The concerned rules are discussed here in brief:
The rules stated in here were made to assess service tax and are Service Tax Rules 1994 and it came into effect on 1st July 1994.
This section refers to the various definition and terms used in the Finance Act such as “Act”, "assessment", “banking company”, “body corporate”, “financial institution”, "Form" etc. It also describes "Half year" meaning which indicates the period between 1st April to 30th September or 1st October to 31st March of a financial year. And "quarter" indicates the period between 1st January to 31st March or 1st April to 30th June or 1st July to 30th September or 1st October to 31st December of a single financial year.
Central Board of Excise and Customs may appoint a central excise officer if needed to maintain the rules for taxable services.
Service tax registration is mandatory for every person who is liable to pay service tax. the registration process should be done using the application Form ST - 1 within 30 days from the date of service tax is charged.
Every registered service provider must have to issue a signed invoice or bill or a challan to the service receiver which will contain the name, address, registration number, name of the recipient, address of the recipient, product description, cost of service provided and the tax amount.
While providing, services related to goods transportation, the provider must issue a consignment note.
Central Board of Excise and Custom must need to accept any record that contains computerized data that is maintained and provided by an assessee.
Any officer with the authorization of commissioner will have access to any premises to complete verification and scrutiny work required for revenue protection.
Service tax must be paid by the 5th of every month to the central government if paid physically by cash or another mode. In the case of online submission, it needs to be paid by the 6th of every month.
If the service provider is situated in the taxable territory of India and provides services to a recipient situated in abroad then such service providing will be considered as export of services.
Every assessee must file a half-yearly return by the 25th of the following month when half-year completes for them. The half-yearly return has to submit in Form ST-3 or ST-3A with a copy of Form ST-6 in triple copies for the months covered in the half-yearly returns.
Transport operators who provide services or goods must file a six-months return and it is in effect from the 13th May 2003. Not filing such return will lead to penalty charges.
A revised return must be filed with Form ST-3 to edit or modify or correct any mistakes within 90 days from the return submission date.
If a late return has been filed within the 15 days from the prescribed submission date then, a penalty of INR 500 need to be paid. If the late return filing gets delayed, then a penalty of INR 1000 need to be paid. If the late return exceeds 30 days from the submission date, then the penalty will be INR 1000 + 100/month till you submit it.
Form ST-4 need to be used to appeal to Commissioner of Central Excise under section 85 of the Finance Act 1994.
Form ST-5 need to be used to appeal to the Appellate Tribunal under section 86 of the Finance Act 1994.
The large taxpayers must submit a separate return for each of their registered premises and may require producing records for verification whenever asked.
The GST bill is designed to form a single Pan-India taxation system for all goods and services which will replace all the current indirect taxes. It will also replace the system of multiple taxations which is currently levied on goods and services.
The GST act, which is also referred as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014. Implementing this act will give tax imposing law on goods and services power to the Parliament and state legislations. This will ultimately simplify the goods and services taxation process in India.
The GST bill was introduced on Lok sabha by 2011 and was passed by Lok Sabha on 6th May 2015. In Rajya Sabha, the bill was cleared on 3rd August 2013 with approving that central and state government will be able to levy GST on goods and services. After Rajya sabha, it needed Lok Sabha to ratify the bill again and it also required at least 15 states to support the bill before implementing the act. After ratification, it needed the President of India to constitute a GST council comprising of the Finance Minister, Minister in charge of Finance/Taxation, Minister of State in charge of Revenue, and other ministers nominated by the states.
The council was made to recommend tax rate, exemption, threshold, related laws, and discounts. The draft of this bill have been recently revised and the revised draft is accessible from the public domain. Once the President of India approves the bill, parliament will pass legislation for CGST and IGST. Then all Indian states and Union Territories will pass legislation for SGST. After all the legislations get passed, a synchronized implementation will be negotiated between the center and the states. GST act will be then officially come into force across India.
GST will abolish different taxation system currently active in various states currently and will chain the whole country under one taxation system. All the indirect taxes will be clubbed into two levels of GST, CGST, and SGST. As per this act, a dealer will be able to claim a refund on taxes paid in different stages of product value addition. And the consumer will pay the GST charged only by the last dealer of the supply chain. GST will replace multiple taxation systems levied on various goods.
The GST council will look after the issues related to Goods and services tax and will provide recommendations to the Central and States regarding them. This council will be a joint venture of the Center and the states and will function under the Chairmanship of the Union Finance Minister.
It has been expected that GST implication will hugely change the business sector in India by reducing the unfavorable effect of taxation on their cost. It will build a new system for tax structure, computation, credit utilization, frequency and goods supply chain optimization. It is being expected that GST will make tax procedure more transparent and fair as needed in India currently. Also, it is being expected that GST will create more employment in Indian and will help in economic development.