Service Tax Penalty for Non Filling of Return

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Kaival Mehta

CA student

56 Points Posted on 23 April 2011

Now, As per Section71 (C) of the Finance Bill 2011 proposed vide Union Budget on February 28, 2011; ‘in Section 70 (1) of the Finance Act, 1994, for the words “two thousand rupees”, the words “twenty thousand rupees” shall be substituted’.

But wat about the returns not fille for the earlier years..

E.g. returns are not for the F.Y. year 2009-10 and 2010-11, when the maximum penalty for non filling of return was 2,000/-
Now assessee wants to file all the returns with penalty.

What will be the maximum penalty?2,000/- or20,000/-

Replies (10)

Pankaj Arora

Learner

3431 Points Posted on 23 April 2011

rs.20000/-.

Kaival Mehta

CA student

56 Points Posted on 23 April 2011

But where it is mentioned that penalty for the earlier year, for which returns are not filled will also be Rs.20,000/-

Kaival Mehta

CA student

56 Points Posted on 23 April 2011

In Finance Bill 2011, it is written w.e.f 1-4-2011, and not retrospectively.

Pankaj Arora

Learner

3431 Points Posted on 23 April 2011

In this regard CBEC circular no. 97/8/2007-ST. DT. 23-8-2007 clarifies that to avoid late fees, the taxpayer must ensure timing filing return. In case of return filed late, the appropriate late fees, should be paid at the timing of filing return..

Kaival Mehta

CA student

56 Points Posted on 23 April 2011

Than if any person has obtained ST registration no. and has not filled any return as there was no business, but now he is covered by the ST limit...so he has to filled all the returns till date with the penalty of Rs. 20,000/- per return as it has alredy exceeded the 190 days.

CA HARI KISHAN BHONAGIRI

PARTNER

24 Points Posted on 23 April 2011

The amendment is in the Act only not in rules. Act is prospective applications. If previous years ST 3 files during this peirod only Rs.2,000/- late fees ( which is not penalty) is applicable. More over If he is not liable to services tax for any period not required to file the return.

Originally posted by : Kaival Mehta

CA HARI KISHAN BHONAGIRI

PARTNER

24 Points Posted on 23 April 2011

Act overrides the circular. Cirular is binding on the department only not the assessee

Originally posted by : Pankaj Arora

In this regard CBEC circular no. 97/8/2007-ST. DT. 23-8-2007 clarifies that to avoid late fees, the taxpayer must ensure timing filing return. In case of return filed late, the appropriate late fees, should be paid at the timing of filing return..

Kaival Mehta

CA student

56 Points Posted on 23 April 2011

But nil return filling is compulsary na,

So he has to file the old returns...

But let me know, wat about the last 6 month return from Oct 2010-March 2011 if it is filled after due date which is 25th April,2011. Whether late feed will be restriced to 2000 or can be up to 20,000.

U S Sharma

glidor@gmail.com

21670 Points Posted on 23 April 2011

Originally posted by : Kaival Mehta
	Than if any person has obtained ST registration no. and has not filled any return as there was no business, but now he is covered by the ST limit...so he has to filled all the returns till date with the penalty of Rs. 20,000/- per return as it has alredy exceeded the 190 days.

https://arxadvisors.com/userfiles/Instruction%20Letter-137-58-2007.pdf