Under the existing scheme of law, Rule 7 of the Service tax Rules, 1994 read with its sub-rules deals with the provisions relating to the service tax return.
As per Rule 7C; where the return prescribed under rule 7 is furnished after the date prescribed for submission of such return, the person liable to furnish the said return shall pay to the credit of the Central Government, from the date prescribed for submission of return i.e. 25th of the month following the particular half year till the date of furnishing of the said return, the following penalty:
Now, As per Section71 (C) of the Finance Bill 2011 proposed vide Union Budget on February 28, 2011; ‘in Section 70 (1) of the Finance Act, 1994, for the words “two thousand rupees”, the words “twenty thousand rupees” shall be substituted’.
After enactment of Finance Bill 2011, the following position has emerge out:
| Period of Delay | Penalty/late fee before finance bill 2011 | Penalty/late fee After finance bill 2011 |
| for delay up to 15 days | INR 500 | INR 500 |
| for delay beyond 15 days but up to 30 days | INR 1,000 | INR 1,000 |
| for delay beyond 30 days | INR 1,000 + INR 100 per day (from 31st daysubject to a maximum amount of Rs 2000. | INR 1,000 + INR 100 per day (from 31st daysubject to a maximum amount of Rs 20000. |
‘Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty’.
Analyzing the effect of this amendment it is clear that the penalty in respect of the non-furnishing of return in due time limits, would now result as multifold financial impact on the assessee as the same is increased to 10 times of the existing amount prescribed. Therefore, if an assessee has not filed his/her return in due period, the financial impact in respect of penalty could be more than the actual tax liability.
Further, as per Notification No. 05/2006-ST, in case any assessee has discontinued his/her business and has to surrender the service tax registration and upon submitting the application for cancellation of registration the Superintendent of Central Excise shall ensure that the assessee has paid all monies due to the Central Government. As per the procedure, the assessee has to file the return for at least two immediately preceding half years. Normally, in such a case, the assessee, due to discontinuation of his/her business, stops filing the returns. Now, as a result of the amended provisions relating to penalty for non-submission/ delayed submission of returns, the assessee in such cases could end up in paying the penalty portion which will be multifold the service tax liability.
Due Date for Filing October11 to March 2012 ST-3 Service Tax return is 25.04.2012
Due Date for Filing October11 to March 2012 ST-3 Service Tax return is 25.04.2012
how to pay penalty ( online) for late filing of service tax return
ReplyDeletebank of india site have only two options -payment of service tax and interest for late deposit of tax.
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ReplyDeletei am a manufacturer, but i am trading some imported product with intimation to department. Can i liable to pay service tax on that?
ReplyDeletesir, in my NBFC, interest income does not exceed 10 lac does it carry any service tax? does interest from own funds req. service tax to be paid?
ReplyDeleteI had got Service Tax Registration Number during the year 2008 in the name of my Firm.
ReplyDeleteHowever, I did not start the business and did not collect any service tax. I shut the business within 3 months.
However, I did not DE-REGISTER the Service Tax Number, as I was not aware of the fact and I did not file even NIL returns, because I actually DID NOT render any service.
It is almost 4 years now.
Yesterday, I got a call from Service Tax Department asking me to file returns, pay huge penalty of thousands of money and de-register the service tax number.
What recourse do I have?
Is it not abuse of law.
There should be no tax and penalty for genuine reasons.
Why did the authorities did not contact me before?
Why did it take 4 years?
Can I seek protection under Limitation Act.
Kindly, clarify, as I have zero knowledge about tax and if I approach the auditors/CA they ask thousands of money.
If person has shut down his business or in case of nil return , it has been generally observed that department is not charging any fees for non filing of service tax return .
Deleteso you should ,contact department employee and ask him to help in cancellation of service tax number.
My service tax number taken on Sep-2011, since then not return have been filed, due to limitation of Rs. 10 Lakh exemption. My questions are that:
ReplyDelete1) Whether I have to file all the return, and is it mandatory?
2) If there is any penalty then what should be the gross penalty amount ?
Please advice me.
Sir, please tall me how much penalty for late service tax return, it's my first time. some body told me that service tax return file will be
ReplyDeleteyearly. so how can submit return file to gov.