St interest & penalty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2016 Dear All
Please update me with the latest
Service tax interest & penalty provision on delay
Of service tax payment and on delay
in filing return as well,

Thanks In Advance
Akhil Kumar

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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16 September 2016 Interest Rates for Late payment of S. Tax:
As per notification No. 13/2016-ST dated 01-03-2016 from 14th May,2016 Interest payment for delay payment is 15% P.A. however, if assessee has collected s.tax but did not deposit it with Govt. than Interest rate will be 24% P.A
In case of Small service provider whose value of taxable service did not exceed Rs.60 Lakhs during Last F.Y the rate of interest shall be reduced by 3% P.A
For Penalty refer https://taxguru.in/service-tax/penalties-service-tax-wef-14052015.html
Late fee and penalty for filing late return
1. Late Fees:
Section 70(1) of Finance Act,1994 provided that in case where returns are filed after due date, late fee not exceeding 20000 is payable for delay filing of return as may be prescribed.
The late fee payable chart is as follows
A.Delay up to 15 days: Rs.5000
B.Beyond 15 days and up to 30 days: Rs.1000
C.Delay beyond 30 days- Rs. 1000 plus Rs. 100 per day of delay beyond 30 days from 31st day onwards till limit of 20000 is reached
2. Penalty:
If return of S.Tax is not filled within prescribe period, penalty leviable under section 77(2), which can be upto Rs. 10000 the penalty can be waived under section 80, if assessee proves that failur was due to reasonable cause.
If late fee is paid, penalty will not be imposed.
Thanks.

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