CBEC Notifies Requirement of Filing Annual Service Tax Return
In line with the Budget 2016 proposals, the CBEC vide Notification No. 19/2016- Service Tax dt. 1 March 2016 has prescribed for filing of Annual Service Tax Return, w.e.f. 1 April, 2016, in addition to existing requirements of filing of Half yearly Returns on respective due dates of 25th April and 25th October for half years ending 31 March and 30 Sept. of the relevant year, respectively.
Applicability & Due Date of Annual Service Tax Return
In brief we can say that from FY 2016-17 onwards the assessees are required to file their Annual Service Tax Return, with due date being 30 Nov. of the succeeding year (i.e. 30 Nov. 2017 for 2016-17).
Exemption from Annual Service Tax Return
The Central Government can notify the assessees or class of assesses who will be exempt from filing Annual Service Tax Return. However, yet there is no Notification in this regard.
Revised Annual Service Tax Return
Assessee who has filed the annual return by due date, i.e. 30th November of the succeeding year, may file a revised Annual Service Tax Return within a period of one month from the date of submission of the original annual return.
Delayed Annual Service Tax Return
There is penalty of of Rs.100 per day for the period of delay subject to a max amount of Rs.20,000 where the assessee has made delay in filing the Annual Service Tax Return.
Form of Annual Service Tax Return
Every assessee shall submit an annual service tax return for the financial year to which the return relates, in such form and manner as may be specified in the notification. However, CBEC is yet to notify the Form for the same.
Amendments in Rule 7, 7A and 7B of Service Tax Rules 1994 reg. Annual Service Tax Return
CBEC has amended Rule 7, 7A and 7B of Service tax Rules, 1994 to prescribe the requirement of Annual Service Tax Return filing vide CBEC Notification 19/2016-Service Tax dt. 1 March, 2016. Relevant extracts are reproduced here-under:
2. In the Service Tax Rules, 1994
(3) in rule 7,-
(i) after sub-rule (3), the following sub-rules shall be inserted, namely:-
“(3A) Notwithstanding anything contained in sub-rule (1), 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;
(3B) 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 referred to in sub-rule(3A).”;
(ii) in sub-rule (4), for the words, brackets and figure “sub-rule (2)”, the words, brackets , figures and letter “sub-rules (2) and (3A)” shall be substituted;
(4) rule 7B shall be renumbered as sub-rule (1) thereof, and after sub-rule (1) as so renumbered, the following sub-rule shall be inserted, namely:-
“(2) An assessee who has filed the annual return referred to in sub-rule (3A) of rule 7 by the due date may submit a revised return within a period of one month from the date of submission of the said annual return.’’;
(5) rule 7C shall be renumbered as sub-rule (1) thereof, and after sub-rule (1) as so renumbered, the following sub-rule shall be inserted, namely:-
“(2) Where the annual return referred to in sub-rule (3A) of rule 7 is filed by the assessee after the due date, the assessee shall pay to the credit of the Central Government, an amount calculated at the rate of one hundred rupees per day for the period of delay in filing of such return, subject to a maximum of twenty thousand rupees.”.