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Service Tax

service tax exemption limit proposed to be raised 25 lakhs

posted 15 Jun 2014, 23:39 by Unknown user

in budget 2014, government has proposed to raise exemption limit of service tax from exisiting rs.10 lacs to rs.25 lacs 


posted 13 Jun 2014, 04:46 by Unknown user

 I.  For e-payment, assessees should open a net banking account with one of the authorized banks (currently there are 28 banks), list of which is available on the EASIEST (Electronic Accounting System in Excise and Service Tax) website of CBEC, maintained by NSDL(https://cbec.nsdl.com/EST/). Payment through ICICI Bank, HDFC Bank and Axis Bank can be done by assesses for select Commissionerates only, list of which is published in the aforesaid EASIEST website. Payment through all other authorized banks can be made for all Commissionerates.    
    II.  For effecting payment, assessees can access the ACES website (http://www.aces.gov.in/) and click on the e-payment link that will take them to the EASIEST portal (https://cbec.nsdl.com/EST/) or they can directly visit the EASIEST portal.    
                  III.  Procedure for e-Payment:
    a. To pay Excise Duty and Service Tax online, the assessee has to enter the 15 digit Assessee Code allotted by the department under erstwhile SACER/SAPS or the current application ACES.
    b. There will be an online check on the validity of the Assessee Code entered.
    c. If the Assessee code is valid, then corresponding assessee details like name, address, Commissionerate Code etc. as present in the Assessee Code Master will be displayed.
    d. Based on the Assessee Code, the duty / tax i.e. Central Excise duty or Service Tax to be paid will be automatically selected.
    e.The assessee is required to select the type of duty / tax to be paid by clicking on Select Accounting Codes for Excise or Select Accounting Codes for Service Tax, depending on the type of duty / tax to be paid.
    f. At a time the assessee can select up to six Accounting Codes.
    g. The assessee should also select the bank through which payment is to be made.
    h. On submission of data entered, a confirmation screen will be displayed. If the taxpayer confirms the data entered in the screen, it will be directed to the net-banking site of the bank selected.
    i. The taxpayer will login to the net-banking site with the user id/ password, provided by the bank for net-banking purpose, and will enter payment details at the bank site.
    j.On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment made.
                34.  Updated eFiling utilities for all Central Excise and Service Tax Returns have been released and can be downloaded using the Download link on homepage.    
                35.  Now you can make e-payment of your duty liabilities though ACES by selecting e-Payment option on homepage.    
                36.  Learning Management Software in Central Excise for Registration, Returns, Claims and Intimations, Exports, Provisional Assessment, Refunds, Dispute Resolution modules, and in Service Tax for Registration, Returns, Provisional Assessment, Refunds, Dispute Resolution modules has been uploaded on ACES website. You can visit Help option to access the same.    
                37.  Downloadable version of Learning Management Software (LMS) is available in the Download section of ACES Homepage.    
                38.  Power Point Presentation on ACES for Assesses is available in the Help section of ACES Homepage.    
                39.  The Automation of Central Excise and Service Tax [ACES] application has been rolled out in all 104 Central Excise, Service Tax and Large Tax Payers Commissionerates across India.(Click here to see details)

E-Filing of Returns

posted 13 Jun 2014, 04:43 by Unknown user

 I.  CBEC has issued Notification No. 04/2010-Central Excise (N.T.) and Notification No. 01/2010-Service Tax, both dated 19th Feb, 2010, making e-filing of Central Excise Returns (ER-1 and ER-3) and Service Tax Return (ST-3) mandatory for assessees with effect from 1st April, 2010.    
    II.  Notification No 04/2010-CE (N.T.) dated 19.02.2010 makes it mandatory for assessees who have paid total duty of rupees ten lakhs or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year to file the monthly or quarterly return, electronically under sub-rule (1) of Rule 12 of the Central Excise Rules, 2002 and deposit the duty electronically through internet banking under sub-rule (1) of Rule 8 of the Central Excise Rules, 2002.    
    III.  Similarly, Notification No. 01/2010-ST dated 19.02.2010 makes it mandatory for assessees who have paid total Service Tax of rupees ten lakhs or more including the amount of tax paid by utilization of CENVAT credit in the preceding financial year to file the half-yearly return (ST-3), electronically under sub-rule (2) of Rule 7 of the Service Tax Rules, 1994 and deposit the service Tax liable to be paid, electronically, through internet banking under sub-rule (2) of Rule 6 of the Service Tax Rules, 1994.    
    IV.  The facility of e-filing of returns on the website (http://exciseandservicetax.nic.in), as provided in the CBEC Circular No.791/24/2004-CX. Dated 1.6.2004, has been withdrawn and the assessees are required to file their returns online or by uploading the downloadable off-line return utilities to the new ACES website (http://www.aces.gov.in).    
    V.  Further, to make it easy for the Dealers to file returns in ACES, an XML schema has been hosted on the ACES website. By suitably modifying their own software application and using this schema the assessees (Dealers) can also generate an up-loadable form of return directly from their own database without the need to make fresh data entry.    
    VI.  Details for e-filing of returns are available in the Help Section of this website under Learning Management Software (LMS), User Manual and FAQs and in the Download Section.

