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Effect of Non Filing of ST-3 Returns since from 4 years

Queries 1057 views 1 replies

Indudhar

Tax Advocate

427 Points Posted on 13 April 2010

Dear friends,

Many of my small clients have received notices form the Central Excise Officer for not filing of ST-3 returns since from 4 to 5 years. They include petty photostudios, engineers and small choultries..I talked to the officer for surrendering, he said to file all NIL returns till to date with penalty & then surrender the same. I think he is doing this for expecting something. Since all are petty service providers, cant afford to pay the penalty. What shall be the convinient way of surrendering the ST certificate & get rid of the same?

Please also provide me the service tax exemption limit for

2003-04, 2004-05, 2005-06, 2006-07, 2007-08, 2008-09 & 2009-10..

Please help me out guys...

Replies (1)

Chintan Vasa

CA Final Student M.Com

1241 Points Posted on 13 April 2010

Proviso 2 to Rule 7C of Service Tax Rules provides that

"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"

As provided in the rule he can waive if you provide sufficient reason. So the remedy is to provide highly satisfying reason which he cannot refuse.