Service tax penalty

This query is : Resolved

Meera Joisher (Querist)
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17 September 2011 Suppose a service provider was unaware about the Service Tax Applicability on his service of Membership but later on an order from department to pay the same from 2008-09 to 2010-11.
They pay the service tax portion on that service by doing the back calculation on 29th April 2011 & the interest on 10th June 2011 @13% p.a. But due to change in penalty rate to 18%.
1. Then at what rate the penalty will be calculated from 1st April 2011 onwards?

2. If 18% penalty is to be paid, then will the differential 5% is to be calculated till 10th June & at the rate of 18% till the date of payment or only differential rate is to be paid?

3.Does any revision in previous ST returns filed is to be made since a return can be revised only upto 60 days? And what is the procedure if such revised return is to be filed?

4. In case if the Members pay the Service Tax portion of previous periods to the Service Provider, Eg. ST of 09-10 portion is received in 11-12 then how this amount will be treated. Will it be debited to the income from Membership Subscription A/c or some other head?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 September 2011 1. Interest may be calculated @13% per annum for the number of days delay upto 31/03/2011. Form 01/04/2011 interest may be calculated @18%.
2. Pl follow as in 1 above.
3. Time limit to file the revised return is 90 days and not 60 days.
4. Since back workings has been done, what ever amount received as service tax subsequently, that will form part of taxable turnover of the service provider upon which ST has to be paid.

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