Delay in tax payment

[Guest]

Sir The Company registered under the Business Auxiliary Services (BAS) on Commission income. By mistake, the service tax (the tax) on income received in March-2006 is omitted to pay. This was not included in half-yearly return for Oct-05 -Mar-06, which is filed on 25-04-06 . The tax is paid in July-06. My query : 1. Whether half-yearly return for Oct-05 -Mar-06 is defective to that extent as above? 2. How it can include and in which half-yearly return? P.M.Raveendran

[Surender Gupta]

There is no concept of defective return in Service Tax. If you have paid the tax in the month of July 06 for the period belonging to March 06, you just intimate the department through a letter attahced with the corrected return of that period. Alternatively you may show the details of this payment alongwith the return for the the the half year April 06 September 06.

[Madhukar N Hiregange]

Though there is no provision for revising of the return you could send a revised return. Alternatively the calculation sheet and covering letter explaining the mistake and its resolution maybe provided.

AI Summary

Company Missed Service Tax on March 2006 Commission; Advised to Amend Return or Notify Department with Payment Details A company registered under Business Auxiliary Services omitted to pay service tax on commission income received in March 2006, which was not included in the half-yearly return for October 2005 to March 2006. The tax was paid in July 2006, and the company inquired whether the return was defective and how to correct it. Respondents advised that there is no concept of a defective return in Service Tax. They suggested notifying the department with a letter and corrected return or including the payment details in the return for April to September 2006, along with an explanatory letter.