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Nil return filing in service tax

Melvin Joseph (Founder and chief financial planner) (40 Points)

24 December 2013

I would like to know whether it is mandatory to file a NIL return if service tax liability is nil due to turn over (less than 10 lakhs). I am working as a Certified Financial Planner and the turnover is less than the threshold limit. I was filing NIL returns earlier. But I came to t the know about some cases, where it was mentioned that NIL return filing is not compulsary.

Can I have a confiirmation from the subject experts?

Regards

Melvin Joseph

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18 Replies

Sanket (!..Live to Give..!) (16427 Points)
Replied 24 December 2013

Filing of return is compulsory, even if it may be a nil return, within the prescribed time limit, failing which penal action is attracted. (Para 4.9 of FAQ on Service Tax published at the behest of CBEC) https://www.servicetax.gov.in/faq-29sept11.pdf

Read more at: /forum/nil-service-tax-return-257603.asp#.Urka0tIW03I

Melvin Joseph (Founder and chief financial planner) (40 Points)
Replied 26 December 2013

I got the following from a leading CA.

Relief U/R 7C of STR, Assessee may also note the clause 6 of Circular No.97/8/07-ST dated August 23, 2007

“6. ….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.”

And recent judgment in the case of Suchak Marketing Pvt Ltd Vs. Comm. of Service Tax, Kolkata [2013 (6) TMI 641
Wherein it was decided that “no penalty under Section 77 of Finance Act or fees under Rule 7C of the STR imposable. such case is fit for invocation of the proviso to Rule7C and grant waiver of late filing fees.”

Based on the above, he is of the view that there is no need to file the NIL return. Please clarify.

Regards

Melvin

1 Like

Nagesh (28 Points)
Replied 26 December 2013

Once registeration is done, if your turnover falls below the taxable limit you are required to file ST 3 nil return.

Agreed with Sanket

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 26 December 2013

Dear Sir,

Your CA has shown you the right facts. Various tribunals have held that there cannot be any penalty for non-filing of NIL return in cases similar to yours. The circular referred by you is also support the same. However, just to prevent yourself from haressment and litigations, it is advisable to file NIL returns before the due dates.

1 Like

CA. Nitin Mahajan (Chartered Accountant / Finance Professional) (45 Points)
Replied 30 December 2013

The filing of Service Tax Returns is mandatory for every registered assessee, even if that implies filing nil return. Even practically it is better to file returns in time to save unnecessary hardships. However, in case of a nil return, the penalty is not imposable for delayed filing.

NOUFAL (ACCOUNTANT) (762 Points)
Replied 05 January 2014

4.9. Is filing of return compulsory even if no taxable service provided or received or no payments received during a period (a particular half year)?

Filing of return within the prescribed time limit is compulsory, even if it may be a nil return, failing which penal action is attracted.

Milind M. Kulkarni (Practicing CA) (580 Points)
Replied 11 October 2014

The new excel utility to file ST3 return does not have an option to file a Nil return. If total turnover is below Rs. 10 Lacs, it still calculates service tax payable based on the actual turnover entered and does not give any exemption if turnover is below Rs. 10 Lacs. On trying to generate XML file, it shows the difference between tax payable and tax paid (tax paid is nil as total turnover is below Rs. 10 Lacs). In such case, how to fill and file the service tax return?

Kindly clarify. Thanks in advance.

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 13 October 2014

NIL return can be filied by claiming exemption vide N/N-33/2012 dated 20-06-12 in the appropriate column and the taxable amount shall become zero.

PRANAB KUMAR ADAK (CHIEF ACCOUNTANT) (22 Points)
Replied 28 February 2015

service tax nil, no work, in this position party no return, notice recived from St department, after return submit, delay submission 120 days, 30days, 15 days repectively,

after department demand notice

so you are requested how to proced this demand vacated

pl help me

PRANAB KUMAR ADAK (CHIEF ACCOUNTANT) (22 Points)
Replied 28 February 2015

thank you,

quick mail

DILIP KUMAR MONDAL (advocate) (29 Points)
Replied 21 April 2015

sir, please clear it , i am w/contractor , i will filled st3 but no any turnover so fill nil return but its notification no and sl. no. please tell me sir

Susil Kumar Rout (Accountant) (21 Points)
Replied 13 October 2015

Nil ST-3 return is not possible as online Gross amount / Gross taxable amount -nil is not acepting in the field. what to do to go to submit page with nil tax figure.

Akash Sharma (PRACTICING CA) (39 Points)
Replied 20 October 2015

Hi, I provide accountant services to few of my clients. The fees i charge in whole year is less than 3 lacs in aggregate of all clients taken together. I registered my self under service tax. But is it compulsory for me to charge service tax on every service i am providing? Is there any benefit or exemption for registered service provider whose annual turnover does not exceed exemption limit.

Best Wishes Akash

Rahul Gosai (Student) (22 Points)
Replied 08 January 2016

I have not Filied Nil service tax Return because there is no work Done, But notice recived from Service Tax department for non Filling of return then i have submit the return,

so you are requested how to proced this demand vacated pl help me