The CBEC vide notification No.43/2011- Service Tax dated August 25, 2011, made amendments to the service tax rule 7 with effect from October 1, 2011, where in the provision which stated that where an assesse has paid a total service tax of Rs10 lakh or more including the amount paid by utilisation of Cenvat Credit, in the preceding financial year, he shall file the return electronically has been deleted and after sub rule (2), a new sub rule (3) has been inserted namely: (3) Every assessee shall submit the half-yearly return electronically.

With this notification now all assesses who are registered with the service tax will have to file all service tax half yearly returns electronically from October 1, 2011. This means that the half yearly return for the period April 1, 2011, to September 30, 2011 will have to be filled electronically through the ACES site of service tax as the due date for filling of the return for the period is October 25, 2011, and by then this notification will be applicable. Assesses who have not filed previous returns of service tax will also have to file the same electronically if they are going to file the same after October 1, 2011.

Hence, after October 1, 2011, based on this notification, all assesses will have to file their service tax returns compulsorily online.

Penalty for non filling of service tax return electronically will be as per section 77(2), penalty for contravention of any provisions of the chapter or rules (of service tax) for which separate penalty has not been provided shall be upto Rs10,000. This amount was Rs5,000 till April 7, 2011.