About service tax return

iling of service tax returns is mandatory, even it is NIL...You have to file within 25 days...if not then there would be day wise default criteria of penalty....i.e.

<15 days - Rs. 500 per day

>15 days but <30 days - 1000 per day

> 30 days -  Rs. 1000 is fix plus  Rs. 100 per day or maximum to  Rs. 20000   

Where a registration has been taken under service tax provisions, return has to be filed, whether or not services are provided. Previously maximum late fee for late filing of ST returns was Rs.2000 but, it has been increased to Rs.20000/- per return in Budget 2011.

Penalty Rs.10000/- under section 77(2) may also be levied if the fact of non filing of returns is pointed out by the department. This penalty could be waived if the assessee could prove that failure was due to some reasonable cause (section 80).

In your case, as the returns are not filed for a long period of time, (period of more than 5 years are barred by limitation), late fee for almost all returns would exceed Rs.20000/-.

But at the same time as these are  NIL returns you may take shelter under proviso to Rule 7C of Service Tax Rules, 1994. It says that, "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."

Hence in my opinion, to avoid Penalty & late fee, you must contact your Range Superintendent and request him to waive the late fee.

Dear Friend,

CaPrabhat Gupta is right and maximum penalty is Rs.20000/- only

Thanks & Regards

Karandeep

Thanks to all of u to resolve my query.........thanx alot.