Returns — Guidelines on new Form ST-3 - Service Tax - 7/2007

Commissioner of Central Excise, Pune-III Trade Facility No. 7/2007 dated 16-4-2007 Attention of the Trade and industry is invited to Notification No. 14/2007-ST, dated 2-4-2007 by which the existing Form ST-3 has been substituted by new Form- ST-3. 2. This revision was necessitated in view of :- (1) the procedural changes arising on account of LTU Scheme; (2) other changes made in the law and procedures; (3) the need for having necessary information for scrutiny of return. 3. The revised format of Service Tax return (ST-3) has following features :- (i) The format has been finalized after taking into account all the suggestions received from stakeholders, namely, the taxpayers, consultants and departmental officers. (ii) Detailed instructions for filling of form have been provided in the Annexure to the form. This was long standing request of taxpayers. (iii) The format is fully compatible to automation and e-filing of return. (iv) It incorporates all details required to be captured on account of significant changes in last two years in law and procedure e.g. valuation of taxable services export and import of taxable services, self adjustment of service tax paid in excess of the Service Tax liability, secondary and higher education cess (as the secondary and higher education cess on taxable services would come into force after enactment of the Finance Bill, 2007, the relevant entries would be applicable after such enactment). (v) Separate entries have been prescribed for furnishing information regarding self adjustment of Service tax in terms of Rules 6(3 ) and 6(4A) . (vi) Separate entries have been made for seeking information specific to large taxpayers who have opted for large Taxpayers units. Other taxpayers need not fill in these entries. (vii) Separate entries have been prescribed for computation of service tax and details of payment of service tax. The taxpayer is only required to furnish computation details separately for each taxable service. The details of payment of service tax are to be furnished in a consolidated manner. This is a simplification measure. (viii) A new entry has been prescribed for furnishing a premises code. This would facilitate in easier identification of jurisdictional division and range in which the taxpayer falls. (ix) Certain redundant entries have been omitted. (x) Certain additional information necessary for scrutiny of return, i.e. details of notification, additional details on computation of taxable value, service tax, rate wise break up of taxable value, source documents in respect of other payments made has been incorporated in the form. 4. For the next Return to be filed by 25-4-2007, all the taxpayers should use the new ST-3 form. 5. All the Trade Associations and Chamber of Commerce and Industries are requested to bring the contents of this Trade Facility to the notice of their member constituents.