17 December 2013
One of our clients rented out immovable property in Sept, 2012 @ 7.50lacs per month. He got his ST registration in December, 2013. He intends to pay service tax under VCES from Sept, 2012 to Dec, 2012. My query is as under : 1. As the assessee got registered in Dec, 2013, is he liable to file ST-3 for the earlier periods also. 2. If yes, how he will show the service tax under VCES in his return for half year ending 31st March, 2013. 3. Is he liable to pay interest on such late payment from Jan, 2012 to date. 4. Is he liable to pay penalty for late filing of return.
(i) As you were providing services since Sept-12, you were required to get registered with the department in Sept-12 and pay the service tax from Sept-12 onwards and file returns. However, as you have not done the same, if you are eligible for VCES scheme (provided you are not barred from the scheme as per the exclusion clauses), then you can file declaration under VCES for the period Sept-12 to Dec-12.
(ii) However, for the period from Jan-13 onwards, you have to pay the service tax alongwith interest and file returns with late fees as applicable.
(iii) In my view, the amount declared under VCES for the period Sept-12 to Dec-12 need not be indicated in the ST-3 for the quarter ending Mar-13, as the liability stand declared to the department under VCES.
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