The process of filing of service tax return is simple. Once you are aware of the process, you can file the service tax return by yourself. I have explained the process of “How to file service tax return online” in very detailed manner.
Service tax return is filed for every half year. The first half year return will be filed on or before 25th Oct and the second half year return will be filed on or before 25th April.
To understand the process you need to have idea of service tax calculations. Service tax is paid on the output services which you provide and you can claim credit of service tax which you paid on input services.
The following table will clear the service tax calculations.
|Output Service tax calculated on value of taxable services. Like a doctor charge service tax on services he provides. He collects extra money as service tax from his clients which he needs to pay to the government.
|Less: Input service tax which you paid on input services. Like a doctor paid service tax on internet services used to provide output services mentioned above.
|Balance Amount need to be paid to the Government by challan. If balance is negative then it can be carried forward and used against output services of next month.||XXXXX|
The above calculations you do for every quarter, if you are an individual (proprietor) and others need to do it every month. This is because the individuals pay service tax on quarterly basis, whereas the others pay it on monthly basis.
So if you are an individual you need to show the quarterly calculations mentioned above in the service tax return and other than individual show it on monthly basis. Individual show it for two quarters and others shows it for six months since the return is for half year.
Once you understand the above calculations the process of filing service tax return will become easy for you.
Steps on how to file service tax return
- Service tax return is filed online in excel form. You need to download the Excel Form from http://acesdownload.nic.in/ . Here you can go to service tax table, and download the service tax return form mentioned under excel utilities depending on the period for which you need to file.
- Unzip the file, open the excel and enable macros, if it ask for. The first sheet is for instructions, you can read them to understands the excel.
- Second sheet name is “return” here you need to give the basic details of yourself. Like service tax registration number, period of filing etc. In the “constitutions of Assessee” column you need to select whether you are an individual or others. According to your selection the sheets of excel changes. For individuals quarter details added or for others monthly details added. Then you need to select the services you are providing, you can check the codes of the same from the service tax registration certificate given to you.
- Then in the next sheet “payable services” you need to mention the value of output services and in the advalorem rate colum mention the current service tax rates. The service tax payable will be automatically get calculated. If you have mentioned more than one services in “Return” sheet then there will be more than one “Payable services” sheets. Fill all of them accordingly.
- Next sheet is “advance payment” sheet. Mention here if you have paid any advance service tax by challan.
- In the next sheet “Paid service” mention the how you have paid the service tax calculated in “Payable Services” sheet. Here you need to mention the how much you paid it by cash and how much you paid it set off with input credit. Remember the Swatch Bharat Cess can only be paid in cash only, input credit is not available for it.
- Next sheet is “Challan Service”. Here you mention the details of all Challan, which should match the cash paid in “Paid service” sheet.
- In the next sheet “ CENVAT” you mention the input credit details which you utilized again output service tax. If there is any balance same will be closing balance of input credit, which you need to mention the next service tax return as opening balance.
- Next sheet is “Distributor”. If you are a service tax input distributor then fill distribution details, otherwise you need to fill only “Part-K” self assessment memorandum. Here you need to tick all boxes and fill you Name, date & place.
- Finally you need to press “ validate return & Generate XML” button. If there is any error it will show otherwise the XML file will get saved in your computer.
- Then login to aces website and go to return tab, then e-file and upload the XML file there. It takes one business days to get the return finally accepted by the system. You can also check the return status therein.
Hope you will now comfortable in filing service tax return online. Please comment for any query on how to file service tax return.