Single Common EST Return instead of ER1, ER3 and ST3 - Draft Released
CBEC has released a draft EST-Return to replace the present ER1, ER3 and ST3 Returns.
According to the Board, One of the purposes of the Return is to ensure the payment of the duty/ service tax in time. Accordingly, it is proposed to align the payment cycle and the return cycle. Under Central Excise Rules, the returns and payment cycles are aligned already.
On Service Tax side at present, every assessee files the six monthly return (Rule 7 of Service Tax Rules 1994) whereas the payment cycle is as follows as per Rule 6 of the said rules
a. Quarterly for the individual, proprietary firm and partnership firm
b. All others - monthly.
Following amendments are proposed in the Service Tax Rules, 1994 to align the payment and return cycles:
a. Quarterly payment and quarterly return for assesses who had paid Service Tax of Rs 25 lakhs or less including the payments made by utilizing the CENVAT credit, during the preceding financial year.
b. Monthly payment and monthly return for all other assesses who had paid Service Tax of more than Rs 25 lakhs including the payments made by utilizing the CENVAT credit, during the previous financial year
c. Quarterly payment and quarterly return for all the new assesses.
Board wants the Chief Commissioners to circulate the circular and Draft EST Form to the officers and trade formations for their comments, which are to be sent to the Board latest by May 15.
In the new Format, under item 6 - Details of CENVAT Credit taken and utilized, there is only one column for Education Cess, which the asterisk mark *** explains as Education Cess & Secondary education Cess. But in Item 7 Details of Payment made, Education Cess and Secondary education Cess are shown separately. Will this not lead to confusion?
CBEC Draft Circular in F No 201/05/2011-CX.6; dated April 13 2012