St return related issue
This query is : Resolved
Ankit Parashar
(Querist)
26 May 2016
If my service is fully exempt from service tax. Then while filing St return i have two options:
1. Putting the Gross value of service provided as zero for the all six months so ultimate the tax liability will be zero.
2. Putting the Gross value of service provided as actual amount of service provided. Then putting the notification no. under which my service is fully exempt. Then putting the rate of tax for the service as zero%. then also my tax liability will be zero.
But i want to know which way is right to file the return......
1. Putting the Gross value of service provided as zero for the all six months so ultimate the tax liability will be zero.
2. Putting the Gross value of service provided as actual amount of service provided. Then putting the notification no. under which my service is fully exempt. Then putting the rate of tax for the service as zero%. then also my tax liability will be zero.
But i want to know which way is right to file the return......
Rupesh Jain
(Expert)
26 May 2016
if your service exempt under notification of service tax then you have to fill notificaton nu under which you fall.
other wise first option will be fill.
other wise first option will be fill.
Ankit Parashar
(Querist)
26 May 2016
But Sir..is it right to fill the "Gross amount of service provided" as NIL if in actual "Gross Amount of service provided" is Suppose Rs.100000/- p.m.
25 July 2025
Good question!
### How to report **fully exempted services** in your Service Tax return:
---
### Option 1: Put Gross Value as Zero
* **Not correct** if you actually provided taxable services with some value, even if exempted.
* You **must report the actual gross value of services rendered**, not zero, to maintain accurate records and transparency.
---
### Option 2: Put Actual Gross Value + Notification + 0% Tax Rate
* This is the **correct way** to file your return when services are fully exempt under a valid notification.
* You must:
* Report the **actual gross amount of service provided**.
* Mention the **notification number under which exemption is claimed**.
* Show the **rate of service tax as 0%**.
* Your **tax liability will automatically be zero** because of the exemption.
---
### Why Option 2 is Right?
* It aligns with legal and audit requirements to report the full value of services provided.
* Shows transparency about your business activities.
* Avoids potential issues with authorities questioning missing turnover.
---
### Summary:
| Scenario | Correct Filing Approach |
| --------------------------------- | ---------------------------------------------------------------- |
| Service provided but fully exempt | Report actual gross value + exemption notification + 0% tax rate |
| No service provided | Report zero gross value |
---
If you want, I can help you draft the exact format or show how to fill the ST-3 return with exemption details. Would you like that?
### How to report **fully exempted services** in your Service Tax return:
---
### Option 1: Put Gross Value as Zero
* **Not correct** if you actually provided taxable services with some value, even if exempted.
* You **must report the actual gross value of services rendered**, not zero, to maintain accurate records and transparency.
---
### Option 2: Put Actual Gross Value + Notification + 0% Tax Rate
* This is the **correct way** to file your return when services are fully exempt under a valid notification.
* You must:
* Report the **actual gross amount of service provided**.
* Mention the **notification number under which exemption is claimed**.
* Show the **rate of service tax as 0%**.
* Your **tax liability will automatically be zero** because of the exemption.
---
### Why Option 2 is Right?
* It aligns with legal and audit requirements to report the full value of services provided.
* Shows transparency about your business activities.
* Avoids potential issues with authorities questioning missing turnover.
---
### Summary:
| Scenario | Correct Filing Approach |
| --------------------------------- | ---------------------------------------------------------------- |
| Service provided but fully exempt | Report actual gross value + exemption notification + 0% tax rate |
| No service provided | Report zero gross value |
---
If you want, I can help you draft the exact format or show how to fill the ST-3 return with exemption details. Would you like that?
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