what happen if ST return filed late

[Sanjay Tripathi]

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

[YAGAY and SUN]

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

Service tax return late filing attracts prescribed late fees while nil returns can avoid penalties and be waived.
Late filing of Form ST-3 attracts prescribed late fees; nil returns are not required and, if nil, cannot attract penalty and may be waived under the proviso to Rule 7C. ST-3 is filed half-yearly by persons liable to service tax and by Input Service Distributors, with due dates for April-September and October-March specified. Late fees escalate from an initial small fixed amount to a higher fixed charge and then a per-day charge subject to an overall cap, and authorities may waive fees where delay is shown to be genuine.