Service Tax Return - Due Date Extended

Friends,

CBEC vide Order No. 02/2014-ST dated 24th October, 2014 has extended the due date of filing Service Tax Return, for the period April 2014 to September 2014, from 25th October 2014 to 14th November 2014.

F.No.137/99/2011-Service Tax

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

***

New Delhi, the 24th October, 2014

ORDER NO. 02/2014-SERVICE TAX

In exercise of the powers conferred by sub-rule (4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise & Customs hereby extends the date of submission of the Form ST-3 for the period from 1st April 2014 to 30th September 2014, from 25th October, 2014 to 14th November, 2014.

The circumstances of a special nature, which have given rise to this extension of time,

are as follows:

“Natural calamities in certain parts of the country.”

Himani Bhayana

Under Secretary (Service Tax)

Central Board of Excise and Customs

Service Tax Registration Modifications in ST 1 and ST 2 and New Accounting Codes

Friends,

When we use any service be it a phone bill payment or Hire a room in a hotel we have to pay out little more than the actual rates charged. Ever wondered why? The reason is very meek, we are made to pay service tax over and above the usual charge but the bigger question is What is Service Tax, why do we have to pay this Tax when the tax is applicable on the company providing the service and also what is the Service Tax Rate. If these questions bother you, find answers below.

What is Service Tax?

It is a tax which is payable on services provided by the service provider. Just like Excise duty is payable on goods which are manufactured, similarly Service Tax is payable on Services provided. This Tax is payable by the provider of Service to the Govt. of India. However, the Service Provider can collect this Tax from the Consumer of Service (also referred to as Recipient of Service) and deposit the same with the Govt.

Modifications :

1. New Registrants: In terms of Notification No 48/2012 dated 30.11.12 , Service Tax Registration Application Form (ST-1) has been modified and is available in ACES for use by the new applicants seeking registration as a Service Tax assessee. Earlier, vide Notification No 19/2012 dated 5.6.12 effective from 01.07.2012,the negative list of services was introduced and accordingly, applicants seeking registration as a Service Tax assessee were required to register under the service category 'All Taxable Services Other than in the Negative List' . In terms of the Circular No165/16/2012 ST dated 20-11-2012 , issued by CBEC, the pre-July system of service-wise registration has been restored by CBEC for statistical purposes only. New applicants are now required to indicate the service(s) from out of the 120 categories listed in the aforesaid Circular. Further, Service-wise Accounting Codes have also been allotted for payment of tax, other receipt-interest and penalty. Henceforth, the Service Tax Registration Certificate (ST 2) will display the list of services for which the assessee is registered along with the new Accounting Codes. 

2. Existing registrants: Those assessees, who had registered with the department after 01.07.2012 under the 'Other than in the Negative List' (OTNL) category should amend the taxable service details now and opt for relevant description/s from the list of 120 services. After approval by the departmental officer, a new Registration Certificate(ST2) will be issued online displaying the list of services chosen by the assessee along with the new Accounting Codes. The existing registration number will,  however, remain unchanged. 

3. Pending amendment applications: Applications which have been filed and are pending for changing the description of services to OTNL category will be rejected by the departmental officers in view of the above mentioned circular. However, if the assessee has added or dropped any service, he should file amendment application to add/delete the relevant service. 

4. If you need further clarification, please contact ACES Service Desk by sending e-mail to aces.servicedesk@icegate.gov.in or calling up national toll-free number 1800 425 4251 on any working day from Monday to Friday between 9 AM and 7 PM. 

Modified Service Tax Return Form ST-3 for Quarter April 2012 to June 2012 Download for free

Friends,

The Service Tax Return for the quarter April 2012 to June 2012 is to be filed all the assesses for which due date is 25th November 2012. Everyone of us was in wait of modified version of Form ST-3 to file this return. The same utility has been released by Government of India, Central Board of Excise and Customs Department. The Government is doing its full efforts for automation of Central Excise and Service Tax. 

Now all the assesses will be able to file their Service Tax return for the quarter April’2012 to June’ 2012, last due date of which is 25th November, 2012. However, such facility is available in offline mode only i.e. through Excel Utility. Assesses will not be able to fill their ST-3 data online after logging into ACES website.

Modified version of the Service Tax Return (ST3) for the quarter Apr-Jun,2012 is now available for uploading to ACES .Download Link is given below in offline version only and not online version.

In view of the implementation of the Negative List concept in Service Tax with effect from 1st July, 2012, the return filing cycle of six months (April-September, 2012) has been split. 

This new ST 3 Return will be only for the period April-June, 2012, when Negative List was not introduced. This return is available in offline utility only with view and print facility in online mode. 

The last date of filing the ST 3 return for the quarter Apr-Jun,2012 has been extended by CBEC up to 25th November, 2012 vide Order No 3/2012 dated 15th October, 2012.

• Regarding filing of return for the period from July-September, 2012, further announcements will be made in due course. 
• ST-3 returns for the past half- yearly return filing periods up to March, 2012 can also be filed now both through offline and online versions. 
• Please do not wait until the last moment and file your return now to avoid congestion and inconvenience. 

Service Tax
Excel Utilities	Last Updated	XML Schema	Last Updated
Download ST3 Return Excel Utility (For Filing ST-3 returns for the period upto Oct-Mar 2011)	06-04-2012	Download XML Schema for ST3 Return	06-04-2012
Download ST3 Return Excel Utility (For Filing ST-3 returns for the Quarter April-June 2012)	22-10-2012	Download XML Schema for ST3 Return	22-10-2012

Service Tax Return for the Period 01.04.2012 to 30.06.2016 Due date extended.

