Important information to keep in mind before planning for filing of service tax return.
As per sec 70/ rule 7 str1994, every service provider who is liable to pay service tax has to file service tax return on half -yearly basis and the return should be filed up to 25th of month succeeding the relevant half year. A service provider should file the return in form no ST-3 and the service provider should enclose GAR-7 challan with the return & at the time of filling the first return of service tax he should enclose a list of all the books & documents maintained by him.
As per rule 5 of STR-1994, the service provider should retain the books of accounts for a period of 5 yrs from the end of the financial year to which the books & documents relate. No separate books of accounts are required under service tax provisions.
If any person violates the provisions of rule 5, in that case penalty of Rs. 10000 shall be charged u/s 77. Every service provider should file service tax return in time, otherwise penalty shall be charged in the manner given below:-
· delay up to 15 days, penalty payable shall be Rs.500.
· if delay is more than 15 days, but, up to 30 days, penalty payable shall be Rs.1000.
· if delay is more than 30 days, penalty shall be Rs.1000+Rs.100 per day, but maximum up to Rs.20000.