Applicablity of service tax paid and filing service tax return, Service Tax

[RAM SHARMA]

Dear Experts,

We have service provider. still we have 5 Lacs income not crossed 10 Lacs income but we have registered our self in service tax department. Now, the question whether we have required to pay service tax and file service tax return. Please advice.

Thanks

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Service provider whose aggregate value of taxable service exceeds ₹ 9 lakhs is liable to get registered with the Department. You have stated that your turnover is only 5 lakhs and therefore you need not get registered with the Department.

When your turnover reaches ₹ 9 lakhs you may get registered with the Department. Once you are registered you have to file half yearly return within the prescribed due date. Otherwise the Department will demand late fee from you for delayed submission of the return.

[KASTURI SETHI]

Since you have got registered yourself with ST department before crossing turnover of ₹ 9 lakhs, you may file ST-3 return also. NIL return is to be filed until you cross ₹ 10 lakhs. If you do not file ST-3 return after registration, the ACES system will treat you as defaulter and then you will have to explain the reasons for not filing return. Though there is Board's circular and also provision in Rule 7 C, yet it is better to file ST-3 return.

[Ganeshan Kalyani]

Sir, I would like to ask for clarification in respect of the query under reference:

If an assessee has taken registration voluntary before crossing the SSI limit then in my view he has to file return by showing the details of his transaction in respect of service provided. And in the section where Notification is asked for ,there the assessee has to select the SSI exemption notification number. Not disclosing the facts would lead to supression of facts. This is my understanding. Please share your view on my view. Thanks.

[Rajagopalan Ranganathan]

Sir,

If service provider has got himself registered voluntarily before crossing the limit of ₹ 10 lakhs, he has to file half yearly return showing the value of service rendered during each month of the half year and claiming the exemption under Notification 33/2012-ST dated 20.6.2012 (with effect from 1.7.2012).

Suppose the service provider failed to file the half yearly return and he had crossed ₹ 10 lakhs limit and did not pay the service tax then certainly the Department will allege willful suppression of facts to evade payment of service tax. By filing the half yearly return you are keeping the Department informed of your activity. Since self assessment procedure is made applicable to Service Tax the entire responsibility is cast on the service tax assessee and the Department will not take up any responsibility of monitoring when the service provider crosses the ₹ 10 lakhs limit. This is my view.

[KASTURI SETHI]

I agree with both experts, namely Sh.Ganeshan Kalyani, Sir, and Sh.Rajagopalan Rangnathan, Sir (Latest reply).