Manual for Scrutiny of Service Tax Returns 2009 - Central Excise ...

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ANNEXE 2.1: FORMAT FOR PRELIMINARY SCRUTINY OF ST-3 RETURNS1. Registration No.: May be indicated and matched with the Assessee master2. Name of the assessee: Must match with the name given in the ST-1 Application for Registration.Sr. Question Action if Answer is ‘No’No.3 Does the registration number and the name The actual registration number must be obtaiofthe assessee match the records available ned from the assessee master and the numberin the Range/Group?corrected in consultation with the assessee.4. Was the return filed within the stipulated Notice may be issued for impositionperiod?of penalty.5. Were all the relevant columns in the return Return must be sent back to all the assesseesduly filled?and the columns filled.6. If assessee provided more than one taxable Return must be sent back to the assessee andservice, was the information furnished the separate information obtained for eachseparately for each of the services provided taxable service.in the return?7. Was the amount received as advance towards Notice may be issued for collection oftaxable services to be provided taken into Service Tax short paid.account while arriving at the Service Taxpayable?8. Are the Notification No.(s) and date(s) of Return must be sent back to the assessee andabatement from value exemption, as shown corrected.in the return prima facie, correct withreference to the services shown in the return?9. Is any condition prescribed in any of the In case conditions are not satisfied, tax alongexemption notifications claimed by the with interest must be demanded on valueassessee? If so, is it prima-facie satisfied? and abatement through a show-cause notice.10. Have the taxes/amounts due and payable Arithmetical mistake may be correctlybeen correctly calculated with reference to indicated and Deficiency Memo issued tothe rate of tax and taxable value(s) shown in make good the shortfall in Service Taxthe return?payable.11. Do the debits made from CENVAT credit Arithmetical mistake may be correctlyaccount and cash payment add up to the indicated and Deficiency Memo issued to‘total tax paid’ as shown in the return? make good the shortfall in Service Taxpayable.(Continued on next page)MANUAL FOR SCRUTINY OF SERVICE TAX RETURNS 2009A II.1.1
(Continued from previous page)Sr. Question Action if Answer is ‘No’No.12. Have copies of challans (through which duty Copies of challans may be obtained fromhas been paid) been submitted with the the assessee.return?13. Does the opening balance of CENVAT credit Reasons for inconsistency may be indicatedindicated in the return tally with the closing in consultation with the assessee.balance indicated in the previous ST-3return?14. Is the (opening balance+total credit availed) It may be reconciled with the assessee’s–(credit utilized for payment of tax on records.service+ credit utilized when inputs orcapital goods are removed as such) = closingbalance of CENVAT credit?14a) Is the tax payer maintaining separate accounts If the answer is No, then ascertain whetherfor receipts and utilization of inputs for the tax payer is reversing CENVAT creditmanufacture of both dutiable and exempted amount equivalent to 8% of the value of thegoods?exempted goods/ services in terms ofprovision of Rule 6(3) of CENVAT CreditRules, 2004. In case no reversal of CENVATCredit amount has been made, show-causenotice may be issued to recover the amountwith interest.15. Was the total tax payable more than the total If no action was taken, notice may be issuedtax paid? If answer is yes, what was the date to recover short payment of Service Tax.on which necessary action was taken?16. Was the tax payment made on the due date? Interest may be collected by issue of notice.17. If not, was interest paid for the period of Interest may be collected by issue of notice.delay?18. In case an adjustment of excess Service Tax Notice may be issued to deny the adjustmentpaid has been made in terms of Rule 6(3) of and recovery of Service Tax equivalent tothe Service Tax Rules 1994, were the amount adjusted.conditions of Rule 6(3) prima facie satisfied?19. In case the assessee is paying Service Tax on a The compliance with the provisions of Rulesprovisional basis, are the provisions of may be ensured. If provisional assessment isCentral Excise Rules as made applicable to pending for more than one year, it should beService Tax in such cases being followed? reviewed and put up to the appropriateauthority.(Continued on next page)A II.1.2MANUAL FOR SCRUTINY OF SERVICE TAX RETURNS 2009
Page 2 and 3: For Departmental circulation onlyMa
Page 4 and 5: ContentsPrefaceivCHAPTER 1: Introdu
Page 6 and 7: Chapter 1: Introduction1.1 SELF ASS
Page 8 and 9: 2) A detailed scrutiny programme al
Page 10 and 11: Chapter 2: Policy Guidelines forRet
Page 14 and 15: (Continued from previous page)Sr. Q
Page 16 and 17: ANNEXE 2.3: MINI RISK PARAMETERS FO
Page 18 and 19: (Continued from previous page)Proce
Page 20 and 21: 3.1.2C These returns marked for rev
Page 22 and 23: 4.2B In selecting the returns, the
Page 25 and 26: (Continued from previous page)Sr. S
Page 31 and 32: (Continued from previous page)Sr. N
Page 33: ANNEXE 4.3 OBSERVATION SHEET FOR DO

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