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Penalty or late fee for nil service tax return

Nupur Sharma (CA) (426 Points)

16 June 2015

Hi All!

A client of mine works as a freelancer working for US based clients only. He is exempt from service tax under export of service rules, however he had taken up service tax registration and was e-filing ST returns as well. For last half year , he has not yet filed the service tax return , for which the due date was 25th April 2015. Now my query is whether he should be paying any interest or penalty as per the rules for delay in filing the return or not ? As per me, he should not as he has no service tax due and he is not even liable to file any returns. He was just filing NIL returns.

I came across this link where it is mentioned in the end that no late fee is to be deposited, but I am still not sure.

/articles/no-need-to-file-service-tax-return-if-no-service-tax-payable-18125.asp#.VX_kZ_mqqkp

Please help.

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2 Replies

CA ASHOK DAHIYA (CA) (124 Points)
Replied 18 June 2015

No penalty for late filing of service tax return in case if service tax liability was nil or no service was rendered for that period. In other words nil service tax return can be belated.

1 Like

Ankit Mishra (Freelancer) (27 Points)
Replied 09 June 2017

Hello Sir,

Please help me, I am in Problem about "Filing Service Tax" , I register my company in 2014, but i did't do any business from the company name, no business, I have not filied nil service tax return because there is no work done, but i recived notice from service tax department for filing of return. Do i need to fil service tax return, there any penalty i have to pay? Please help me sir.