Please check the Service Tax Returns filed by you for the period July 2012 to September 2012 to ensure that it is filed

[CA Seetharaman K C]

This refers to the Service Tax Return for the period 1^st July 2012 to 30^th September 2012 which I have filed for some of my clients. I found that none of the returns filed by me has been reflected in the system as uploaded. Subsequently on checking the XML status option I discovered that the filed returns have been rejected for certain reasons. I am now filing these returns again after making the required corrections.

The point I would like to make is that when a return is filed by an assessee under the electronic media the assessee needs to get an acknowledgement by email and proper advise should be given to him to make him aware that the return filed by him is defective and that he needs to file it again after making necessary corrections. The department is not giving any such acknowledgement to the assessee. The only acknowledgement which the assessee gets is an acknowledgement stating that the XML file has been uploaded. To find out whether the return has been accepted by the system or not the assessee has to log in and view the XML status by going to options RET-EFiling- View XML Status, and if the Return is rejected then it would be construed that no return was filed for the period.

Most of the assessees would not even be aware of this and would be under the impression that the return has been filed successfully especially after receiving an acknowledgement stating that the XML file has been uploaded successfully.

As stated earlier, the assessee has to take the pains of finding out whether the return filed by him has been accepted or rejected by the system and if the return is rejected he has to find out the reasons for the rejection and then make the corrections and upload the corrected XML file again.

The Department does not send any acknowledgement whatsoever to the assessees email id stating the status of the return and also reasons for rejection if any.

As such, if the return is rejected by the system it would be construed that no return was filed at all and all fines and penalties associated with it would be applicable.

This is grossly unfair on the assessee especially given the fact that there have been sweeping changes in the law and several notifications need to be mentioned especially under works contract, reverse charge mechanism etc. The problem would be faced more by assessees who file their own returns without any professional help.

Please therefore ensure that the returns filed by you have been uploaded successfully

Discussions to this article

[AMIT DOSHI]

Hello,

Even the returns which has been accepted by the system as "FILED" are not available for download under "View Original ST 3" section. What I mean to say is we are unable to take the printout of ST 3 for the period July 2012 to Sep 2012 since the systems shows the message " No records found" inspite of "FILED" status of xml upload.

 

[CA Seetharaman K C]

Very True Observations, All the more reason that the assessee needs to be intimated and adequately informed about the anomalies so that he can correct the same. I think we should take up this issue at all available forums to find a solution otherwise assesses will suffer.

[ANIL ANIKHINDI]

Yes, very true. I am taking up this issue at the PGC/RAC meeting in Kolhapur Commissionerate where I am a member on the Committee.

CMA (Dr.) Anil Anikhindi

A.G.Anikhindi & Co.

Practicing Cost Accountants

Consultants-Indirect Taxes

09371438160

 

[CA Seetharaman K C]

Latest Notification on ACES website regarding returns filed for July to Sept 2012:

CBEC has accepted the Service Tax returns for the period July-September, 2012, which were rejected by system on the sole ground that these returns were filed for the period prior to the dates of registration of the assessees, as valid returns. These returns have been reprocessed in ACES and the status of these returns is being shown in the systems as 'filed'. These assessees, need not file the returns again for the same period and they can view the status of their returns in ACES under 'View XML Status' option. However, if the returns were rejected for any other reason, the assessees are required to take corrective action as per the reasons of rejection.

[Mohammed Lakkadsha]

Department is saying that those rejected returns because of registration date beyond the return period is now acceptable, but the notification is silent as regards Penalty for late filing as due date has already gone.