I applied for registration of Service Tax in the month of January 2015.
I did not get my registration under form ST-2 within 7 days. However I got acknowledgement for filing of ST-1 in which the ST Reg. Number was mentioned. I thereafter used that registration number on invoices for charging service tax.
I got an intimation from the Deptt. in May last week that i need to submit my registration application again marked to the correct zonal office. (The application/documents that i submitted previously, was sent to the correct zonal office as per the website, but due to some internal shuffling, they asked me to send the documents to some other zonal office under which my premise to be registered comes).
I have re-submitted the documents as on June 1, 2015.
As no registration is recorded with the Department, I could not make online payment of Service Tax. Also, due to the same reason, I could not file my ST-3 Return for the half year ended March 31, 2015.
What should I do?
Am i liable for default in getting registered within time (15 days of crossing 9 lacs revenue)?
Am i liable for default of non payment of service tax?
Am i liable for non filing of ST Return?
Asked 3 years ago in Service Tax from New Delhi, Delhi
you are not liable for default in getting registered as you have filed application in Jan 2015 itself.
You are not liable for default in non payment of service tax but you have to resolve the issue in registration and obtain registration certificate from department because this is a licence given to you to collect service tax. Further this will attract payment of simple interest @ 18% per anum from the due date to the date of actual payment.
You may not be liable for non filing of ST 3 return, but delay in filing may attract penalty upto Rs 20,000 based on no of days delay.
???Am I liable for default in getting registered within time (15 days of crossing 9 lacs revenue)?
Ans: Unless it is a default from the assessee's side, imposing penalty cannot be justified by law.
???Am I liable for default of non payment of service tax?
Ans: Yes. You may have to pay the applicable service tax interest (18%/24%/30% per annum as the case may be).
???Am i liable for non filing of ST Return?
Ans: Without having a proper ST registration number, you will not be able to file the ST-3. Hence, if the non-registration is due to the fault of the department, you will not held responsible for non- filing.
However, please ensure that you sort out the issue at the earliest.
Note:If the non-registration is attributable to the negligence of the assessee, you may held responsible. This depends on the facts of the case.
CA. Rajeev P T
Rajan Chakravarthy & Associates, Chennai
*****This Opinion is based on stated facts and the legal position as on date. The views expressed may not be relevant where there is any change in facts or law. This Opinion is not in the nature of an assurance that an alternative view or interpretation cannot emerge.
There are three issue and our reply on each are as under -
1. If you produce all the document as you have mentioned above , you can make out your case of bonafide submission for the registration , in that case you may be out of default and may not be liable for any penalty .
2. Yes , you should have deposited the service tax that you have collected well within the time . In case of delay you may be charged interest and the penalty may be attracted on account of concealment . The service tax can be deposited even in the absence of the STC no . it can be paid even on quoting the the PAN no . Non payment /Delay in the payment of tax will lead to the liability of interest under section 75 and penalty under 76.
3. After payment of such service tax , you can file the return . The bonafide reason for the delay can be explained and the penalty can be condoned by the department in suitable cases .
Thus the interest on the delay payment can not be wiaved , however on suitable representation making the sound bonafide ground of delay can lead to the condonation /reduction of penalty as per the provision of section 80.
CA, New Delhi Area, India