduous job for auditors *   Whether the appellants are eligible for refund of the duty claimed to have been paid in excess on the basis of DMT of the goods? Whether the said claim of refund is sustainable without challenging the assessment of the shipping bills. (Source:PJ/CASE LAW/2018-2019/3479) *   GST Flash Updates on various circulars and notifications dated 04/09/2018 *   GST Update on Circular No. 61/2018-GST dated 04.09.2018 *   GST Update on disharmony in CGST and SGST *    Update on restriction of refund of IGST paid on exports under Rule 96(10) of the CGST Rules *   1,800 businesses migrate to GST regime *   ‘Missing’ service tax credit in GST update worries companies  *   Government notifies new annual return form for GST *  Whether Automatic Taps, Urinals and WC Flushing Systems would be classified under heading 9032 or Heading 8481 of Central Excise tariff. *  : Whether processing of secondary raw materials(steel scrap of different and variable composition) into blended steel scrap is liable for payment of central excise duty under the provision of the central excise Act,1944?Can  such “blended metal scrap” can be classified under tariff item 72044900 of the central excise tariff Act, 1985? *  Whether the transportation of goods by means of hired vehicles such that no consignment note is issued, would fall under the category of Goods Transport Agency Service? *  Whether the applicant is eligible to avail the benefit of exemption from payment of SAD provided under Notification No. 21/2012-Cus. *  Whether the polyester sewing thread manufactured by the appellant is excisable or not. *  INTERNATIONAL INSTITUTE OF DIAMOND GRADING & RESEARCH INDIA P. LTD. *  Whether grading and inscription of diamonds by the appellant (IIDGR India Private Limited) would amount to manufacture under Central Excise legislation. *  What is the classification when frozen meat is sold in packaged form and rate of tax to be applicable? *  Is the unutilized cenvat credit available before surrender of registration transferable to the new unit? *  Whether Kindle device is covered under Tariff Item 8543 70 99 of Customs Tariff Act, 1975 or not? *  GST Council considering Kerala government's proposal of 'calamity tax' *  Orissa HC directs authorities not to take action against importers on GST *  Whether the assessee on filing of second appeal before Tribunal is required to make an additional pre-deposit of 10% of the duty and penalty in dispute? *  Whether Automatic Taps, Urinals and WC Flushing Systems would be classified under heading 9032 or Heading 8481 of Central Excise tariff? *  Niti Aayog Suggests Slashing Import Duty, GST On Gold  

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Publish Date: 18 Mar, 2016
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SERVICE TAX ASSESSEES TO FILE ANNUAL RETURN

SERVICE TAX ASSESSEES TO FILE ANNUAL RETURN

An article by:-
CA Pradeep Jain
CA Neetu Sukhwani &
Neelam Jain

 
Introduction:-
Although, with the government resorting to implement unified taxation regime GST in near future, it was hoped that the number of returns to be filed by an assessee would reduce substantially and this has been done in case of Central Excise Assessees which is highly appreciated by the trade and industry. However, at the same time, service tax assessees will be required to file Annual Return in addition to the half yearly returns presently filed by them. This has been done by amending Rule 7 of the Service Tax Rules, 1994 which will be applicable with effect from 01.04.2016. This article is an attempt to analyse the probable consequences of the amendment.
 
Glimpse of the Amendment:-Vide notification no. 19/2016-ST dated 01.03.2016, the Central Government has amended the Rule 7 of Service Tax Rules, 1994 by inserting certain new sub rules after sub rule (3) which read as follows:-
“(3A) Notwithstanding anything contained in sub-rule (1), every assessee shall submit an annual return for the financial year to which the return relates, in such form and manner as may be specified in the notification in the Official Gazette by the Central Board of Excise and Customs, by the 30th day of November of the succeeding financial year;
(3B) The Central Government may, subject to such conditions or limitations, specify by notification an assessee or class of assesses who may not be required to submit the annual return referred to in sub-rule(3A).”
Apart from this, amendments have been made in Rule 7B in order to facilitate revision of annual returns and in Rule 7C so as to impose late fees in case of delay in filing of annual return which is specified as amount calculated at the rate of one hundred rupees per day for the period of delay subject to maximum of twenty thousand rupees.
 
Analysis of the Amendment:-
·        Every assessee shall file an annual return in prescribed form. Government may exempt class of assessees who may not be required to submit annual return subject to conditions of limitations prescribed in the notification. It is pertinent to note that as per Notification no. 17/2006-C.E. (N.T.) dated 01.08.2006 as amended by Notification no. 42/2008-C.E. (N.T.), a Central Excise Assessee, who has paid duty of excise less than one hundred lakh rupees during the financial year to which Annual Financial Information Statement relates is exempted from filing the said statement in Form ER-4 that is required to be filed latest by 30th November of the succeeding year as per the provisions of Rule 12(2)(a) of the Central Excise Rules, 2002. Accordingly, it may be hoped that similar exemption is provided to service tax assessees based on the quantum of service tax paid in a financial year. However, as the small scale exemption limit in excise is much higher than that prevalent in service tax, there is possibility that the limit of service tax payment may be specified on lower side.
 
·        The last date for filing of annual return is 30th November of the succeeding financial year with the option to revise the return within one month from the date of filing of original return. The provision enabling revision of return is welcomed.
·        Late filing of annual return will invite late fees at the rate of Rs. 100/- per day during the period of delay subject to maximum of Rs. 20,000/-
 
Before Parting:-
Although, the requirement of Annual Return is akin to the ER-4 return to be filed by Central Excise assessees, but there will be substantial difference in the details to be submitted in the annual return filed by the service tax assessees. Moreover, in service tax laws, not only service providers but service receivers are also liable to pay service tax under special circumstances which is commonly known as ‘reverse charge mechanism’ or ‘partial charge mechanism’. Consequently, the assessees paying service tax under ‘reverse charge mechanism’ should be exempted from filing Annual Returns as the return would normally require assessees to provide information as regards income/expenditure incurred by them. 

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PRADEEP JAIN, F.C.A.

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