Return Filing under Service Tax

The Person who is liable to pay Service Tax has to submit half yearly return i.e. 1st April to 30^th September and 1^st October to 31^st March of Financial Year in Form-ST-3 within 25 days of the end of the Half Year.

Note: Input Service Distributor is also required to file half yearly returns, even if he is not liable to pay service tax.

Assessee providing more than one services

If assessee is providing more than one taxable service, he should file only one return. However, details of each taxable shall be shown separately.

Nil return essential even if no turnover

Even if there was no business during the period, assessee will have to file ‘Nil’ return as long as registration certificate is valid.

Last date for filing return is a Bank Holiday

If last date of payment and filing return is a public holiday, tax can be paid and return can be submitted on next working day.

Revised Return

Rule 7B allows an assessee to rectify mistakes and file revised return within 90 days from the date of filing of the original return.

No requirement of filing return for period prior to registration

Assessees applying late for registration are liable to pay service tax for the period prior to registration with interest. He should then inform the department giving details of such payment as per provisions of Section 73(3) ofFINANCE Act, 1994.

It is neither necessary not possible to file return for the period prior to registration. Intimation is sufficient.

Mandatory Electronic Filing of Service Tax Return

E- Filing of return has been made mandatory w.e.f. 1-10-2011 vide Notification No.43/2011-ST dated 25^th August 2011 for all assessees whereas e-payment of taxes has been made mandatory w.e.f. 1-10-2014 for all assessees.

Late Fee and Penalty for filing Late Return

Section 70(1) ofFINANCE Act, 1994 provides that in case where returns are filed after due date, late fee not exceeding Rs.20000.00 is payable for delayed filing of return , as may be prescribed.

The late fee payable is as follows:-

a) Delay up to 15 days: Rs.500.00

b) Beyond 15 days but up to 30 days: Rs.1000.00

c) Delay beyond 30 days: Rs.1000.00 plus Rs.100 per day of delay beyond 30 days, from 31^st day onwards. This Rs.100.00 per day continues till limit of Rs.20000.00 is reached.