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Guide for e-Filing of Income Tax Return (ITR) OnlineAs per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax returns (ITR).The process of electronically filing income tax returns is known as e-filing. You can either seek professional help or file your returns yourself from the comfort of your home by registering on the income tax department website or other websites. The due date for filing tax returns (physical or online), is July 31st.Who should e-file income tax returns?Online filing of tax returns is easy and can be done by most assessees.Assessee with a total income of Rs.2.5 Lakhs and above.Individual/HUF resident with assets located outside India.An assessee required to furnish a report of audit specified under sections 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.Assessee required to give a notice under Section 11(2) (a) to the assessing officer.A firm (which does not come under the provisions of section 44AB), AOP, BOI, Artificial Juridical Person, Cooperative Society and Local Authority (ITR 5).An assessee required to furnish returns U/S 139 (4B) (ITR 7).A resident who has signing authority in any account located outside India.A person who claims relief under sections 90 or 90A or deductions under section 91.All companies.Types of e-Filing:Use Digital Signature Certificate (DSC) to e-file. It is mandatory to file IT forms using Digital Signature Certificate (DSC) by a chartered accountant.If you e-file without DSC, ITR V form is generated, which should then be printed, signed and submitted to CPC, Bangalore by ordinary post or speed post within 120 days from the date of e-filing.You can file e-file IT returns through an E-return Intermediary (ERI) with or without DSC.Checklist for e-Filing IT ReturnsThere are a few prerequisites to filing your tax returns smoothly and effectively. Major points have been highlighted below.How to choose the right form to file your taxes electronicallyIt can be confusing deciding which form to submit when filing your tax returns online. The different categories of Income Tax Return (ITR) forms and who they are meant for are tabulated below.ITR 1 (SAHAJ)Individuals with income from salary and interestITR 2Individuals and Hindu Undivided Families (HUF) not having income from business or professionITR 3Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorshipITR 4Individuals and HUFs having income from a proprietary business or professionITR 4S (SUGAM)Individuals/HUF having income from presumptive businessITR 5Firms, AOPs,BOIs and LLPITR 6Companies other than companies claiming exemption under section 11ITR 7Persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)Check your tax credit - Form 26AS vs. Form 16You should check Form 26AS before filing your returns. It shows the amount of tax deducted from your salary and deposited with the IT department by your employer. You should ensure that the tax deducted from your income as per your Form 16 matches with the figures in Form 26AS. If you file your returns without clarity on errors, you will get a notice from the IT department.Claim 80G, savings certificates and other deductionsYou can claim extra deductions if you forgot to claim them. Similarly, you can also claim deductions under section 80G on donations made to charitable institutions.Interest statement - Interest on savings accounts and fixed depositsA deduction for up to Rs.10,000 is allowed on interest earned on savings accounts. However, interest earned on bank deposits, if any, forms a part of your taxable income and is taxable at applicable slab rates.In addition to the above, have the following at hand.Last year's tax returnsBank statementsTDS (Tax Deducted at Source) certificatesProfit and Loss (P&L) Account Statement, Balance Sheet and Audit Reports, if applicableEnsure your system is equipped with the below.Java Runtime Environment Version 7 Update 6 or aboveList of Required Documents for e-filing of tax returnsIt is always good to stay a step ahead, especially when it comes to tax filing. The checklist provided below will help you to get started with the e-filing of tax returns.General details:Bank account detailsPAN NumberReporting salary income:Rent receipts for claiming HRAForm 16Pay slipsReporting House Property income:Address of the house propertyDetails of the co-owners including their share in the mentioned property and PAN detailsCertificate for home loan interestDate when the construction was completed, in case under construction property was purchasedName of the tenant and the rental income, in case the property is rentedReporting capital gains:Stock trading statement is required along with purchase details if there are capital gains from selling the sharesIn case a house or property is sold, you must sought sale price, purchase price, details of registration and capital gain detailsDetails of mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPsReporting other income:The income from interest is reported. In case of interest accumulated in savings account, bank account statements are requiredInterest income from tax saving bonds and corporate bonds must be reportedThe income details earned from post office deposit must be reportedIncome Tax Slab RatesIncome Tax Slab rates For Financial Year 2017 – 2018 And Assessment Year 2018-2019(As Declared in the New Budget) :For Individuals and HUF (Age – Less than 60 years):Income Tax SlabTax rateUp to Rs.2,50,000NILAbove Rs.2,50,000 and up to Rs.5,00,0005%Above Rs.5,00,000 and up to Rs.10,00,00020%Above Rs.10,00,00030%*10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.*15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.For Individuals and HUF (Age – 60 years and more, but less than 80 years):Income Tax SlabTax rateUp to Rs.3,00,000NILAbove Rs.3,00,000 and up to Rs.5,00,0005%Above Rs.5,00,000 and up to Rs.10,00,00020%Above Rs.10,00,00030%*10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.*15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.For Super Senior Citizens (age - 80 years and more):Income Tax SlabTax rateUp to Rs.5,00,000NILAbove Rs.5,00,000 and up to Rs.10,00,00020%Above Rs.10,00,00030%*10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.