MCQ On Filing Of Service Tax Return

1. M/s Last Bench, a partnership firm has failed to file service tax return for the period April to September 2014.Now he wants to file the return along with the return for the period Oct to March 2015. Should he pay the penalty for late filing? If so, how much

Not required to pay any penalty

Rs.1000

Rs.1000 plus Rs.100 per day

Rs.1000 plus Rs.100 per day from the 31st day subject to a maximum amount of Rs.20000

Explanation

Rs.1000 plus Rs.100 per day from the 31st day subject to a maximum amount of Rs.20000

2. Here is a client of M/s. Confused Enterprises, not willing to pay the service tax amount. Out of the total bill value of rs.112360, the client has paid Rs.1 Lakh as full and final settlement. Now that the client has not paid service tax, should the firm still pay it to the government?

Yes

No

Yes Service Tax is payable on amount realized. In given situation, the amount so realized from the client would be treated as gross amount inclusive of Service Tax and accordingly the value of taxable service and the Service Tax liability are worked out

Explanation

Yes Service Tax is payable on amount realized. In given situation, the amount so realized from the client would be treated as gross amount inclusive of Service Tax and accordingly the value of taxable service and the Service Tax liability are worked out

3. M/s Manual Web, having a turnover of Rs.12 Lakhs for the period Oct – March 2015 is ready to file half yearly return, but he wants to file it manually, by submitting the forms to the department. Can he do so?

Yes

No

No. E-filing of return and e-payment of taxes is mandatory for all assessees

Explanation

No. E-filing of return and e-payment of taxes is mandatory for all assessees

4. M/s. Creating Engineers, a partnership firm is providing 3 different services. They want to know from you, whether separate returns to be filed for each service?

Yes

No

No. If assessee is providing more than one taxable service, he should file only one return. However details of each taxable service shall be shown separately

Explanation

No. If assessee is providing more than one taxable service, he should file only one return. However details of each taxable service shall be shown separately

5. M/s Hurry Enterprises has filed service tax return for Oct to March 2015 on 16^th April 2015. After filing the return, they have realized that there was a mistake in the information provided in the original return. Can they rectify it now and if so by when they can do so?

16th July 2015

16th June 2015

25th April 2015

Can't be revised

Rule 7B of Service Tax Rules allow an assessee to rectify mistakes and file revised return within 90 days from the date of filing of the original return

Explanation

Rule 7B of Service Tax Rules allow an assessee to rectify mistakes and file revised return within 90 days from the date of filing of the original return

6. M/s Heavy Machinery, a SSI firm has purchased an equipment worth Rs.20 Lakhs by paying Rs.2.4 Lakhs as Excise duty in the month of March 2015. They wants to know whether Excise duty of Rs.2.4 lakhs be utilized as Cenvat Credit while paying service tax?

Yes

No

50% credit is available in current year and balance in subsequent financial year or years, except in case of SSI.

Explanation

50% credit is available in current year and balance in subsequent financial year or years, except in case of SSI.

7. M/s Extra Cautious, a firm wants to know for how many years he has to preserve the returns and records.

5 years

6 years

8 years

All records and documents concerning any taxable service, CENVAT transactions etc. must be preserved for a minimum period of 5 years immediately after the financial year to which such records pertain

Explanation

All records and documents concerning any taxable service, CENVAT transactions etc. must be preserved for a minimum period of 5 years immediately after the financial year to which such records pertain

8. M/s Craft work has collected service tax of Rs.58,000 during February 2015, but registered in the month of April 2015. If they approach you to file service tax return for Oct to March 2015 period, what would be your suggestion?

Pay the taxes

Pay the taxes and file the return

Pay the taxes but don't file the return

Don't pay the taxes

The assessee is liable to pay service tax (along with interest) for the period prior to registration under service tax but return can’t be filed. After paying the taxes, inform the department

Explanation

The assessee is liable to pay service tax (along with interest) for the period prior to registration under service tax but return can’t be filed. After paying the taxes, inform the department

9. M/s. Creating Engineers, a partnership firm is providing 3 different services. They want to know from you, whether separate returns to be filed for each service?

Yes

No

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

Explanation

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