Penalty on late registration
This query is : Resolved
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 company 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
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 company 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
26 October 2009
Hi aravind,
check the example in the provision. u ll get clarified.
M, an assessee fails to pay service tax of Rs.15 lakhs payable by 5th January. He
pays the amount on 16th January. What is the penalty payable by M?
Penalty payable is:
(a) 2% of the amount of default per month
In this case, delay is of 11 days. Therefore,
Amount = 2% of (15,00,000 ×11/31)=Rs10,645
or
(b) Penalty @Rs. 200 per day of default
= Rs.200 per day × 11= Rs 2,200
whichever is higher
Thus, penalty payable is Rs 10,645.
check the example in the provision. u ll get clarified.
M, an assessee fails to pay service tax of Rs.15 lakhs payable by 5th January. He
pays the amount on 16th January. What is the penalty payable by M?
Penalty payable is:
(a) 2% of the amount of default per month
In this case, delay is of 11 days. Therefore,
Amount = 2% of (15,00,000 ×11/31)=Rs10,645
or
(b) Penalty @Rs. 200 per day of default
= Rs.200 per day × 11= Rs 2,200
whichever is higher
Thus, penalty payable is Rs 10,645.
26 October 2009
in our view we paid service tax below 30000/-. as per with 180 days we have to pay 36000/-? is it right?
26 October 2009
you can go for appeal to the ST commissioner, the penalty amt may be waived if you paid the ST tax amount volumtarily
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