Friends,

Service Tax is a tax which is payable on services provided by the service provider. Just like Excise duty is payable on goods which are manufactured, similarly Service Tax is payable on Services provided. This Tax is payable by the provider of Service to the Govt. of India. However, the Service Provider can collect this Service Tax from the Consumer of Service (also referred to as Recipient of Service) and deposit the same with the Govt.

After deducting the Service Tax, the service provider have to file a return on this account. A Notification bearing no. 47/2012 dated 28.09.2012 which may be read as given under about service tax return for First Half year for FY 2012 -13 has been issued by the Department. In the said notification  it has been informed that this time assessee are required to file service tax return for the period 01.04.2012 to 30.06.2012 instead of 01.04.2012 to 30.09.2012 and due date of return remains the same. The period mentioned in the Notification is 01.04.2012 to 30.06.2012 and it was general query among the assessee what about the return 01.07.2012 to 30.09.2012, then department comes with clarification on 28.09.2012 that they will inform the fate of next period in due course.

SERVICE TAX (FOURTH AMENDMENT) RULES, 2012 - AMENDMENT IN RULE 7

NOTIFICATION NO. 47/2012 ST, DATED 28-9-2012

In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely:-

1. (1) These rules may be called the Service Tax (Fourth Amendment) Rules, 2012.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Service Tax Rules, 1994, in rule 7, in sub-rule (2), the following proviso shall be inserted, namely:-

"Provided that the Form 'ST-3' required to be submitted by the 25th day of October, 2012 shall cover the period between 1st April to 30th June, 2012 only."

Now Department has come again with a new circular,that due date of service tax return for 01.04.2012 to 30.06.2012 is here by extended to 25.11.2012.

RULE 7 OF THE SERVICE TAX RULES, 1994 - RETURNS - EXTENSION OF TIME TO FILE RETURN IN FORM ST3

ORDER NO. 3/2012 [F.NO.137/99/2011-ST], DATED 15-10-2012

In exercise of the powers conferred by sub-rule (4) of rule 7 of the Service Tax Rules, 1994, the Central Board of Excise and Customs hereby extends the date of submission of the return for the period 1st April 2012 to 30th June 2012, from 25th October, 2012 to 25th November, 2012.

The circumstances of a special nature which have given rise to this extension of time are as follows:

(a) ACES will start releasing the return in Form ST3 in a quarterly format, shortly before the due date of 25th October, 2012.

(b) This will result in all the assessees attempting to file their returns in a short time period, which may result in problems in the computer network and delay and inconvenience to the assessees.

Rates of Service Tax w.e.f. 01.04.2012

Friends,

RATE OF SERVICE TAX (applicable w.e.f. 01.04.2012):

Read How you can avoid 12.36 % Tax means cases where 10.30 % tax can be charged 

1. The rate of service tax is being increased from ten per cent. to twelve per cent.

2. Consequent to change in the rate of service tax, changes are also being made in specific and compounding rates of tax for as per given on the official website.

3. Works contract service:-

Rate of tax under Composition Scheme has been changed from 4% to 4.8% plus cess.

4. Transport of passengers embarking in India for domestic and international journey by air :

The dual rate structure of maximum service tax of Rupees 150 and Rupees 750 in case of economy class travel is being replaced by an ad valor-em rate of twelve per cent. with abatement of sixty per cent subject to the condition that no credit on inputs and capital goods is taken. Therefore, w.e.f. effective rate of tax on journey by air would be 4.8%, subject to availability of abatement. 

Read How you can avoid 12.36 % Tax means cases where 10.30 % tax can be charged.

Avoid 12.36 % Apply 10.30 % Service Tax Rate ! How ? When ?

Friends,

Now it is clear to all the new service tax rate 12.36% is applicable from 01.04.2012. But generally there is perception in mind of people that where service has been provided before 31.03.2012 , 10.30 % service tax rate to be charged and where service has been provided after 01.04.2012, Service tax rate must be charged 12.36 % .But this is not the Fact .New Rates applicability is Governed by Point of Taxation rules (rule-4) . 

DETERMINATION OF ‘RATE OF TAX’ AND ‘POINT OF TAXATION” IN CASE OF RATE OF CHANGE OF TAX 

(Analysis of Rule 4 of the Point of Taxation Rules, 2011)

With effect from 01.04.2012, Rate of service tax has been increased from 10.3% to 12.36%.Therefore, professionals and assesses must know where the old rate of Service Tax can be applied. Moreover, professionals should be aware of steps to be taken for availing the benefit of old rate of service tax as per the relevant provisions.

For example: if services have been provided prior to 31.03.2012, issuing of invoice prior to 31.03.2012 shall ensure applicability of old rate of Service Tax.This write-up deals with the provisions relating to rate of tax where there is change in effective rate of Service Tax.

Further write-up on change in effective rate of service tax as applicable w .e. f. 01.04.2012 is also given here under and link to download given at the end .

