Nil return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2016 There is a new Company incorporated in April where service tax number is obtained in the month of October. Company has not provided taxable services yet. so whether service tax return needs to file for Oct-2015 to Mar. 2016 ?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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15 April 2016 The field formations of Service Tax Department insist that once a person takes registration, he has to file ST - 3 Returns, irrespective of the turnover - even if 'NIL' - and also send notices for non-filing of ST - 3 Returns and ask for the same to be filed with Late Fee. The same also happen in your case.

However, this action of the officers of Central Excise Department is beyond the scope of their powers. CBEC has issued a Circular No: 97 / 8 / 2007 dated 23rd August 2007 issued by CBEC under F. No: 137 / 85 / 2007 – CX.4 to this effect that no ST - 3 Returns need be filed by people not liable to pay service tax. The relevant portion is reproduced below:

Paragraph 6.1 of the Circular reads as follows:
“...... 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 ST3. 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 ST3 return.
6.2. ........”

You need not file a NIL Return, but you may at your discretion.

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2016 If i opt to file Nil Return which notification should i select in ST-3(Exemption Notification) because the concerned notification is not showing in ST-3 form. or should i file the return by claiming 033/2012 notification.

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Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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15 April 2016 In ST - 3 in the Sheet Taxable Service in Row A.11.1 opt for 'Y'es (by default it is 'N'o). Then A.11.2 will open up. Choose Notification No. 033/ 2012 Sl No. (1). While filling up the Return, if there is any turnover fill it up in row B.1.1 and the same figure in B.i.9.

Fill up the full return as usual.

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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