Non submission of service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 June 2015
Sir,
I had filled the nil returns for upto 3 half yearly service tax returns. As my turnover not crossing 1 lakh. Kindly suggest what to do now.
I had filled the nil returns for upto 3 half yearly service tax returns. As my turnover not crossing 1 lakh. Kindly suggest what to do now.
21 June 2015
Didn't get your question?
What to do now.. You have filed the return. What next?
What to do now.. You have filed the return. What next?
03 August 2024
If you have filed nil service tax returns for the half-yearly periods but your turnover was below ₹1 lakh, it’s important to ensure you’re compliant with the current regulations. Here's what you should do and understand:
### 1. **Understand the Compliance Requirements:**
- **Threshold Limit:** For service tax purposes, if your turnover is below ₹10 lakh (earlier ₹8 lakh), you may not be required to pay service tax. The limit was ₹10 lakh from April 1, 2012, and ₹8 lakh before that. Your turnover being below ₹1 lakh means you are well below the threshold.
- **Nil Returns:** Filing nil returns when your turnover is below the threshold is generally correct and helps in maintaining compliance.
### 2. **Confirm the Status and Filing:**
- **Check for Acknowledgment:** Ensure that you have received an acknowledgment for the nil returns you filed. This confirms that the returns were processed and accepted.
- **Review Records:** Verify that all your records are up-to-date and that the nil returns are accurately reflecting your turnover.
### 3. **Address Any Pending Issues:**
- **Assess Any Notices:** If you receive any notices from the Service Tax Department, address them promptly. Notices might arise if there’s a mismatch or if additional information is required.
- **Maintain Documentation:** Keep all relevant documentation, including your nil returns, correspondence with the Service Tax Department, and any supporting documents related to your turnover.
### 4. **File a Final Return if Necessary:**
- **Final Return:** If you have stopped providing taxable services and your turnover is consistently below the threshold, you might need to file a final return and possibly request cancellation of your service tax registration.
### 5. **Consider Future GST Compliance:**
- **Transition to GST:** As service tax has been subsumed into GST from July 1, 2017, if you are still providing services or have crossed the GST threshold limit, you need to register under GST and file GST returns as applicable.
- **GST Registration:** If you haven’t already, you may need to register under GST if your turnover exceeds the GST threshold limits and ensure timely filing of GST returns.
### **Steps to Take:**
1. **Ensure Accuracy of Nil Returns:** Verify that the nil returns are correctly filed and acknowledged.
2. **Review Notices:** If you receive any communications from the Service Tax Department, respond promptly.
3. **Consider Final Return:** If no longer in service or consistently below the threshold, file a final return and request cancellation if needed.
4. **Transition to GST:** Ensure compliance with GST regulations if applicable.
### **Summary:**
Since your turnover is below ₹1 lakh and you have been filing nil returns, you are likely compliant. Continue to maintain accurate records, respond to any notices, and transition to GST if applicable. If you have specific concerns or if you face issues with the Service Tax Department, consulting with a tax professional for personalized advice may be beneficial.
### 1. **Understand the Compliance Requirements:**
- **Threshold Limit:** For service tax purposes, if your turnover is below ₹10 lakh (earlier ₹8 lakh), you may not be required to pay service tax. The limit was ₹10 lakh from April 1, 2012, and ₹8 lakh before that. Your turnover being below ₹1 lakh means you are well below the threshold.
- **Nil Returns:** Filing nil returns when your turnover is below the threshold is generally correct and helps in maintaining compliance.
### 2. **Confirm the Status and Filing:**
- **Check for Acknowledgment:** Ensure that you have received an acknowledgment for the nil returns you filed. This confirms that the returns were processed and accepted.
- **Review Records:** Verify that all your records are up-to-date and that the nil returns are accurately reflecting your turnover.
### 3. **Address Any Pending Issues:**
- **Assess Any Notices:** If you receive any notices from the Service Tax Department, address them promptly. Notices might arise if there’s a mismatch or if additional information is required.
- **Maintain Documentation:** Keep all relevant documentation, including your nil returns, correspondence with the Service Tax Department, and any supporting documents related to your turnover.
### 4. **File a Final Return if Necessary:**
- **Final Return:** If you have stopped providing taxable services and your turnover is consistently below the threshold, you might need to file a final return and possibly request cancellation of your service tax registration.
### 5. **Consider Future GST Compliance:**
- **Transition to GST:** As service tax has been subsumed into GST from July 1, 2017, if you are still providing services or have crossed the GST threshold limit, you need to register under GST and file GST returns as applicable.
- **GST Registration:** If you haven’t already, you may need to register under GST if your turnover exceeds the GST threshold limits and ensure timely filing of GST returns.
### **Steps to Take:**
1. **Ensure Accuracy of Nil Returns:** Verify that the nil returns are correctly filed and acknowledged.
2. **Review Notices:** If you receive any communications from the Service Tax Department, respond promptly.
3. **Consider Final Return:** If no longer in service or consistently below the threshold, file a final return and request cancellation if needed.
4. **Transition to GST:** Ensure compliance with GST regulations if applicable.
### **Summary:**
Since your turnover is below ₹1 lakh and you have been filing nil returns, you are likely compliant. Continue to maintain accurate records, respond to any notices, and transition to GST if applicable. If you have specific concerns or if you face issues with the Service Tax Department, consulting with a tax professional for personalized advice may be beneficial.
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