10 December 2010
it is compulsory to file ST 3 BY AN ASSESSEE IF HE HAS REGISTERED WITH ST DEPT (EVEN IF NIL).PLEASE CLARIFY THE FOLLOWING, WHICH IS FROM Circular No. 97 / 8 /2007
New Delhi, the 23rd August, 2007
6. Service tax return
6.1 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. WHETHER ONE HAS TO FILE STILL NIL RETURN OR TAKE SHELTER OF THIS CIRCULAR FOR NOT FILING
11 December 2010
NIL RETURNS ARE TO BE SUBMITTED FOR AVOIDING ST Rules 1994 7C Penalty. Rule 7C us reproduced below
(7C). Amount to be paid for delay in furnishing the prescribed return.-
Where the return prescribed under rule 7 is furnished after the date prescribed for submission of such return, the person liable to furnish the said return shall pay to the credit of the Central Government, for the period of delay of-
(i) fifteen days from the date prescribed for submission of such return, an amount of five hundred rupees;
(ii) beyond fifteen days but not later than thirty days from the date prescribed for submission of such return, an amount of one thousand rupees; and
(iii) beyond thirty days from the date prescribed for submission of such return an amount of one thousand rupees plus one hundred rupees for every day from the thirty first day till the date of furnishing the said return:
Provided that the total amount payable in terms of this rule, for delayed submission of return, shall not exceed the amount specified in section 70 of the Act:
Provided further that where the assessee has paid the amount as prescribed under this rule for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall be deemed to be concluded.
[ Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty
15 December 2010
ST - 3 returns have to be filed irrespective of the quantum of tax. Even for delayed NIL returns interest for late filing has to be paid.
Rule 7C of the Service Tax Rules provides so. The rule also provides
(i)Where the assessee has paid the amount as prescribed under this rule for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall be deemed to be concluded.
(ii) Where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.
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