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Tips for Avoiding Mistakes in Service Tax Returns


Tips for Avoiding Mistakes in Service Tax Returns, As now the return filing due date has been coming near by for the service tax return of 6 monthly transactions ending last March, the errors and mistakes are also committed by the filers, to reduce the same, this article would help you from committing such mistakes. There has been lot of pressure on the return preparers to prepare the same before the due dates and also to file the perfect return with no clerical mistakes. check more details about “Tips for Avoiding Mistakes in Service Tax Returns” from below……

Tips for Avoiding Mistakes in Service Tax Returns

Tips for Avoiding Mistakes in Service Tax Returns

Filing of Service Tax Return:

Service Tax Return needs to be furnished six monthly or half yearly for both the assessees, corporate and non-corporate assessees. Form ST-3 needs to be furnished for filing the service tax return. Before 15-10-1998, the service tax return was needed to be filed quarterly but after that, the return needs to be filed half yearly.

Due Date for Filing Return:

According to Section 70 of the Finance Act, 1994, the service tax return needs to be furnished within 25 days from the end of the half year, i.e. in simple terms it means the following:

Time Duration Due Date
01st April to 30th September 25th October
01st October to 31st March 25th April

Filing Requirements:

  1. If in any half year, there has be no services being provided, then the assessee needs to file the “Nil” Return also, if not filed it would be considered as default in compliances.
  2. In case of mistakes in the original return, revised return can be filed within 90 days of the original return being filed.
  3. If the service provider is providing various services, then also he has to file a single return mentioning the details of those multiple services provided by assessee and the quantum of such services.
  4. To help the assessee to more remotely file the return, department has also come out with the filing of return through post, subject to it should reach the department within due dates.

Various Mistakes committed by Return Preparers

  1. Mismatch in Challan Amount Entering the incorrect Challan Amount
  2. Incorrect Rates Rates has been changes in the previous year, which needs to be taken care and accordingly should be paid and mentioned accordingly. The previous rates where excluding any kind of cess, while the current rates are including such cess.
  3. Wrong Category The category for which the return is to be furnished is wrongly selected. There are basic three categories – Service Provider, Receiver, & Input Service Distributor.
  4. Exemptions not detailed The exemptions which have been availed by the assessee needs to mentioned or needs to be disclosed in the return, failing to which the return might be rejected.
  5. One Revision – The return can be revised but the revision of such return is permitted to only once, i.e. return can be revised only once.
  6. Difference in CENVAT credits There may be mismatches in the closing balance of the CENVAT credits availed before and now the remaining one, which may lead to rejection.
  7. Wrong Registration number Some times in hurry, return preparers, mention wrong registration number which may be intend the department to reject the return.

So these are the basic mistakes which are mostly committed by the preparers, which needs to be taken note of and to be avoided while filing the same.

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About Yash Shah

Yash Shah is passionate article writer and has written more than 100 articles in the field of Finance, Insurance, Stock Market, Company Law, Auditing, Taxation and many others. In case of any queries or suggestions, you can reach the author @ [email protected], you can also catch him on facebook @ yashshah299

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