penality for nil return

[JENI SHA]

is there any penalitty/ interest for delay on nil return file?

[Umanand Vijay]

Wether the matter for central; excise or service tax 

[Mahir S]

If a person gets himself registered with the service tax department, he has to follow all the procedures and submit all the relevant documents which are necessary, even if he is not providing any services during the concerned half year.

Therefore, even if he is not  providing any service or not liable to pay any service during the corresponding Half Year for which return is due to be submitted, he is required to file return in Form ST-3 or ST-3A as the case may be, as a NIL return.

However, in some instances, the tribunal has taken liberal stand for non filing or late filing of  NIL return and rejected the penalty proceedings for the same but it is highly advisable to submit the returns within time without taking any chance of litigation.

Under RULE 7C,  Power to WAIVE OR REDUCE the penalty has been vested with the Central Excise Officer in case of NIL service tax liability.

[phaniraju konidena]

Central Excise: Delay in filing of ER-1 return, would attract penalty under Rule 27 of  Central Excise Rule, 2002] - Compact Tools vs Commissioner of Central Excise, Indore (2013 (9) TMI 518 - CESTAT NEW DELHI ) =2013 (290) ELT 0412 Tri.-Del

Service Tax: Please refer Article by Mr.Bimal Jain on 12.08.2013 (TMI) -

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

[Rama Krishana]

See Rule 27 of Central Excise Rules, 2002 wherein general penalty has been prescribed upto Rs. 5000/- .

AI Summary

Nil return filing obligation: registered taxpayers must file prescribed returns despite no services, or risk penalty. A registrant under the service tax regime must file the prescribed return as a nil return (Form ST-3 or ST-3A) when no taxable services are provided; tribunals have sometimes excused non filing or late filing of nil returns but filing on time is recommended. Delay or failure to file may attract penalty under Central Excise rules, while specific provisions allow officers to waive or reduce penalty in cases of nil liability.