1.0 DETERMINATION OF RATE OF TAX IN CASE OF CHANGE IN EFFECTIVE RATE OF TAX 

1.1 Step 1: Identify following three events: 

(i) Date on which taxable services have been provided; 

(ii) Date of issue of invoice; 

(iii) Date of receipt of payment 

Meaning of Date of Receipt of Payment and Date on which Taxable services has been provided 

(A) Date of receipt of payment: In present context, as per Rule 2A of Point of Taxation Rules, 2012 read with proviso thereof, date of payment shall be as under:

(i) If payment is received in cash: The date when the same is recorded in books of accounts or the date when deposited in bank account (if deposited), whichever is earlier.Thus, if payment is received by cash and same is recorded prior to 31.03.2012, date of payment shall be considered to be prior to 31.03.2012 (i.e. on such date when it is recorded in books of accounts).

(ii) If Payment is received by an instrument which is credited to a bank (e.g. cheque): In such case, if payment is recorded in books of accounts prior to 31.03.2012 and payment is credited in bank after 31.03.2012, in such case, date on which payment is recorded in books of accounts shall be considered as “date of payment” if Payment is credited in bank by 05.04.2012 (4 working days are allowed from the date of change of rate of tax, 01.04.2012 is Sunday).However, if payment is credited after 05.04.2012, date of credit in bank shall be considered as ‘date of payment’.

In simple words, if payment is recorded in books prior to 31.03.2012 and same is credited in bank by 05.04.2012, date of payment shall be considered to be prior to 31.03.2012(i.e. the date when same is recorded in books of accounts).

Where date of credit in bank is after 05.04.2012 then date of credit in bank is to be treated as "Date of Payment " for Point of taxation rules.

Note: In few States Four working days end on 09/04/2012 as 01/04/12 is Sunday, 2/04/2012 is bank holiday for year end closing ,3 and 4 working,5/12/2012 holiday on account of Mahavir jayanti and 06/12/2012 is  holiday on Account of Good Friday 7 th is working but 8th is Sunday so Fourth working day falls on 09/04/2012

(B) Date when services have been provided: This has not been defined in Point of Taxation Rules, 2012. However, it should be interpreted to mean completion of provision of service with respect to which invoice is raised or would be raised.

1.2 Step 2: Determine rate of tax: 

(i) Applicability of 10.3 %: If two out of the three events given in step 1 herein above took place prior to 31.03.2012; 

(ii) Applicability of 12.36%: If two out of the three events given in step 1 here in above took place on or after 01.04.2012; 

In simple words, if any two events out of three mentioned in step takes place prior to 31.03.2012, old rate i.e. 10.3% shall be applicable. 

2.0 DETERMINATION OF ‘POINT OF TAXATION’ 

Download Point of Taxation Rules related to Service tax rate as explained above and new Service Tax rates wef 01.04.2012 2.1 As mentioned in Step 1 and 2 herein above, majority of three events shall decide the rate of tax. Now, date out of such majority dates shall be point of taxation. The same shall be determined as discussed.

Amendments in Service Tax w.e.f. 01/04/2011

Friends,

The government of India has made major amendments in Service Tax rules w.e.f. 01/04/2011. Budget 2011 (Finance Act 2011 ) has brought in following amendments in service tax laws effective from 01/04/2011 . Among many new things, point of taxation rule is most important and talked about amendment in Finance Act 2011 . Here is the list of amendments effective from 01/04/2011

a) Exemption is provided to the following services:

i) Value of air freight included in the assessable value of goods for charging customs duties is being excluded from taxable value for the purpose of levy of service tax under the ‘Transport of goods by air’ service.

ii) Services related to transportation of goods by road, rail or air when both the origin and the destination are located outside India is being exempted from service tax.

b) Withdrawal or amendments to existing Exemptions:

i) The rates of service tax on travel by air are being revised as follows:

(1) Domestic travel (economy class): from Rs.100 to Rs.150

(2) International travel (economy class): from Rs.500 to Rs.750

(3) Domestic travel (other than economy class) 10% (Standard rate)

ii) Exemption to inter-bank transactions of purchase and sale of foreign currency is being extended to any bank, including a bank located outside India, or money changer, by any other bank or money changer.

iii) Exemption to transport of goods by rail service is extended upto 30-Jun-2011.

c) Amendments to Rules & Notifications:

i) Rule 6(4B)(iii) of the Service Tax Rules, 1994 is amended to raise the monetary limit for adjustment of excess tax paid from Rs.1,00,000/- to Rs.2,00,000/-.

ii) Rule 6(7B) of the Service Tax Rules, 1994 pertaining to sale and purchase of foreign exchange is being amended to,—


foreign exchange is being amended to,—

(1) omit the proviso as well as the illustration; and

(2) reduce the composition rate from 0.25% to 0.1% of the gross amount of currency exchanged towards discharge of service tax liability. Transaction slabs and different rates of composition are introduced.

iii) It is being defined in Service Tax (Determination of Value) Rules, 2006 that the value of the money changing service:

(1) for a currency exchanged either from or to Indian Rupees, shall be equal to the units of currency exchanged multiplied by the difference in the buying rate or the selling rate, as the case may be, and the RBI reference rate for that currency at that time;
(2) for a currency where the RBI reference rate is not available, shall be 1% of the gross amount of Indian Rupees provided or received, by the person changing the money;
(3) where neither of the currencies exchanged is Indian Rupee, shall be equal to 1% of the lesser of the two amounts the person changing the money would have received by converting any of the two currencies into Indian Rupee on that day.

