Late fee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2015 Dear Sir,
Service Tax payable for the 2nd half yearly return of fy 2014-15 is only Rs. 3280/-. Please clarify how much late fee that assessee has to paid if he files his return on 12/07/2015. Whether the late fee can exceed the tax amount?

Please reply soon.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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11 August 2015 The interest can be exceed from basic duty if it will not paid on time. Within 6 month interest can be imposed 18% and after another 6 month 24% and after one year 30%.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2015 Sir, I am asking about late fee not the interest

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2024 For the Service Tax return, late fees are governed by the Service Tax Rules, 1994. Here’s how you can calculate the late fee for filing the return:

### **Late Fee Calculation:**

1. **Due Date for Filing Returns:**
- **Half-Yearly Return:** For the second half of FY 2014-15 (i.e., October 2014 to March 2015), the due date for filing was 25th April 2015.

2. **Late Fee Amount:**
- **Late Fee Structure:** As per Rule 7C of the Service Tax Rules, 1994, the late fee for delayed filing of Service Tax returns is as follows:
- **Up to 1 month:** ₹500
- **More than 1 month but up to 6 months:** ₹1,000
- **More than 6 months:** ₹1,000 plus ₹100 for each additional month or part thereof.

3. **For Return Filed on 12/07/2015:**
- The return is filed on 12th July 2015, which is approximately 2 months and 17 days past the due date (25th April 2015).

4. **Late Fee Calculation:**
- Since the return is filed between 1 month and 6 months late, the applicable late fee is ₹1,000.

5. **Late Fee Cap:**
- The late fee cannot exceed the amount of Service Tax payable. Since the Service Tax payable is ₹3,280, the late fee of ₹1,000 is well within this limit.

### **Conclusion:**

- **Late Fee Payable:** ₹1,000.
- **Late Fee vs. Tax Amount:** The late fee of ₹1,000 is less than the Service Tax payable of ₹3,280, so it does not exceed the tax amount.

### **Summary of Late Fee Payment:**

1. **Service Tax Payable:** ₹3,280.
2. **Late Fee:** ₹1,000 (for the delay of over 2 months but less than 6 months).

**Total Amount Payable**: ₹3,280 (Service Tax) + ₹1,000 (Late Fee) = ₹4,280.

Ensure to pay the late fee and Service Tax promptly to avoid further penalties or interest.

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