Long pending s.t return

nature of taxable services provided are required to discuss the thread

Commissioning  in  engineering segment.

Dear Ashish,

I am dealing with a similar case. But in my case it's an Input service distributor. Though the regularisation is still in process, the proposed course of action is as follows:

You can send a letter to the range office for issue of a PAN based Service Tax Registration Number and TPIN & password for Online filing of returns with reference to your old Registration number. If the old registration is not dormant or is not revoked by the department, the range officer may issue you the PAN based Service Tax Registration Number and TPIN & password. I think that returns for previous periods could not be filed online. Hence you should get your previous returns prepared in Mannual format and file the return for the current period online. It's obvious that while assessing the return summarily opening balances would not be found, hence the department may issue you a notice for the same. In that case you may be required to file your returns along with late fees (Rs.20000 per return as this is the maximum late fees w.e.f. 01.04.2011) & Penalty u/s 77 of Finance Act, 1994 as amended.
Another option is that before filing Online return, you can contact the department on the matter directly and find the further course of action to be taken. By doing this you can avoid unnecessary proceeding that could be initiated.

In any case it's a case of contravention of provisions of the Act. This is my opinion on the query. You can wait for other feeds.

1. yes you can regularize your returns by filing the old returns with tax interest and penalty.

2. input credit allowed if the input services are used within or in direct relation to taxable output services and service tax is paid without availing any exemption.

3. not refundable but adjustable with tax on output services.

Dear Prabhat,

Please refer Para 6.1 of the Circular no.97/8/2007 dated 23/08/2007.

It clearly says that "Persons who are not liable to pay service tax  (because of an exemption including turnover based exemption), are not required to file ST-3 return."

Presently, i am dealing with a case where the proprietorship concern registered for STC back in 2002. it filed returns till 2005 but then it didnt file its returns and it was below the SSI Exemption limit back then. Till date it is below SSI Exemption limit. But now assessee applied for PAN Based STC & so department is levying penalty for non-filling of ST-3 Returns since 2005 to 2011. The Gross Turnover never exceeded the SSI Limit as and when amended in all these years.

and another issue is - Penalty for non/late filling of Rs.20,000/- is w.e.f. Finance ACt 2011 (1.4.2011) and the text of the Act does not say anything about Retrospective Penalty at higher rate for unfiled returns of Prior Periods. SO CAN DEPT. LEVY PENALTY AT FLAT 20,000/- PER RETURN OR IT SHOULD BE CALCULATED AS PER PENALTY PROVISIONS AS APPLICABLE FROM TIME TO TIME?

Plz advise