ST 3 Form - No Slot to mention payment of Education Cess/SHE Cess under Rule 6(3)
In terms of Rule 6(3A) of the CENVAT Credit Rules, if a manufacturer/output service provider not maintaining separate accounts in respect of inputs/input services used for manufacturing/providing exempted goods/services has to provisionally calculate the CENVAT Credit attributable to the inputs/input services based on the complicated formula prescribed and pay the amount every month.
The other day, a well informed tax payer asked DDT where to show the amount of Education Cess and Secondary Education Cess payable under Rule 6(3) in the ST 3 Return. He is a service provider and is providing exempted services also and is paying the credit attributable to the inputs/input services every month.
We tried to find answer and had a close look at the ST 3 form.
Item No 5 AA of the form reads:
5AA. Amount payable under rule 6 (3) of the CENVAT Credit Rules, 2004
The entries in the table under 5AA contain only CENVAT Credit and no column is found in respect of Education Cess and Secondary Education Cess.
Table 5 B of the Form reads:
5B. CENVAT Credit taken and utilized
Item No I reads : (I) CENVAT Credit of Service Tax and Central Excise duty
The table contains a separate entry at "c (vi)" for payment under Rule 6(3) of the CENVAT Credit Rules, 2004. Since this is given under 'Service Tax and Central Excise duty, Cess cannot be shown here.
Item No (II) reads : (II) CENVAT credit of Education Cess and Secondary and Higher Education Cess
The entries given under this head at "c" do not contain the amount of Education Cess and Secondary Education Cess payable under Rule 6(3) of the CC Rules 2004.
Maybe in this case, CESS is not required to be shown separately - only the Board can clarify.