FILING SERVICE RETURNS – JUST A CLICK AWAY

[Dr. Sanjiv Agarwal]

The last date for filing income tax returns by corporate and auditee assessees has just gone (30^th September, 2011). In all such cases, the income tax returns are to be filed electronically using digital signatures. While there is no doubt that it does away with lot of paper work involved in physical filing of returns, it also saves time spent in physical filing, standing in queue  to get acknowledgement and possible harassment in departmental interface. The same apples to all sorts of tax filings- be it income tax, service tax, excise or VAT.

Recently, a bold decision has been taken by Central Board of Excise and Custom (CBEC) to the effect that all return filings shall henceforth be done through electronic filing, meaning thereby that there will be no physical filing of excise and service tax returns w.e.f. 1^st October 2011 by all types of assessees- big or small, individual or corporate or firm.

Service Tax returns have to be filed for the period of half year April – September 2011 latest by 25^th October 2011. Thus, all such returns will have to filed this time in e-mode for which necessary amendments have been made in rules and notifications issued. E-filing of service tax returns for first time e-filers may not be easy as it requires registration on electronic platform of the revenue department – ACES (Automation of Central Excise and Service Tax). It is a new centralized, web based and work flow based software application which will be run in all 104 Commissionerates in the country. ACES will automate the major processes of Service Tax- registration, returns, accounting, refunds, dispute resolution, audit, provisional assessment, export claims, intimations and permissions.

E-filing, besides reducing physical interface will allow online registration and its amendment, e acknowledgement (instant), online view facility to see documents, on line document tracking and electronic filing of all documents including refund requests.

It is necessary for all the service providers to register themselves with ACES to facilitate e-filing etc. This registration should not be confused with Service Tax registration which is otherwise a mandatory requirement. This can be done by logging onto the departmental website www.acces.gov.in. The system instantaneously generates an acknowledgment. The existing assessees will not have to take fresh registration. Assessees should note that the user ID once selected is permanent and can not be changed in future. However, password should be changed.

E-filing may be found difficult and cumbersome by small service providers such as dry cleaners, beauty parlors, repairs / maintenance providers, photographers, videographers, mandap keepers & tent houses, caterers etc. who are generally not aware of computer applications and are in unorganized sector. However, such assessees may take help of the return preparers authorised by CBEC or seek assistance form the department, much before the last date, ,i.e. 25^th October 2011. In view of the festive season ahead, it would be desirable to prepare for e-filing well in time. Sooner the better to avoid penalties attracted in case of belated returns. 

Steps Involved in e-filing of returns

(i)                  Returns can be prepared and filed on line by selecting the „File Return option under RET module after logging into the ACES.

(ii)                All validations are thrown up during the preparation of the return in this mode and the status of the return filed using the online mode is instantaneously shown by ACES.

(iii)               Returns can also be prepared and filed off-line. Assessee downloads the Offline return preparation utility available at http://www.aces.gov.in (Under Download)

(iv)              Prepares the return offline using this utility. The return preparation utility contains preliminary validations which are thrown up by the utility from time to time.

(v)                Assessee logs in using the User ID and password.

(vi)              Selects RET from the main menu and uploads the return. Instructions for using the offline utilities are given in detail in the Help section, under „Download link and assessees are advised to follow them.

(vii)             Returns uploaded through this procedure are validated by the ACES before acceptance into the system which may take up to one business day. Assessee can track the status of the return by selecting the appropriate option in the RET sub menu. The status will appear as “uploaded” meaning under process by ACES, “Filed” meaning successfully accepted by the system or “Rejected” meaning the ACES has rejected the return due to validation error. The rejected returns can be resubmitted after corrections.

(viii)           Once the Central Excise returns are filed online in ACES or uploaded to the system using the off-line utility, the same cannot be modified or cancelled by the assessee. The Service Tax returns, however, can be modified once as per rules up to 90 days from the date of filing the initial return.

(ix)              Self-assessed CE returns, after scrutiny by the competent officer, may result into modification. Both the „Original and the „Reviewed return can be viewed by the assessee online.

 

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