EXCISE AND SERVICE TAX RETURN

[SUMEDH AYARE]

WE ARE TAKING CREDIT ON INPUT SERVICES (SERVICE TAX)  AGINST THE EXCISE DUTY PAYABLE.

AT OUR END THERE IS NO LIABILITY OF SERVICE TAX PAYMENT.

WE ARE PAYING ONLY EXCISE DUTY  &  FILING EXCISE RETURN I.E.  ER-1  (WHEREIN WE SHOW THE CREDIT OF SERVICE TAX) 

WE ARE NOT FILING ANY SERVICE TAX RETURN. (WE ARE REGISTERED WITH ST  AS  GTA)

WHETHER WE NEED TO FILE SERVICE TAX RETURN ?????????? 

AI Summary

Filing a 'NIL' Service Tax Return is Mandatory for Registered Entities, Even Without Service Tax Liability. Penalties Apply. A forum participant inquired about the necessity of filing a service tax return despite having no service tax liability and only paying excise duty. Multiple responses clarified that filing a 'NIL' service tax return is mandatory if the entity is registered, regardless of transaction activity. Failure to comply can result in penalties up to Rs. 20,000, though penalties may be waived or reduced by the Central Excise Officer in cases of nil liability.