Goa Chamber of Commerce & Industry (GCCI)

What is it?
It is a tax on the transaction of providing a service for consideration.

Who pays for it?

Normally it is to be paid by the service provider. However, in certain cases the responsibility is on the service receiver, e.g. service provided by goods transport agency for transport of goods by road; sponsorship receiver providing service to sponsor; or where the service provider is located outside India.
Small service providers are exempt. This category covers any service, provider whose turnover was less than Rs.8 lakh in the previous year. Tax is payable by such person at a normal rate on turnover beyond Rs.8 lakh this year. To arrive at this amount, turnover of taxable services alone is to be taken. Tax rate and value of service for computing tax liability.
The service tax rate is 12%. In addition, ‘education cess’ @ 2% and ‘secondary and higher education cess’ @ 1 % is collected on the service tax amount. Therefore, total tax rate comes to 12.36% (i.e. 12%+3% of 12%).
The value for computing tax is the gross amount charged for a service.

Registration of taxpayer

Every taxpayer is required to take registration with the Department. Small service providers would take registration on crossing a turnover of Rs.7 lakh.
Application for registration, in ‘Form ST-1, ‘ is to be filed with the local Central Excise and Service Tax office.
Registration is granted within seven days of the filing of the application.

Records and invoices

Records including computerized records, maintained by the taxpayer, in compliance with any other law are acceptable.
The service provider would issue an invoice/challan/bill within 14 days of providing the service. However, if payment towards service is received in advance the invoice will be issued within 14 days from receipt of such advance.
The invoice should be serially numbered and it should contain details of the service provider, receiver of service, and the service provided.

Manner of payment

Individuals, proprietors, or partnership concerns are required to pay this tax every quarter. All other taxpayers are required to pay it on monthly basis.
Tax is to be paid on the value of service received during the month/quarter.
Tax for a month/quarter has to be deposited by the 5th (6th in case of electronic payment) of the next month/month immediately after the quarter. However, for March/quarter ending March, it is required to be deposited by the 31st of March.
It is to be paid on a self-assessment basis by the taxpayer.
It could be deposited in any of the designated banks through a simple challan. The list of designated banks is available at http://pccacbec.nic.in/.

Input stage CENVAT Credit

A service provider requires certain goods and services as inputs for providing service to his customer. These inputs may have suffered central excise duty or service tax, the credit of which can be taken by the service provider.
This credit is referred to as CENVAT Credit and it can be utilized by a taxpayer for payment of tax on fulfillment of certain conditions.
CENVAT credit is not admissible on goods and services used for providing tax-free services.

Availability of Forms

All forms and challan for payment of tax could be downloaded from the website of the department, www.cbec.gov.in. These forms could also be obtained from the office of the Commissioner of Service Tax/Central Excise.

Can Service tax be paid electronically?

Yes, it can be paid electronically through the designated banks providing this facility. The list of such banks along with detailed information on e-payment is available on www.cbec.gov.in and http://pccacbec.nic.in/.

Mandatory e-payment of service tax for certain taxpayers

Any taxpayer who has paid service tax of rupees fifty lakh or above in the preceding year or has already paid service tax of rupees fifty lakh in the current year is required to pay service tax mandatorily through internet banking.

Return

Return is to be filed twice a year by every taxpayer. For the period from April to September, the return has to be filed by the 25th of October, and for the period from October to March, it has to be filed by the 25th of April. It is to be filed in ‘Form ST-3 ‘.