Service tax filing for my company

Queries 593 views 3 replies

DKWebsites

Analyst

33 Points Joined January 2014

First of all would like to thank you guys to read through my query.

I started a small online service based company with my friends in May 2013,company service tax registration is on proprietorship basis on my name.

From May to December our earnings have not crossed 6-7 lakhs , Now just few days back we got a notice from the service tax department that we have not file for service tax of our comapny.

Please answer the following questions for me,questions might seem bit nooby as we do not have nay background in this field:

1) What is the time period for which we need to file the tax return.

2) for this earning,dont we fall under exemption limit.

3)How do we go about it going forward and file service tax return.

Thanks

Replies (3)

Arun Kumar Singh

GST Advocate

15220 Points Joined January 2009

Service tax payment and filing of return is deferent thing. If you have registered under service tax then filing of return is mandatory, maximum penalty can be imposed of Rs. 20,000/- for non filing of return. You should consult with any professional.

CA LOVELY ARORA

C.A. B.Com (H) Graduate

2151 Points Joined August 2008

Dear Deepak Sir,

1. you need to file your service tax return electronically on half-yearly basis, i.e. for period April-September, you were required to file your return by 25th October, 2013.

2. you covered in the exemption portion, but for the purpose of payment of service tax, i.e. you need not to charge service tax from the client upto the limit of Rs. 10 lakh and also you are exempted for the payment of service tax to the government, you start paying the tax after the limit cross of Rs. 10 lakh, but you are required to file your return periodically- showing the revenue and exemption to small service provider so that your tax liability would be Nil.

3. you need to consult with the officers from the service tax dept. and reply to the notice within the time provided to you and though legally you are required to pay penalty for such amount but there is a provision that you might get relaxation from the penalty on the application to the central excise officer and quoting the sufficient reasons for the dealy in filing of return and to reduce or waive the penalty.

As on the date, your penalty amount have reached around Rs. 5000, which will increase on day basis (Rs. 100/day), thus, reply to the central excise officer quickly and file the return.

Best regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com