iv) Rule 6(6A) is being inserted in Service Tax Rules, 1994, to provide power to the Officer that if any amount of service tax has been self-assessed and not paid, the same shall be recoverable with interest by way of attachment under section 87 of the Act. Thus, there shall be no need to resort to provisions of section 73 where issuance of notice was mandatory.

v) Export of Services Rules, 2005 and Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 are being amended so as to move some of the specified services from one category to another.

d) The Point of Taxation Rules, 2011

New Rules have been framed and made effective from 01.04.2011 with relevant amendments to the Service Tax Rules. Transitional provision is introduced to provide an option to the service provider to adopt the rules from 1-7-2011. These rules determine the point in time when the services shall be deemed to be provided and consequently the point of time for payment of tax thereof.

e) CENVAT Credit Rules, 2004: Rules 2, 3, 4, 6 & 9 are being amended -i) To substitute the definitions of “inputs”, “input services”, “capital goods”, “exempted goods” and “exempted services” to clearly describe the scope of eligible & ineligible inputs and input services so as to minimize disputes in their interpretations. It is important to note that the term “exempted goods” now includes “trading”.

ii) To liberalise by allowing removal of inputs outside the factory for providing free warranty for final products without payment of duty.

iii) Rule 6 which stipulate options for reversal of CENVAT Credit where both taxable and exempted goods / services are manufactured / rendered, substantial changes are made amongst which the duty payable by service provider under Rule 6(3) is reduced from 6% to 5%. Also the term “value” is clarified for the purpose of computing the amount of reversal of CENVAT Credit.

iv) To provide that only 50% of the CENVAT credit availed will be available for utilization towards payment of service tax under ‘Banking and other financial services’ by a banking company and financial institution.

v) To provide that only 80% of the CENVAT credit availed will be available for utilization towards payment of service tax by the providers of life insurance service and management of investment under ULIP.

vi) To delete Rule 6(5) which stipulated that, 100% of CENVAT Credit was available for the specified 17 services where both taxable and exempted services are rendered.

vii) To provide that CENVAT Credit on input services will now be available on or after the day on which the invoice or bill is received subject to conditions for reversal of credit taken if the bill for input services is not paid within 3 months of the bill date. It is also stipulated that CENVAT credit must be reversed if any payment or part thereof, made towards an input service is refunded or a credit note is received. CENVAT Credit on service tax paid on reverse charge basis can be taken after the tax is paid by the service receiver. A transitional provision is introduced that where any bill issued before 1-Apr-2011, credit shall be allowed only after the bill is paid.

f) Amendments in the Act: Chapter V of Finance Act, 1994 is being amended to,—
i) Increase the rate of Interest under section 75 & 73B, on late payment / excess collection of service tax from the present 13% to 18%.

SERVICE TAX ACCOUNTING CODES FOR NEW SERVICES

SERVICE TAX ACCOUNTING CODES FOR NEW SERVICES

Accounting Codes For The Taxable Services Introduced Vide The Finance Act, 2011(8 of 2011)

         

Heads of Account under the Major Head “0044-Service Tax” in respect of the new taxable services have been allotted by the Office of the Principal Chief Controller of accounts, CBEC.

2. Accounting Codes for the purpose of payment of service tax are as follows:

Sr.No	Taxable Services	Accounting Code
		Tax Collection	Other Receipts	Deduct Refunds
1	2	3	4	5
124	Services of Air-conditioned restaurants having license to service alcoholic beverages in relation to service of food or beverages.	00441067	00441068	00441069
125	Services of providing of accommodation in hotels / inns/ cubs/ guest houses/ campsite for a continuous period of less than three months	00441070	00441071	00441072

Note :

A.    The sub-head “other receipts” is meant for interest, penalty, leviable on delayed payment of service tax

B.    The sub-head “deduct refunds” is not to be used by the assessees, as it is meant for the Revenue/Commissionerates while allowing refund of tax

C.    Primary education cess on all taxable services will be booked under 00440298 and Secondary Higher Education Cess will be booked under 00440426

D.    If NSDL have issued any dummy codes for revenue collection and interest / penalty for the above eight services, all these dummy codes should be treated as void and may replaced by the correct account codes as stated above

E.    Description of taxable services provided at column (2) of the given table for ease of reference, does not limit the scope of the taxable service.

SERVICE TAX - PROCEDURE FOR E-PAYMENT

 PROCEDURE FOR E-PAYMENT

1.   To pay Excise Duty and Service Tax online, the Assessee has to enter the 15 digit Assessee Code allotted by the jurisdictional Commissionerate.

2.   There will be an online check on the validity of the Assessee Code entered.

3.   If the Assessee code is valid, then corresponding assessee details like Name, Address, Commissionerate code  etc. as present in the Assessee Code Master will be displayed.

4.   Based on the Assessee Code, the duty / tax i.e. excise duty or service tax to be paid will be automatically selected.

5.   The Assessee is required to select the type of duty / tax to be paid by clicking on <91>Select Accounting Codes for Excise<92> or <91>Select Accounting Codes for Service Tax<92> depending on the type of duty / tax to be paid.

6.   At a time the assessee can select upto six Accounting Codes.

7.   The assessee should also select the bank through which payment is to be made.

8.   On submission of data entered, a confirmation screen will be displayed. If the taxpayer confirms the data entered in the screen, it will be directed to the net-banking site of the bank selected.

9.   The taxpayer will login to the net-banking site with the user id/ password provided by the bank for net-banking purpose and enter payment details at the bank site.

