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Is registered ssp required to file service tax return

AKASH GANERIWALA (Manager - Taxation) (72 Points)

23 November 2012

Frndz

As we know that Small Service Provider is not required to file his Service Tax Return, though it is required to get itself register once the turnover exceeds 9 Lakhs.

My query is whether a Registered Small service provider required to file the service tax return due to merely being registered?? In the previous year and in the current year its aggregate turnover of taxable service is less than 10 lakhs.

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6 Replies

CA Ruben Balooni (Professionalism ™) (1324 Points)
Replied 23 November 2012

Once you are registered with the department then you are required to file your return irrespective of the fact that whether you are ssp or non-ssp.

- Ruben Balooni

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AKASH GANERIWALA (Manager - Taxation) (72 Points)
Replied 24 November 2012

Thanks for your reply Rebun can you quote the section no.

CA Ruben Balooni (Professionalism ™) (1324 Points)
Replied 24 November 2012

Section 70(2) [Finance Act,1994] read with Section 69(2) [Finance Act,1994] read with Service Tax (Registration Of Special Category Of Persons) Rules, 2005.

- Ruben Balooni

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 24 November 2012

Refer Section 70 of Finance Act, 1994

(1)] Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency [and with such late fee not exceeding[twenty thousand rupees] rupees, for delayed furnishing of return,] as may be prescribed.

[(2) The person or class of persons notified under sub-section ( 2) of section 69, shall furnish to the Superintendent of the Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.]

The dept. has explained this provision in detail in its Circular dated 23/08/2007 which may be referred to.

It may be noted that in para 6.1

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 ST-3. For the periods from April to September and October to March, it must be filed by the 25^th October and the 25^th 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 ST-3 return.

So it is very clear tht an assessee who has opted to avail of the threshold exemption and has not crossed the maximum limit of Rs. 10 lacs during the F.Y need not file a return.

CA Ruben Balooni (Professionalism ™) (1324 Points)
Replied 24 November 2012

Originally posted by : Sunil Kumar G
	Refer Section 70 of Finance Act, 1994 (1)] Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency [and with such late fee not exceeding[twenty thousand rupees] rupees, for delayed furnishing of return,] as may be prescribed. [(2) The person or class of persons notified under sub-section ( 2) of section 69, shall furnish to the Superintendent of the Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.] The dept. has explained this provision in detail in its Circular dated 23/08/2007 which may be referred to. It may be noted that in para 6.1 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 ST-3. 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 ST-3 return. So it is very clear tht an assessee who has opted to avail of the threshold exemption and has not crossed the maximum limit of Rs. 10 lacs during the F.Y need not file a return.

Section 69(2) -> The Central Government may, by notification in the Official Gazette, specify such other person or class of persons, who shall make an application for registration within such time and in such manner and in such form as may be prescribed

Such other person or class of persons are :- Input Service Distributor and Service provider whose value of taxable services in a financial year exceeds 9 Lakhs. [Service Tax (Registration Of Special Category Of Persons) Rules, 2005]

Hence an REGISTERED service provider whether SSP or NON-SSP shall have to file return.

- Ruben Balooni