Records and document - Service Tax Practice Manual / Ready Reckoner - Service Tax

Records and document A. Records B. Invoice C. Service tax to be shown separately D. List of account to be furnished E. Records for Cenvat Credit F. Special provision for Transporters G. Special Provision for Input Service Distributor ================ A. Records No specific records have been statutorily provided for the purpose of levy collection of service tax. However as per Rule 5(1) of Service Tax Rules, 1994 , the records including computerised data as maintained by the assessee in accordance with various laws in force from time to time shall be acceptable. [Records under this rule may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature. The Board has power to specify the conditions, safeguards and procedures to be followed while maintaining such electronic records.] w.e.f. 01/03/2015. ================ B. Invoice Every person providing taxable service, no later than thirty 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 signed by such person or a person authorized by him. According to rule 4A the following particulars are required to be mentioned on the invoice: Invoices should be serial numbered; Name, address and the registration number of such person; Name and address of the person receiving taxable services; Description and value of taxable service provided or agreed to be provided; Service Tax Payable thereon It is worthwhile to note here that Invoice includes any bill or challan issued by the provider of services for the services rendered by him. Some time, as a matter of practice no invoice, bill or challan is issued by the service provider but the same is raised by the service receiver and amount is paid to the service provider accordingly. In such situation also, there is no option available to the service provider and he has to issue / maintain invoice, bill or challan as the case may be in accordance with Rule 4A . In case of continuous supply of service, Invoice, bill or challan should be issued within thirty days from the completion of event as specified in the contract. Further, in case of a banking company or a financial institution including non-banking financial company some relaxation has been given in respect of serial number and address of the person receiving services, but other particulars are still required to be mentioned on the document. Further, for these services, invoice, bill or challan would include any document. Time limit for issuance of invoice, bills or challan in case of a banking company or a financial institution including non-banking financial company shall be fourty-five days. In case of transport of passenger service, an invoice, a bill or as the case may be, challan shall include ticket in any form by whatever name called and whether or not containing registration number of the service provider, and address of the service receiver but containing other information in such documents. In case of goods transport agency providing service 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 contain the details of the consignment note number and date, gross weight of the consignment and also contain other information in such documents. [Any invoice, bill or challan issued under rule 4A or consignment note issued under rule 4B may be authenticated by means of a digital signature. The Board has power to specify the conditions, safeguards and procedures to be followed while issuing digitally signed invoices.] w.e.f. 01/03/2015 Situation in which issuance of invoice is not necessary: Wherever the provider of taxable service receives an amount up to rupee one thousand in excess of the amount indicated in the invoice and the provider of taxable service has opted to determine the point of taxation based on the option as given in Point of Taxation Rules, 2011 , no invoice is required to be issued to such extent. ================ C. Service tax to be shown separately As per section 12A of Central Excise Act, 1944 as extended to service tax by section 83 of the act, it is mandatory to indicate prominently service tax element separately on all the invoice, bill or challan as the case may be. ================ D. List of account to be furnished As per rule 5(2) 5(3), every assessee is liable to furnish to the Superintendent of Central Excise at the time of filing his return first time, a list in duplicate of all accounts maintained by him in relation to service tax and all other financial records maintained by him in the normal course of business. All such records shall be preserved at least for a period of five years immediately after the financial year to which records pertain Records under this rule may be preserved in electronic form and every page of the record so preserved shall be authenticated by means of a digital signature. The Board may, by notification, specify the conditions, safeguards and procedure to be followed by an assessee preserving digitally signed records. The expression authenticate shall have the same meaning as assigned in the Information Technology Act, 2000 (21 of 2000). The expression digital signature shall have the meaning as defined in the Information Technology Act, 2000 (21 of 2000) and the expression digitally signed shall be construed accordingly. ================ E. Records for Cenvat Credit For input and capital goods: - Rule 9(5) of the Cenvat Credit Rules, 2004 The provider of output service shall maintain proper records containing the following details: 1) Receipt; 2) Disposal; 3) Consumption; 4) Inventory of Input and Capital Goods; 5) Value of input / capital goods; 6) Duty paid; 7) Cenvat Credit Taken; 8) Cenvat Credit Utilized; and 9) Particulars of Suppler of input or capital goods. For input services : - Rule 9(6) of the Cenvat Credit Rules, 2004 The provider of output service shall maintain proper records containing the following details; 1) Receipt of input services; 2) Consumption of input services; 3) Value of input services; 4) Tax Paid; 5) Cenvat Credit Taken; 6) Cenvat Credit Utilized; and 7) Particulars of provider of service ================ F. Special provision for Transporters In case of transporters who are transporting goods by road, required to issue a consignment note before issuing invoice / bill or challan as the case may be. Issue of Consignment Note : According to Rule 4B , a goods transport agency is required to issue a consignment note for each consignment to the recipient of service unless that is wholly exempt. Here Consignment note means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage. Following particulars are required to be shown on the consignment note; 1 It should be serially numbered; 2 The name of the consignor and consignee; 3 Registration number of the goods carriage in which the goods are transported; 4 Details of the goods transported; 5 Details of the place of origin and destination; and 6 Person liable for paying service tax whether consignor, consignee or the goods transport agency. Also according to Rule 4A , a goods transport agency is required to issue an Invoice, bill or challan as the case may be, containing the following details; 1 Invoices should be serial numbered; 2 Name, address and the registration number of such person; 3 Name, address of the person receiving taxable services; 4 Description, and value of taxable service provided or agreed to be provided; 5 Service Tax Payable Thereon; 6 Details of the consignment note number and date; and 7 Gross weight of the consignment; ================ G. Special Provision for Input Service Distributor: - Rule 4A (2) Every input service distributor distributing credit of taxable services shall, in respect of credit distributed, issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him, for each of the recipient of the credit distributed, and such invoice, bill or, as the case may be, challan shall contain the following details; 1 It should be serially numbered; Particulars of Provider of Input Services 2 Name; 3 Address; 4 Registration number; 5 Serial number and date of invoice, bill, or as the case may be, challan issued under sub-rule (1); Particulars of Input Service Distributor (ISD) 6 Name; 7 Address; and 8 Registration number* * Although it is not mentioned in rules, but as per author, registration. no. of ISD is required to be mentioned in bill or challan. Particulars of Recipient of credit distributed 9 Name; 10 Address Value 11 the amount of the credit distributed