10. On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

Note:
Excise or service tax payment done through ICICI Bank, HDFC Bank and Axis Bank can be done by assesses for select commissionerates only. For all other banks authorized for collection of excise duty or service tax, payment can be made for all commissionerates.

Service Tax Rates

Friends,

Here are the up to date rates of Service Tax from the Financial Year 2001 to onwards.Service Tax Rates From Year 2001 to Up to Date are helpful for users.  Most of the reader ask for the service tax rates for previous years and current years. The table will describe all the service tax rates from the year 2001 with period applicability.

Effective Dates	Service Tax Rate	Education Cess	Secondary and Higher Education Cess	Total
16-07-2001 to 13-05-2003	5%	-	-	5%
14-05-2003 to 09-09-2004	8%	-	-	8%
10-09-2004 to 17-04-2006	10%	2%	-	10.2%
18-04-2006 to 11-05-2007	12%	2%	-	12.24%
12-05-2007 to 23-02-2009	12%	2%	1%	12.36%
24-02-2009 onwards	10%	2%	1%	10.30%

How to Open a Sole Proprietorship Business?

Sole proprietorship is a type of business in which only the owner, known as the sole proprietor, is responsible alone for all investment of capital and management of the business. He enjoys the profit solely and also suffers the risk alone. Sole proprietorship is the oldest and most common form of business in India. This is because sole proprietorship business enjoys several advantages which are not found in any other type of business. As the owner is solely responsible for the management of the firm, he can control the firm independently and can take quick decisions in every situation. He is motivated to work because he enjoys the profit solely and has a personal touch with the firm. Dissolution of the firm can be done easily due to least restrictions. It is also economical to start a sole proprietorship business because almost no formalities are present in its formation.

Sole proprietorship business can be formed easily as only the following things are required:

    Name of the organization, provided that it is not already trademarked by any other firm. Sole proprietor must register the name of firm soon after thinking the name of the organization.

    Owner must select the type of product he wants to deal in. He should check that the product he chose is legal in the eyes of law.

    A good site must be selected for setting up the business. He must check whether there is demand of the particular product in that area.

    Proprietor should open a bank account in the nearby bank so that he can deal with the customers in cheque, in case of transactions of bulky amount.

    Advertisement of the firm must be present in the most suitable type of media used nearby.

    A website can be made if the proprietor wants to flourish his business in future. Creating website will provide knowledge to general public about the firm.

    Stationery material like memos, pen, etc. which will be needed to give customers a professional bill.

    Proprietor must register for tax other than income tax. Some taxes which he should register are service tax, professional tax, etc. depending upon the condition of the firm.

Easy formation of business is the best advantage of sole proprietorship business. But, as there are two sides of a coin, similarly, in spite of the advantages there are several disadvantages too of starting sole proprietorship business. Limited availability of capital resource, limited managerial ability, unlimited liability, limited scope for expansion and uncertain life are some disadvantages of sole proprietorship business. Seeing the advantages and disadvantages, it can be concluded that sole proprietorship is only suitable in certain cases. Place where local market is established, market where taste and preference of the customer changes frequently, area where risk involved is minimum, site in which quick decisions can be taken and place where business can be established by investing small capital are the cases in which sole proprietorship business can be established without any risk. Therefore, if any person finds any place, where the things match with the above mentioned points, is the ideal place for the formation of sole proprietorship business by just completing the things required.

Registration of a Private Limited Company in India Online

Friends,

If you want to make a Private Limited Company in India then now-a-days it is very easy to register for your company ONLINE. There are some simple steps which we will discuss here. As you reach this article how to form a private company means you want to go through the basic and step by step guidelines to set up a private limited company. We will discuss in this article various formalities associated with company formation. There are lots of advantages of a private company over a partnership firm as it is a separate legal entity, limited liability of members, equitable distribution of profits, tax benefits. We will discuss all above topics on future articles, but here we will brief only for setup a private company in India.

Now company registration/formation is very easy with online involvement powered by MCA21 program launched by Ministry of Company Affairs (MCA). You can easily go through via ‘MY MCA Portal’.

Directors of the Company
First acknowledge the Directors of the Company. Minimum of two directors need to present and Maximum of 8 is allowed. All Directors should have DIN (Directors Identification Number). If you do not have one you can apply DIN online at www.mca.gov.in. It will allot provisional DIN immediately.

Register the name of the company

After obtaining DIN, you need to apply for the company name. You should give 5-6 names in the order which you prefer. It will be applied on e-Form 1A, online. The fees are Rs. 500/-. You can pay through your credit card or available option. It took normally 2 to 3 days to get the name locked. You can check the availability of the name at MCA Portal by clicking ‘Track Transaction Status’. If the name is not available you can apply for the fresh name on same application.

Incorporation

After register the name with Registrar, you must complete registration within 60 days from the date of approval of name by Registrar (Reduced from ’6 months’ vide companies (Central Government’s) General Rules and Forms (Third Amendments) Rules, 2007, we.f. 19.11.2007

The following documents are to be filed with fees electronically.

    Statutory declaration in e-form 1.
    Memorandum of Association (Scanned Copy)
    Articles of Association (Scanned Copy)
    Power of Attorney
    e-Form 18 – Notice of situation of registered office.
    e-Form 32 – Particulars of Directors

You have to submit the following documents to ROC office with the covering letter.

    Copy of memorandum and Articles of Association duly stamped and signed by promoters.
    Form No. 1 on stamp paper of requisite value.
    Power of Attorney from all the promoters.
    Copy of SRN Challan.