E-Filing Circular

posted 13 Jun 2014, 04:42 by Unknown user

 I.  E-filing of ER 2, ER 4, ER 5 , ER 6 returns made mandatory for assesses, who have paid Central Excise duty of Rs. 10 lakh or more( including payment by utilistaion of Cenvat credit) in the previous financial year. All Dealers to e-file Returns mandatorily wef 1st June, 2010. For details see Notification No 20-21/2010 CE (NT) dtd. 18.05.2010 and CBEC Circular No. 926/16/2010 CX, dtd. 28th May 2010 (Click here for Circular)    
    II.  CBEC has issued a Circular No. 919/09/2010-CX dated 23rd March 2010 on the procedure for Electronic filing of Central Excise and Service Tax Returns and for Electronic Payment of Excise Duty and Service Tax.

ACES New Features:

posted 13 Jun 2014, 04:39 by Unknown user

 I. A sub-menu "Print Acknowledgement" is available in each module to take a print of response/acknowledgment message at a later point of time.
II. Assessees can file ER7 return now through online, offline utility and xsd schema.
III. "XLS upload" (Template Upload) is available in A1 and ST1 form at the relevant places for capturing multiple addresses/premises offline and then uploading the same online.
CBEC Order No. 02/2011- ST dt 13-12-2011, specifying time limit for submission of documents, for a complete service tax registration application (click here)
Visit 'HELP' section above, for detailed steps for registering with ACES by New Assessees & Existing Assessees (using TPIN mail)
E-filing of Central Excise Returns (ER1,ER-2,ER-3,ER-4,ER-5,ER-6, ER-7 & ER-8) made mandatory for All Assessees wef 01.10.2011 vide Notification No. 21/2011 and No. 22/2011 - Central Excise, both dated 14.09.2011 (click here for Notification No. 21/2011)    (click here for Notification No. 22/2011)
E-filing of Service Tax Returns (ST-3) made mandatory for All Assessees wef 01.10.2011 vide Notification No. 43/2011 - Service Tax, dated 25.08.2011 (click here for Notification)
MOUs with ICAI/ICWAI/ICSI regarding ACES Certified Facilitation Centre extended upto 31-3-2013. For details click on link.
Users can now download GAR 7 Challan form for payment of Central Excise Duty and Service Tax, available in Download Section.
Process for ACES Certified Facilitation Centre made operational. For details click on CFC link.

Dealers who imported goods or purchased goods from other importers

posted 13 Jun 2014, 03:58 by Unknown user

The rate of duty for manufacturers of goods availing notification No.1/2011 has been increased from 1% to 2% vide notification No 16/2012-CE dated 17-3-2012. In view of above change , ER-8 return has been suitably modified to enable entry of multiple rates by the assessees ( To view notification No 16/2012 CE, click here.)
Earlier, dealers who imported goods or purchased goods from other importers had difficulty in filing dealer returns in ACES, as the ACES application did not allow such dealers to mention their own Central Excise registration number, or the IEC Code of the importer in the column prescribed for mentioning the CE Registration number in the block "Documents based on which credit is passed on" in the dealer return . The application has now been modified, so that 1st or 2nd stage dealers who have either imported goods on their own or have purchased goods from other Importers can mention their own IEC code or the IEC Code of the importers in the prescribed column. The ACES application will verify if the IEC code is a valid one available in the database or not and in case of invalid IEC codes, the returns will be rejected. In case of rejection, the dealers can incorporate the correct IEC codes and e-file the return.

Rows 9A and 16A have been inserted in the ER-1 return

posted 13 Jun 2014, 03:37 by Unknown user

Rows 9A and 16A have been inserted in the ER-1 return form introduced as per Notification No. 12/2012-CE(NT). This enables entry of transfer of credit of additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act from one registered premises to another.The row 9A enables entry of credit taken from another unit of the same registrant while row 16A enables entry of credit utilized by transfer to another unit of the same registrant. The entry can be made only in corresponding column no.6 of the table no. 8 Details of credit taken and utilized. Row 9A reads as follows; Row 9A : Credit taken from inter-unit transfer of credit under Rule 10A of CENVAT Credit Rules, 2004" Row 16A reads as follows: Row 16A credit utilized towards inter-unit of credit under Rule 10A of CENVAT Credit Rules,2004. Column 6 reads as follows: Additional duty of Customs under Section 3(5) of the customs Tariff Act, 1975. ( To view notification No 12/2012-CE (NT), click here.)

