Manpower agency

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2016 WE ARE RECURITMENT AGENCY, WE REGISTERED SERVICE TAX DEC 2015. BUT WE STARTED RECUIRTMENT AGENCY APRIL 2016 . WE ARE NOT FILED SERVICE TAX RETURNS FOR THE HALF YEARLY OCT15 TO MARCH 16. REASON FOR NO RECURITMENT.

BUT APRIL 2016 ONWARDS WE RECRUITED WE RECEIVED PAYMENTS FROM THE COMPANY . WE DEPOSITED THE CHALLAN.

MY QUERY IF ANY PROBLEM FOR NON FILING OF OCT15 TO MARCH16. WE DEDUCT SWATCH BHARAT CESS 0.50% SHORTAGE OF RS.90/- . WE EXCESS PAID OF KRISHI KALYAN CESS 0.50%. IF EXCESS PAID ANY CARRY FORWARD FOR NEXT PAYMENT CHALLAN DEDUCTION. IF SHORT PAYMENT WHAT IS THE RATE OF INTEREST OR MINIMUM AMOUNT.

Rajannaidu

Rajannaidu (Expert)
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27 September 2016 In view of Circular. Circular No. 97 / 8 /2007 dated.23rd August, 2007 para 6.1, it is very clear that service tax returns are not required to be filed if the Persons who are not liable to pay service tax (because of an exemption including turnover based exemption),
There are few cases which supports to this argument.
1. M/s Suchak Marketing Pvt Ltd
2. Amrapali Barter Case
3. M/s b & a multiwall packaging ltd-vs-commissioner of central excise
4.
Small analysis
The service tax return is required to be filled under Section 70 of the Finance Act, 1994 by 'Every person liable to pay the service tax'.

And under the provision of Rule 7 of the Service tax Rules, 1994, 'Every Assessee' is required to submit service tax return.

Assessee defined in the law is an 'Assessee' is a person liable to pay service tax

Thus, it can be well understood that, person who are not liable to pay service tax because of the exemption are not required to file ST-3.

The same thing was clarified in the circular F.No. 137/58/2007-CX.4 dated 29.3.2007 also.
Short payment has to be paid with interest of 15% ( rate of interest 15% effected from 14th May 2016) before up to 6 months -18%, More than six month and up to 1 year -24%, More than a year -30%
Excess payment made by you can be carry forwarded to subsequent month with due information to the jurisdiction officer.