*15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.Income Tax Slab Rates for Year 2016 – 2017 :For Individuals and HUF (Age – Less than 60 years):Income Tax SlabTax RateUp to Rs.2,50,000NILAbove Rs.2,50,000 and up to Rs.5,00,00010%Above Rs.5,00,000 and up to Rs.10,00,00020%Above Rs.10,00,00030%*12% surcharge is imposed in case the total income is above Rs.1 crore.For Senior Citizens (Age – 60 years and more, but less than 80 years):Income Tax SlabTax RateUp to Rs.3,00,000NILAbove Rs.3,00,000 and up to Rs.5,00,00010%Above Rs.5,00,000 and up to Rs.10,00,00020%Above Rs.10,00,00030%*12% surcharge is imposed in case the total income is above Rs.1 crore.For Super Senior Citizens (Age - 80 years and more):Income Tax SlabTax RateUp to Rs.5,00,000NILAbove Rs.5,00,000 and up to Rs.10,00,00020%Above Rs.10,00,00030%*12% surcharge is imposed in case the total income is above Rs.1 crore.Income Tax Return Due Date:Generally, the due date for filing Income Tax Return (ITR) for Hindu Undivided Family (HUF)/ Individuals/ AOP (Association of Persons)/ BOI (Body of Individuals) is 31st July of the next Financial Year. For example – The ITR due date for Financial Year 2016-17 would be 31st July, 2017.How do I file e-Returns?Fill income tax returns offline and upload XML on the official website: IncomeTaxIndiaeFiling.gov.inPrepare and submit ITR 1 online.Is your Credit Score good enough for Loan/Credit Card approval? Check in less than 3 min!Check for FREESteps to follow to file Income Tax Returns:Filing your income tax returns online doesn't have to be a complicated process. Simply follow the below steps.First, log on to IncomeTaxIndiaeFiling.gov.in And register on the website.Your Permanent Account Number (PAN) is your user ID.View your tax credit statement or Form 26AS. The TDS as per your Form 16 must tally with the figures in Form 26AS.Click on the income tax return forms and choose the financial year.Download the ITR form applicable to you. If you're exempt income exceeds Rs.5,000, the appropriate form will be ITR-2 (If the applicable form is ITR-1 or ITR 4S, you can complete the process on the portal itself, by using the 'Quick e-file ITR' link - this has been explained below).Open excel utility (the downloaded return preparation software) and fill out the form by entering all details using your Form 16.Check the tax payable amount by clicking the 'calculate tax' tab.Pay tax (if applicable) and fill in the challan details.Confirm all the data provided in the worksheet by clicking the 'validate' tab.Generate an XML file and save it on your desktop.Go to 'upload return' on the portal's panel and upload the saved XML file.A pop-up will be displayed asking you to digitally sign the file. In case you have obtained a digital signature, select'˜Yes'. If you have not got digital signature, choose 'No'.The acknowledgment form, ITR Verification (ITR-V) will be generated which can be downloaded by you.Take a printout of the form ITR-V and sign it in blue inkSend the form by ordinary or speed post to the Income-Tax Department-CPC , Post Bag No. 1 , Electronic City Post Office, Bangalore, 560 100, Karnataka within 120 days of filing your returns online.Steps to file ITR 1 & ITR 4S Online:Prepare and Submit ITR1 / ITR 4S (Sugam) OnlineYou have the option to submit ITR 1/ITR 4S forms by uploading XML or by online submissionLogin to e- Filing applicationGo to 'e File' 'Prepare and Submit ITR Online'Select the Income Tax Return Form ITR 1/ITR 4S and the assessment year.Fill in the details and then click the submit button and choose DSC (Digital Signature Certificate)’ (if available) Click on ‘Submit’.After submission, acknowledgement detail is displayed.Click on the link to view or generate a printout of acknowledgement/ITR V form.To use DSC, you have to register it in the e-filing application. You can do so by logging in on the e-filing website of the IT Department and updating the Profile Settings section. Under Profile Settings, you have to select Register Digital Signature Certificate and download the ITD e-Filing DSC Management Utility. You can use this utility to generate the DSC file.Private portals:You could also make use of several websites to file your income tax returns online. The portals typically charge fees (Rs. 250 to 300) depending on the kinds of service they offer.Things to watch out for while e-filing:If the same mobile number or email address is used for more than four taxpayers, you cannot file returns on the website, unless the required change is done. For instance, in some cases, more than five returns may be filed— yours, wife, mother, mother-in-law and the Hindu undivided family (HUF) of which you are the karta, the executor of a will.If your name mentioned in your bank documents or official statements is even slightly different from the one given in the PAN card, the portal will consider you a different individual. In certain instances, some individuals give their father's name as their 'middle' name in their PAN card, but do not use it for their bank accounts.If a non-resident Indian has to file income tax returns, he will need both an India number and a foreign number.Frequently Asked Questions: e-filing Income Tax ReturnsI file ITR online without an account on the Income Tax e-filing portal?No, You have to create an account on the portal to file your ITR online. It is an easy process'“ you have to register yourself by providing details such as user type (individual, HUF, companies, chartered accountants, agencies or tax deductors), your PAN, first and middle names and surname, date of birth, and fill in the registration form. If you already have an account but have forgotten password, you can generate it through the'˜Forgot Password' option.How many days do I have to verify the Income Tax Return I filed online?You have to either send the ITR-V to CPC, Bangalore, or verify it online through electronic verification code or Aadhaar-linked one-time password, within 120 days of e-filing the return.Can I e-verify my ITR instead of sending a hardcopy to CPC, Bengaluru?Yes. The Income Tax Department now allows you to e-verify ITR through an electronic verification code (EVC) or through a one-time password by linking your PAN and Aadhaar.Can I e-file my return before all my tax payments are done?You can only file your Income Tax Return'“ online or through an agency'“ after all your tax payments for the year are done. The deadline for filing ITR is July 31 of the year after the end of a given assessment year'“ that is, you get 4 months to file ITR. This helps you put your accounts in order and make sure all tax-related payments are sorted.Is it mandatory for me to do the e-filing or can I depute it to someone?You can seek the help of chartered accountants and agencies dedicated to ITR filing. It is wiser not to allow anyone to have your PAN and password in order to prevent any kind of fraud.How to check the status of Income Tax Refund?You can check the status of Income Tax Refund online on the website of the Income Tax Department of India. You can track the refund status after 10 days (from the date the refund was sent to you). To check the status, you have to enter your Permanent Account Number (PAN) and