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TMI BlogService Tax — Important issues relating to — ClarificationsX X X X Extracts X X X X X X X X Extracts X X X X ..... rendered, but no sums have been realized in payment? Rule 7 of the Service Tax Rules, 1994 is very clear on this issue. Service tax is payable only on the value of taxable services realized during a period. 3. Is the amount of Service Tax charged from the client compulsorily to be indicated separately in the Bills/invoices raised on him? Section 12 of the Central Excise Act, 1944, as made applicable to service tax matters vide Section 83 of the Finance Act, 1994, lays down that the sums representing the amounts of service tax chargeable, should be indicated clearly and separately in the bills/invoices. 4. What happens if the amount of service tax indicated separately or otherwise is not collected, but all other dues are realize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e his return in the Form ST-3A. 6. Is service tax an indirect tax? Yes, very much so. Those who avail of the services are the ones who are ultimately required to shoulder the burden of this levy. 7. How can I assist the Department in further strengthening the Service Tax collection mechanism? Help us create a level playing field. It is not an acceptable position that some who abide by the law should become uncompetitive on account of having charged and recovered the service tax involved. Report all instances of defaulters with as complete a detail as possible. The Department will take suitable and timely legal action to bring such offenders to the book. 8. Can the Department ask for more information than what I am submitting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable service; if the assessee proves that there was reasonable cause for the said failure. However, penalty for delay in taking up the registration in not possible to be waived. 11. When is the Registration required to be taken by the person rendering a taxable service? Registration is required to be taken within one month of the imposition of the levy for existing service providers. In case, the person starts in market for providing taxable services later than the date of imposition of the levy (new businesses), the date for taking registration should be within one month of the start of the business. 12. How do I get myself registered with the Service Tax Unit? ¿ Apply in the Form "ST-1" to Superintendent Service Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness to another person, the transferee shall obtain a fresh certificate of registration. ¿ Your Registration Certificate will be promptly given in the Form "ST-2", within 7 days. ¿ Amendments to the Registration Certificate can be made in case of minor changes like change in name of the firm, change in the address of the registered premises etc. In all other cases, a fresh registration may be applied for in the form ST-1 and the earlier Registration Certificate may be submitted for cancellation. ¿ Registration is granted free of cost. ¿ Where an assessee is providing a taxable service from more than one premises or offices, and does not have any centralized billing system- he has to make separate applications for registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r which taxable services rendered; (e) value of the taxable services rendered; (f) service tax liability on the taxable services rendered, along with a copy of the bill raised on the client, to whom services have been rendered, a copy of the contract or agreement regarding the provision of such services to the client, and a demand draft payable to the Commissioner of Central Excise towards his service tax liability; and the return along with the demand draft shall be submitted within a period of 30 days from the date of raising of the bill on the client for the taxable services rendered ¿ There are no fees to be paid when submitting the ST-3 return. It may be submitted in person or sent to the Service Tax Unit by Registered A.D. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... da received from his branch offices. 16. What are the penalties imposable for various violations under the Finance Act, 1994? ¿ Failure to register with the Service Tax Unit in time (within one month of the date of notification of the service as a taxable service or within one month of the date of the start of business, whichever is later)- PENALTY - Rs. 500/-. ¿ Failure to pay service tax in time- PENALTY- Rs. 100/- to Rs. 200/- per day, subject to the maximum amount of the tax paid. ¿ Failure to submit returns in time- PENALTY - up to Rs. 1000/-. The Trade/Industry associations are requested to give wide publicity to the contents to this trade notice among their constituent Members. - Circular - Trade Notice - Public Notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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