The ROC will send the certificate of incorporation shall be sent to you by post. You can check the status by filling up the SRN Challan number. You will also receive email from MCA office along with incorporation certificate.

Opening Bank Account on the name of company
The company now can open a bank account in its name for which a copy of the memorandum and articles of association will be submitted to banker.

Apply for PAN and TAN

Click to know how to apply PAN

For More information Go to : http://www.mca.gov.in/Ministry/faq_userreg.htm 

Exempts service provided by certain association of dyeing units from whole of service tax

SAHAJ ,SUGAM ON SIMPLE PAPER BLACK&WHITE NOT ACCEPTABLE ?????

 

TDS Rate Chart for the Financial Year 2011-12 (Assessment Year 2012-13)

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance
Department of Revenue

New Delhi, the 25^th July, 2011

Notification No. 42/2011-Service Tax

G.S.R.     (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts  club or association service referred to in sub-clause (zzze) of clause (105) of section 65 of the said Act, provided by an association of dyeing units  in relation to the project, from the whole of service tax leviable thereon under section 66 of the Finance Act.

Explanation.- For the purposes of this notification, project means common facility set-up for treatment and recycling of effluents and solid waste discharged by dyeing units, with financial assistance from the central or state government.

F. No. 356/05/2011-TRU

(Samar Nanda)

 Under Secretary to the Government of India

41/2011 - Service Tax, dated 27-06-2011 Amends the Point of Taxation Rules, 2011

Notification No. 17/ 2011-Central Excise (N.T.) dated 18th July, 2011

 

Notification No. 49 / 2011-Customs (N.T.) Dated 20th July, 2011.

SAIL Recruitment 2011 – 375 Management Trainee Vacancy

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue) 

New Delhi, the 27^th June, 2011

  

Notification No. 41/2011 – Service Tax

            G.S.R. (E).- In exercise of the powers conferred by clause (a) and clause (hhh) of  sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following rules further to amend the Point of Taxation Rules, 2011, namely:-

1.   (1) These rules may be called the Point of Taxation (Second Amendment) Rules, 2011.

      (2) They shall come into force on the 1^st day of July, 2011.

2.   In the Point of Taxation Rules, 2011, in Rule 7, in sub-rule (c),-

before the bracket and letter “(p)”, the bracket and letter “(g)” shall be inserted,

[F. No. 334/3/2011-TRU] 

(Samar Nanda)

Under Secretary to the Government of India

Note.-  The principal rules were notified vide notification no. 18/2011-Service Tax, dated the 1^st March, 2011, published in the Gazette of India, Extraordinary vide Number G.S.R. 175(E), dated the 1^stMarch, 2011 and last amended vide notification No.25/2011-Service Tax, dated the 31^st March, 2011, published on the Gazette of India vide Number G.S.R. 283(E), dated the 31^st March, 2011.

FAQ'S about Central Excise and Service Tax

Friends,

Here are some Frequentally asked questions regarding Central Excise:-

 

CENTRAL EXCISE

Q.1

What is Excise Duty? Is it collected by the State Government or the Central Government? How is it different from Sales Tax?

A.1

Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty. The Excise duty on rest of goods is called "Central Excise" duty and is collected in terms of Section 3 of the Central Excise Act, 1944. Sales Tax is different from the Excise duty as former is a tax on the act of sale while the latter is a tax on the act of manufacture or production of goods.

Q.2

Whether a manufacturer or producer of goods is required to obtain a license from the Central Excise department for payment of Central Excise duty?

A.2

No license is required and a simple registration with the Central Excise department would suffice.

Q.3

What categories of persons are required to obtain registration with the Central Excise department?

A.3

Subject to specified conditions, generally the following categories of persons are required to get themselves registered with the Central Excise department: (i) Every manufacturer of dutiable excisable goods; (ii) First and second stage dealers or importers desiring to issue Cenvatable invoices; (iii) Persons holding bonded warehouses for storing non-duty paid goods; (iv) persons who obtain excisable goods for availing end-use based exemption.

Q.4

Is there any category of persons who are exempt from obtaining registration?

A.4

Yes. Subject to specified conditions, the following categories of persons need not obtain Central Excise registration. (i) Manufacturers of goods which are chargeable to nil rate of duty or are fully exempt; (ii) SSI manufacturers having annual turnover of below Rs.90 lakhs. Once their turnover touches Rs.90 lakhs, they should give the prescribed declaration to the Jurisdictional Superintendent of Central Excise; (iii) Job-workers of ready-made garments if the principal manufacturer undertakes to discharge the duty liability; (iv) Approved/licensed units in Export Processing Zones, Special Economic Zones and 100% Export Oriented Units.

Q.5

What is the procedure for obtaining registration?

A.5
   
Apply to the nearest Central Excise Division Office in Form A.1 along with a self attested copy of the PAN issued by the Income Tax Department. After post verification, a regular Registration certificate in form RC is normally issued immediately, as far as possible

Q.6

What are the items on which Central Excise duty is leviable?

A.6

All goods listed in the Central Excise Tariff Act, 1985 attract Central Excise duty unless specified to the contrary in the Act itself or under any notification issued under the Central Excise Act, 1944 by the appropriate statutory authority.

Q.7

Who is liable to pay Central Excise duty?

