Service Tax – Impossible to File Electronic Returns – Will CBEC Act?
FROM 1 st of October 2011, it is mandatory for all assessees to file their returns electronically. The Half-yearly return is due for filing by 25 th of this month, but the Board doesn't seem to have bothered about creating a hassle free system for filing these returns.
Board, just like God, said, “Let there be electronic returns” and believed there would be electronic returns. But somewhere down the line, they forgot that the Point of Taxation Rules, 2011 had come into effect, changing the very basis of tax from receipt to accrual and while most of the assessees have grudgingly switched over to the payment of tax based on invoices (and not receipts), they now find it impossible to file the electronic returns, especially relating to the payments with regard to POT Rules. There is simply no column to show and calculate the amount of tax payable on the invoiced amount. The POT Rules virtually came into existence with effect from 1 st April 2011 and so far, the Board or the administrators of ACES have not thought of amending the Service Tax-3 Return or guiding the assessees on how to show these amounts. The Commissionerates are clueless and each officer is offering his own private views.
We are receiving numerous calls from worried assessees all over the country, seeking help on filing the returns.
We can only request the Board to understand the agony and act quickly. With less than two weeks time to file the returns, unless the Board steps in immediately, there is going to be panic and chaos. Even if the Board comes up with the required amendments in the Form and issues clarifications, in the last moment, nobody will be able to file the returns as the whole system will be jammed.
We request the Chairman, Member (Service Tax) and DG, Systems to intervene and set right the system urgently so that the poor assessees are not harassed for no fault of theirs. There is a strong demand, and justly so to extend the last date for filing this October Return. The Board should consider giving twenty-five days after notifying the new Service Tax-3 Form for filing this half-year return. The Government is not going to lose anything if the returns are not filed by 25 th October as the tax has already been paid.
We hope to report soon that the Board has reacted positively.