Penalty on late filing of st 3 -nil return -service rendered
This query is : Resolved
Raj Prakash
(Querist)
02 May 2015
Dear Experts,
I want to know whether any penalty will be levied on late filing of ST 3 return, in case of nil return (ie) service has been provided but exempt from paying service tax (Exemption notification no. 25/2012).
Please quote the relevant section/rules along with case law.
Thank you in advance.
I want to know whether any penalty will be levied on late filing of ST 3 return, in case of nil return (ie) service has been provided but exempt from paying service tax (Exemption notification no. 25/2012).
Please quote the relevant section/rules along with case law.
Thank you in advance.
CA R SEETHARAMAN
(Expert)
02 May 2015
Filing of return is compulsory, even if it may be a nil return, within the prescribed time limit, failing which penal action is attracted. (Para 4.9 of FAQ on Service Tax published at the behest of CBEC) https://www.servicetax.gov.in/faq-29sept11.pdf
Recent judgment in the case of Suchak Marketing Pvt Ltd Vs. Comm. of Service Tax, Kolkata [2013 (6) TMI 641 Wherein it was decided that “no penalty under Section 77 of Finance Act or fees under Rule 7C of the STR imposable.
such case is fit for invocation of the proviso to Rule7C and grant waiver of late filing fees.”
Recent judgment in the case of Suchak Marketing Pvt Ltd Vs. Comm. of Service Tax, Kolkata [2013 (6) TMI 641 Wherein it was decided that “no penalty under Section 77 of Finance Act or fees under Rule 7C of the STR imposable.
such case is fit for invocation of the proviso to Rule7C and grant waiver of late filing fees.”
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02 May 2015
No penalty for late filing of Nil return. Citation: M/s SUCHAK MARKETING PVT LTD VERSUS COMMISSIONER OF SERVICE TAX, KOLKATA (2013 (6) TMI 641 - CESTAT KOLKATA) Penalty for late filing of Nil return - Held that:- in view of the Boards Circular No.97/8/07-ST dated 23.08.2007, in the event, no service is rendered by the service provider, there is no requirement to file ST-3 Returns. - there is nothing contrary to that circular - as per Rule 7C of the Service Tax Rules, in the event, nil returns are filed, the assessing officer had the discretion to waive the late fees for filing the ST-3 Returns. In my view, it is a fit case to invoke the proviso to Rule 7C and waive the late fees relating to the nil returns filed by the appellant during the period April, 2005 to March, 2008. - Penalty dropped.
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Raj Prakash
(Querist)
03 May 2015
Thank you Seetharaman sir & Sanjay Sir,
Please define the words "nil return".
whether "nil return" means - no services is rendered during the period
or
it means - service has been rendered during the period for which no service tax is payable due to exemption
or
includes both.
Thank you in advance.
Please define the words "nil return".
whether "nil return" means - no services is rendered during the period
or
it means - service has been rendered during the period for which no service tax is payable due to exemption
or
includes both.
Thank you in advance.
03 May 2015
It includes both. If you have taken service tax registration you need to submit return.
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Raj Prakash
(Querist)
03 May 2015
Thank you sanjay Sir
My friend (Sole Proprietor) filed ST 3 for the period Apr 2014 to Sep 2014 on April 2015 (Service rendered - exempt under notification no. 33/2015).
Whether Assessing officer will levy penalty for this?
If so at what rate?
My friend (Sole Proprietor) filed ST 3 for the period Apr 2014 to Sep 2014 on April 2015 (Service rendered - exempt under notification no. 33/2015).
Whether Assessing officer will levy penalty for this?
If so at what rate?
04 May 2015
As stated above no penalty for late filing of Nil return.�So there should be no penalty.
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