Rule 7 of the Service Tax Rules, 1994, relates to filing of returns. All categories of Service Tax assessees are required to submit a half yearly return in the prescribed form for the months covered in the half yearly return. Sub-rule (2) of Rule 7 further provides that the Service Tax assessee shall submit the half yearly return, by 25th of the month following the particular half year. The assessees are required to file half yearly return for each half yearly period as under —

(a) For half year period from October to March – latest by 25th April.

(b) For half year period from April to September – latest by 25th October.

These returns filing was earlier made mandatory w.e.f. 1.10.2011 in electronic mode.

The last date of filing Service Tax returns for the half year ended on 30^th September, 2011 (April 2011 to September 2011) has been extended for a period of two months upto 26^th December 2011 (vide Order No. 1/2011-ST dated 20.10.2011).

The impact of this time extension would be –

• Assessees can file the current due return at any time on or before 26^th December 2011.

• No late fee or penalty shall be payable if return is filed between 25^th October 2011 and 26^th October 2011.

• Determination of 90 days for filing revised return shall be from 26^th December 2011 and not 25^th October 2011.

• Late fee shall be payable as per the number of days delay  in filing considering 26^th December 2011 as last date.

• Those who have already filed  their return will not be impact  with this Order.

The reason attributed for this ‘historic extension’ is that “e-filing of Service Tax returns for all classes of Service Tax assessees had been made mandatory for the first time vide Notification No. 43/2011-ST dated 25.08.2011 w.e.f. 1.10.2011 and there is less time for the trade to adjust to the requirement of e-filing of returns”.

Amendment in Service Tax Rules have also been made. Notification No. 48/2011-ST dated 19.10.2011 has amended relevant Service Tax Rules as under –

• In Rule 7 dealing with filing of returns, sub-rule (3) has been added to authorize CBEC to extend the date for filing the Service Tax returns by an Order invoking  which the present extension has been granted.

• The order must specify the special circumstances which necessitates the extension of time.

In instructions to file Service Tax 3 form contained in service tax 3 form, it has been incorporated that wherever in the Service Tax 3 return, words ‘received or paid’ are used, it should be construed as (read as) ‘received or receivable / paid or payable’ in view of the Point of Taxation Rules, 2011 requiring service tax liability on accrual basis.

Thus, with the current extension of last date for filing service tax returns, which is a historic first time instance of its kind so far as service tax is concerned, people (assessees, consultants as well as departmental officers) will be able to celebrate both the annual festivals – Diwali and Christmas and also have opportunity to file returns at leisure .

= = = = = = = = =