Penalty on service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2011 In Our company is software and due to some reason we failed to submit a return of service tax on july 2010 month. and we already deposit a penalty of Rs2000/- to service tax on july 2010.
I would like to know can company will bear a again penalty on service tax. If Yes so how much

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 February 2011 Delay in payment of service tax, including a part thereof, attracts simple interest in terms of section 75 of the Act. The rate of interest is as prescribed from time to time, in accordance with this section. At present, the rate of interest is 13% per annum (notification No. 26/2004-ST, dated 10.9.2004). Further, failure to pay service tax also attracts a penalty under Section 76 of the Act, which shall not be less than Rs 200 for every day during which such failure continues or at the rate of 2% of such tax per month, which ever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax. However, such penalty would not exceed the service tax payable.

for more info:-
Circular No. 97 /dtd. 23.08.2007

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