Not filed returns because not even opened a current account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2013 Sir/Mam

Because of lacking of knowledge I had registered a service tax no in April 2009, But since i had taken ST-2 I have not done any business, not done any transaction not even opened any current account for the business.
But now my plan is to start a business on a same name but i have visited service tax office to change the address in my ST-2 then they told me that i am a defaulter of not filing the returns and i need to pay the penalty,
Kindly suggest me how the penalty can be waived and what should i produce them to proof that i am genuine. What procedure i should follow?

Thanks & Regards
MSD

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 September 2013 Since no activities has been done, file NIL return for the period from the registration date to till date. This has to be done online. Naturally, the department may initiate penalty for late submission of the returns. Then, you may plead to drop the penalty proceedings relying the proviso to rule 7C of the Service tax Rules,1994.

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2013 Thanks a lot for the info, now i want to change my address in my present ST-2,i know the procedure to change the address but as you know penalty are there because of not filing the returns,so can i change the address without paying penalty for now or i need to pay the penalty first and then after my address can be changed?
Kindly help
MSD

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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04 August 2024 When dealing with service tax compliance issues and address changes, there are a few key points to consider. Here’s how to approach the situation:

### **1. Address Change in Service Tax (ST-2):**

1. **Procedure for Address Change:**
- **Online Update:** You can update your address through the online portal of the Goods and Services Tax Network (GSTN) or through the CBEC-GST website, depending on whether you are in the transition phase or already under GST.
- **Offline Submission:** Alternatively, you can submit a physical application for address change using Form ST-1 to the jurisdictional service tax office.

2. **Address Change Before Penalty Payment:**
- **Possible to Change Address:** Generally, you can update your address without having to first pay any penalties. The address change process is separate from penalty issues.
- **System Restrictions:** However, in some cases, if the system flags your account due to pending penalties or returns, you might encounter issues. You may need to address compliance issues before certain system updates can be processed.

### **2. Penalties and Pending Returns:**

1. **Penalty Payment:**
- **Pay Penalties:** Penalties for non-filing of returns or late filing should ideally be addressed. Not paying penalties can lead to further legal complications and might affect your ability to make other changes, such as updating your address.

2. **Filing Returns:**
- **File Pending Returns:** Ensure that all pending returns are filed. Service tax authorities can levy penalties for non-filing, and these penalties accrue until the returns are filed.

### **3. Recommended Steps:**

1. **File Pending Returns:**
- **Prepare and Submit:** Ensure that you prepare and file any pending service tax returns. This is crucial for compliance and for reducing any further penalties or issues.

2. **Pay Penalties:**
- **Clear Dues:** Pay any outstanding penalties. Clearing these dues will help in maintaining compliance and avoiding further issues.

3. **Update Address:**
- **Change Address:** Proceed with updating your address using the online or offline methods mentioned. If there are system restrictions, the authorities may allow the address change once penalties are settled.

4. **Consult with Authorities:**
- **Seek Clarification:** Contact the service tax department or consult with a tax professional to get specific guidance on updating your address and resolving any penalties or compliance issues. They can provide insights based on your specific situation and jurisdiction.

### **Steps to Change Address:**

1. **Log In:**
- Log in to the CBEC-GST portal (if applicable) or the relevant service tax portal with your credentials.

2. **Navigate to the Address Change Section:**
- Find the section where you can update your address details.

3. **Submit the Application:**
- Enter the new address details and submit the application. Ensure that all other details are correct.

4. **Confirmation:**
- Once submitted, you should receive a confirmation of the address change. Keep this for your records.

### **Sample Communication with Tax Authorities:**

If you encounter issues with changing your address due to pending penalties, you can write to the tax authorities for clarification:

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**Subject:** Request for Address Change and Resolution of Pending Penalties

**Dear [Tax Authority/Service Tax Department],**

I am writing to request a change of address for my service tax registration. I understand that there are pending returns and penalties associated with my account. I am in the process of filing the pending returns and addressing the outstanding penalties.

Please advise if it is possible to update my address while I am resolving the pending compliance issues. If there are any specific steps I need to follow or if the address change can only be processed after clearing all dues, please let me know.

Thank you for your assistance.

**Sincerely,**
**[Your Name]**
**[Your Contact Information]**
**[Your Service Tax Registration Number]**

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By following these steps, you can ensure that your address is updated while working on resolving any outstanding compliance issues.

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