Service Tax - POT holes plugged
AS we reported yesterday, the Government came out with a notification and a Board order to solve the POT problem in filing the half-yearly Service Tax return electronically.
The brilliant boys of the Board took an ingenious way to solve the problem (which in the first place was created by them).
They have amended the Service Tax Rules to add an instruction in the ST3 Form, "For the purposes of this Form, the words "received / paid"used herein shall be construed as "received or receivable / paid or payable', as the case may be, in terms of the Point of Taxation Rules, 2011". Thus, the POT Rules have been imported into the Form.
What about last date of filing the Return? They have extended the last date to 26 December 2011, instead of October 25. But does the Board have the power to do so? The good Board took care of the issue and added a provision in the rule - "the Central Board of Excise and Customs may, by an order extend the period referred to in sub - rule (2) by such period as deemed necessary under circumstances of special nature to be specified in such order". So, now the Board has the power to extend the date and using this power, they have extended the date.
Documents for Registration: While on POT Rules, the Government repaired another POT HOLE. Service Tax Rules have been amended to the effect that, "the Central Board of Excise and Customs may, by an order specify the documents which are to be submitted by the assessee along with the application (for registration) within such period, as may be specified in the said order". So now, the Board can legally ask for all those documents they want before giving a registration certificate.
Notification No. , Dated: October 19, 2011 and CBEC Order No. 1 /2011 - Service Tax, Dated : October 20, 2011