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Revised service tax return

Ashish (Assistant Manager Accounts & Finance) (54 Points)

14 September 2011

Is penalty payable when revised service tax return is filed after due date?

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20 Replies

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 14 September 2011

In my opinion you cannot file a revised return after due date of filing of revised return.

regards

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CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 14 September 2011

Dear Ashish,

Your Query is confusing.

If you are concerned about late filing of return, no penalty is required to be paid unless the fact of non filing is pointed out by the Department.

In case you are voluntarily filing the return, though late, you are required to pay late fees alongwith the return. Maximum late fees is Rs.20000/- with effect from 01.04.2011 depending on the period of delay.

Where the fact of non filing is pointed out by Department, the assessing officer can levy a penalty upto Rs.10000/- u/s 77 of Finance Act, 1994 as amended.

No penalty has been prescribed for filing of revised return. The only thing to be considered is that a revised return can be filed within 90 days of filing of the original return.

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SANJEEV (CA Final (B.COM)) (189 Points)
Replied 14 September 2011

Asish :>>>

1. There is No penalty payable on Revised service tax return.

2. Revised Return has to be filed within the peroid of 90 days from the date of Submission of the Original return.

3. If the Original return has been filed late than this period Of 90 days will be applicable from the date when the return has been actuly filed.

Ashish (Assistant Manager Accounts & Finance) (54 Points)
Replied 15 September 2011

original return was filed in time but failed to file revised return within 90 days now can he file the return if yes then what will be the consequences like fine or penalty?

Ashish (Assistant Manager Accounts & Finance) (54 Points)
Replied 15 September 2011

original return was filed in time but failed to file revised return within 90 days now can he file the return if yes then what will be the consequences like fine or penalty?

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CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 15 September 2011

Ashish,

See if the period prescribed for filing revised return has expired revised return can not be filed. If, after the period for filing revised return has expired, you discover a mistake in the original return filed which results in short or non payment of tax, you can simply pay such service tax alongwith interest that is 18% p.a. and can incorporate the details of such payment in the current return under "Other amount paid". If you are paying voluntarily you need not pay any penalty.

1 Like

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 15 September 2011

Prabhat

Do you feel in this era of ereturns will the system accept if there is a shortfall in tax payment or non payment of tax. The return will never be uploaded with such discrepancies.

I think the assessee forgot to take cenvat credit or may have received less dues from debtors for which it has altready paid service tax.

Regards

CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 15 September 2011

Dear Dipjyoti,

Error of ommission or commission are always possible. Online returns have Macro based formulae that only check the calculations. It only works on the coding done by the programmers. You will get the output as per the figures entered by you. In simple words Garbage in Garbage out (GIGO) is applicable in these cases. Unless you are ready with perfect records, you cannot expect a perfect output.

You may be right, but there are many other possibilities too. Assessee might have missed to record some income in his books of accounts, thereby reducing his Taxable receipt, Servicetax, hence resulting in short payment. This is just an example. If you are working in some organisation, you would be aware of other similar cases.

Hope this clarifies my point.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 17 September 2011

@ Prabhat

disagree with your statement

indirect taxes rules are clear that records should be updated daily basis or as soon as possible, in excise ( the parent rules of service tax) the records are to be maintained prior to clearance, and if found not entered before clearance, its booked as "wilful evasion prone malpractice by assesee"

in service tax, keeping the field formalities in mind, the department has allowed to revise the return within 90 days, but if the assesee is not intereted to keep himself updated, then the bitter taste of indirect taxes can not be avoided.

if something has been missed adjust the same in next return, you will have to put your representation at audit or assessment, and if you can make it satisfied to the department at those steps, that the revenue is not evaded, then they usually will not generate any unpleasent situation.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 17 September 2011

@ Aashish

you can not file any revise return after lapse of 90 days from filing of original return.

in case you have belief that you need to file it still, you need to get permission from respective commissionarate, who will instruct the R/O on verification of merits of your case, to accept the revised return or take steps against the case.

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CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 17 September 2011

Dear Sharma ji,

I have just presented my opinion on the basis of experience gained by me in the field I work. I had worked in the department and had conducted several Excise & Servie Tax Audits, where such cases were common. Though a long time has passed since the Servie Tax was introduced, not all assessees are familiar with the provisions contained in act. Financial constraints are always there which decide what system is followed to promptly discover ommissions done in past.

If you go through my reply I am also of the opinion that revised return cannot be filed after the expiry of the prescribed. But where the assessee voluntarily deposits the tax short paid, under intimation to the department, there is a chance to avoid penalty.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 17 September 2011

@ Prabhat

The query posting did not had any mention of additional tax payable or paid. hence it is deemed that its block transfer of some services from one period to another.

as far as the revenue is saved, the department allows the adjustments on natural grounds in forthcoming periods, if the same is proved that its happened unwilllingly and had no malafide intention to avoid the tax.

Rohan (Consultant) (91 Points)
Replied 05 December 2011

Hi All,

Thanks for this useful thread.

What if in the Original Return expemtion notification is missed, however we've claimed exemption for lets say services to SEZ. Now the 90 days revision has expired?

Could we file a fresh return with the late fees or just mention that the omission of notication was ground of clerical mistake and the effect is revenue neutral?

Appreicate your assistance.

Rohan