Penalty on late registration

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This query is : Resolved

Aravind (Querist)

26 October 2009 Dear all
A Manufacturing Pvt. Ltd company started in June 2008, Company is liable for service tax as service receiver on transportation and fright.
The company by mistakenly late registered for Service tax on December, 2008 from the service tax department without any objections. Lack of knowledge company was not paid any service tax and now he paid for all service tax dues along with interest and delayed submission penalty of Rs.2000/- per return from April, 08 to September, 09. At the time of ST-3 returns submission the Service tax department says company liable for Penalty of Rs. 200/- per day due to late registration. As per this condition from June, 08 to December, 08 it will approximately 36000/- (200/- for 180 days). Is it right? we afraid that it is too high in this calculation. It seems more than actual service tax paid on services. please clarify...

Thanks & Regards

Ch.Aravind Kumar

let me know about what they are saying right or not?

Thanks & Regards

Ch.Aravind Kumar

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

26 October 2009 Non-registration or delayed registration attracts penalty u/s 77(1)(a) -Rs.200/-per day up to Rs.5000/-.
Non-payment or delayed payment of service tax attracts penalty u/s 76 -Rs.200/-per day or 2% of such tax per month which ever is higher.

Aravind

Aravind (Querist)

26 October 2009 so, we are liable to pay 36000/-? please clarify.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

28 October 2009 In my view assumingthat you registered and paid the tax ( NET - after availing the cenvat credit admissible) the dept should not impose penalty consdiering the circumstrances.

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