Period of ST-3

[SANJAY BAHETI]

One of my client being an Individual is providing services by means of Renting of Immovable Property for commercial purposes. Till Aug,2012 his rental income not exceeded Rs.9 lacs. However if considering the rental Income of Sept,2012 then the limit crossed the SSI exemption limit.Therefore he applied for Registration with Service Tax Authorities in Oct,2012 at the week end.He is expecting ST-2 up to 10112012.thereafter He is going to deposit Service Tax up to Sept,2012 on excess value of taxable services prior to 15112012 along with Interest for delayed period. Now query is for which period ST-3 is to be filed i.e. whether for quarter July to Sept or Oct to Dec in future as my client is likely to obtain ST-2 only in Nov,2012.

[CASeetharaman KC]

If your client is going to pay service tax from September 2012 then ST3 would have to be filed for July to September quarter. Once the threshold limit is exhausted Service tax is payable from that month in which the limit is crossed and so also other formalities also need to be complied with effect from that date

[YAGAY andSUN]

Since there is no notification from Service Tax Department regarding filing of return for the period July'2012 - September'2012, therefore, you would have to wait till the date for fililng of return is announced by the Department.

However, statutory return needs to be filed on or before due dates.

AI Summary

Service tax threshold breach triggers filing for the quarter in which the exemption is exceeded; tax payable from that month. Service tax liability arises from the month in which the exemption threshold is exceeded, and ST-3 must cover the quarter that includes that month (here July-September). Registration obtained afterwards does not alter the commencement of liability. Administrative filing windows may be set by departmental notification, but the statutory return must be filed and tax (with applicable interest) deposited by the due date for the period from the month the threshold was crossed.