ST 3 - One shot makes POT Rules work in ST-3 form
WE asked an expert for a quick reaction. Here is what he said,
How the ST 3 Form should look like after the introduction of POT Rules, 2011? Should there be some amendments in those tables to be filled after the POT Rules have come into force? These are some of the many doubts that are bothering the tax payers in view of the fast approaching deadline for filing the Return. Fortunately, the last date has been extended up to 26th December. Coming to the format of Return, a simple amendment to the Instructions to fill the form has done it all. The following instruction has been inserted in ‘General Instructions' vide Notification No. 48/2011 ST Dated 19.10.2011.
"(iv) 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".
So, Table F I in the existing ST 3 form now takes care of "amount received, amount receivable (against bills issued - on accrual basis), advances received and, advances to be received”. So, all possible situations under the POT Rules have been taken care of with this amendment in the instruction.
Since the service tax is payable on accrual basis under the POT Rules, for some assessees, filling up the Table F II (Details of "Amount Charged”) may look redundant, but still some assessee are required to pay service tax only on receipt of payment and maybe for those services, it makes sense to provide the "Amount Charged” and "Amount realised”. For the other services, it does not really make any difference, as the "Amount Charged” would have already been included in Table F I.
But it is advisable to have a detailed back up worksheet for the total taxable amount shown in the ST 3 Return, as the assessees will have a tough time in convincing the departmental auditors that the amounts shown in ST 3 are correct.