CA Vineet Dubey (Accounts) (160 Points)
14 March 2013What 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) ?
Asif Khan
(Taxation executive)
(410 Points)
Replied 14 March 2013
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.
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