obligation to file service tax return

Save Share

This query is : Resolved

Divine Kaur (Querist)

09 February 2008 dear all,
An assesse files his service tax returns in year 1(say) since he is registered(i.e. the value of taxable services provided by him has exceeded rupees seven lakhs) and the value of taxable services provided by him is in excess of rupees eight lakhs.Now if in year 2,3 and 4 the value of taxable services provided by him does not exceed rupees eight lakhs then is he liable to file his service tax returns in the 5th year.is there any clause stating that if for three consecutive years the value of taxable services provided by an assess is less than rupees eight lakhs then he may NOT file his service tax returns in the fourth year? If yes then please give me the exact reference of the said clause in the ACt or Rules or any notification. My mail id is divinetaneja@gmail.com.
Thanks

R.V.RAO

R.V.RAO (Expert)

10 February 2008 AS LONG AS YOU ARE A REGISTERED SERVICE PROVIDER UNDER SERVICE TAX ACT,YOU NEED TO FILE SERVICE TAX RETURNS EVEN IF IT IS NIL RETURN.YOU CANNOT DISCONTINUE TO FILE RETURNS.
IF YOU FEEL YOU ARE NOT HAVING VALUE OF TAXABLE SERVICES AS PER THE ANNUAL LIMITS , YOU NEED TO MEET THE SERVICE TAX DEPT UNDER CENTRAL EXCISE DEPT.GIVE THEM A LETTER, TAKE ACK.
IN THE LETTER STATE THE CIRCUMSTANCES AND THE DATE FROM WHEN YOU STOP FILING RETURNS AND ALSO ASK FOR DEREGISTRATION.ACCORDINGLY YOU MAY PROCEED.
SUB SECTION (2) OF SEC 70 OF SERVICE TAX ACT REQUIRES PERSONS OTHER THAN PERSONS LIABLE TO PAY SERVICE TAX( LIKE CONSIGNOR,CONSIGNEE,M.F,ETC...)ALSO TO FILE RETURNS.
IN CASE YOU FALL UNDER THIS CATEGORY ALSO , YOU NEED TO FILE RETURNS.
R.V.RAO

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now