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Service tax compliance

CA HARI SHANKAR KUMAR (CA Job) (46 Points)

21 March 2013

sir

please be requested to advice on issue:

a maintenance contractor applied for service tax registration and got the same three year back . but didnot file ant return for the same as his assumed that he is below the thrasehold limit .

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3 Replies

Sunil (Trader) (2611 Points)
Replied 21 March 2013

If you are below treshold limit you have to get the registration cancelled. You will have to pay tax on whatever turnover is there till the time your registration is cancelled. Your returns should show below taxable limit also then only will they agree to cancel provide all your liability is discharged. If there is no notice pending, then maybe you can avail of the scheme in the budget to pay the service tax due and get the registration cancelled. At time of cancellation you will have to surrender the CENVAT credits availed if any.

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CA.VATSAL SHAH (SERVICE) (202 Points)
Replied 25 March 2013

after obtaining registration, assessessee are liable to file st return. if your service income is below threshold limit then accordingly file the returns showing nil liability

Sunil (Trader) (2611 Points)
Replied 05 April 2013

CA VATSAL SHAH, you can file nil return only IF you registered when your turnover crossed the limit for registration based on which you register as person having crossed that limit (currently 9 lakhs) but you should not have crossed the limit to satart paying service tax in the year of registration (currently 10 lakhs). If you have crossed the 10 lakh in same financial year registered, you have to pay service tax on crossing 10 lakhs and you have to pay service tax from first rupee next financial year even if you do not cross the 10 lakhs i that financial year. Now cancellation of registration can be done in a subsequent financial year only if you have not crossed 10 lakhs again. However, in this case, if at all they are liable to pay service tax on crossing the treshold in the year of registration itself, they have to pay service tax till the time they are registered and must file all returns with tax and apply for cancellation if eligible.