Rcm-st3
This query is : Resolved
26 August 2013
We are registered company and we recived work contract service. Our subcontractor raised a Invoice for Rs.100 and charged ST on Rs.40(4.944%). We remited to ST Dept on Rs.20(2.472%)(50% as a service recipient).Now, how to show this transaction in my St-3 and whether we need to show the Rs.60(Non taxable) in our ST-3.
please explain with the ST-3 excel utility.
please explain with the ST-3 excel utility.
20 July 2025
Got it! You’re dealing with Service Tax (pre-GST regime) and want to correctly report Reverse Charge Mechanism (RCM) transactions in your ST-3 return.
Scenario Recap:
Your subcontractor raised invoice of Rs. 100
Service Tax charged by subcontractor on Rs. 40 @ 4.944% = Rs. 1.9776 approx
You (service recipient) paid Rs. 20 as service tax (50% of Rs. 40 taxable value) i.e. Rs. 0.988 approx (half tax)
The balance Rs. 60 is not taxable (assumed exempt or non-service portion)
How to report this in ST-3?
1. Reporting RCM tax paid (50% by service recipient):
In ST-3, report the service tax paid on reverse charge under “Tax Paid under Reverse Charge” section.
Enter Rs. 0.988 (your half tax payment) under the correct column.
2. Reporting the subcontractor invoice and tax charged:
The subcontractor’s portion of tax paid by them (Rs. 0.988) will be reflected in their returns, not yours.
You don't report this tax in your ST-3 as paid by you.
3. Reporting Non-taxable portion (Rs. 60):
This Rs. 60 is not taxable value and should be excluded from taxable value in your ST-3.
So, you do NOT report Rs. 60 under taxable value or service tax.
ST-3 Excel Utility Tips:
Under Part A - Service Details, enter:
Total value of services received: Rs. 100
Taxable value under reverse charge: Rs. 40
Tax paid under reverse charge: Rs. 0.988 (or Rs. 20 * applicable tax rate)
Under Part B, report the total service tax paid by you (under RCM).
Ensure you do not include non-taxable Rs. 60 in any tax or taxable value fields.
Scenario Recap:
Your subcontractor raised invoice of Rs. 100
Service Tax charged by subcontractor on Rs. 40 @ 4.944% = Rs. 1.9776 approx
You (service recipient) paid Rs. 20 as service tax (50% of Rs. 40 taxable value) i.e. Rs. 0.988 approx (half tax)
The balance Rs. 60 is not taxable (assumed exempt or non-service portion)
How to report this in ST-3?
1. Reporting RCM tax paid (50% by service recipient):
In ST-3, report the service tax paid on reverse charge under “Tax Paid under Reverse Charge” section.
Enter Rs. 0.988 (your half tax payment) under the correct column.
2. Reporting the subcontractor invoice and tax charged:
The subcontractor’s portion of tax paid by them (Rs. 0.988) will be reflected in their returns, not yours.
You don't report this tax in your ST-3 as paid by you.
3. Reporting Non-taxable portion (Rs. 60):
This Rs. 60 is not taxable value and should be excluded from taxable value in your ST-3.
So, you do NOT report Rs. 60 under taxable value or service tax.
ST-3 Excel Utility Tips:
Under Part A - Service Details, enter:
Total value of services received: Rs. 100
Taxable value under reverse charge: Rs. 40
Tax paid under reverse charge: Rs. 0.988 (or Rs. 20 * applicable tax rate)
Under Part B, report the total service tax paid by you (under RCM).
Ensure you do not include non-taxable Rs. 60 in any tax or taxable value fields.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- GST ITC as per notification 12/2023- central tax
- LLP audit and disclosure
- Capital Gains Tax on Inherited Mutual Fund
- Form 144 TDS Return Validation Error – Mandatory Fields
- Gift to nri relatives resides in usa
- GSTR9 Annual Return
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
