What should be penalty if assessee has to pay penalty in respect of service tax liability Rs. 100000 and EC Rs.2000 and SHEC Rs. 1000 ?
a)Rs. 100000
b)Rs. 103000.
Main issue is that what penalty should be 100 % of service tax (including EC & SHEC) or (excluding EC & SHEC) ?
Penalty U/s 76 of the Act is payable, 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 including( Ec and SHEC), which ever is higher.
However such penalty would not exceed the Service tax payable.
Triveni Turbine Limited
Bengaluru
CA
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