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Service tax return not filed

Kunal Mittal (FINANCE OFFICER) (580 Points)

21 March 2013

I have not filled the service tax return for any quarter nor have I deposited the service tax from april 12 till now.

what are the implications if i deposit it in mar 13 or april 13.

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4 Replies

CA Mahavir Shah (Practicing Chartered Accountant) (1130 Points)
Replied 21 March 2013

If you have neither deposited service tax as well as not filed return you are liable for interest, penalty etc.

But for you have good news that Govt. has announced Service Tax amnesty Scheme to regularise such defaulters.

But this scheme is yet not Notified.

It is expected to be notified by Jul-13.

Kunal Mittal (FINANCE OFFICER) (580 Points)
Replied 21 March 2013

I've not deposited the service tax only from 1st april 12. I want to know how much interest and penalty is to be paid now.

raghavender upadhyay (B.Com, LLB, CA FINAL) (331 Points)
Replied 21 March 2013

1) Late filing fee under rule 7C is applicable only for April to June 2012 return Rule 7C is not applicable for returns from July 2012 to Septemer 2012 and October 2012 to March 2013 The due date for filing return from July to september is 15th April 2013 (wait for further Notifications).

2) Late paymnent of Service Tax Attracts Interest: The due date for payment of service tax is 6^th day of the month following the relevant month/quarter, if electronically paid and in other cases, 5^th day of the month following the relevant month / quarter. It is provided under section 75 of the Finance Act, 1994 that in case of delayed payments (after due date) the assessee is required to pay simple interest at the rate prescribed. Notification No. 26/2004 dated 10.09.2004 has specified the rate of interest at 13% per annum. The table below shows the rate of interest applicable at relevant period of time.

Sr.No.	Period	Rate of Interest
1.	Till 11.05.2001	1.5% per month
2.	11.05.2001 to 11.05.2002	24% per annum
3.	11.05.2002 to 10.09.2004	15% per annum
4.	From 10.09.2004 to 31.03.2011	13% per annum
5.	From 01.04.2011	18% per annum

3) Failure to pay service tax attracts Panalty U/s. 76: In addition to the service tax and interest, penalty not less than Rs.100/- for every day during which failure continues, or @ 1% of such tax per month, whichever is higher but shall not exceed 50% of service tax due.

Varshit Shah (Self Employed) (676 Points)
Replied 21 March 2013

Some other points :

Monthly Payment is applicable only in the case of Companies , for others it is on quarterly basis.

Secondly Rate of Interest is @ 13% if turnover of the assessee in preceding year is not more than 50 lacs for others it is 18% pa. so in service tax you have to pay interest for the numbers of days delayed and not on monthly basis.