Service Tax Payments pending for 2010-11 and 2011-12

[CASeetharaman KC]

In some cases mostly in case of medium scale service providers  it happens that there are service tax dues which are discovered when the finalisation of accounts is done. Would it be appropriate to pay the amount with interest when discovered and mention the same in 3CD returns? I guess penalty provisions would still apply ? Also the ST-3 returns submitted cannot be revised as the time period of 90 days would be over. Shall be grateful for your adv ise

AI Summary

Medium-Scale Providers: Pay Overdue Service Tax with Interest, Use 3CD Returns, Avoid Penalties Under Section 73(3) A query was raised about pending service tax payments for the years 2010-11 and 2011-12, particularly for medium-scale service providers who discover dues during account finalization. The question was whether to pay the amount with interest and report it in 3CD returns, considering penalties and the inability to revise ST-3 returns due to the 90-day limit. Responses advised immediate payment with interest and reporting in current returns. According to Section 73(3), if the tax is paid before notice, no penalty applies unless fraud or suppression is involved. The original poster expressed gratitude for the advice received.