CA Navin Jain
Amendment in Section 70 (1)
‘In Section 70 (1) of the Finance Act, 1994, for the words “two thousand rupees”, the words “twenty thousand rupees” shall be substituted’. After considering the above amendment the Maximum Penalty for
Late Filing of Service Tax Return, is been increased to 20000/- (Twenty Thousand) w.e.f. 01.04.2011 from earlier 2000/- (Two Thousand).
Rule 7C of the Service Tax Rules, 1994
However, the existing rate of penalty under rule 7C of the Service Tax Rules, 1994 are being retained without any change.
Mandatory Penalty for Late filing of ST-3 Return under Rule 7C of Service Tax Rules, 1994
|
Sl. No. |
Period of Delay from the prescribed date |
Penalty |
|
1 |
15 days |
Rs. 500/- |
|
2 |
Beyond 15 days but not later than 30 days |
Rs. 1000/- |
|
3 |
Beyond 30 days |
Rs. 1000/- plus Rs. 100/- for every day from the thirty first day till the date of furnishing the said return
Subject to a maximum amount of Rs.2000. |
Conclusion :-
1. Suppose Assessee has to file the return delay not more than 15 days then he liable to pay penalty Rs. 500
2. Suppose Assessee has to file the return delay Beyond 15 days but not later than 30 days then he liable to pay penalty Rs. 1000
3. Suppose Assessee has to file the return delay Beyond 30 days but not later than 40 days then he liable to pay penalty Rs. 1000 + Rs. 100 per day till filling the return but penalty can not exceed of Rs. 2000
4. Suppose Assessee has to file the return delay Beyond 40 days then he liable to pay penalty but penalty can not exceed of Rs. 20000 if service tax return is furnished after a delay of 40 Days then maximum penalty is Rs. 20000
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