Service tax return not submitted

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 my client has taken service tax registration no. in jan 2012 .,but not provide any service till today. he wants surrender service registration no. whats amount may pay for penalty. compounding of penalty available or not?can officer wave penalty?

urgent reply me?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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17 October 2013 Service Tax registration was taken in January 2012. Hence the ST-3 Returns have to be filed showing NIL for the periods October 2011 to March 2012, April 2012 to June 2012, July to September 2012, October 2012 to March 2013 and April 2013 to September 2013 (due date 25th October 2013). There is a Board Notification exempting assessees with below taxable service receipts (threshold limit Rs.10 Lacs)from filing ST-3 Returns. Further Rule 7C of the Service Tax Rules empowers the Superintendent/Asst. Commissioner to waive the penalty for late filing (upto Rs.20,000 per return) in case of NIL Returns,though they may not do so, and the assessee may have to approach higher authorities for the same. Legally, on submitting the surrender application online, the surrender is complete, but Departmental Circular require the submission of copies of ST-3 Returns & Challans, Balance Sheet and Profit & Loss Account, Audit & Tax Audit Reports (if applicable), status of EA Audit, Show Cause Notices & other pending matters for the last FIVE Years.
Hence submit the required ST-3 (keep hard copies of all returns and filing receipts) Returns,inform the Range Superintendent about late filing and ask him to exercise his powers to waive the late filing penalty, submit the Surrender ST-2 application online (take the print out before submission), the receipt of submission of Surrender of ST-2 and submit all the above documents to the Divisional Assistant Commissioner through Superintendent (Registration). Follow-up after three weeks to obtain the surrender order from the Divisional Assistant Commissioner. Until this certificate is obtained the Department deems you to be still registered and unnecessary harassment from the Inspector & Range Superintendent may result.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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17 October 2013 No Need to file Service Tax return (ST-3) when no service is rendered during the relevant period and even not required to opt for VCES,

Citation: M/s Suchak Marketing Pvt Ltd Vs. Comm. of Service Tax, Kolkata [2013 (6) TMI 641]

“Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.”

regards,

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