Returns - Service Tax Practice Manual / Ready Reckoner - Service Tax

Returns A. Filing of Half Yearly Return B. Nil Return C. Return for Multiple services or Multiple locations D. Penalty for Non Filing or Late filing of Return E. Revision of Service Tax Return F. Annual Return (w.e.f. 1.4.2016) G. Penalty for Non Filing or Late filing of Annual Return H. Revision of Annual Return ================ A. Filing of Half Yearly Return As per rule 7 of Service Tax Rules,1994 read with Section 70 of the Act , Every person liable to pay service tax shall submit a half yearly return. The return shall be furnished in Form ST-3 . For the half year ending 30 th September return shall be submitted by 25 th October. For the half year ending 31 st March, return shall be submitted by 25 th April. Centre Board of Excise Custom can extend the period of filing return by such period as deemed necessary under circumstances of special nature, which should be specified in the order granting extension. Return in case of provisional assessment Where a person is allowed to assess the service tax on provisional basis, he has to file a statement giving details of difference between service tax deposited and service tax liability to be paid for each month in Form ST-3A alongwith a return in Form ST-3 and relevant documents. . Where to file the return [Electronic filing of return] The return in Form ST-3 and details of accounts to be filed before the jurisdictional Superintendent of Central Excise. With effect from 1-10-2011, it is mandatory for all the assessee to submit returns electronically. [ Rule 7 (3)] Returns can be filed by visiting the site http://aces.gov.in/ ================ B. Nil Return If a person gets himself registered with the service tax department, he has to follow all the procedures and submit all the relevant documents which are necessary, even if he is not providing any services during the concerned half year. Therefore, even if he is not providing any service or not liable to pay any service tax during the corresponding Half Year for which return is due to be submitted, he is required to file return in Form ST-3 or ST-3A as the case may be, as a NIL return. However, in some instances, the tribunal has taken liberal stand for non-filing or late filing of NIL return and rejected the penalty proceedings for the same but it is highly advisable to submit the returns within time without taking any chance of litigation. ================ C. Return for Multiple services or multiple locations Return in case of Multiple Services It may be possible that an assessee is providing more than one service which are liable to be taxed under different heads. In these circumstances, he is allowed to take a single registration for all the services and accordingly he is allowed to file a single service tax return in form ST-3 . However, he has to furnish the details of all the services separately in return. Where a person took single registration for multiple locations Where a single registration has been taken for multiple locations, the assessee is required to file single ST-3 return. However, for every registered premise under a single registration, information / details of taxable services and tax payable thereon shall be provided separately in return. ================ D. Penalty for Non Filing or Late filing of Return Section 70 and Rule 7C(1) With effect from 12-5-2007, Finance Act, 2007 has prescribed specific provision for penalty for non-filing or late filing of return under the Act. As per the provisions of Section 70 , penalty can not be more that ₹ 20,000/-. Rule 7C (1) has been inserted to prescribe the amount of penalty under different circumstances. Accordingly, the penalty shall be levied as under: Period delayed in furnishing Return Amount of Penalty Maximum Penalty 15 Days from the Due Date ₹ 500/- NA Beyond 15 Days but Upto 30 Days from the Due Date ₹ 1,000 NA Beyond 30 Days from the Due Date ₹ 1,000/- plus ₹ 100/- per day beyond 30 Days ₹ 20,000/- Rule 7C prescribes that where the amount of penalty is paid, any proceeding in respect of such delayed submission of return shall be deemed to be concluded. Further, section 80 has not been amended to include Section 70 . It means, even if an assessee has all the reasonable cause for furnishing such delayed return, penalty is still payable without any relief. Therefore, the provision of Section 80 is not applicable to penalties levied for late submission of return. On the contrary power to waive or reduce the penalty for not filing the return has been vesting with the central excise officer in case NIL service tax liability under rule 7C . ================ E. Revision of Service Tax Return Earlier there was no provision in the Act or rules for revising the return which has been filed earlier and found incorrect later by the assessee. Now a new provision ( Rule 7B ) has been incorporated in the rules to provide provisions of filing a revised return. Accordingly, in case there is a mistake or omission in the original return, a revised return can be filed with in a period of 90 days from the date of filing of original return, As per the provisions of rule 7B a return can be revised only if the original return has been filed under rule 7 . Further, for the purpose of limitation of time period for raising demand and recovery of dues, the time limit will commence from the date on which revised return has been filed. Since the original return can not be revised beyond 90 days and can not be used to claim the refund. In case he has paid excess amount by mistake, he is required to file refund claim. ================ F. Annual Return (w.e.f. 1.4.2016) As per rule 7(3A) of Service Tax Rules,1994 read with Section 70 of the Act , Every assessee shall submit an annual return for the financial year to which the return relates, in such form and manner as may be specified in the notification in the Official Gazette by the Central Board of Excise and Customs, by the 30th day of November of the succeeding financial year; The Central Government may, subject to such conditions or limitations, specify by notification an assesse or class of assesses who may not be required to submit the annual return as per this new rule. ================ G. Penalty for Non Filing or Late filing of Annual Return: Section 70 and Rule 7C(2) As per the provisions of Section 70 , penalty can not be more that ₹ 20,000/-. Rule 7C (2) has been inserted to prescribe the amount of penalty as: ₹ 100/- per day subject to maximum of ₹ 20,000/- ================ H. Revision of Annual Return As per the provisions of rule 7B(2) annual return can be revised only if the original return has been filed under rule 7 . Annual return can be revised within 30 days from the date of filing / submission of the return.