choose the correct Assessment Year.What is HRA ?HRA stands for House Rent Allowance. It refers to the amount of rent you pay for your place of residence. While filing Income Tax, you can claim HRA. You can enjoy tax exemption on HRA up to a certain limit. If you are unable to submit rent receipts to claim HRA exemption, then you can claim it while filing your ITR. If you have paid more than Rs.1,00,000 on rent in a financial year, then you will have to provide the PAN of your house owner/landlord. HRA exemption will be the minimum of the following:Actual HRA received.Actual Rent Paid.Rent Paid – 10% of Basic Salary.50% (metro)/ 40% (non-metro) of Basic http://Salary.To claim HRA exemption in ITR1 (If your employer has not calculated HRA), you have to deduct the HRA exemption amount from your Gross Salary and enter the result in the section ‘Income from Salary/Pension’.What is ITR–V ?If you e-File ITR without using DSC or you e-File through e-Return Intermediary, then ITR-V form will be generated for you. You have to print this form, sign it and submit it to CPC, Bangalore using Speed Post or Ordinary Post only within 120 days, starting from the e-Filing date.Credit Score of 750 = Easy approval on Loans/Credit Card! Check now in less than 3 min!Check for FREENews About E-Filing Tax ReturnITR – 2 Should be Used to Show Income from Salary and Income from Capital GainsAssessees who earn income from capital gains and income from salary will have to file their income tax returns in the form ITR-2 so far as annual year 2017-18 is concerned. Individuals are expected to prepare their income returns offline through the use of ITR-2 utility (JavaExcel) which can be found on the income tax department’s eFiling portal. They will then have to general an xml file before uploading the same on the portal. Only ITR 1 and 4 cancan9 be prepared as well as submitted online. The communication was made through a notice dated July 24, 2017, and is part of the e-governance initiative which aims to facilitate conduct of assessment proceedings in an electronic manner.5th September 2017Last date for tax payment, filing GST returns extended to 25 AugAugust 20 was communicated to be the last date for filing GST returns and paying taxes. However, several firms had reported technical issues at the GST return filing website on Saturday, a day before the deadline. In view of this, the government has extended the deadline for filing tax returns to August 25.The Finance Ministry also reported that it had received requests from States that were recovering from floods for the extension of the deadline. Jammu and Kashmir had also sought more time, as the GST-enabling laws in the state were passed after the actual rollout of the tax regime.The Finance Ministry has requested taxpayers to file their returns well before the deadline, so as to avoid facing any last minute glitches.24th August 2017GST Council receives requests for slash in tax rates post GST implementationThe GST Council is currently flooded with requests for bringing down the tax rates on a variety of products. The Council has stated that such requests have been received for as many as 133 different commodities from several http://stakeholders.At the time of the GST implementation on 1 July 2017, the GST Council had segregated 1,200 products into four slabs, incurring tax at the rates of 5%, 12%, 18%, and 28%. However, there has been a lot of dissatisfaction over this demarcation and changes have been sought by many.Some of the requests received by the Council are:Slashing GST on IT products to 12% from the current 18%.Reducing GST on IT hardware from 28% to 18%.GST on helmets to be reduced to 5% from 18%.Tax on textiles to be reduced from 5% to nil.GST on tractors to be slashed to 5% from the current 12%.Tax on granite slabs to be reduced to 18% from 28%.A reduction in tax is sought on packaged drinking water to nil from the current 18%.On motorcycles with engine capacity between 350 cc and 500 cc, the additional 3% cess over and above the 28% tax rate is requested to be removed.The GST on sanitary napkins has been sought to be nullified from the present 12%.The GST Council refers some of these change requests to the fitment committee. Once the fitment committee confirms that there is merit in these demands, the approval will be provided for the changes.23rd August 2017Deadline for Filing Returns Extended by the GovernmentSection 139AA has been introduced by the government this year. Under this section, it is compulsory for individuals to quote their Aadhaar number at the time of filing their returns after the 1st of July, 2017. One of the most common issues faced by the people is linking. For instance, some people have only mentioned their initials in their PAN, but their initials have been expanded in their Aadhaar card. As a result, there will be problems when linking their PAN to their Aadhaar. Other problems faced by the people include applying for Aadhaar. A large number of individuals across the country still do not possess an Aadhaar card. As a result, Aadhaar centres across the country are witnessing people rush to them for instant solutions. Due to such issues, the government has decided to give people some more time to link their PAN and Aadhaar.3rd August 2017IT Return Deadline Extended Till the 5th of AugustThe Government has extended the deadline for the filing of IT returns for FY 2016-17. August 5 has been set as the new deadline. The Twitter handle of the IT department made the official announcement, and cited the reason for the same as the difficulty faced by taxpayers. The tweet read, “In view of the difficulties faced by taxpayers, date for filing of Income Tax Returns for FY 2016-17 has been extended to 5th August, 2017.”"The last date for filing of ITRs remains July 31. There are no plans to extend this deadline. The department has already received over 2 crore returns filed electronically. The department requests taxpayers to file their return in time," an official had said last month. However, considering the difficulties faced by taxpayers in filing their IT returns, the government decided to extend the deadline.1st August 2017E-Filing of Income Tax Verification with Aadhaar OTP, EVC and Net BankingFollowing the completion of e-filing of the tax returns by every taxpayer, the next crucial step will be to electronically verify their returns as well. This is the final step in the process, and also the most important step. Tax returns will not processed by the Income Tax Department if they have not been verified. Returns that were filed electronically will also have to be verified electronically, and there are three ways to get the job done. Individuals can either choose to