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.

[Rajagopalan Ranganathan]

Sir,

Normally if you take registration under finance Act, 1994 you have to file the prescribed return. However, proviso 3 to rule 7C of Service Tax Rules, 1994 provides 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.. therefore you please approach your jurisdictional Central Excise officer explaining the reasons for not filing the return and get the reduction or waiver of payment of penalty.

[Ganeshan Kalyani]

Though there is NIL income if there is service tax registration number it is better to file NiL return untill you surrender you registration number with the department.

[Mahir S]

Sir,

Assessees who wish to surrender their registration certificates shall file their application on-line using the ACES module on www.aces.gov.in. On successful filing of the online application, the assessee shall submit the copies of documents mentioned at para 5 along with signed copy of the printout of the application generated by the ACES System to the jurisdictional Group Superintendent or Superintendent(s) of the Registration Cell in the concerned Divisional office.

Yes , department can ask for copies of P/L account/Balance sheet etc to confirm the services provided and amount earned thereon. 3. Copies of Profit & Loss account and Balance Sheet from the date of taking registration to the date of surrender. However, if Balance Sheet or Profit & Loss Statement has not been prepared, the applicant may submit copies of Income Tax Return for the said period. If said return has also not been filed then applicant should provide appropriate evidence like Bank Statement so as to enable the department to verify the reason stated for surrender.

AI Summary

Registration requirement: file returns or seek penalty waiver; surrender only via ACES with supporting financial records.
Registration under the Service Tax regime requires filing prescribed returns even when no taxable services are rendered; officers may reduce or waive penalties for non-filing where gross tax payable is nil and satisfactory reasons are shown. Surrender of registration must be filed online via ACES and followed by submission to the jurisdictional registration cell of a signed printout plus Profit & Loss accounts and Balance Sheet or, alternatively, Income Tax Returns or other corroborative evidence such as bank statements to verify the claim.