A.7

Generally speaking, the manufacturer who actually undertakes manufacturing activity is liable to pay Central Excise duty. A person does not become a manufacturer simply by supplying raw materials to the manufacturer or getting his goods manufactured according to his own specifications, brand name or trade name, etc. However, for the textile sector, the option is with the supplier of raw materials or with the job worker to pay duty.

Q.8

What is the rate of duty on various category of goods?

A.8

The rate of duty on each item is specified in the Central Excise Tariff Act, 1985. In some cases, the statutory rates of duty have been lowered or reduced to Nil by the Central Government in terms of Section 5A of the Central Excise Act, 1944. Anyone interested in knowing the effective rates of duty in respect of any goods must refer to the Tariff or seek guidance from the nearest Central Excise Officer, if necessary.

Q.9

Is there any exemption from payment of duty for Small Scale Industries?

A.9

Generally speaking, the Small Scale Units, who manufacture the goods specified in the relevant exemption notifications and fulfil the conditions specified in such exemption notifications, are exempt from payment of duty till their aggregate clearances do not exceed Rs.1 Crore in a financial year. The Small-Scale units whose clearances in the previous financial year exceeded the limit of Rs.3 Crores, which will also include the value of exempted goods (excluding exports), are not entitled to such exemption. Generally speaking, the Small Scale units who are availing the CENVAT credit are required to pay duty at concessional rate of 60% of the prescribed rate till their clearances reach Rs.1 Crore. For further details, please consult the nearest Central Excise Range Office.

Q.10

What is the period for filing returns by the assessee?

A.10

An SSI unit is required to file returns on quarterly basis within 20 days from the date of completion of the quarter, but non-SSI units are required to file returns on monthly basis within 10 days from the date of completion of month.

Q.11

What action department takes for non-filing of returns?

A.11

A penal action is envisaged on failure to file the returns in time. Penalty may extend up to Rs.2000/-.

Q.12

How and when Central Excise duty is to be paid?

A.12

An SSI unit has to pay duty on monthly basis by 15th of the succeeding month. Other units are required to pay duty on monthly basis within 5 days of completion of the month in question.. The assessee is required to deposit the amount of duty payable in the nominated bank along with the prescribed TR-6 challan and on this amount being credited in the government account, he can take credit in the PLA register. Such credited amount can then be utilized for discharging the duty on goods cleared from his factory. However, for the month of March, the duty has to be paid by 31st March, both for SSI and Non SSI units. Further, in case of default in payment of duty, the interest is leviable @ 2% per month or Rs. 1000/- per day, which ever is higher, starting from the date on which the duty was required to be paid till the date of payment (subject to the interest not exceeding the duty amount.

Q.13

What is the facility for mitigating the cascading effect of duty? What is CENVAT?

A.13

Subject to prescribed conditions, the assessee has to obtain a duty paid invoice from the consignor and then he can take credit of such duty amount in the account maintained for this purpose and the same can be utilized by him for the payment of the duty on the goods from his factory. This credit is called CENVAT. Please consult the nearest Central Excise Range Office for further information.

Q.14

What formality of Customs is to be fulfilled at the time of export from the factory or what is the procedure for export of goods?

A.14

The assessee is required to inform to the Superintendent/Inspector in the Range Office 24 hours in advance about the proposed consignment of export. The Central Excise officer remains present while stuffing the goods in the container. After completion of the stuffing, the container is sealed with the Central Excise seal in presence of the said officer. Necessary documents such as ARE-1, invoice, packing list are also signed by the said officer. Self-sealing facility is also available under which the assessee himself stuffs the container and take clearance thereof. For more details, please contact the nearest Central Excise Range Office.

Q.15

Whether Central Excise registration is separately required by 100% EOU?

A.15

No. The licence granted by the jurisdictional Custom Officer under Section 58 of the Customs Act, 1962 is sufficient.

Q.16

What benefit does a 100% Export Oriented Unit get from the Central Excise?

A.16

Subject to prescribed conditions, no Excise duty is payable on the capital goods, raw materials, spares, consumables, etc. procured by the 100% EOU..

Q.17

What is the procedure to be followed for setting up a 100% EOU?

A.17

On obtaining LOP from the Development Commissioner, a manufacturer is required to approach the Commissioner of Central Excise for declaration of the place as a warehousing station under Section 9 of the Customs Act. Thereafter, the manufacturer is required to obtain private bonded warehouse licence under Section 58 of the Customs Act and permission to manufacture goods under Section 65 of the Customs Act from the jurisdictional Deputy/Assistant Commissioner.

Q.18

What is CT-3 certificate and who issues it?

A.18

CT-3 certificate is required to be obtained from the Range Superintendent of Central Excise on the basis of which a 100% EOU can procure duty free indigenous goods.

Q.19

What is the periodical return to be filed by a 100% EOU and when?

A.19

The 100% EOU is required to file monthly return in prescribed form.

Q.20

Is it permissible for 100% EOU to sell the goods in local market?

A.20

Yes. Under certain circumstances, 100% EOUs are permitted by the Development Commissioner to sell the goods in the local market on payment of appropriate duty.
     
SERVICE TAX

Q.1    

What is e filing ?

A.1    

E filing is a facility for the electronic filing of Service tax returns by the assesse from his office, residence or any other place of choice, through the Internet, by using a computer. The assesse can go to the e filing site `Home Page' by typing the address http://servicetaxefiling.nic.in in the address bar of the browser.

Q.2    

Who can e file their returns ?