do so using their Aadhaar number, the electronic verification code, or their net banking account.1st August 2017E-filing the ITR is easier than you thoughtThe Income Tax (IT) Department has made it easy for the taxpayers to carry out e-filing of Income Tax Return (ITR) through their website. If you are a taxpayer looking for e-filing ITR, this is a great alternative compared to the method of sharing your details with a third party such as Chartered Accountants. Now you can visit the IT Department’s website to complete your e-filing with few simple steps. The website provides complete step-by-step guidance in filling in the forms and submitting it. The IT Department has kept the entire process simple for the common man to understand. The ITR forms are currently available on the IT Department’s website./p>18th April 2017Income Tax Department launches e-filing for two ITRsThe Income Tax Department recently launched services to support the e-filing of two types of ITR. ITR-1 (Sahaj) and ITR-4 (Sugam) are enabled for e-filing on the website - https://incometaxindiaefiling.gov.in. The IT Department has also notified that the other five ITRs will be soon enabled for e-filing. Individuals who are required to complete their e-filing can visit the IT Department’s website to access the services. The e-filing service will be available until the 31st of July. This initiative will help the IT Department in processing more ITRs efficiently.7th April 2017IT department offers e-filing facility through their websiteThe Income Tax (IT) Department has taken a series of steps to boost e-filing for various types of income group. The IT Department is working towards various solutions that will help the taxpayers in making easy tax payments. This initiative will aid the IT Department in reducing tax evasion and also the non-filing of tax. The individuals can take advantage of the e-filing service from the IT Department’s website. Currently, the IT Department accepts e-filing for certain income group, they are also working towards adding more segments soon.5th April 2017Aadhaar will be made mandatory for filing IT return and application of PAN cardThe government has proposed to make Aadhaar mandatory for filing Income Tax (IT) return and for the application of PAN card. This initiative will help the government in issuing PAN card on real-time basis based on the Aadhaar's e-KYC facility. Currently, the initiative is at the initial stage of consideration that has been proposed through an amendment of the Finance Bill. Soon, the individual who wish to file their income tax return or apply for a PAN card will require the furnishing of Aadhaar details.27th March, 2017

Service Tax Rules:As per the Finance Act, 1994, the government of India creates a set of rules in order to assess and collect service tax in India. Listed below are the rules applicable to service tax in India:Rule 1: Short Title and Commencement:The rules created to assess service tax may called as Service Tax Rules, 1994.They came into effect from 1st July, 1994.Rule 2: Definitions:This category of rules includes the definitions of various terms such as “Act”, “assessment” “personal liable for paying service tax” etc. Act refers to the Finance Act, 2014, “assessment” refers to the self-assessment of service tax by the assessee, provisional assessment and reassessment, and "personal liable for paying service tax" refers to the recipient of service.It also includes definition of "quarter" "security services" "renting of immovable property" etc. Quarter refers to the period between 1st January to 31st March or 1st April to 30th June; or 1st July to 30th September; or 1st October to 31st December of a single financial year. “Renting of immovable property” refers to services provided by renting of immovable property and “security services” refers to services relating to the security and property.Rule: 3 Appointment of Officers:As per this rule, the Central Board of Excise and Customs can appoint central excise officers.Rule 4: Registration:Every service provider who is liable to pay service tax shall apply for registration by using the application Form ST - 1 within 30 days from the date on which service tax is charged. This is very essential.Rule 4 (A): Information about Taxable Services To Be Provided on Bill, Invoice Or ChallanEvery service provider offering taxable services will issue an invoice or a bill or a challan signed by him or by another person authorized by him which will contain the basic information such as name, address and registration number of the service provider; name and address of the service recipient; description and cost of taxable service provided and the amount of service tax to be paid.Rule 4 (B): Consignment Note:Any service provider that provides services related to transportation of goods should issue a consignment note.Rule 5: Records:Any records containing computerized data maintained and produced by an assessee according to different existing laws shall be accepted by Central Board of Excise and Custom.Rule 5 (A): Access to Registered Premises:As per this rule, any officer authorized by the commissioner shall have access to any premises in order to complete scrutiny and verification required to protect revenues.Rule (6): Payment of Service Tax:As per this rule, the service tax will be paid to the credit of the central government by the 6th of every month, if paid electronically and 5th of every month, if paid via other means.Rule 6 (A) Export of Services:It includes the situations under which any services shall considered as export of services. If the provider of service is located in the taxable territory and the recipient is located outside India, the service shall be considered as export of service.Rule 7: Returns:Every service provider shall submit a half yearly return in Form ST-3 or ST-3A together with a copy of the Form TR-6 filled in triplicate by 25th of the month following the half year.Rule 7 (A) Returns for taxable services provided by transport operators:Services/goods provided by transport operators shall also furnish a return within a period of six months from the 13th May of 2003, failing which will lead to penalty.Rule 7 (B) Revision of Return:As per this rule, an assessee can submit a revised return in Form ST-3 to modify or correct any mistakes within 90 days from the date of submission of return.Rule 7 (C): Amount to be paid for delay in furnishing returns:An amount of Rs.500 needs to be paid to the credit of the central government, if you fail to furnish your return within 15 days from the prescribed date of submission. If it gets delayed by more than 15 days, you need to pay Rs. 1000. If it extends beyond 30 days, you need to pay Rs. 