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.
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