OPINION: Effect of amendments in Negative list provisions under service tax

By CA Rajeev K. Sharma

With effect from July 1 this year, Negative list provisions have been introduced under service tax, there is an ambiguity among the industry, as to how information pertaining to service provided will be furnished in Form ST-3 because all taxable service category has been merged into one single category, namely “Other than in the negative list”.

To solve this issue, Central Government vide Notification No. 47/2012-ST dated September 28 this year has inserted a new proviso to sub-rule (2) of Rule 7 of Service Tax Rules, 1994 to provide that the Form ‘ST-3’ which is required to be submitted by the 25th day of October, 2012 shall cover the period between 1st April to 30th June, 2012 only.

The effect of amendment shall be as follows:

Normally the details for April to September is filed in the service tax return to be filed on or before 25-10-2012. and consequent to this amendment, In the Service Tax return to be filed before 25th October,2012 the details of service receipt and tax for the period 1st April to 30th June, 2012 shall only be required to be filled.

(The author is Executive Member, Ludhiana Branch of NIRC of ICAI)