It is that time of the year again when tax payers begin to fret. There is always huge confusion among tax payers and often they find themselves in the middle of nowhere with no one to answer their questions. So, we decided to float information on the DO’s and DON’Ts so you can make informed decisions.
A lot of people tend to assume that the due date may be extended. Just because it happens occasionally doesn’t mean that the due date to file Service Tax Return will necessary be extended from April 25 this year 2016 as well. Do not wait for extension.
File your return early so you don’t fall short on the deadline.
Another common mistake people make is that they wait for the determination of actual Tax Due for the payment of Service Tax and Cess so that he correct amount shall be paid. However this might need more time. Remember, the more you delay the payment, greater would be the interest.
Pay upfront at least the amount, considering legitimate CENVAT Credit available and other benefits, you think you will necessarily have to pay. This will mitigate your burden of interest.
It is always advisable to file correct Service Tax Return within time. However, if you believe that you may make mistakes in case of filing return within time, in my opinion, it is better to file return a little late with late fee.
It may also happen that you will soon realize that determining correct Tax Due and putting correct data in the correct column of Service Tax Return is a tedious procedure and filing of return on your own will land you in trouble.
In such cases, it always makes sense to hire a specialized professional of Service Tax who will save both your time and money.
Having said that, it is important to understand that your details should be kept confidential. Remember, your information is private. Be double sure before sharing your User ID and password with someone.
Share your credentials only with a person whom you rely entirely on, Check from the ACES site that your account is working and is not blocked else you only end up getting frustrated at the time of filing of Service Tax Return.
Keep your documents like return, tax challan, invoice, cenvat documents, annual reports, agreements etc. on Cloud Server or Google Drive. This way you will be able to maintain separate copies, access them from any part of the world as and when required, give the same to your accountant, consultant or Tax Officers instantly and also save them from accidental loss.
Upload documents on cloud will definitely reduce your cost and saves time to a large extent.
It is important to not only keep your documents on cloud but also organise them properly and physically. The more organized you keep your invoice, receipts, CENVAT statement, tax challans, back calculation sheet and other relevant records and books, the easier it becomes for you and your professional or accountant to compile the data smoothly and correctly for ST return.
Keeping things organized helps facilitate processes. This will also save you from making mistakes and make the process quick and easy.
Here, it is important to highlight how disastrous concealing information can be. Neither hide any revenue source nor intend to evade tax by any means because your ST Return (ST-3) is now reconciled with the IT Return, TDS Return , 26-AS and other statutory records. If you make efforts in building your business activity and focusing on the right things rather than saving tax by unlawful means, you will be able to generate more revenue than you would otherwise want to save or hide.
Keep your records clean and stay honest.
Last but not the least: it is all in the mind. Stress is a mental state. Take healthy meals and exercise daily to keep stress levels low and be more productive at work and in family.
Practicing these habits consistently activates your mind and body and keeps you agile.