Service tax returns
Sudhir Lohar
(Querist) 12 December 2013
This query is : Resolved
RESPECTED SIR/MADAM, OURS IS PROPRIETORSHIP CONCERN REGISTERED WITH SERVICE TAX. THE FIRM WAS CARRYING OUT JOB WORKS TO A MANUFACTURER REGISTERED WITH CENTRAL EXCISE. HENCE THE JOB WORKS IS EXEMPTED. HOWEVER THE FIRM HAS FAILED TO FILE ST-3 RETURNS FROM 2005-06 TO 2007-08. THE FIRM HAS CLOSED ITS BUSINESS ON 31-3-08. NOW THE SAME HAS ALSO NOT BEEN INTIMATED TO THE DEPT. WHAT ARE THE CONSEQUENCES AND REMEDIES? CAN WE USE THE VCES SCHEME.
KINDLY GUIDE.
Vineet
(Expert) 12 December 2013
Since there was no tax liability, dont think any issue may arise there.
Regarding non filing of service tax return, during the relevant period there was no penalty for non filing of return. Even as on date maximum penalty for any violation of provisions of act is Rs 10000 which can be levied only if non filing of return in exempt case is held as contravention which in my o[inion will be the case.
There is no penalty for non-surrender of registration. you hould do it now.
R.K Nanda
(Expert) 13 December 2013
consult tax lawyer.
C. SANJEEVA RAO
(Expert) 14 December 2013
Now, with latest amendment Rs.20000/- penalty for violation of non-filing of ST-3 returns, before going for VCES better consult your service tax consultant, who is conversant with the VCES provisions. The idea of going for VCES is good.
Sudhir Lohar
(Querist) 19 December 2013
RESPECTED SIR,
KINDLY GUIDE US IN THE LIGHT OF THE FOLLOWING:
Circular No. 97/8/07-ST, dated 23-8-2007,
WHICH SAYS THAT THERE IS NO NEED TO FILE THE RETURNS IF THERE IS NO SERVICE RENDERED.
A RECENT JUDGEMENT IN THE MATTER BY HON'BLE KOLKATA TRIBUNAL.
THE SAME IS FAVOUR OF THE ASSESSEE.
C. SANJEEVA RAO
(Expert) 20 December 2013
You go thru the judgement in full, then understand the context in which the CESTAT, Kolkata had rendered the judgment. then draw a conclusion, whether that facts and circumstances are fitted in your case or not. Once, you obtain registration, you are duty bound to file the NIL returns to the department, otherwise, how can the department or range official could know the business position of yours. To avoid the penal provisions better to file the NIL return within the stipulated date. The judgment might have rendered in connection with the levy of penalty.
