Negative list Services - Are they exempted for purpose of ST-3 Return?
AS per Rule 2(e) of the CENVAT Credit Rules, 2004, "exempted service" means a-
(1) taxable service which is exempt from the whole of the service tax leviable thereon; or
(2) service, on which no service tax is leviable under section 66B of the Finance Act; or
(3) taxable service whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken;
but shall not include a service which is exported in terms of rule 6A of the Service Tax Rules, 1994
Services on which no service tax is leviable under Section 66B are nothing but negative list services.
Now, the question a Netizen posed is whether he is required to show the turnover of negative list services also in ST 3 return. Remember if a service provider is providing taxable service and also a negative list service, the provisions of Rule 6 of CENVAT Credit Rules will come into force. When the assessee tried to show the turnover of negative list service also under exempted turnover, the ST utility is prompting for a Notification No. At present, the utility lists the following Notifications in dropdown menu ( for the period July to September 2012)
No 45/2010 ST, No 25/2012 ST, No 27/2012 ST, No 30/2012 ST, No 32/2012 ST, No 33/2012 ST, No 40/2012 ST.
There is no facility to choose "Negative list service" as one of the options. Does this mean, negative list service is exempted service for CENVAT Credit Rules, 2004, but not for filing ST3? How an assessee who wants to follow the provisions of Rule 6 of CENVAT Credit Rules can show the turnover of negative list service?
Will the Board clarify?