Non-filing of service tax nil return

Friends,

One of my friend - a sole proprietor, had registered under service tax 4 years ago, but has not filed any returns till date as he has not done any business. What are the consequences of non-filing of NIL returns? Will there be any penalty? If yes, is there a way to avoid it? If he wants to surrender the registration, will the non-filing be a issue? Please suggest a cost-effective and simple way out.

Thanks & Regards,

Maheswari

Replies (1)

Yes, there is possibility of penalty under Section 70 of F.A.1994 read with Rule 7 of STR'1994. However under Rule 7(C) C.Ex.Officer can waive penalty for genuine reason.

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