Modifications in ST 1 and ST 2 and New Accounting Codes:

posted 13 Jun 2014, 03:34 by Unknown user

 I. New Registrants: In terms of Notification No 48/2012 dated 30.11.12 ( Click here to see the Notification), Service Tax Registration Application Form (ST-1) has been modified and is available in ACES for use by the new applicants seeking registration as a Service Tax assessee.Earlier, vide Notification No 19/2012 dated 5.6.12 effective from 01.07.2012,the negative list of services was introduced and accordingly, applicants seeking registration as a Service Tax assessee were required to register under the service category 'All Taxable Services Other than in the Negative List' . In terms of the Circular No165/16/2012 ST dated 20-11-2012 ( Click here to see the Circular), issued by CBEC, the pre-July system of service-wise registration has been restored by CBEC for statistical purposes only. New applicants are now required to indicate the service(s) from out of the 120 categories listed in the aforesaid Circular. Further, Service-wise Accounting Codes have also been allotted for payment of tax, other receipt-interest and penalty. Henceforth, the Service Tax Registration Certificate (ST 2) will display the list of services for which the assessee is registered along with the new Accounting Codes.
II. Existing registrants: Those assessees, who had registered with the department after 01.07.2012 under the 'Other than in the Negative List' (OTNL) category should amend the taxable service details now and opt for relevant description/s from the list of 120 services. After approval by the departmental officer, a new Registration Certificate(ST2) will be issued online displaying the list of services chosen by the assessee along with the new Accounting Codes. The existing registration number will, however, remain unchanged.
III. Pending amendment applications: Applications which have been filed and are pending for changing the description of services to OTNL category will be rejected by the departmental officers in view of the above mentioned circular. However, if the assessee has added or dropped any service, he should file amendment application to add/delete the relevant service.
IV. If you need further clarification, please contact ACES Service Desk by sending e-mail to aces.servicedesk@icegate.gov.in or calling up national toll-free number 1800 425 4251 on any working day from Monday to Friday between 9 AM and 7 PM.


Those assessees of Service Tax who may not have requisite IT infrastructure/resources can seek the assistance from ACES Certified Facilitation Centres (CFCs) set up by eligible Members of ICAI/ICAI/ICSI, holding valid Certificates of Practice.

posted 13 Jun 2014, 03:29 by Unknown user

Authorized persons of CFC's can work in ACES on behalf of the assessees and the services would be available on payment of prescribed service charges for various services such as digitization of paper documents and on-line filing/ uploading of documents such as Application for Registration, Returns, Claims, Permissions and Intimations etc. in ACES. For more details, you may visit CFC Section of the ACES website.

New user-friendly features in the Oct. 2012 - Mar. 2013 ST-3 Return:

posted 13 Jun 2014, 03:27 by Unknown user

A.   Previously, the assessees were able to view the filed returns using the option, 'View Original ST3'. This facility has been enhanced with a new feature by displaying in the return, the list of error codes (with corresponding error messages). This will help the assessees to know about the errors so that they can exercise the option of filing Revised return by rectifying the errors. This facility will be made available shortly and the exact date will be intimated on ACES website.

B.   As soon as the return uploaded by the assessee is accepted or rejected by the system, a system-generated message will be e-mailed to the assessee. The assessee can rectify the errors and file the corrected return.
Assessees who got registration on or after 01.07.2012 with 'All Taxable Services - Other than in the Negative List' or those who have amended their Registration by adding the description 'Other than in the Negative List', are required to file amendment to their Registration online and give the relevant description(s) of Taxable Service(s) available in the drop-down list in the online amendment form.
The status of the XML file of ST-3 return uploaded by the assessee can be ascertained after one business day of uploading the return by accessing 'RET > e-filing > view XML status'.
Revised ST-3 return can be filed within a period of 90 days from the date of filing the original return.
In case of any difficulty in accessing the ACES Application or in filing the ST-3 returns, the assessees can seek help of the ACES Service Desk by sending e-mail to aces.servicedesk@icegate.gov.in or calling up National Toll-free number 1800 425 4251. In general, the Service Desk functions on any working day from Monday to Friday between 9 AM and 7 PM & on Saturdays between 9 AM to 2.30 PM.


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