Default in filing st-3 return online

This query is : Resolved

CA.JOYDEEP CHATTERJEE (Querist)
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25 August 2011 We have registered ourself for online submission of service tax return
from 25/03/2010 onwards and accordingly filed our first online return on
16/04/2010 without any problem. But in the next quarter, ie., from April
to September-2010 online return could not be filed in October-2010 as the
excel utility we had downloaded didn't had the column "Input Service
Distributor" in it. It was same for the next quarter.It is same till now &
there is no column for "Input Service Distributor". For this, we were
under impression that "Input Service Distributor" has been categorically
exempted from filing ST-3 return from 2010-11, we had verbally tried to
confirm it from the department, they failed to give any suggestion but
insisted to try it again. After this we had tried several times to file
the return online but in vain.

Now we are in default of filing of return for two quarters (Arp-Sept-10 &
Oct-Mar-11). As we cannot file the returns for two quarters (without any
fault from our end), department is insisting for penalty. We are totally
lost, as the penalty they insist of is huge (Rs. 20,000 for default in Oct-10 + Rs. 1000+ Rs.100 per day for default in Apr-11)!!!. We are only Input Service Distributors, are we eligible for such torturous penalty ? !!!!! kindly help, SOS !!!!

U S Sharma

U S Sharma (Expert)
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28 August 2011 uts the fault on part of assesee to get the complaints recorded with departmemt,

if you can convince the department about your complaints, then file manually with their comments on ST-3, and lodge a complaint for non compliance of online return with valid reasons.

you can opt to pay the penalty under protest unless the prob is heard with DC of service tax.

CA.JOYDEEP CHATTERJEE

CA.JOYDEEP CHATTERJEE (Querist)
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29 August 2011 Thanks for the reply. I am able to file the return online somehow, now should I wait for the demand notice/ SCN or deposit the penalty sou-moto? If the SCN is issued someday, should they also charge interest thereon? or simply will ask the same penalty I am default of?

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U S Sharma

U S Sharma (Expert)
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01 September 2011 as the prob recited by yourself is laid with online filing utility, right now write a letter to AC/DC of your service tax with a copy to Range superintendent, stating that you have paid all the taxes payable and due to non compliance with online filing faclity you were unable to submit the return.

also mention the verbal dialogues you have made with your range officer,

attach a copy of manual return with letter, with xerox copies of challans paid.

request the AC/DC to condone the delay and not to impose any penalty as the reason is genuine and you did not had any malafide intention to evade the revenue.

ask for a personal hearing to AC/DC.

on personal hearing you can put your view and troubles to him, and he will surely forward the acceptance with minimum burden to you.

if you wait for SCN, then it would lead more complication reflacting concealment of turnover and data, so beforehand submit your statements.

in case of non co-operation, you can step up for commissioner level also.

U S Sharma

U S Sharma (Expert)
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01 September 2011 as the return is filed by late, write to DC/AC and pray him to condone the delay in filing the return, and not to proceed for late fine.

state all steps taken with department for filing, and the ignorance of department to help you.

Assumed that such letter will help you to limit your damages, and on good faith the DC will intiate a personal hearing and condone the delay.