Penalty for late filing for service tax return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2016 One of my client is providing GTA services to only one company on which Reverse Charge Mechanism is applicable. So the company pays service tax on the consignment note to the Service Tax Department. Due to which the no service tax is payable by my client. Now, the client needs to file his service tax return on which no service tax is payable. So in gross amount charged in return what has to be mentioned and how its return has to be filed. Please guide

And since no service tax has been paid and the return is being filed late, does he need to pay penalty for late filing of return. Kindly revert.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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01 June 2016 Your client is service provider of GTA service he has not required to registered under service tax and no need to file return.

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2016 But he has already registered himself and now his Oct to March 16 return is due, is there any other course of action available in this scenario.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 For your client's scenario involving the provision of Goods Transport Agency (GTA) services under the Reverse Charge Mechanism (RCM) and late filing of Service Tax returns, here are the steps and considerations:

### **1. **Filing the Service Tax Return for GTA Services**

**a. **Gross Amount Charged:**

- **Gross Amount Charged:** In the service tax return, the gross amount charged for the GTA services should be mentioned, even if no service tax is payable due to the reverse charge mechanism. This amount should reflect the total consideration received for the services provided.

**b. **Service Tax Return Filing:**

- **Return Form:** Your client needs to file the Service Tax return using **ST-3** or **ST-3A** (depending on the period and type of return).
- **Details to Include:**
- **Total Gross Value:** Include the gross amount charged for the GTA services in the relevant section.
- **Service Tax Payable:** Since the tax is being paid by the recipient under reverse charge, the service tax amount payable by your client will be zero.
- **RCM Details:** Ensure that the return reflects that the service tax liability is under RCM and that it is being paid by the recipient.

### **2. **Penalty for Late Filing**

**a. **Late Fee Structure:**

- **Late Fee:** Under the Service Tax regulations, if the return is filed after the due date, a late fee is applicable.
- **For returns filed up to 15 days late:** The fee is ₹500.
- **For returns filed after 15 days but within 30 days:** The fee is ₹1,000.
- **For returns filed beyond 30 days:** The penalty may be higher, and there can be additional enforcement actions taken by the authorities.

**b. **Payment of Penalty:**

- **Determine the Delay:** Calculate the number of days by which the return is delayed.
- **Pay the Penalty:** Pay the applicable late fee along with the filing of the return.

### **3. **Actions for Pending Returns (October to March 2016)**

**a. **File Pending Returns:**

- **Due Returns:** File the pending returns for the period from October to March 2016 as soon as possible to avoid further penalties and legal consequences.

**b. **Interest and Penalty:**

- **Interest:** If there were any outstanding service tax payments (even though in this case it was not applicable), interest would be due. Since there was no service tax payable, this might not be applicable, but you should still confirm.
- **Penalty for Delay:** The same late fee structure applies to these returns.

**c. **Consult with Authorities:**

- **Reach Out:** Contact the Service Tax department or visit their website for any specific guidance or relief measures for late filing.

**d. **Seek Professional Advice:**

- **Consult a Tax Professional:** Engage with a tax consultant or chartered accountant to ensure all returns are correctly filed, and penalties are managed. They can also provide advice on any potential options for mitigating penalties or handling the late filings effectively.

### **Summary**

1. **Filing the Return:**
- Include the gross amount charged for GTA services in the Service Tax return.
- Indicate that no service tax is payable due to reverse charge.

2. **Penalty for Late Filing:**
- ₹500 if filed up to 15 days late.
- ₹1,000 if filed after 15 days but within 30 days.
- Higher penalties beyond 30 days.

3. **Pending Returns:**
- File all pending returns as soon as possible.
- Pay applicable late fees and consult with a tax professional for guidance.

Addressing these issues promptly will help ensure compliance and minimize additional penalties or legal complications.