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Penal consequences

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This query is : Resolved

Rashmi (Querist)

22 May 2015 Assessee has collected service tax from clients but did not deposit it to govt. The default persists for over a year now..However, no SCN or any kind of Order/notice/ enquiry has been received from the department

Now the assessee wants to deposit the service tax so collected voluntarily, along with interest. Will any penalty also be levied while making such voluntary payment..? Kindly explain the penal consequences, if any.

Sagar mal Pareek

Sagar mal Pareek (Expert)

24 May 2015 Yes,pl.pay with interst and inform to the department.Sectrion 73(3) of the Finance Act,1994 provides that if paymenty with interst is made before SCn is issued and information is given to the department,there may not be penalty provided the other ingredients for charge of penalty are available as per section 73(4)loke fraud,collusion etc.However the new provisions are made applicable wef 14/05/2015 with the enactment of the Finance Bill 2015 which may also be referred.tks CA sagar mal pareek, bharuch 9824346469 smpfca@gmail.com

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