1000 plus Rs.100 per month till the date you finally furnish your returns.Rule 8: Appeal to Commissioner of Central Excise:You can appeal to Commissioner of Central Excise in Form ST - 4 under section 85 of the Finance Act, 1994.Rule 9: Form of Appeals to Appellate Tribunal:You can appeal to the Appellate Tribunal under section 86 of the Finance Act, 1994 by using Form ST-5.Rule 10: Facilities and Procedure for Large Taxpayers:This section of rules include the provisions enjoyed by the large taxpayers. A large taxpayer shall submit returns for each of their registered premises. They may also be required to produce all financial records for verification and security when required.Service Tax Rates In India:There is an increase in the rate of service tax in India following the recent announcement made by the finance minister Arun Jaitley in budget 2015. The budget decides to increase the rate of service tax to 14% from its previous rate of 12, 36%. However, this revised rate of service tax will include Education Cess’ and ‘Secondary and Higher Education Cess’ in it. It is expected that this rise in service tax rate will increase the cost of restaurant bills and mobile bills for common people. The government of India took this move to levy tax smoothly on the services provided by both states and the centre. Beside, another provision is included in the Finance Bill, 2014 to levy a “Swachh Bharat Cess” at 2% on all or select taxable services in India.How to Pay Service Tax In India?You can pay service tax by using a G.A.R -7. This is a challan available in specified branches of particular banks. You need to fill the challan by putting all required information and submit it at your particular bank. However, you can also pay your service tax online by using the e-payment facility offered by the central Board of Excise and Custom. For E-payment, it is mandatory to have an internet banking account with any of the authorized banks.Previously service tax was charged on cash basis from all service providers. But, now only individual providers have pay tax on cash basis. Companies have to pay it on accrual basis. They need to deposit tax as soon as they offer services to recipients. Service tax can be paid on quarterly basis by individuals and partnership firms. But, companies, society and trusts need to pay service tax on monthly basis.How to File Service Tax Returns?Usually, a service tax assessee needs to file two type of returns - ST-3 Return and ST-3A Return. ST-3 Return is applicable for registered assessee. ST-3A Return is applicable for those who make provisional assessment under rule 6(4) of the Service Tax Rules, 1994. You need to file ST-3 Return twice in a financial year on half yearly basis. You can file your service tax returns by furnishing the details of each month for which the return is filed. You need to furnish these details separately with Form ST-3. While filing your service tax returns, you can take the help of instructions stated in the application form. Your application form needs to be accompanied by a GAR-7 challan.If you want to file your service tax returns online, first you need to register with ACES (Automation Central Excise and Service Tax) by visiting website of Central Board of Excise and Custom. Once, you register, the site will send you an user ID and password by using which you can log in to the site of central Board of Excise and Custom and get access to FORM ST-1. Then, fill up the online form by putting all required information and make an e-payment by using your chosen bank. You can also revise your service tax returns in order to correct an error or omit something. If you fail to file your returns within 15 days, from the prescribed due date of returns, you need to pay a penalty fee of Rs. 500. But, the penalty fee increases, if service tax returns get delayed beyond that.Checkout Late fee and Due Date for Filing Service Tax ReturnService Tax Penalties:As per the provisions made under Sections 76, 77 and 78 of Finance Act, 1994, the central government may charge penalty, if you fail to meet the following conditions:If you fail to furnish the ST-3 Return within the due dates which are 25th October and 25th April of every year. In that case, you will be liable to pay penalty fee which may extend up to Rs. 2000 based on the period of delay.If a person fails to furnish information or appear before the Central Excise Officer when called for, he/she shall have to pay penalty up to Rs. 5000 or Rs. 200 per day after the due date, whichever is higher.If you are a service provider and fail to register your service, it will draw penalty as per the regulations mentioned in section 77 of the Finance Act, 1994 and the penalty fee may go up to Rs. 5,000. Because, registration serves as an identity of an assessee and it is mandatory to register your services.If an assessee fails to keep or maintain records of account and other documents required by service tax law, he/she shall be liable to pay penalty fee which may go up to Rs. 5,000.If a person fails to pay tax electronically, he/she shall to pay penalty which may extend up to Rs. 5,000.Penalty fee is also charged on non-payment or delayed payment of service tax.Penalty shall be charged up to Rs. 5000, if a person issues an incorrect invoice or fails to support his invoice with valid details.Penalty shall be charge if a person suppresses the value of taxable services or provides willful miss-statement about the service provided.Not only there are provisions for imposing penalty if you fail to meet the above mentioned criteria, there are also provisions for not imposing penalty in the service tax rules. As per section 80 of the Finance Act, 1994, if a person can provide sufficient cause to support his failure to pay service tax, he/she can be exempted from paying penalty fees. However, insufficient funds or lack time are not considered as adequate causes to waive penalty.What are the Exemptions Under Service Tax In India?Normally, service tax is paid on all services except for those included in the negative list of services. All service providers including central and state government service providers as well as private sector service providers are liable to pay service tax. However, there are a few exceptional scenarios wherein service providers can avoid paying service tax. Listed below the major exemptions:A small scale or individual service provider can enjoy service tax exemption, if its total turnover of taxable services does not go beyond Rs. 10 lakhs in a single a financial year.The recipients are exempted from paying service tax for the goods and services received from the service provider, if there is written proof indicating the value of the