Please help us on following matter regarding service tax return revision:
1. Our client have not charged service tax under Reverse Charge Mechanism (RCM) for the period starting from 1.7.2012 to 31.3.2013. Now they are willing to pay service tax with 18% p.a. interest. So kindly advice us on revising of service tax return for 2nd quarter of 1st half of FY 2012-13 and 2nd half of FY 2012-13. However the Act provides an option for revising within 60 days of return filing. But in case of Return for 2nd quarter of 1st half of FY 2012-13, the time limit for revision has passed, since the date of filing was 10.4.2013. But they are still willing to pay for this period. So please advice us whether we can add the service tax amount of the said period while revising 2nd half return.
2. Also please advise us on the same situation if the case was other than Revese Charge Mechanism i.e. normal case.
For the benefit of your client go for amnesty scheme for the period 01.07.2012 to 31.03.2012 by going into it you can save your client from interest, penalty and prosecution.
For, the remaining period pay your tax dues along with interest and after paying the same inform the Central Excise Officer of your Jurisdiction as Sec 73 (3) of the Finance Act, 1994 provides this facility.
Sir, actually we have filed service tax returns for the said period declaring service tax amount without any reverse charge mechanism. So kindly suggest on the issue regarding amnesty scheme if returns were originally filed and now it is to be revised after paying more service tax with interest under RCM.
The Amnesty scheme is for the defaulters who have not filed, stop files the return and also for those who have short levied or not levied the service tax.
But on reading the scheme, I have found that the service provider will get benefited from this scheme. But in our case due to Reverse Charge Mechanism, we are Service Receiver. And we have earlier filed service tax returns as service provider without cosidering the RCM effect. Kindly correct me if I am wrong and suggest some measures.
CAclubindia
