Tax Alert

Volume 3, Issue 5

29 March, 2010
- S u d i t K Pa r e k h & C o .

Changes in Indirect Taxes

Recently there have been two important changes

on the indirect tax front, pertaining to Service Tax
and Value Added Tax (VAT). This alert outlines
these changes and their implications.

Compulsory Electronic mode this purpose, any person who has

of payment & filing of
Service tax returns
Background
In the era of e-governance, the
Government of India had, some time
back, introduced the facility of e-
payment of Service Tax and e-filing of
Service Tax Return. The facility of e-
filing of returns is, till date, voluntary
for assessees. However, e-payment
was mandatory for the assessees
ǁŚŽƐĞ ͞^ĞƌǀŝĐĞ ƚĂdž ƉĂŝĚ͟ ĂŵŽƵŶƚ
exceeded Rs. 50 Lakhs during any
current year or in the preceding year.
Mandatory e-filing vide
latest Notification
However now, vide the Notification
No. 01/2010 dated 19th Feb 2010,
the service tax department desires to
make both e-payment and e-filing
mandatory for certain categories of
assessees from 1st April, 2010. For
paid service tax including utilization
of CENVAT Credit, of more than Rs.
10 Lakhs in the preceding year will
be covered by this notification.
Manual filing of service tax returns
by such assessees would attract
penalties for non filing of returns.
New procedure for e-filing
The procedure for e-filing includes
following steps:
One time procedures:
i File a User Id (TPIN) request with
the Service Tax Department.
i Get the unique User Id (TPIN) and
Password
Regular Procedures:
i Assessee has option to
(a) File the return online direcly,
or
(b) Download the off-line return
utilities which can be filled-

1
Volume 3 Issue 5 Tax Alert² Sudit K Parekh & Co

in off-line, validated and later uploaded required to be electronically filed in case of

through the internet
i The e-returns have to be uploaded on http://
www.aces.gov.in.
The detailed procedure for e-filing of returns is
mentioned in Circular No. 919 / 09 / 2010 dated 23rd
March 2010, a copy of which can be sent by SKP if
you require it.
assessees who are covered by the Notification. SKP
can assist you in filing your e-Returns.
Value Added Tax (VAT) Rate in the State
of Maharashtra set to rise from 4% to
5%

How SKP can help you
SKP can assist you in the registration process and in
explaining to you the method of e-filing. It may be
noted that the new procedure is effective 1st April,
2010 and would apply to all returns filed on or after
this date. Thus, even the returns for the quarter
ended 31st March, 2010 which would be due to be
filed on or before 25th April 2010 will now be
The Maharashtra Government has issued Notification
No. VAT-1510/CR 47/Taxation-1 dated 10 March,
2010 enhancing the basic tax rate on goods covered
under ͞^ĐŚĞĚƵůĞ ͟ of MVAT Act, 2002, to 5%. The
enhanced tax rate is effective from 1 April, 2010 in
ƌĞƐƉĞĐƚ ŽĨ ŝƚĞŵƐ ĨĂůůŝŶŐ ƵŶĚĞƌ ͞^ĐŚĞĚƵůĞ ͟ ƚŚĂƚ
currently attract VAT @ 4%, other than the declared
goods, as defined under the Central Sales Tax Act,
1956 „

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