goods and materials and no credit of duty is paid on such goods and materials, and if the services have been rendered under the CENVAT Credit rules.Service tax is not applicable to the services provided to diplomatic missions and to the officers a diplomatic mission and their family members.Services such as port services, goods transport services and containerised transport services received by an exporter and used for export of goods are not taxable. In such cases, service tax paid by an exporter on the above mentioned situations is refunded to the exporter.Services provided to international organizations and the United Nations are not taxable.Service tax is not applicable to the services provided to a developer of Special Economic Zone or a unit of Special Economic Zone.Billing of Service Tax:Issue of Bill or Invoice by the service tax assessee has been made mandatory according to Rule 4A of STR, 1994. The bill or invoice must be issued within a period of 14 days from the taxable service completion date or payment receipt for the service, whichever takes place earlier.The bill or invoice must have the following things on it:Serial numberAddress and name of the service receiverRegistration number, address and name of the service provider must be there on the billTaxable service value, classification and description of the service being renderedService tax amount that is payable must be there on the invoicePayment of Service Tax:The payment of service tax can be done via G.A.R.7. This was previously called TR6 Challan. All the branches of designated banks will accept the service tax payments. The nearest service tax office or central excise office will provide you with a list of the designated banks and its branches where you can make the payment of tax. You can also pay service tax by using the e-payment facility.Due date for payment of Service Tax:Partnership firm, Proprietary, Individual – The payment of service tax must be made by the fifth day and the sixth day of the month following every quarter, in case the payment is done via e-payment facility.All other categories including trust, society and company - The payment of service tax must be made by the fifth day and the sixth day of the month, in case the payment is done via e-payment facility.FAQs:Who is liable to pay service tax in India?Any firm, company or individual who provides services which are not included in the list negative things is liable to pay service tax.What kind of tax is service tax?Service is a kind of indirect tax which the recipient of various services pay indirectly to the government via service providers.Can I pay my service tax online?Yes, you can pay your service tax online by visiting the website of Central Board of Excise and Custom. For that, you need to have an internet banking account.Do I need to pay penalty fees, if I don’t pay my service tax on time?Yes, penalty will imposed on you, if your fail to pay tax on time.What is G.A.R -7?This is a challan by using which you can pay service tax manually. The challan is available in particular authorized banks.Explore Service Tax Related Articles:News About Service TaxService Tax Growth Deaccelerates with DemonetizationService tax collections showed an even greater fall with a registered growth of 13% in November compared to 60% the previous month. The excise duty number captures data of manufacturers with an annual turnover of more than Rs 1.5 crores, while service tax accounts for small businesses with a revenue threshold of Rs10 lakh annually.A statement issued by the Finance Ministry said that there was a 13.9% decline from October in the total indirect tax collection for the month of November.The data shows that the demonetization drive has hit India’s economic growth with many financial institutions and economists lowering India’s GDP growth prediction for 2016-2017.Unavailability of notes have also hit Value-Added tax (VAT) collections of the States as overall consumption has declined. The West Bengal Finance Minister, Amit Misra has recently said that small-scale manufacturers, tourism and the hotel industry have seen a steep decline in their revenues due to cash crunch, destabilizing West Bengal state finances.10th December 2016No Service Tax on Online Railway Bookings until December 31The price of train tickets in India will decrease for some time as the government has said that no service tax will be charged on online railway bookings until December 31, 2016. This step has been taken to encourage people to indulge in cashless transactions. At present, Rs.20 is charged on Sleeper class tickets and Rs.40 is charged on AC class tickets as service tax.22nd November 2016GST Council Hits Rough Patch on Service Tax IssuesService tax has run into rough waters again after a consensus that was reached between the centre and the states about administering 1.1 Million service tax assesses broke down during the first GST council meeting on Friday. The problems arose due to different interpretations of service tax and the division of authority between centre and the states. While in an earlier meeting, dual control between centre and the states for service tax assessment method was agreed upon, a few states have, since then, raised concerns on the methods.The prime contention was that the centre continues imposing tax for services till the time states have been trained but the states say that they have been imposing tax on services such as entertainment and restaurants and would want to continue doing so.1st October 2016Service Tax Collection in Mumbai Goes Up By 23% in First QuarterThe Mumbai zone department has reported a 23% rise in the service tax collection in the first quarter, crossing the target of this period by 4%.According to the Service Tax Department, service tax collection went up by 22.9% to Rs.17,583 crore in the quarter ending June. Last year’s collection reached Rs.14,307 crore during the same period. The zone’s collection target was Rs.16,969 crore, which was surpassed by 3.6%.The revenue collection target for the Mumbai zone for this financial year is Rs.76,300 crore. The previous year saw a revenue collection of Rs.68,714 crore by the zone.5th August 2016Finance Minister Jaitley Bats for the GST BillTouted to be the biggest tax reform since the Indian independence, the GST (Goods and Services Tax) Bill is being given that much needed push in the parliament for an early passage. The Finance Minister is leaving no stones unturned in ensuring it gets the nod from both houses during the monsoon session.He has asked the Rajya Sabha to pass the GST Bill so that states can get their share of service tax. Stressing on this fact, he is of the opinion that the sooner it it enacted, states