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Prem Bhardwaj (Querist)

03 December 2013 Sir suppose i am a manufacturer and of shoes or and using excisable goods and after making final shoes i am selling to them to customer through my outlets and charging service tax from my customer. So i want to know which return i have to file St-3 or Er-1 or Both and how to adjust my credit of excisable goods with service tax liability....

Hitendra Jain

Hitendra Jain (Expert)

04 December 2013 ST-3 is return for providing services.
ER-1 / ER-3 are Excise return for manufacturing and removal of goods.

First you have to determine under which act your activity fall.

If you are manufacturer under Central Excise Act, 1944 then you have to file ER-1.

If your are selling goods after manufacturing then you are covered under Central Excise Act and VAT laws of respective state.

If you are body corporate and covered under Reverse Charge Mechanism under Service Tax Law then you have to file ST-3 Returns as well as ER-1 /ER-3.

You can avail credit of duty paid and available on the last day of month or quarter as the case may be towards Service Tax Liability with care for:

No CENVAT Credit available for Reverse Charge mechanism as it fall in Input Services.

Education Cess and Secondary & Higher Education Cess can only be utilized for there respective payments and none other else.

If you are taking CENVAT Credit then this should reduced / deducted from related expenses.