Service returns

This query is : Resolved

k suresh babu (Querist)
Follow

27 September 2016 Sir, Manpower agencies company started dec 2015 . We registered service tax number dec15. But we started business april 2016 . we collected service tax against manpower agency and deposited amount . Oct 15 to march 2016 service tax nil. But Manpower agency not filed nil returns. It is compulsory filing for nil returns. Any penalty is applicable. Service tax will accepted oct 15 to march 16.

Man power agency short amount deposited diffrence Rs.90/- for the quarter april to june 2016 and krishi kalyan cess deposited exess. Is short payment applicable any interest and excess payment will allow carry forward. If carry forward which column we will fill . short amount payment deposit what is the rate of interest we will pay. Please reply

Rajannaidu

Rajannaidu (Expert)
Follow

27 September 2016 In view of Circular. Circular No. 97 / 8 /2007 dated.23rd August, 2007 para 6.1, it is very clear that service tax returns are not required to be filed if the Persons who are not liable to pay service tax (because of an exemption including turnover based exemption),
There are few cases which are supporting to this argument.
1. M/s Suchak Marketing Pvt Ltd
2. Amrapali Barter Case
3. M/s b & a multiwall packaging ltd-vs-commissioner of central excise
4.
Small analysis
The service tax return is required to be filled under Section 70 of the Finance Act, 1994 by 'Every person liable to pay the service tax'.

And under the provision of Rule 7 of the Service tax Rules, 1994, 'Every Assessee' is required to submit service tax return.

Assessee defined in the law is an 'Assessee' is a person liable to pay service tax

Thus, it can be well understood that, person who are not liable to pay service tax because of the exemption are not required to file ST-3.

The same thing was clarified in the circular F.No. 137/58/2007-CX.4 dated 29.3.2007 also.
Short payment has to be paid with interest of 15% ( rate of interest 15% effected from 14th May 2016) before up to 6 months -18%, More than six month and up to 1 year -24%, More than a year -30%
Excess payment made by you can be carry forwarded to subsequent month with due information to the jurisdiction officer.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok