Some Important Aspects in FORM ST 3 with regard to Service Provider

Gross Amount  Means
1	Gross amount for which bills/invoices/challans or any other documents are issued relating to service provided or to be provided. (Item B1.1 in ST 3)		A. This Item should include:  (a)  amount charged towards exported service, (b)  amount charged towards exempted service (other than export of service), (c)  amount charged as a pure agent, and (d) amount includible in terms of Rules 5(1) & 6(1) of the Service Tax (Determination of Value) Rules, 2006 B. This Item should exclude:  (a)   amount received in advance. (b)   amount taxable on receipt basis, which is applicable to individuals and partnership firms whose aggregate value of taxable services during previous financial year was less than or equal to rupees fifty lakh and he opts to pay tax at the time when payment is received by him in respect of taxable value of rupees fifty lakh in the financial year to which return relates as per third proviso to Rule 6(1) of Service Tax Rules, 1994, for which bills or invoices or challans or any other documents may not have been issued (c)   Amount taxable for the services provided for which bills or invoices or challans or any other documents may not have been issued. (d)   Service tax; (e)   Education cess; and       (f)    Secondary and higher education cess
2	Amount received in advance for services for which bills/invoices/challans or any other documents have not been issued. (Item B1.2 in ST 3)		A. This Item should include: (a)  amount received towards exported service, (b) amount received towards exempted service (other than export of service), (c)  amount received as pure agent, and (d) amount received which is liable to be included in the value in terms of Rules 5(1) & 6(1) of the Service Tax (Determination of Value) Rules, 2006 (e) Amount paid for services received from Non-Taxable territory – Imports or other than Imports.  B. This Item should exclude:  (a)  Service tax, (b)  Education cess, and (c)  Secondary and higher education cess
3	Amount taxable on receipt basis under third proviso to rule 6(1) of Service Tax Rules, 1994 for which bills/invoices/challans or any other documents have not been issued. (Item B1.3 in ST 3)		1.This is applicable to individuals and partnership firms whose aggregate value of taxable services during previous financial year is less than or equal to rupees fifty lakh and 2.Opts to pay tax at the time when payment is received by him in respect of taxable value of rupees fifty lakh in the financial year to which return relates as per third proviso to Rule 6(1) of Service Tax Rules, 1994
4	Money equivalent of other considerations charged, if any, in a form other than money. (Item B1.5 in ST 3)		1. The value of consideration charged (or paid in case of service receiver), other than money, is to be estimated in equivalent money value of such consideration in terms of the Service Tax (Determination of Value) Rules, 2006 2. ‘Consideration’ includes any amount that is payable for the taxable services provided or to be provided, as defined in Explanation to Section 67 of the Act
5	Amount on which service tax is payable under partial reverse charge (Item B1.6 in ST 3)		Cases covered under  Notification No. 30/2012-ST, dated 20th June, 2012 (as amended), on which  the liability to pay service tax has been placed on the recipient of service
Deductions from Gross Amount
6	Amount charged against export of service provided or to be provided (Item B1.8 in ST 3)		1. With effect from 01.07.2012, exports of services are not to be taxed under service tax, as per Place of Provision of Services Rules, 2012. 2. Amount included in export of service in column B1.1,( Point 1 above) shall be  claimed as  deduction from  gross amount. 3. However, there may be cases where ST-3 return for the period prior to 01.07.2012 is to be filed by service providers or recipient of service, as the case may be. They are also required to fill up this column for furnishing the amount charged against the export of services made before 01.07.2012 dated 20 June 2012.
7	Amount charged for exempted service provided or to be provided (Item B1.9 in ST 3)		1. ‘Exempted Service’ refers to the taxable service which is exempt, for the time being, from payment of service tax under notification 25/2012. 2. But abatements under notification 26/2012 shall not be included here.
8	Amount charged as pure agent (Item B1.10 in ST 3)		Pure Agent’ has been defined in Explanation 1 to Rule 5 of the Service Tax (Determination of Value) Rules, 2006 included in the Gross amount.
9	Amount claimed as abatement (Item B1.11 in ST 3)		‘Abatement’ refers to the part of value of taxable service which is not includible in the taxable value for payment of service tax through notification, such as Notification No. 26/2012-ST, dated 20.06.2012
10	Any other amount claimed as deduction, please specify. (Item B1.12 in ST 3)		Any deductions, which is not mentioned in any other clause, from gross value of taxable service has to be provided For example, deduction of property tax paid in respect of the taxable service of renting of an immovable property in terms of Rule 6(4C) of Service Tax Rules, 1994 read with Notification No. 29/2012-ST, dated 20th June, 2012.
Gross Service Tax Payable
11	Service tax rate wise break up of NET TAXABLE VALUE (Item B1.15 in ST 3)		1. If an assessee is paying tax at the rate of 12% or other than 12%,  mention the details of taxable value in this column by entering the tax rate applicable. 2. This is also applicable to the assessees who want to file their return pertaining to the period prior to 01.04.2012 when tax rate was 10%, 8% or 5%, as the case may be. This can be done by inserting additional rows for such entries.
12	Specific rate (Item B1.16 in ST 3)		1.As per Rule 6 of the Service Tax Rules, 1994, the service Providers/Recipients in respect of services of  a. ‘Booking of tickets for Air Travel provided by Air    Travel Agents’; b.  ‘Insurer carrying on life insurance business’; c.   ‘Purchase or sale of foreign currency including money changing’; and d.  ‘Distributors and selling agents or persons assisting in organizing lottery’ have been given option to pay service tax at either specific rate or a combination of specific and ad valorem rate. Such assessees have to mention the details of such taxable value in these columns by selecting the appropriate tax rate(s) as applicable to them
Deductions from Service Tax Payable
13	R&D cess payable (Item B1.18 in ST 3)		Deduction of R& D cess paid, if applicable, from tax payable can be shown here separately for the relevant services, such as the service of import of technology, applicable.