Long pending S.T return

[Asish Kumar Nath]

Sir,

We are proprietorship company having S.T registration since 20.01.2005 ( Reg. No.not based on Pan No.) and on 29.03.2005 we deposit S.T through TR-6. Since then we have not submitted any return and not collected any service tax. At present also we also not rendering any service . Now my question is.........

1 Can we regularise the Return? If yes, shall we submitted the return from 2005 half yearly or we just can submit the return for the 1st half of current year?

2. Are we aligible to take credit the S.T paid by us on account of Import , Clearing and handling charges, transport and courier, Telephone bills, Electricity Bills etc.

3. Is the S.T credit  Amount refundable?

Please help me in this regard.

[NEERAJ KUMAR, RANCHI]

Mr Nath

Point wise I try to answer your queries:

(1) You will have to submit all the returns , but you will have to pay now heavy penalty for this. If you have provided taxable services during this period and total value was more than the threshold limit no doubt You will have to pay service tax even though you have not collected service tax. If you have not provided any taxable services during this period or your value of services were with in the provision of threshold(as defined), you can argue that you were not required to file return. In this connection refer to circular no. Circular No. 97 /  8  /2007 dated:  23^rd August, 2007issued vide file no.  F. No. 137/85/2007-CX.4.The provision related to your query, I reproduce herebelow:

6.1       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 25^th October and the 25^th 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.

On the basis of above You can argue that you were not required to file return.

(2) Yes you can take credit of the ST paid as said in your query, but for this you will have to pay service tax on the services provided by you and you will have to submit regular returns also.

(3) No this is not refundable, it is refundable in case used in export, refer to rule 5 of cenvat credit rules.

Thanks

[YAGAY andSUN]

Dear Ashish,

Even if you are not providing any taxable service, but you would have to file 'Nil' returns since you have been registered with Service Tax Department.

Yes, you can regularise the filing of returns on depositing hefty penalties in this regards.

First you would have to deposit service tax if collected, and file statutory returns then you can avail the CENVAT credit.  Though Department may raise objection as the since credit earlier had not been availed in the reasonable period. Furthre, you would have to adhere CENVAT credit Rules as amended time to time.

Service tax if paid in excess, can be refunded but not in any other cases execpt in case of export of goods or services.

Best Regards,

Pradeep Khatri

 

 

[Asish Kumar Nath]

Thanks to all of you for this help.

AI Summary

Service tax return filing obligation: delayed returns can be regularised with penalties, and CENVAT credit requires filing and tax payment. Registered service providers must file half yearly Form ST 3 returns if liable to service tax; those exempt by turnover may not be required to file. Outstanding returns can be regularised by filing and paying tax, but subjects to penalties. Input service taxes (import, transport, telecom, electricity etc.) may be claimed as CENVAT credit only after filing returns and paying applicable service tax; credit refunds are available generally only for export use per Cenvat Credit rules.