A.2    

Assesses having a 15 digit STP code and falling under the following categories can avail of the facility of electronic filing their 'Return' for the following services;

a) Telegraph Services (TGH)
b) Telephones (TSU);
c) Life Insurance Services(LIS),;
d) Insurance Auxiliary (IAX),
e) General Insurance Business (GIB);
f) Stockbrokers (STB);
g) Advertising Agencies (ADV) and
h) Courier Services (COU).
i) Banking and Financial (BFN)
j) Custom House Agents (CHA)

This facility will be extended to other services in stages.

The assessee should take care to ensure that he has been indicating his 15 digit STP code in the challans used by him from September 2002. An assessee who has not done this may also opt for e filing but he will have to submit copies of challans manually to the department after e filing his return, evidencing payment of duties, after indicating his 15 digit STP code on each challan.

Q.3    

Can all types of returns be filed electronically ?

A.3    

At present only Service Tax return ` ST 3' can be filed  electronically.

Q.4    

Is e filing compulsory ?

A.4    

No. E filing of returns is an assesse facilitation measure of the department in continuation of its modernization and simplification program. It is an alternative to the manual filing of returns.

Q.5    

What about assesses who fall under more than one category ?

A.5    

Assesses  coming  under  the  above  categories,  have  to  file  separate  returns  for  each  of  the services provided by them.

Q.6    

Do they have to simultaneously also file a manual return or submit manual TR6 challans separately?

A.6    

If  an  assessee    files  electronic  returns  for  any  of  the  permissible  categories  of  services  and receives an electronic acknowledgement of the same, he need not file a manual return for the same service. He need not file the manual TR 6 copies for the said returns if he has taken care to ensure that  he  has  been  indicating  his  15  digit  STP  code  in  the  challans  used  by  him  from  September 2002. If the assessee is a provider of more than one service, it is desirable that he pays his challan service  wise,  so  as  to  take  maximum  benefit  of  the  procedure.  He  should  however  preserve  the manual  copies  of  the  TR  6  challan  for  production  before  the  officer,  in  the  rare  occasion  it  is called for, or as stated above, if the assessee  has not been indicating his 15 digit STP code in the challans used by him from September 2002.

Q.7    

What is the procedure for e filing ?

A.7    

Those assesses coming under the above service categories and who have a 15 digit Service Tax Payer Code allotted to them, should file an application to their jurisdictional AC / DC as laid out  in  Trade  Notice  issued  in  this  regard.  They  should  mention  a  trusted  e mail  address  in  their application, so that the department can send them their userword and password to help them file their  return.  They  should  log  on  to  the  Service  Tax    E filing  Home  Page  using  the  Internet.  On entering their STP Code, user word and password in the place provided on the Home Page they will  be  permitted  access  to  the  E filing  facility.  They  should  then  follow  the  instructions  given therein.

Q.8    

To whom should I make a request for e filing permission?

A.8    

The  assesse  should  file  an  application  to  their  jurisdictional  AC  /  DC  as  elucidated  in  TN mentioned above, for e filing permission.

Q.9    

How will the permission for e filing of returns be communicated to the me ?

A.9    

The  permission  for  e filing  will  be  communicated  to  the  assesse  through  the  e mail  address provided by him. It would also contain the user ID and password required for e filing.

Q.10    

Is it necessary for me to have an e mail address ?

A.10    

Yes. They should mention a trusted e mail address in their application, so that the department can send them their User Word and Pass word, to help them file their Return. The e mail address will also be required at the time of login.

Q.11    

Can I change my user ID and password after I receives the same from the department ?

A.11    

While the assesse cannot change the user ID, he can and must change the password immediately after receiving it by e mail from the department. This he can do by logging on to the CBEC website at the address http://www.cbec.gov.in and navigating to the e filing site `Home Page' where he has an option to change his  password.  He  can  also  directly  go  to  the  e filing  site  Home  Page  by  typing  the  address http://servicetaxefiling.nic.in in the address bar of the browser. It is the responsibility of the assesse to keep the password confidential and ensure that it is not known to anyone else. This is to prevent misuse. The responsibility for the return filed using the password of the assesse will be his.

Q.12    

What should I do when I change my e mail address ?

A.12    

When the assesse changes his e mail address he should intimate the department of his new e mail address. This will help him in continuing to receive messages from the department electronically.

Q.13    

What is an STP code ?

A.13    

The STP code stands for Service Tax Payer Code. It is used by the computer as a unique identifiers for  the  assesses  records.  The  department  is  presently  allotting  15  digit  STP  codes  to  individual assesses, irrespective of the number of services the assesse may be offering.

Q.14    

Do I have to have a STP code for e filing ?

A.14    

Yes the assesse has to have a 15 digit STP code for e filing.

Q.15    

How can I be allotted a 15 digit STP code ?

A.15    

The assesse will be allotted a 15 digit STP code by the jurisdictional Central Central Excise Division after he applies for the same as per the procedure set out in Trade Notice issued in this regard.

Q.16    

Is PAN a must for issuing a 15 digit STP code ?

A.16    

The  Board  through  its  circular  No.  35/3/2001 CX.4  dt.27.08.2001  has  instructed    that  every Service Tax Payer should be allotted a PAN based code. However since some assesses are still not having  PAN  numbers,  a  provision  has  also  been  made  in  the  Computer  System  for  issuing  a  15 digit temporary STP code. When the assesse gets his PAN number, he should immediately inform .