25 April 2011
The maximum penalty for delay in filing of return under Section 70, has been raised from Rs. 2000 to Rs. 20000. However, the existing rate of penalty for the first 15 days and for the subsequent 15 days as well as the daily penalty of Rs. 100 per day thereafter under rule 7C of the Service Tax Rules, 1994 are being retained without any change. For details refer The Finance Act,2011.
Conclusion:- if service tax return is furnished after a delay of 40 Days then penalty is Rs. 20000
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