Maximum time limit for recovery of service tax in case of non filing of service tax return

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RAHULSMITTAL (Querist)

11 September 2015 One of my client didnot deposited rs 332000 service tax due on 6th sept 2013 and didnot file any service tax return. Now he is willing to pay it fully the same amount is shown in books.
Is he liable to pay the amount now?
As SCN u/s 73 is 12 months
If he pays the same suo motto, is he liable for prosecution also?
Is he liable to pay penalty u/s 76?

Harshal Fifadra

Harshal Fifadra (Expert)

11 September 2015 Yes, he is liable to pay the amount now along with the applicable interest.
No, he is not liable for prosecution.
Yes, he is liable for penalty u/s 76

RAHULSMITTAL

RAHULSMITTAL (Querist)

12 September 2015 How much penalty he is liable to pay in this case?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

14 September 2015 There is no time limit for recovery of duties due. Hence the amount is payable. Penalty will be levied after issuance of SCN by the Department. Quantum can be upto 200 % is intention to evade can be proved.

In case the duty along with interest is paid before issuance of SCN by Department generally no penalty / or at most a token penalty is levied.

Calculate interest on number of days delay @ 18% p.a. upto 30th September 2014 and thereafter @ 36% p.a.

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