I want to know whether any penalty will be levied on late filing of ST 3 return, in case of nil return (ie) service has been provided but exempt from paying service tax (Exemption notification no. 25/2012).
Please quote the relevant section/rules along with case law.
02 May 2015
Filing of return is compulsory, even if it may be a nil return, within the prescribed time limit, failing which penal action is attracted. (Para 4.9 of FAQ on Service Tax published at the behest of CBEC) http://www.servicetax.gov.in/faq-29sept11.pdf
Recent judgment in the case of Suchak Marketing Pvt Ltd Vs. Comm. of Service Tax, Kolkata [2013 (6) TMI 641 Wherein it was decided that “no penalty under Section 77 of Finance Act or fees under Rule 7C of the STR imposable. such case is fit for invocation of the proviso to Rule7C and grant waiver of late filing fees.”
02 May 2015
No penalty for late filing of Nil return. Citation: M/s SUCHAK MARKETING PVT LTD VERSUS COMMISSIONER OF SERVICE TAX, KOLKATA (2013 (6) TMI 641 - CESTAT KOLKATA) Penalty for late filing of Nil return - Held that:- in view of the Boards Circular No.97/8/07-ST dated 23.08.2007, in the event, no service is rendered by the service provider, there is no requirement to file ST-3 Returns. - there is nothing contrary to that circular - as per Rule 7C of the Service Tax Rules, in the event, nil returns are filed, the assessing officer had the discretion to waive the late fees for filing the ST-3 Returns. In my view, it is a fit case to invoke the proviso to Rule 7C and waive the late fees relating to the nil returns filed by the appellant during the period April, 2005 to March, 2008. - Penalty dropped.
03 May 2015
Thank you Seetharaman sir & Sanjay Sir,
Please define the words "nil return".
whether "nil return" means - no services is rendered during the period or it means - service has been rendered during the period for which no service tax is payable due to exemption or includes both. Thank you in advance.
CAclubindia
