RULE 5 OF SERVICE TAX RULES, 1994
Maintenance of records under the service tax is dealt with the provisions of Rule 5 of Service Tax Rules, 1994. According to the said rule following are the records required to be maintained for the purpose of service tax:
ü Records including the computerised data as maintained by an assessee as per the various laws in force from time to time.
ü Every assessee has to furnish the list of records maintained by him at the time of filing of first service tax returns to the Jurisdictional Superintendent concerned, as under:
a. All the records prepared or maintained to record accounting transactions.
b. All other financial records maintained in the normal course of business.
ü The above said all such records shall be preserved at least for a period of five years.
ü The above said records should be maintained at the registered premises.
WHAT IS MEANT BY ALL THE RECORDS
Here, all the records would be the records maintained for recording the accounting as well as financial transactions. The record for recording of accounting transactions would be for the below:
a) Providing of any taxable service
b) Providing of any exempted service
c) Procurement of input services
d) Procurement or Purchase of inputs or capital goods
e) Manufacture of inputs or capital goods
f) Storage of inputs or capital goods
g) Sale or delivery of inputs and capital goods;
h) Receipt of inputs or capital goods or input services
i) Payment for such inputs or capital goods or input services
j) Other activities
BELOW ARE THE SUGGESTED RECORDS
However, there were no specific records to be maintained for the purpose of service tax. I opine that following would be sufficient for the service tax:
a. Records prepared or maintained by the assessee for recording of all the accounting transactions;
b. All other financial records maintained by the assessee in the normal course of business.
Further, based on the services provided by the assessee, following are the suggested records to be maintained exclusively for recording service tax transactions:
I. Bill register
II. Receipt register
III. Service Tax Master File
IV. Debit / credit Notes Register
V. Reimbursement of expenses Record
VI. CENVAT Credit Register or Statement – For recording
c. Opening and Closing Balances of the Cenvat Credit.
VII. Service tax related documents for the following:
a. Agreements entered with the clients
b. Copies of bills raised on clients
c. Receipts issued to the clients
d. GAR-7 Challans relating to service tax
e. Other documents relevant for service tax.
i. Register or document for the visits by the Department
ii. Correspondences with the Department and
iii. Acknowledgment of documents submitted to the Department
iv. Other documents as organization requires from time to time
Service tax assesses should maintain the above said files, documents, records and the it has to be intimated to the service tax department at the time of first time of filing of service tax (ST-3) returns and the same should be acknowledged.
Further, service tax assessee should also maintain the correspondences file for the communication made with the clients, department as well as their visits. For such visits by them there should be the proper register either at security place and/or Register maintained by the department concerned – stating or containing the below:
a. Date of the visit b. Name c. Designation d. Purpose e. Signature f. Other details as per the organization’s requirement