Assessment procedure under service tax

By | November 11, 2013

Assessment procedure under service tax

Self assessment under service tax

As per section 70 of finance act 1994,every assessee under service tax is required  to himself assess his tax liability as per provision of law on the services provided and  furnish the return  in prescribed manner and form to the superintendent of central excise.

But section 14 of central excise act, 1944 empowers central excise officer to issue notice to any person to appear before him and produce evidences and required documents related to filing of return which he can check to find the correctness of return and information given in return.

Provisional assessment under service tax

When any person who is providing taxable services and liable for payment of service tax is not certain about quantum of receipt or service tax to be deposited then he can make application to central excise officer to allow him to make payment of service tax on provisional basis. And such application or request should be given before the last due date for payment of service tax.

Central excise officer on receipt of such application may allow the assessee to make payment on provisional basis.

Any assessee who wants to make payment on provisional basis have to file a statement giving details of service tax deposited and service tax liable to be paid and difference between both of them for each month in form ‘ST-3A’.

After filing of statement in form ‘ST- 3A’ the central excise officer shall complete the assessment and if it is necessary then they can call the person and demand the required documents and evidences to produce before them.

Best judgment assessment under service tax

Section 72 of finance act, 1994 gives power to central excise officer to make best judgment assessment of any service provider if

  • Assessee fails to furnish the service tax return
  • Assessee files the service tax return but fails to assess service tax as per provisions of finance act, 1994

For making best judgment assessment, CEO make ask the assessee to produce such accounts,documents or other evidences which are necessary for process of assessment.


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