stand a quicker chance to get their share. The bill contains provisions for states to get a share of 42% from the service tax collections until 2020.29th July 2016Service Tax Collection Up by 23% in Mumbai Zone During Quarter 1In a recent news release by the Service Tax Department, the consolidated service tax collection during the first quarter stood strong at a whopping Rs.17,583 crore, a rise of 22.9% from Rs.14,307 crore during the same quarter last year.During the current fiscal, the Mumbai zone has been assigned a target of Rs.76,300 crore on the basis of collections during the last fiscal which clocked 68,714 crore. It must be noted that the target set by the Union Budget for service tax collection for the current fiscal is Rs.2.16 lakh crore. So far, the government has managed to collect Rs.53,757 crores, a staggering growth of 20.8% over last fiscal’s collection of Rs.44,503 crore during the same period.20th July 2016SEBI Seeks Service Tax Exemption From July 2012 OnwardsThe Securities and Exchange Board of India (SEBI) recently got an exemption from service tax from this fiscal year onwards. However, not content with that, SEBI has asked the government to exempt its service tax liabilities with retrospective effect from July 2012.While the government had contended that SEBI’s services fall within the ambit of service tax, SEBI had been arguing otherwise. Finally, after rounds of discussion, SEBI was exempt from service tax from this financial year.SEBI is the regulator for capital markets including entities such as companies, stock brokers and mutual funds.15th July 2016Telangana plans to replace the term "Licence Fee"In an attempt to save up on tax deducted by the central government, the Telangana government has taken help of finance professionals and come up with the idea of replacing the term “Licence Fee” with some other term. Currently, as per new rule of the central government, any licence fee levied by the state government is liable to attract a 15% service tax that goes to the union government.Considering this as detrimental to the growth of Telangana, the state aims to change the term Licence Fee to any other suitable term to save up on service tax which will be around 500 crore rupees if service tax is to be paid on all licences. Various licences are issued by state governments in India. These include hotel licences, bar licences, licences for clubs etc.7th July 2016Air-Conditioned Buses in Bengaluru Feel The HeatWith service tax levied on air-conditioned carriage buses, commuters in Bengaluru who frequently use them as a mode of transport are now feeling the heat, with the already expensive bus fares rising by 6 per cent. The The Bangalore Metropolitan Transport Corporation (BMTC) and the Karnataka State Road Transport Corporation (KSRTC) have both launched an all out attack the service tax levied on bus fares. Due to the Union Budget buying over all state-owned transport corporations that come under this service tax bracket, the new regime has implemented a service tax of 15 per cent on 40 per cent of all revenues that are collected from air-conditioned bus services. While non-air conditioned buses are exempt, the tax burden on air-conditioned buses has been shifted to the commuters. Commuters that have been hardest hit by the rise in service tax are usually travellers who commute to and from the Bengaluru International Airport as well as the IT sector of the city. KSRTC MD Rajendar Kataria has however written to the ministry of finance asking them to reconsider their proposal.27th June 2016Sebi seeks Exemption from Service Tax Liability With effect from 2012Sebi (The Securities and Exchange Board of India) has written to the government seeking an exemption from the tax liability with retrospective effect from 2012. Sebi is the regulatory authority that controls the entire range of capital markets including thousands of companies, mutual funds, brokers and other entities.in the budget of 2016-17, the government announced that Sebi will be exempted from service tax effective from April 1, 2016. However, U K Sinha, the Chairman of Sebi was dissatisfied with the announcement as the regulatory authority has always maintained that the services provided by it did not attract any service tax. The Chairman has written to the Revenue Secretary, Finance Minister and Economic Affairs Secretary, asking for an exemption from 1st July, 2012.15th June 2016

Government facilities for startupsDiversification in the number of fields in which humans can prosper into has ultimately resulted in a handsome amount of startup companies, as a healthy competitor to the globe. The emergence of a novel idea for a business will be of no use when let shattered away just because of the legal procedures to attain to get your startup into reality.The ease of India with which it can accept and develop startups is just like a piece of cake, as one can notice a huge number of startups budding out there.Startup scheme:Startup India initiative by Government of India in 2016 holds a pool of resources for the startups. It offers a wide range of enrichments like funding&incentives, Incubation, Tax exemptions, ease of patent applications etc, for a company that is recognized as a startup by DPIIT(Department for Industrial Policy and Promotion)The 'Startup' Criteria:For a firm/company to be identified by DPIIIT as a startup, the nominal list of criterion are detailed below.1.Age: The company incorporation should not have done before 10 years2.Type: Incorporation of the company should be done as a Private Limited Company (or) Registered Partnership Firm (or) a Limited Liability Partnership3.Annual Turnover: Should not have exceeded Rs.100 crore in any of the financial years since incorporation4.Original Entity: The firm should have been formed originally ensuring that it is not just splitting/reconstruction of an already existing business.5. Innovate cum Scalable: The company should contribute towards development or improvement of a product, process/service and/or should possess a scalable business model. The company should be potent for wealth creation and making employment.Enrichments from DPIIT:DPIIT showersstartups enrolling under it with the following nourishments/benefits.1.SELF CERTIFICATION2.STARTUP PATENT APPLICATION & IPR APPLICATION3.TAX EXEMPTION UNDER 80IAC4.SECTION 56 EXEMPTION5.EASY WINDING UP OF COMPANY6.EASIER PUBLIC PROCUREMENT NORMS1.SELF CERTIFICATION:Ease of India comes here into the picture as self-certification resembles reducing the regulatory burden on the startups to allow them to concentrate on their core business, also to keep compliance costs low.Nourishments:·Simple online procedure is provided for the startups to certify themselves for the compliance of 6 Labour laws and 3 Environmental Laws.