No need to file NIL retun of Service Tax if there is no Service Tax Payable

The most frequently asked question " Whether is it mandatory to file Nil return of service Tax ??"

Today You will get the answer ... Let know ......

Various Tribunals have held that there cannot be any penalty for non-filing of Nil return.

I am sharing the relevant extract of the CBEC Circular (Circular No. 97/8/2007) and Amrapali Barter Case as under for the ease of your reference:

Firstly read point no. 6 of The Circular

"Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return.”

Now know about Amrapali Barter Case

In Amrapali Barter Case, the Service provider is registered with the Service Tax Authorities and has not provided any services during a particular return cycle and was also not liable to pay any service tax during that return cycle.

The Hon’ble Tribunal has held that the service provider is not required to file the Service Tax Return (even nil return) for that period as per the CBEC Circular No 97/8/2007-ST dated August 23, 2007.

Further the Hon’ble Tribunal held that in case the Service Provider files the nil return after considerable delay, then also no penalty under Section 77 of Finance Act or fees under Rule 7C of the Service Tax Rule impose-able on him.

Hence such case is fit for invocation of the proviso to Rule 7C and grant waiver of late filing fees.

Similar decision was held by Hon’ble Kolkata Tribunal in the case of M/s Suchak Marketing Pvt Ltd Vs. Comm. of Service Tax, Kolkata [2013 (6) TMI 641]

Thus we can say Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return in terms of Circular No.97/8/07-ST dated August 23, 2007 and cited judgment. 
Even if service tax return is filed late/ failed to file return – No Penalty in terms of Rule 7C of the Service Tax Rule.