Service tax Return if reg. under more than one category

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CA. abhinav kumar (Querist)
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11 December 2009 Service tax Return
We are registered under more than one category of service and we have not provide service under one head of service since last one year. is it necessary to file nil service tax return of that service. company is not providing service any further.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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11 December 2009 Mention in covering letter next timethat since there are no services being provided the nil abstract is not being filed. and as and when there is such a service provided etails woul dbe provided.

CA. abhinav kumar

CA. abhinav kumar (Querist)
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17 December 2009 ok sir , but if we have not attach any covering letter and filed ST return, then what will happen. any consequences and penalty

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Here’s what generally happens:

* **Filing NIL return without covering letter:**
If you file a NIL return for all registered services (including those with no activity) without attaching a covering letter explaining no service was provided under some heads, normally **no penalty or adverse action** is imposed immediately.

* **Best practice:**
It is always better to attach a simple covering letter or note stating that no services were provided under certain categories so that the department has clarity.

* **If no covering letter is attached:**
Usually, the department may send a **show cause notice or query** asking why returns for some services are not filed separately or why no activity is reported. But since you filed NIL returns, it generally indicates compliance.

* **Penalties:**
Penalties usually arise only if returns are not filed at all or there is willful suppression of information. Filing NIL returns shows you have complied.

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**Bottom line:**
You should be fine if you filed NIL returns for all registered categories without covering letter, but it’s safer to send an explanation next time.

Would you like help drafting a covering letter template for future NIL returns?

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