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Service tax

ARUN KUMAR (Financial Consultant ) (992 Points)

23 September 2011

CBEC ONLINE FILLING NOT ONLY FOR RETURN DUE AFTER OCT . 1.BUT ALSO FOR RETURN OF PAST PERIODS WHICH HAVE NOT BEEN FILLED YET OR TO BE REVISED.

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CA Gunjan H Shah (CA) (230 Points)
Replied 23 September 2011

Originally posted by : ARUN KUMAR
	CBEC ONLINE FILLING NOT ONLY FOR RETURN DUE AFTER OCT . 1.BUT ALSO FOR RETURN OF PAST PERIODS WHICH HAVE NOT BEEN FILLED YET OR TO BE REVISED.

Notification No : 43/2011-S.T. provides that

"Every assessee shall submit the half-yearly return electronically" w.e.f. 01.10.
2011. However when the return is for old period, in my humble opinion the old provisions shall prevail.

My logic is based on the analogy of the interest on service tax. For example when we pay interest for late payment we pay at different rates prevailing at different times. previously 13% now 15%/18%. Thus according to me rules shall be made applicable in accordance with the period for which return is to be filed.

CA Parag Jani (BCom CA DISA Forensic Auditor) (288 Points)
Replied 26 September 2011

Dear Gunjan

Do you think that the notion raised by you will apply as far as penalty provisons are concerned under Service Tax Provisions? I mean penalty for late/non-filling of ST3 has been raised to Rs.20,000/- per return w.e.f. Budget 2011. So in case of returns relating to prior periods; will the penalty be levied at the penalty rates then in force i.e. Rs.2,000/- per return?

Plz advise as the Finance Act 2011 does not contain any provisons to apply Rs.20,000/- penalty with retrospective effect.

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 26 September 2011

I feel that any return filed after 01-10-2011, although it relates to old period, to be e-filed.

CA Gunjan H Shah (CA) (230 Points)
Replied 27 September 2011

To: CA Parag Jani

I think even in case of penalty, the department cannot levy late fees of 20,000/- for old returns. As the said provisions were not existing at the relevant period for which return is to be filed. Take another analogy. Self adjustment of excess tax paid is increased to 200000. Previously such limit was 100000. Do you think department would allow adjustment of 200000 for old returns filed now? No they won't. Hence in my opinion rules should be applied as existed relevant to the period for which return is due and NOT FOR THE PERIOD WHEN RETURNS are filed.

Sushma Mevacha (Executive) (394 Points)
Replied 27 September 2011

What will be Penalty Provision for the Returns are pending to be Filed. i.e. If we are filling the Service TaxReturn for F.Y. 2010-11 Second Half today what will be the Maximum Penalty Rs. 13500 or Rs. 2000 /- only?

CA Gunjan H Shah (CA) (230 Points)
Replied 29 September 2011

Originally posted by : Sushma Mevacha
	What will be Penalty Provision for the Returns are pending to be Filed. i.e. If we are filling the Service TaxReturn for F.Y. 2010-11 Second Half today what will be the Maximum Penalty13500 or2000 /- only?

Sushmaji,

I think late fees should be 2000 only. as Section 70 which levies penalty for 20000 is not amended wth retrospective effect.

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Deepa (...) (62 Points)
Replied 29 September 2011

what is the penalty in service tax, when no business started after obtaining service tax registration number

CA Gunjan H Shah (CA) (230 Points)
Replied 29 September 2011

Originally posted by : Deepa
	what is the penalty in service tax, when no business started after obtaining service tax registration number

Generally penalty can be upto Rs. 20,000. But RULE 7C. Amount to be paid for delay in furnishing the prescribed return has the following provision

Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.]

1 Like

Deepa (...) (62 Points)
Replied 29 September 2011

thank you sir.. :)

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 30 September 2011

My beloved CCI friends are getting mixed up with direct taxes and indirect taxes,

service tax is indirect tax, and indirect taxes get restropective effect mostly and get applicable on the midnight of date of the notification issued.

penalty / audit / and other issues are not liberal under indirect taxes in comparision to direct taxes.

under indirect taxes once the assesee is tapped under any fault, department does not show any liberal view to him, upto the addl commissioner stage , but his representation works (?) only at tribunal level.

so before putting any self interpretation for any default, its better to get views of your R/O, and do the same under his knowledge only, coz he is the primary authority to issue the SCN against the assessee, if needed make him convinced with your representation and then proceed,