Non filers of ST-3 Returns.

[MANASH MUKHERJEE]

Service tax exemption is provided to small service providers & when gross receipts exceeds 9 lacs,one is supposed to take registration. However, there are instances when some clients take registration only for participation in tender.When the tender is booked against only one party, the other parties who missed the tender , subsequently becomes non-filer and hence legal actin like late fee etc.are imposed on them.In fact, they are not providing any service as they lost the bid.Can this type of parties avail any exemption benefit.Again if they want to surrender ST-2 ,what is the exact and easy procedure, as the dept.ask Income tax return /copies of ST-3 etc.when surrender request is filed online.

AI Summary

Service Providers Urged to File Nil ST-3 Returns Until Registration Surrendered; Penalties Possible for Non-Filing A discussion on a forum addressed issues related to non-filers of ST-3 returns, particularly when service providers register for tenders but do not win them, resulting in penalties for not filing returns. It was clarified that even with nil income, filing a nil return is advisable until the registration is surrendered. For surrendering the ST-2 registration, an online application through the ACES module is necessary, accompanied by financial documents like profit and loss accounts or income tax returns to verify the cessation of services. Jurisdictional officers may waive penalties if satisfied with the reasons for non-filing.