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Nil return penalty

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This query is : Resolved

SABREZ ALAM (Querist)

26 May 2014 I have not file my service tax return till now for the period oct to march 2014. No service provided by me in this period. I want to surrender my STN. is it possible without filing return or not If no there is penalty of belated nil return

mtvcamba

mtvcamba (Expert)

26 May 2014 Though i am not able to recollect a recent judgement it was in the favor of the service provider. ie if there is no service provided then there is no requirement of filing returns for the same.

Annu Agarwal

Annu Agarwal (Expert)

27 May 2014 As per section 70 read with Rule 7C of Service Tax rules,there is a maximum penalty of Rs 20,000 in case of non-filing of service tax return.

But the penalty cn be waived off if the Central Excise Officer is satisfied that Gross amont ofservice tax payable was NIL.

Als in a recent judgement of M/s Suchak Marketing Pvt Ltd VS Commission of Service Tax Kolkata (2013),it was upheld that it is not necessary to file NIL Service Tax return.

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