delayed filing of return

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Ashok Sharma (Querist)

01 November 2010 if a person who is required to get service tax registration no. but due to wrong guidance he took service tax number but did not file return for 2 years..because he din't provide any service so he didnot collect any service tax.

now my question is that is he laible for peanlty for delayed filing inspite of that he was not liable to pay service tax to the government.

Aditya Maheshwari

Aditya Maheshwari (Expert)

01 November 2010 He will have to file return along with penalty for the 2 years even though no taxable service was provided as per service tax rules.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

01 November 2010 agree with mr. aditya ji,

and penalty for contravention of act / rules will be imposed.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

02 November 2010 But proviso to rule 7C of Service tax Rules,1994 says as follows :-
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.

Aditya Maheshwari

Aditya Maheshwari (Expert)

02 November 2010 But sir whithout paying penalty the service tax authorities do not accept the return and they say that they have specific instructions for not accepting the return before payment of penalty even if NIL return is being filed.

So it is not practically possible to contest the same. Then how to go about it. I had stated above out of my practical experience.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

02 November 2010 Aditya Ji, I am also facing the same situation,often, as you said.

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