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St-3 query

kunal (Founder) (590 Points)

25 March 2014

Can someone please help me with below query:

Q: We are to file a delayed ST-3 return for Apr-Sep 2013 half year. There is no tax payable (Nil return) since there was no revenue except for input credit. Whether penalty for delayed filing of ST-3 is to be paid even if return is for Nil tax??

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Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 25 March 2014

Dear Kunal In my opinion yes the penalty will be charged in this case. Regards

DISHA SHAH (professional) (1618 Points)
Replied 25 March 2014

Penalty for late filing of Original ST -3:

In case there is delay in filing Original ST-3 then in terms of Rule 7C of the STR, penalty for delay In Filing of Original ST -3 is as follows:

Delay in days	Amount
Up to 15 days	Rs. 500/-
16 to 30 days	Rs. 1,000/-
More than 30 days	Rs. 1,000/- + Rs. 100/- for each day of delay beyond 30 days

Note: However, total amount of Penalty under this Rule shall not exceed Rs. 20,000/- as per Section 70 of the Finance Act, 1994.

Penalty

§ If Service Tax Return is not filed within prescribed period, penalty is leviable under Section 77(2) of the Finance Act, 1994 which can be up to Rs. 10,000/-.

§ The penalty can be waived under Section 80, if assessee proves that failure was due to reasonable cause. If late fee is paid, penalty will not be imposed.

§ If assessee is providing more than one service, there is only one penalty for delay in filing return and not separate penalties for each taxable service.[CBEC’s Circular No.76/6/2004-ST dt.03.03.2004].

§ If 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.[proviso to Rule 7C of Service Tax Rules, 1994]

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