IMPORTANT DOCUMENTS IN SERVICE TAX

[Dr. Sanjiv Agarwal]

Let us discus few important documents which assessees are expected to maintain under service tax provisions.

Following are the important documents required to be maintained by service tax assessees —

Invoice

Time period for raising an Invoice

Rule 4A of Service Tax Rules states that every person providing taxable service, not later than fourteen days from the date of completion of such taxable service, or receipt of any payment towards the value of such taxable service whichever is earlier, shall issue an invoice, a bill or as the case may be, a challan signed by such person or a person authorised by him in respect of such taxable service provided or to be provided and such invoice, bill or as the case may be, challan shall be serially numbered.

Contents of an Invoice

Rule 4A states that the invoice shall contain the following particulars —

(i)    the name, address and the registration number of such person;

(ii)    the name and address of the person receiving taxable service;

(iii)   description, classification and value of taxable service provided or to be provided; and

(iv)   the service tax payable thereon.

For Banking Companies

In the case of a banking company or a financial institution including a NBFC or any other body corporate, or commercial concern, providing service to a customer, in relation to banking and other financial services, an invoice, a bill or as the case may be, challan shall include any document by whatever name called, whether or not serially numbered and whether or not containing address of the person receiving taxable service but containing other information in such documents as required under this law.

Goods Transport Agency

In the case of provider of taxable service is a Goods Transport Agency, providing service to a customer, in relation to transport of goods by road in a goods carriage, an invoice, a bill or as the case may be, a challan shall include any document by whatever name called, which shall contain the details of the consignment note, number and date, gross weight of the consignment and also contain other information as required under this law.

Continuous Services

Where any payment towards the value of taxable service is not received, and such taxable service is provided continuously, for successive periods of time and the value of such taxable service is determined or payable periodically, an invoice, a bill or as the case may be, a challan shall be issued by a person providing such taxable service, not later than fourteen days, from the last day of the said period.

Input Service Distributor

Every input service distributor distributing credit of taxable services, shall in respect of credit distributed, issue an invoice, a bill, as the case may be, a challan signed by such person or a person authorised by him, for each of the recipient of the credit distributed, and such invoice, bill or as the case may be, challan shall be serially numbered and shall contain the following namely —

(i)    the name, address and registration number of the person providing input services, and the serial number and date of invoice, bill or as the case may be

(ii)    the name and address of the said input service distributor

(iii)   the name and address of the recipient of the credit distributed

(iv)   the amount of the credit distributed

In case the input service distributor is an office of a banking company, or a financial institution including a NBFC or any other body corporate or commercial concern, providing service to a customer, in relation to banking and other financial services an invoice, a bill or as the case may be, challan shall include any document whatever name called whether or not serially numbered, but containing other information in such document as required under this law.

Consignment Note

Rule 4B of Service Tax Rules state that any Goods Transport Agency which provides service in relation to transport of goods by road in a goods carriage shall issue a consignment note to the customer. Where any taxable service in relation to transport of goods by road in a goods carriage is wholly exempted, the Goods Transport Agency shall not be required to issue the consignment note.

Consignment note means a document issued by Goods Transport Agency, against the receipt of goods for the purpose of transport of goods by road in a goods carriage which is serially numbered and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax, whether consignor, consignee or the Goods Transport Agency.

TR-6 Challan

Rule 6(2) of Service Tax Rules states that the assessee shall deposit service tax in Form TR-6 or in any other manner prescribed by CBEC. TR-6 Challan has since been replaced by GAR 7 challan which is now mandatory for use for electronic payments.

Returns

Rule 7 of Service Tax Rules states that every assessee shall submit a half yearly return in Form ST-3 or ST-3A, as the case may be, in triplicate along with a copy of the Form TR-6 for the months covered in the half yearly return.

Registration

Rule 4 of Service Tax Rules states that every person liable for paying the service tax shall make an application in Form ST-1 for registration within a period of 30 days and the Registration certificate will be in Form ST-2.

Form of Appeal

An appeal to Commissioner of Appeals shall be in Form ST-4 and to the Appellate Tribunal in Form ST-5 in quadruplicate, and shall be accompanied by a copy of the order appealed against.

Cenvat Documents

An assessee desirous of taking Cenvat credit, is permitted to use the following documents —

(a)   Invoice of input service provider issued on or after 10.9.2004;

(b)   Invoice of input service distributor;

(c)   Invoice of Manufacturer/Importer or his agent;

(d)   A challan evidencing payment of service tax by the person liable to pay service tax.

Records

Freedom has been given to the assessees to maintain their own set of records but such record should, however  show the required particulars for taxation purposes.

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