St-3 return

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 My client is a private Ltd company.It receives port services.The company doesn't provide any service.While filing service tax return

1)Will it show Nil in st-3,(Cenvat credit taken and utilized column) as the company can not take credit if it doesn't provide output service.or

2)The company cannot take service tax credit or after taking credit the amount of credit will be charged to P/L.

3) If nil return will be furnished then how the party which is providing service will pay service tax.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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22 September 2011 1. You are correct. The company will show Nil amount in ST-3.

2. The total expenditure including service tax will be debited to the P&L.

The company cannot book CENVAT credit and then transfer it to P&L.

3. The liability of depositing service tax is on the service provider. It is not affected by the treatment or return filed by the service recipient.

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