05 April 2011
I have a query regarding late filing of service tax return. The facts of the case are as under.
The company is registered under "Authorised Service Station Category". The last return filed was for the year 2004-05. In the year 2005-06, it had applied for cancellation/surrender of the registration but its application was denied by the Service Tax Department. After the year 2004-05 the company has not filed any return.
Further,during the year 2009-10 the same company had earned Brokerage & Insurance Commission of Rs. 20 lacs. But it had not added this category of service (Business Auxiliary Service) to its registration. It also has not registered itself for Online facility of Service Tax Department.
Kindly suggest on possible route of action that the company should take. What shall be the consequences for non filing of return?
06 April 2011
The reason for rejection of your surrender of registration by the department is not known.If your turnover within exemption limit of Rs. 10Lakhs (earlier it was Rs. 4 Lakhs and Rs. 8 lakhs),you need not submit the returns. Otherwise,you can file the returns with a penalty for the old period. Further, for the year 2009-10,you have earned income from Insurance Commission.If your commission on sale of insurance policies,you need not pay any Service Tax as the Insurance Compnay willpay on your behalf. Otherwise,even now,you can add the new service in the registration through an application and pay the Service Tax involved along with interest.If you pay the due service tax on your own before pointing out by the department,you need not pay any Penalty. Other wise you may have to pay penalty equivakent to service tax due.
CAclubindia
