Service tax non-registration and non-payment

If a person whose turnover from providing professional service in the F.Y. 2012-13 was Rs.15 lakh and F.Y. 13-14 was Rs. 18 lakhs.But the person has failed to register and pay Service Tax and this non-compliance has continued until F.Y. 2012-13 and F.Y. 2013-14.

1. Can Registration be done now? If yes, what will be the penalty/ late fees for non-registration

2. How much service tax needs to be paid now for services provided in F.Y.12-13 and 13-14? ? and will the exemption of Rs.10 lakhs be available for both years. Also what would be the interest and penalty on such amount

3. Do we need to file Belated Returns for both years? If yes, what would be the penalty/ late fees for delay in filing

4. In which cases can this interest/ penalty/ late fees be waived off?

Dear Aneel Lasood,

1) Yes. Registration can be obtained now.Since here in your case , you are trying to approach voluntarily no late fee/penalty shall be levied.

2) For the consideration which received above 10 lakh , now you can discharge the service tax on such amount along with interest @ 15% p.a. (Normally it is 18% since your turnover seems to be less than 50 lakh for P.Y you can interest @ 15%).

3) After obtaining registration, this liability part you can show as arrears in your coming ST - 3 returns i.e for the period from April to Sept 2014 return.

4) No returns for the past period required to be filed as there is no registration at all & moreover now you are going to show it as arrears.

5) Basic exemption limit is eligible only for the first time, hence you need not discharge service tax on first 10 lakh billing. Subsequently , whatever you have collected/billed needs to offer for service tax along with interest and disclose the same in your coming returns as arrears.

Thanks.

Venkat