Service tax matter

CA Prakash N (Head - Indirect Tax (GST & FTP)) (373 Points)
Replied 15 February 2016

As you said that you haven't registered n filed ST 3, my suggestion is to check whether you are eligible to avail SSP exemption up to Rs. 10L where you are not required to get register till 9L and no requirement of payment & filing returns till 10L. 1. Late registration under service tax Earlier to 2004, there was penalty of Rs. 500/- for late registration as per Sec 75A of Finance Act 1994 Now same has been omited. Therefore, no penalty for late registration 2. Late filing of returns From due date Up to 15 days Rs. 500 Up to 30days Rs. 1000 More than 30 days 1000+ 100 per day maximum of 20,000. Exception: If your liabilty is nil & there is reasonable cause for not filing, then CEO may waive such penalty. 3. Implied question, what is interest and penalty for late payment? Interest @ 18% (if turnover is less than 60L in PFY then 15%). Penalty can be imposed by departmental officer, You are not required pay to as of now.

CA Prakash N (Head - Indirect Tax (GST & FTP)) (373 Points)
Replied 15 February 2016

As you said that you haven't registered n filed ST 3, my suggestion is to check whether you are eligible to avail SSP exemption up to Rs. 10L where there not required to registration till 9L and no requirement of payment & filing returns till 10L. 1. Late registration under service tax Earlier to 2004, there was penalty of Rs. 500/- for late registration as per Sec 75A of Finance Act 1994 Now same has been omited. Therefore, no penalty for late registration 2. Late filing of returns From due date Up to 15 days Rs. 500, Up to 30days Rs. 1000, More than 30 days 1000+ 100 per day maximum of 20,000. Exception: If your liabilty is nil & there is reasonable cause for not filing, then CEO may waive such penalty. 3. Implied question, what is interest and penalty for late payment? Interest @ 18% (if turnover is less than 60L in PFY then 15%). Penalty can be imposed by departmental officer, You are not required pay to as of now.

CA Prakash N (Head - Indirect Tax (GST & FTP)) (373 Points)
Replied 17 February 2016

However, as per Section 77(1) any person who is liable to pay service tax or required to take registration, fails to take registration shall pay penalty of Rs. 10,000/-

sunny (STUDENT) (27 Points)
Replied 17 February 2016

Apr-15 to June-15 tak collect Service tax 2000.00 Rs, hai. and July-15 to Sep-15 tak 1210.00 hai and Oct-15 to Dec-15 tak 920.00 hai.....or registration 12.12.2015 ko liya hai...to ab kya Apr-15 se Sep-15 wala return late fees ke sath lagega or ye b bataiye ki late registration aur late return ki penalty sath me lag sakti hai kya ? kyonki jab registration hi nahi liya tha to return ka sawal hi nahi banta hai....please reply as soon as posible

sunny (STUDENT) (27 Points)
Replied 18 February 2016

Apr-15 to June-15 tak collect Service tax 2000.00 Rs, hai. and July-15 to Sep-15 tak 1210.00 hai and Oct-15 to Dec-15 tak 920.00 hai.....or registration 12.12.2015 ko liya hai...to ab kya Apr-15 se Sep-15 wala return late fees ke sath lagega or ye b bataiye ki late registration aur late return ki penalty sath me lag sakti hai kya ? kyonki jab registration hi nahi liya tha to return ka sawal hi nahi banta hai....please reply as soon as posible

Read more at: /forum/details.asp?mod_id=349761&offset=1

sunny (STUDENT) (27 Points)
Replied 18 February 2016

Apr-15 to June-15 tak collect Service tax 2000.00 Rs, hai. and July-15 to Sep-15 tak 1210.00 hai and Oct-15 to Dec-15 tak 920.00 hai.....or registration 12.12.2015 ko liya hai...to ab kya Apr-15 se Sep-15 wala return late fees ke sath lagega or ye b bataiye ki late registration aur late return ki penalty sath me lag sakti hai kya ? kyonki jab registration hi nahi liya tha to return ka sawal hi nahi banta hai....please reply as soon as posible

Read more at: /forum/details.asp?mod_id=349761&offset=1

CA Prakash N (Head - Indirect Tax (GST & FTP)) (373 Points)
Replied 19 February 2016

Dear Sunny,

Based on your facts, it is noted that your taxable service turnover would not have been crossed 9L in a FY. You were eligible for Small service provider exemption (SSP) as per notification 33/2012 ST.

However, as you have charged and collected service tax, you are required to remitt to Govt within due dates and take registration in time.

Liability on your part

1. Take registration within 30 days from the date of liability -

2. Pay ST on due date

3. File returns half yearly.

1. Registration - You can pay such late regi penalty during departmental audit. Possibility of doing audit for your entity is very less.

2. Payment - In case of late payment, you should pay interest as applicable.

3. Returns. As you have taken registration from 12.12.2015, you can file return for the period Oct 15 to Mar 15, by showing earlier liability as ARREARS. (Penalty can be paid if deparment insist you to pay)

Penalty is not voluntary here. Therefore, you can wait till departmental audit comes. But tax and interest pay on time.