Delay in tax payment

[Asked by 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

Service tax late payment can be regularised by intimating the department and filing a corrected or revised return.
There is no statutory concept of a defective return in service tax; the taxpayer should intimate the department about the omission and either submit a corrected return for the affected period or disclose the payment and supporting details in the subsequent half yearly return, or send a revised return with a calculation sheet and covering letter explaining the mistake and its rectification.