Statutory Enhancements for Service Tax

New Service Tax Computation report: The statutory enhancement for ST3 and Form A3 reports enables you to identify and correct transactions recorded before filing service tax returns. All transactions, whether recorded correctly, incorrectly or inadequately will be captured and categorized in the new computation report. The categories are as follows:

• Included: These transactions are a part of the service tax returns. This includes all sales, purchases, purchase returns, sales returns, and adjustment entries, where service tax is applicable.

• Excluded: These transactions are excluded while generating returns, as they do not carry the relevant service tax details.

• Uncertain: These transactions do not fall under either of the two categories – included or excluded. These transactions have some information missing.

Using these ST3 and A3 reports, you can:

• View or verify transactions that are included for tax calculation/returns.

• Ascertain which transactions are listed as excluded or uncertain.

• Alter or correct information instantly for uncertain transactions.

Features of ST3 and A3 reports

Statistics of Vouchers

This section of the new report provides:

• Count of vouchers which are included, excluded, and uncertain and drill down reports to the voucher level.

• Exceptions which are handled for uncertain transactions are:

• • Service Category cannot be determined for the service ledger.

  • Service Category for advance receipt entries cannot be determined for the service ledger.

  • Tax rate  cannot be determined for the service ledger.

  • Tax details cannot be determined for Service tax ledgers.

  • Tax type cannot be determined for tax ledgers.

  • Missing tax ledgers.

  • Difference in the actual and calculated service tax amounts.

  • The Notification Number and Notification Serial Number cannot be determined.

  • Service bills are not linked to payments, receipts or debit or credit note.

  • The Nature of Adjustment cannot be determined for service tax adjustment entries.

Transactions Summary

• This section provides an overview of the included transactions.

• In this section, you can view:

• • Tax computation on the basis of realisation.

  • Reverse charge transactions.

  • Service tax opening balance entry.

  • Input Service Distribution.

Payment

This section includes information pertaining to tax payment on included transactions, payment of arrears, interest and miscellaneous payments.

For more information, click here.

See also: