Nil service tax return

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Pawan Mittal

CA Final

444 Points Posted on 20 July 2013

Dear Experts,

One of our clients used to file service tax returns upto 2004, when the threshold limit for service tax was Rs. 3 or 4 lacs. But afterwards the limit was raised to Rs. 8 lacs, and our client stopped filling service tax return as his receipts were less than Rs. 8 lacs.

Now whether the nil return was required to be filed by him?

As per Section 70 of Finace Act, 1994, every person liable to pay service tax will file service tax return, therefore in my view my client was not required to file service tax return.

Also tell me the procedure to surrender the service tax registration and whether my client can surrender the service tax registration now?

Replies (2)

Deepak Gupta

CA Student

8353 Points Posted on 20 July 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
.
Instead of not filing the returns, your client could have claimed benefit of Notification No. 04/2007-ST by filing of service tax return as he was within the extended limit of Rs. 8 lakh.
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Now, for the period of October 2007 to December 2012, you can take the benefit of ‘Service Tax Amnesty Scheme’ as the VCES scheme is also for stop filers.

SUNIL KUMAR

student

53 Points Posted on 08 January 2015

sir i have a bata co. frnachies, i want to know my service tax liabilityon what amount whether it is on commission received by me or total sales ,i have st no.,wthere i m leable for file nill st return and whats the procedure.plz suggest me