Late fees for delay in filing st-3 return

This query is : Resolved

Rahul Jain (Querist)
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20 May 2014 Under which acounting head do we pay Late fees of Rs. 1000 for delay in filing ST-3 Return? And where we will show this amount in the return?

{The Service taxpayer is paying service tax for 3 services-Construction of Residential house, Construction of Commercial Complex and under Manpower supply.}

Vidya Jain

Vidya Jain (Expert)
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20 May 2014 Under Penalty Code we should deposit the amount.

In ST-3, You should show under Interest/Penalty.

Rahul Jain

Rahul Jain (Querist)
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20 May 2014 Here there are 3 services....so under which service penalty needs to be paid...

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 When paying late fees for delay in filing the ST-3 return, the handling of the payment and its presentation in the return is crucial for proper accounting and compliance. Here’s how you should manage it:

### **1. Accounting for Late Fees:**

**Accounting Head:**
- **Expense Head:** The late fee for delay in filing the ST-3 return should be classified as a **"Penalty"** or **"Late Fee"** under the administrative expenses or other relevant expenses head in the accounting records.
- **Example Entry:**
- **Debit:** Penalty Expenses (Late Fees) ₹1,000
- **Credit:** Bank/Cash ₹1,000

### **2. Payment of Late Fees:**

**Where to Pay:**
- **Service Tax Department:** The late fee payment is made to the service tax authorities using the service tax challan. Ensure you select the appropriate category while making the payment.

**Return Filing:**
- **Recording Late Fee in ST-3 Return:**
- **Include in ST-3:** The late fee is not specifically reported under any of the service categories (e.g., Construction of Residential House, Construction of Commercial Complex, Manpower Supply) in the ST-3 return.
- **How to Show:**
- Late fees are not directly linked to specific services. Therefore, it does not need to be attributed to individual services in the return. It is generally accounted for separately and does not affect the service tax calculation.

### **3. Steps to Handle Late Fee in ST-3 Return:**

1. **Make the Payment:**
- Pay the late fee through the designated service tax challan on the CBEC-GST portal or other relevant service tax payment portals.

2. **File the Return:**
- **ST-3 Filing:** When filing the ST-3 return, ensure all service tax dues and other details are correctly filled. The late fee amount is not included in the return itself but is part of your overall compliance cost.
- **Payment Reference:** Ensure the payment reference number and details are properly documented for records.

### **Summary:**

- **Accounting Head:** Penalty Expenses or Late Fees under administrative expenses.
- **Payment Handling:** Make the payment using the service tax challan, not directly linked to specific services.
- **In Return:** The late fee does not need to be reported under any specific service in the ST-3 return but is handled separately as part of your administrative expenses.

**Consultation:** If you have any specific queries or need assistance, consulting a tax professional or accountant familiar with service tax compliance can help ensure that you adhere to all regulations and manage your filings correctly.