·For labour laws, no inspection will be carried out on the premises for 5 years unless a written complaint of violation is filed and approved by a senior to the inspection officer.·In case of environmental laws, startups certified as 'White category' by the Central Pollution Control Board(CPCB), will be allowed to self-certify compliance and few random inspections will be carried out here and there.Labour Laws:·The Building and Other Constructions Workers' (Regulation of Employment & Conditions of Service) Act, 1996·The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979·The Payment of Gratuity Act, 1972·The Contract Labour (Regulation and Abolition) Act, 1970·The Employees' Provident Funds and Miscellaneous Provisions Act, 1952·The Employees' State Insurance Act, 1948Environment Laws:·The Water (Prevention & Control of Pollution) Act, 1974·The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003·The Air (Prevention & Control of Pollution) Act, 1981Eligibility:Though the company is termed as a startup if it was incorporated within 10 years, the eligibility for self-certification is granted only startups that are incorporated not before 5 years.Registration:The company is asked to register and login the ShramSuvidha Portal of the Ministry of Labour and EmploymentAfter login, Click 'Is any of your establishment a Startup?' and follow the instructions2.STARTUP PATENT APPLICATION & IPR APPLICATION:Patents are the gold mine of startups as it preserves their innovative ideas and offers a competitive edge over other companies, leading to an increase in the value of the company.The objective is to bring down the time and cost demanded to obtain a patent, making it financially attainable to protect the innovation and encourage further.Nourishments:·Fast-track processing: Patent applications by startups are examined faster to realise them sooner.·Facilitator Panel to assist IP applications: An effective panel of facilitators deployed by Controller General of Patents, Designs and Trademarks(CGPDTM) will advice filling out Intellectual Property applications along with promoting intellectual property in other countries.·Only Statutory fees: The startup shall pay only the statutory fees while all other facilitation charges will be born by the government, for any number of patent applications.·Rebate for filling application: A refund of 80% will be provided in the filing of patents.Eligibility:DPIIT recognition is favourable. The criteria are mentioned above.Registration Process & Documents:Reach out, facilitators. They will guide according to the sector desired and jurisdiction of the facilitators.3.TAX EXEMPTION UNDER 80IACEligible startups are exempted from paying tax for 3 consecutive years out of the first ten years of incorporation.Eligibility:·DPIIT recognised startup.·Only Private Limited Companies or Limited Liability Partnerships·Company incorporation should be done after 1st April 2016.Registration Process:·Register on the Startup India Portal·Apply for DPIIT recognition.·Access the application form for the Section 80 IAC exemption.·Fill up the details and upload the below-mentioned documents.·Submit the applicationDocuments required:·Memorandum of Association for Pvt. Ltd. / LLP Deed·Board Resolution (If Any)·Annual Accounts of the startup for the last three financial years·Income Tax Returns for the last three financial yearsFor the status of your application check the dashboard of the startup India portal.4.SECTION 56 EXEMPTION:Nourishments:The exemption provided under Section 56(2)(VIIB) of Income Tax Act·Investments into eligible Startups by Accredited Investors, Non-Residents, AIFs (Category I), & listed companies with a net worth more than 100 crores or turnover more than INR 250 Crore, shall be exempt under Section 56(2)(VIIB) of Income Tax Act.·Exemptions for consideration of shares received by eligible startups up to a limit of INR 25 crores.Eligibility:·Private Limited Company.·DPIIT recognized startup·No investment in specified asset classes·No investment in immovable property, transport vehicles above INR 10 Lakhs, Loans and advances, capital contribution to other entities, except in the ordinary course of businessRegistration:·Register on the Startup India Portal.·Apply for DPIIT recognition.·Apply for Section 56 Exemption.·An email will be received fro CBDT within 72 hours.5.EASY WINDING UP OF COMPANYSimplifies the process of shutting down or winding up operations to permit entrepreneurs faster reallocation of resources and capital to more productive avenues faster, in case of their capital being stuck in the business failure.Nourishments:·According to Insolvency and Bankruptcy Code,2016, a startup can be wound up within 90 days of applying for insolvency(startup should have simple debt structures or meet certain income specified criteria)·An insolvency professional will be appointed who will take over the company. His duties are liquidation of assets and paying its creditors within six months.·Upon appointment of the insolvency professional, the liquidator shall be responsible for the swift closure of the business, sale of assets and repayment of creditors following the distribution waterfall set out in the IBC. This process will respect the concept of limited liability.6.EASIER PUBLIC PROCUREMENT NORMS:Government bodies and state-owned entities will buy products from private entities through Public Procurement. Government organisations constitute a huge market for startups.It makes easier participation in the public procurement process and opens up a huge market opportunityNourishments:·Listing product on Government e-Marketplace(GeM):GeM is a huge online marketplace allowing government departments to procure products/services.DPIIT recognized startups are allowed to register as a seller in GeM and sell their products/services to the government.·Exemption from Prior Experience/Turnover: In the context of promoting startups, the government will exempt startups to have prior experience/turnover, without any compromise on the quality.·EMD Exemption: DPIIT recognised startups will be exempted from submitting Earnest Money Deposit(EMD) or bid security while filing government orders.Eligibility:Recognition under the department for Promotion of Industry & Internal Trade.Apart from these provisions for startup offered by the Government of India, the Startup India website also offers many benefits such as investor relation, incubators, idea brainstorming, market research reports etc.To get a detailed and FREE consultation, and to get your idea transformed into a successful business with ease, opt-in to schedule your appointment