Mega Offer Avail 65% Off in CA IPCC and 50% Off in all CA CS CMA subjects.Coupon- IPCEXAM65 & EXAM50. Call: 088803-20003

CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Analysis of Penalty on Late Filing of Service Tax Return

CA Navin Jain 
on 29 April 2011

LinkedIn


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

 




Category Service Tax
Other Articles by -
CA Navin Jain 

Report Abuse

LinkedIn



Comments


update