LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Any penalty for late filing on NIL return

CA Nilesh Sodhani (CA) (411 Points)

26 March 2009

Plz let me know whether there is any penalty for Late filing of NIL Service Tax Return ....

Reply
Follow
Share

24 Replies

satynarayan tiwar (Professional) (61 Points)
Replied 26 March 2009

penaly under which? for late filing or another way?

CA Trinath Galla (student) (3130 Points)
Replied 26 March 2009

ya there may be, bcoz the sections relating to service tax in finace act juz says there will be penalty for late filing of service tax return. it doesn matter whether it is nill return or other

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 27 March 2009

Rs. 2000/-

(Guest)

Yes its 2000.

1 Like

Ruchi Jain (Practice) (29 Points)
Replied 30 March 2009

there is power with the assessing officer to wave the penalty on nil return. However, with A.Y 2009-10, there is penalty for nil return also. The penalty is Rs. 1000

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 13 September 2009

Originally posted by :Rajesh Kumar
"	Rs. 2000/-	"

Dear Sir,

You have mentioned a fine of Rs 2000.00 for delay filing a NIL Return.

But the Act 78 says

78. Penalty for suppressing value of taxable service. –

(e) contravention of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax, the person, liable to pay such service tax or erroneous refund, as determined under sub-section (2) of section 73, shall also be liable to pay a penalty, in addition to such service tax and interest thereon, if any, payable by him, which shall not be less than, but which shall not exceed twice, the amount of service tax so not levied or paid or short-levied or short-paid or erroneously refunded:”;

IF MY TAX BURDEN IS Rs 0.00. THEN WHAT WILL BE THE TWICE

PLEASE LET ME KNOW IN DETAIL

Satish (CA Final Student) (479 Points)
Replied 14 September 2009

Penalty in your case is subject to show cause notice. No need to pay volunterily any penalty. just go & file the return, Let the department issue show cause notice, if u could justify the reason for non filing of return within due date, there will be no penalty and sec. 80 applies to you.

80. Penalty not to be imposed in certain cases. –

Notwithstanding anything contained in the provisions of section 76, section 77 or section 78, no penalty shall be imposable on the assessee for any failure referred to in said provisions, if the assessee proves that there was reasonable cause for the said failure.

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 14 September 2009

Mr Satish,

Thanks a lot for your comment

MY COMMENT WAS ONLY FOR NIL RETURN.(Rs 0.00 as Serice Tax Burden)

IF YOU HAVE ANYTHING MORE REGARDING NIL RETURN PLEASE LET ME KNOW

Satish (CA Final Student) (479 Points)
Replied 14 September 2009

Mr. Eklabya, You have commented on a different section. Section 78 applies to only those who has a service tax liability and there is a suppression or evasion of such liability with a culpable state of mind or fraud or collusion etc. When there is a Nil service tax, that section does not at all apply to the query raised in this thread. In fact, after 16th May, 2008, there is no specific penalty for non filing of return but section 77(2) talks about the penalty for non compliance of any provision of the finance act & which may extend to 5000. Filing of return is a provision & non compliance of such provision may attract section 77(2). But Section 80 gives relief to the assessee if he can prove some reasonable cause for non filing.

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 14 September 2009

Mr Satish.

Thanks a lot for yuor discussion. Suppose a company is having three SERVICES registered in his SERVICE TAX REGISTRATION. Now he is supposed to submit three Returns (one for each service), out of three one is NIL Return, how you can say his attitude is not fair.

There are several small enterpenures have taken registration at begining. But now they are not in the tax net. Still kept the REGISTRATION CODE. What they do = Submit a nil return.

I will be happy for your valued comment

Satish (CA Final Student) (479 Points)
Replied 16 September 2009

Mr. Eklabya, please try to understand the law relating to service tax before u comment on it. Where did I comment on fair attitude?? Provisions of Service tax are very vast and one need a deep interpretation to understand it. Basically, this thread started with the penalty for non filing or late filing of nil return. You have commented on some different section which is not at all related to this thread. Any ways I have explained you the difference between the provisions of these different sections. Still u have given a situation of filing return for three different services rendered. I HAVE SAID EARLIER, AS OF TODAY, THERE IS NO DIRECT PROVISION FOR PENALTY ON NON FILING OR LATE FILING OF RETURN. THERE IS INDIRECT WAY OF CHARGING PENALTY AND ALL THE PENALTIES ARE SUBJECT TO SHOW CAUSE NOTICE WHERE AN OPPORTUNITY TO PROVE THE REASONABLE CAUSE IS GIVEN TO THE ASSESSEE.

Now coming down to your query. First of all, there is no need to file three different returns for theree different services. There is a provision to file a single return for all the services. As far as penalty for non filing of return is concerned, I have explained herebefore. Now, if there is non payment of service tax, there is a penalty u/s 76 (you have copied this section from www.servicetax.gov.in and pasted in ur other thread). But this is again subject to show cause notice. In many high courts had held previously favouring the assessee to waive off the penalty under this section on reasonable grounds.

You have directly jumped to section 78. To invoke this section, the department has to prove that there is a culpable state of mind, the servcie tax has been evaded deliberately with an intent of fraud or collusion. To prove this, there is lot of procedure which generally not an easy process.

So before giving comment, please keep in the mind that there should be fair disccussion and sharing of factual knowledge & not giving misleading information. If you dont know something, ask by way of thread, someone will answer you. But dont discuss it in the form of answer to sombody's thread unless you are aware of the provisions relating to that thread.

Dont take it in a wrong way. The way you have asked me, I have answered it. There was no intention to hurt you.

maya (Accounts Assistand) (41 Points)
Replied 17 September 2009

Sir,

We have to file the half yearly Service Tax return, but our auditor is telling that in October first week they will come for that work, I wanted to know what is the last date for Service tax half yearly return file. it is nil return Plz let me know whether there is any penalty for Late filing of NIL Service Tax Return .whether they file it in October 1st week .

Thanking you,

Maya

For Durvaa Grafics Pvt Ltd,

ramesh (Sr.Executive Accounts) (92 Points)
Replied 17 September 2009

Rule 7C : Where the return prescribed under rule 7 is furnished after the date prescribed for submission of such return, the person liable to furnish the said return shall pay to the credit of the Central Government, for the period of delay of-

(i) fifteen days from the date prescribed for submission of such return, an amount of five hundred rupees;

(ii) beyond fifteen days but not later than thirty days from the date prescribed for submission of such return, an amount of one thousand rupees; and

(iii) beyond thirty days from the date prescribed for submission of such return an amount of one thousand rupees plus one hundred rupees for every day from the thirty first day till the date of furnishing the said return:

Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.

It's obvious that even if there is no transaction during the period . a NIL St-3 return should be filed