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Service tax return

ish kumar sharma (Sr. Manager Accounts & Finance) (301 Points)

13 January 2016

Hi there,

one of my client registered his entity under service tax act and no bills were issued by him during last first half of the year 2015-16. now my question is whether he fill nill ST3 now and wll there be any penalty on late filling of Nill return?????

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5 Replies

Arpit verma (Indirect tax) (1372 Points)
Replied 13 January 2016

Yes, it is required to file nil return, if u will not do the same penalty for not filing return will be applicable on assessee.

penalty for late filling return will be applicable as per rule 7C of service tax Rules 1994.

calculation of payment for delay of filing return will be as follow:

i. pay for 1st fifteen days from the prescribed date - 500 rs.

ii. beyond fifteen days but not later than thirty days- 1000 rs.

iii. beyond thirty days - 100rs for every day from the thirty first day till the date of furnishing the said return.

provided that the total amount payable in term of this rule, for delay of submission of return, shall not exceed the amount specified under section 70 of the Finance ACt, 1994. ( i.e. Rs.20000)

if any other query relating to service tax and excise than contact me on my mail id arpit.akiko @ gmail.com.

Thanks & Regards

Arpit Verma

+91 9540688557

ish kumar sharma (Sr. Manager Accounts & Finance) (301 Points)
Replied 13 January 2016

Thanks Arpit!

Mir Irshad Ali (Partner) (192 Points)
Replied 13 January 2016

Since it is a "NIL" return, as per the third proviso to Rule 7C of Service Tax Rules, 1994, the Central Excise Officer can reduce or waive the penalty [for late filing of return] on being satified that there is sufficient reason for delay in filing the return.

You can make an application to the Superintendent/Assistant Commissioner of Service Tax in terms of proviso to Rule 7C of Service Tax Rules, 1994 requesting for waiver of the penalty.

RULE [7C. Amount to be paid for delay in furnishing the prescribed return. —

[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.]

Arpit verma (Indirect tax) (1372 Points)
Replied 13 January 2016

yes, i m agree with Mir Irshad Ali

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.