Penalty for late filing of service tax return

A client hasn't yet filed his return for the 6 month period ending on 31st March 2011 whose due date to pay tax was 25th April 2011. But he now wants to file his return. What is the penalty? The recent amendment has increased the max. limit to 20000 but since only about 45 days have gone, isn't it that the penalty would be 1000+15(100) which is about 2500?

Also, what if the client pays penalty of 2500 and then when a person goes to file service tax return and the concerned person is not there in the department on that day? Then when I go next day, will I have to pay another Rs.100 through another challan??? Sounds strange but this is practically what happens..


Just FYI, this a NIL return.. but am I correct that it'll still attract penalty as mentioned above but not interest??

Replies (2)
Originally posted by : Yash Rungta

A client hasn't yet filed his return for the 6 month period ending on 31st March 2011 whose due date to pay tax was 25th April 2011. But he now wants to file his return. What is the penalty? The recent amendment has increased the max. limit to 20000 but since only about 45 days have gone, isn't it that the penalty would be 1000+15(100) which is about 2500?

Also, what if the client pays penalty of 2500 and then when a person goes to file service tax return and the concerned person is not there in the department on that day? Then when I go next day, will I have to pay another Rs.100 through another challan??? Sounds strange but this is practically what happens..


Just FYI, this a NIL return.. but am I correct that it'll still attract penalty as mentioned above but not interest??

Penalty is leviable only in the case of taxable returns ( sec 70 of service tax act), NIL returns are not subject to penalty.

 

https://arxadvisors.com/userfiles/Instruction%20Letter-137-58-2007.pdf

 

if your R/O is not present on table, then submit the return to Tech super or AC/DC, he will not refuse, or he will put his note on return that your have visited on that specific date.

Thanks for the apt reply. Much appreciated! :) Just wanted to confirm a minor issue:


Sec70 says: "Every person liable to pay the service tax shall furnish or cause to be furnished to the Central Excise Officer, a return in such form and in such manner and at such frequency as may be prescribed."

In my case, the assessee, though no liable to service tax in the given period, was liable to pay service tax until about a year ago. This doesn't matter, does it?

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