Service Tax – change in forms – who is a Service Tax provider?
As per Section 69 of the Finance Act 1994, every person liable to pay Service Tax is required to apply for registration in the prescribed form.
As per Section 70, every person liable to pay tax has to furnish a return at such intervals and such form as prescribed.
For the late entrants, the word ‘prescribed’ has been defined as “prescribed by rules made under this chapter”
So a form ST-1 for the application and a form ST-2 for the registration certificate and a form ST-3 for the return had been prescribed under the Service Tax Rules, 1994
Now all these forms are changed and new forms are prescribed.
NOTIFICATION. No. 31/2005-Service Tax dated the 20th October, 2005
As per Rule 3(1) of The Service Tax (Registration of Special Category of Persons) Rules, 2005, the input service distributor has to apply for registration in the form as notified by the Board.
So far there has been no notification in this regard. In [DDT 181 - 17 08 2005 - Wednesday] we had pointed out “The Board simply forgot to issue this notification and so there is no form in which one should apply for registration. All input service distributors are offenders, because the Board has not so far prescribed the form. You simply cannot apply for registration, because you are required to apply in the form and there is no form. Strange are the ways of the Board! We hope to bring you the form soon – Board and God willing.”
Now the Board has notified the form. Lo and behold! It is the same ST-1!
NOTIFICATION. No. 32/2005-Service Tax dated the 20th October, 2005
As per Rule 9 and 10 of the Cenvat Credit Rules, 2004, the output service provider availing credit and the input service distributor are required to submit a half yearly return in the form prescribed by notification by the Board.
Now the Board has issued a notification to prescribe the return and by a strange coincidence it is the same ST-3 return.
NOTIFICATION. No. 33/2005-Service Tax dated the 20th October, 2005
In [DDT 185 - 23 08 2005 - Tuesday] we had pointed out certain lapses in the draft notifications for these forms. DDT is happy that most of the mistakes that we pointed out are corrected, but one major lapse still stands out like an ugly mole. We had asked,
And what is Service Tax provider? What they obviously mean is service provider. For a typist, to type tax immediately after service is quite normal but if there is any one with a little more authority and responsibility over the typist, this would have been discovered.
In spite of our pointing out this lapse, item No. 5 of the ST -3 return speaks of 5. Credit details for Service Tax provider/recipient.
Sir, what you mean is service provider and recipient and not Service Tax provider and recipient! This only proves that they are not only committed to committing mistakes but also to ensure that they should not correct them!
And you know you have to submit the return by the 25th of October. Hurry up; you have just two working days left!