23 January 2017
sir I am having service tax no.from last 2 years but I have not filed any return and now I want to file return. So please help me what should i do.
Also clarify the penalty , interest and other charge etc.
03 August 2024
If you have a Service Tax Registration but haven't filed any returns, you should address this as soon as possible to avoid further penalties and legal issues. Here’s what you need to do:
### Steps to File Pending Service Tax Returns
1. **Gather Information:** - Collect all relevant details related to the service tax period, such as invoices, payments, and service tax collected. - Check your Service Tax records to determine the periods for which returns are pending.
2. **Prepare and File the Returns:** - **Login to the Portal:** Access the [CBEC-GST portal](https://cbec-gst.gov.in/) using your Service Tax credentials. - **Fill Out the Returns:** Complete the pending Service Tax returns using the relevant forms (e.g., ST-3). If you’re using the older system, you might need to use Form ST-3. - **Submit Returns:** After filling out the returns, submit them electronically through the portal.
3. **Pay Outstanding Taxes:** - Calculate the outstanding service tax, including interest and penalty, and make the payment through the online payment gateway on the CBEC-GST portal.
4. **Seek Professional Advice:** - It’s advisable to consult a tax professional or Chartered Accountant for assistance in filing returns, especially if you’re unsure about the accuracy of the data or the amount payable.
### Penalties and Charges
1. **Interest:** - Interest is charged for late payment of service tax. The rate of interest is generally 15% per annum (subject to changes by the authorities).
2. **Penalties:** - Penalties for non-filing or delayed filing can be substantial. Typically, the penalty can be up to ₹200 per day for delayed filing (subject to a maximum limit of the service tax due). - Additional penalties may apply if the non-compliance is considered intentional or repeated.
3. **Additional Consequences:** - Non-filing or delayed filing can lead to legal action, including recovery proceedings and issuance of demand notices.
### Addressing the Issue
1. **Voluntary Disclosure:** - Voluntarily disclosing and filing your returns as soon as possible can help mitigate penalties. The tax authorities may consider reduced penalties if you come forward voluntarily.
2. **Rectification Requests:** - If you face issues while filing or need to rectify any mistakes, you can file a rectification request with the tax authorities.
### Key Sections and Notifications
1. **Service Tax Rules:** - Service Tax Rules, 1994, and amendments thereto govern the filing and penalties related to service tax.
2. **CBEC Circulars:** - CBEC issues circulars and notifications regarding penalties and compliance. Refer to recent circulars for updated procedures.
3. **Finance Act:** - Relevant provisions under the Finance Act, 1994 (for Service Tax) and Finance Act, 2016 (for GST) will guide you on compliance and penalties.
### Summary
To summarize, you need to: 1. **Prepare and file all pending returns.** 2. **Pay all outstanding service tax along with interest and penalties.** 3. **Seek professional advice if necessary.**
Acting promptly and filing your returns will help you avoid further complications and penalties.
CAclubindia
