19 November 2007
Q-1) We are giving a vehicle on hire base to the customers. some of our customers are ready to pay service tax by full Rate (12.36) but some are not paying service tax. some are paid service tax as per abetment (4.94%, so we have a difficuleits to bill them and file the return?
Q-2) We are paying tax up to 30.09.2007 but not filling the return from 01.10.2006 to 31.03.2007 and 01.04.2007 to 30.09.2007. how much panelty are there to file the late return ?
You have to adopt one single mode of charging service tax to your customer. If your intention is to enjoy the cenvat benefit on your input services then opt for paying full service tax and if you intend to enjoy abatment then you need to follow that practice.
This way your returns and your audits will be clean.
Answere to query no 2.
Filing of returns is compulsory.
Service tax return
The service tax return is required to be filed under Section 70 of the Act read with rule 7 of the Rules, by 'any person liable to pay the service tax'. This return is required to be filed on a half yearly basis, in Form ST-3. For the periods from April to September and October to March, it must be filed by the 25th October and the 25th April respectively. Further, ‘Input Service Distributor’ is also required to file this return. Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return
Delay in filing of return:
The return is required to be filed by the stipulated date as mentioned above. Delay in filing of return attracts late fee. The late fee presently prescribed vide rule 7C of the Rules, is (a) Rs 500 for delay upto 15 days; (b) Rs 1000 for delay between 15 days and 30 days; and (c) Rs 1000 plus Rs 100 per day beyond 30 days, till the filing of return, not exceeding Rs 2000/-. To avoid late fee, the taxpayer must ensure timely filing of return. In case of returns filed late, the appropriate late fees should be paid at the time of filing the return, without waiting for any communication or notice from the department. Mere non-submission of evidence of payment of late fee along with the return is, however, not a ground for refusal to allow filing of the return
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