what happen if ST return filed late

[Sanjay Tripathi]

if service tax filed late what will be solution if penalty imposed

[YAGAY andSUN]

If it is a nil return then no penalty can be levied otherwise no option is available.

[Ganeshan Kalyani]

Sir, if return is filed late, late fees is payable. If late fees is paid, penalty is not liable to pay. Thanks.

[Ganeshan Kalyani]

Sir, Late fees is payable -

1. Delay up to 15days - ₹ 500/-
2. Beyond 15 days - ₹ 1000/-
3. beyond 30 days - ₹ 1000/- plus ₹ 100/- per day of delay from 31st day onwards. This ₹ 100/- per day continues till limit of ₹ 20,000/- is reached.

Thanks.

[KASTURI SETHI]

Sh.Sanjay Tripathi Ji,

I endorse the views of both experts. I add as under :-

If all ST-3 returns are ‘NIL’ ( no ST is payable by the assessee,) ST-3 return is not required to be filed in terms of Board’s MasterCircular No.97/8/2007-ST dated 23.8.2007 as amended.( Para No.6 refers) (This circular is still in force.) 

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.

As per proviso to Rule 7 C of Service Tax Rules, 1994, if Service Tax return is 'nil', AC/DC has power to waive penalty.

[CSSANJAY MALHOTRA]

Sh Kasturi ji,

Your addition is like another feather in the cap. Awesome.

[Ganeshan Kalyani]

Sir, in support of last para of Sri Kasturi Sir's reply , if the authority is convinced that the delay is because of genuine reason then can be waived. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

There is no exception to pay additional fee to the extent of ₹ 20,000/- unless the return is NIL return as posted by other professional colleagues.

AI Summary

Late Filing of Service Tax Returns: Nil Returns Exempt from Penalty; Fees Apply for Delays, Possible Waiver for Genuine Reasons. In a discussion about late filing of service tax returns, several contributors provided insights. If a nil return is filed, no penalty is imposed. Otherwise, late fees are applicable: 500 for delays up to 15 days, 1000 for delays beyond 15 days, and an additional 100 per day from the 31st day, capping at 20,000. If the delay is due to a genuine reason, authorities may waive the penalty. Returns are required semi-annually unless exempted, and nil returns may be waived by the Assistant Commissioner or Deputy Commissioner.