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

[YAGAY and SUN]

Service Tax is required to be deposited in such scenario without any further delays along with interest.  Information pertaining to such deposition should be incorporated at the time of filing current returns.

[JAMES PG]

As per the provisions of Sec 73 (3) where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person chargeable with the service tax, or the person to whom such tax refund has erroneously been made, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the amount so paid': Expanation to the above provides that no penalty under any of the provisions of the Act or Rules shall be imposed in respect of payment of ST under this sub section except wherein cases of fraud or suppression is involved

[CASeetharaman KC]

Thanks a Lot for the inputs. 

AI Summary

Voluntary payment under Section 73(3) shields against penalties except for fraud or suppression, but interest must be paid.
Pay discovered service tax immediately with interest and disclose the payment in current returns and statements (including 3CD). ST-3 revisions are typically time-barred. Voluntary self-payment and informing the revenue generally precludes penalties except where fraud or suppression is involved.