Panelty for delay in service tax

Hi Akash,

Service tax penalty raised by the dept is on a/c of non - filing of Half yearly service tax return, it is maximum of Rs.2,000/-. 

Your other Query is not clear.

Dear Akash Gurao

Please refer the rule 7(1) of the Service Tax Rules, 1994 "Every assesse shall submit a half-yearly return in Form 'ST-3' --------------------"

As per the above only an assesse will have to file the said returns with the department. In your case you were not an assesse with the department until you get registered with the Service Tax deparment for your service as an assesee. Hence in my view "not filing the returns" for the old period is not amount to penalty.

The above is only my view and subject to the confirmation by any of the professional.

Confirm the penalty, as the act says -

Consequences of non-registration are stated as follows -

Any Person who is liable to pay service tax, or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this Chapter shall be liable to pay a penalty which may extend to five thousand rupees or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;

 Consequences of non-registration are stated as follows -

Any Person who is liable to pay service tax, or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this Chapter shall be liable to pay a penalty which may extend to five thousand rupees or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;