Filing of Return by persons having turnover below thrsesold limit

This query is : Resolved

CA. O.P. Agarwalla (Querist)
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20 November 2007
As pr circular no. 97/2007, persons who are not liable for service tax need not to file ST-3. Please go through the following para of the said circular:-

6. Service tax return

6.1 The service tax return is required to be filed under Section 70 of the Act read with rule 7 of the Rules, by 'any person liable to pay the service tax'. This return is required to be filed on a half yearly basis, in Form ST-3. For the periods from April to September and October to March, it must be filed by the 25th October and the 25th April respectively. Further, ‘Input Service Distributor’ is also required to file this return. Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return.

6.2 A single service tax return should be filed (in Form ST-3) in respect of all taxable services provided by an assessee. Detailed instructions for filling the return are given in the return form itself.

Dayal

Dayal (Expert)
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20 November 2007 Person not liable to service tax and not registered with service tax authorities need not file ST-3 Returns

However if registration has been sought and for some reason there has been no income on account of provison of services, still nil returns will have to be filed, since reigistration is in force

If it has been decided not to continue as a service provider, it would be ideal to surrender the registration with appropriate reasons to the authorities

If registration has been sought after achieving the turnover of 7 lacs and for any reason the threshold limit of 8 lacs was not achieved during that financial year, still returns will have to be filed, as registration has been sought.

Once registration has been sought, filing of returns is mandatory.

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CA. O.P. Agarwalla

CA. O.P. Agarwalla (Querist)
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20 November 2007 This is the point of discussion. If any one is registered with Service Tax, and his expected turnover is below 8.00 Lacs, under which section he is compelled to file his return?
Whereas Circular is clearly saying that- Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return.

Dayal

Dayal (Expert)
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21 November 2007 Then my goods sir, you need to file your returns, and if you feel that your taxable turnover for the current financial year will be below the threshold limit of 8 lacs then please surrender your registration with appropriate reasons and you can seek new registration whenever you exceed your threshold limits.

This way atleast you will safeguard your interest for not paying penalty and interest clause

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