What are the steps for preparing and filing of service tax returns

ONLINE MODE:

Returns can be prepared and filed on line by selecting the ‘Fill ST-3’ option under RET module after logging into the ACES.

All validations are thrown up during the preparation of the return in this mode and the status of the return filed using the online mode is instantaneously shown by ACES.

OFF LINE MODE:

Returns can also be prepared and filed off-line. Assessee downloads the Offline return preparation utility available at http://www.aces.gov.in (Under Download)

Prepare the return offline using this utility. The return preparation utility contains preliminary validations which are thrown up by the utility from time to time.

PROCEDURE TO UPLOAD

·         Assessee logs in using the User ID and password.

·      Select RET from the main menu and upload the return. Instructions for using the offline utilities are given in     detail in the Help section, under ‘Download’ link and assessees are advised to follow them.

·  Returns uploaded through this procedure are validated by the ACES before acceptance into the system        which may take up to one business day. Assessee can track the status of the return by selecting the appropriate option in the RET sub menu. The status will appear as “uploaded” meaning under process by ACES, “Filed” meaning successfully accepted by the system or “Rejected” meaning the ACES has rejected the return due to validation error. The rejected returns can be resubmitted after corrections.

·      Once the Central Excise returns are filed online in ACES or uploaded to the system using the off-line utility, the same cannot be modified or cancelled by the assessee, except by filing of revised return.

Validation of the entries made while filling return

1.   At the time of making entry in the electronic format of the relevant return, the software does some preliminary validation for ensuring correctness of data, either concurrently or at the time of saving / submitting the return. This validation process is automated. The user is prompted by the application software to correct the particulars entered wherever required. In respect of certain entries, although the application alerts the assessee about any entry found erroneous or inconsistent, as per the automated validation process, the assessee is still allowed to proceed further to complete data entry of the return and finally submit it electronically. But in some cases the assessees are not allowed to proceed further unless the error indicated is corrected.

2.   A return filed electronically is subject to automatic verification process by the application and defective returns are marked to the departmental officer for review and correction. While reviewing the return the officer may seek some clarification from the assessee, call for some information, records or documents which should be furnished by the assessee. In case of review and correction of returns by the departmental officers, assesses will receive a message from the application and they can log in to the application to view the reviewed returns online.

3.   Returns, captured off-line using the Downloadable utility and uploaded later on, are further subjected to certain validation checks. Processing of uploaded returns, using the off-line versions, is done at the end of one business day and the status can be viewed by the assessees under the ‘VIEW STATUS’ link under ‘RET’ module. Status is described as ‘UPLOADED’, ‘FILED’ or ‘REJECTED’ and they denote as follows:

·         UPLOADED denotes that return is uploaded and under processing (assessees are advised to  view the status after the end of a business day).

·         FILED denotes that uploaded return is accepted by system.

·         REJECTED denotes that return is rejected due to errors. (The assessees are required to correct the return and upload it again.)

4.   There is no provision in ACES application to allow assessees to make corrections to the returns filed by them. Once the return is accepted by the system as successfully ‘filed’, no modification can be made by the assessee. However, if the return is rejected, the assessee can correct the errors and upload it again. The assessees are, therefore, advised to take utmost care while fill-in in the returns. They may, however, bring it to the notice of the departmental officers.

Acknowledgement of E-Filing of the return 

In the case of a Service Tax return filed on-line, ACES application software acknowledges it by displaying an Acknowledgement message. A unique document reference number is generated which consist of 15-digit registration number of the assessee, name of the return filed, the period for which return is filed etc. This is also automatically communicated to the email id of the assessee by the application. In the case of an uploaded Central Excise return, using offline utility, similar acknowledgement is generated and sent after the acceptance of the return by the system as a valid return i.e. when the status changes to ‘FILED

This Article is written by CMA Samir Biswal. He can be reached at cmasamirbiswal@gmail.com.

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