Query related to service tax ammendment

Queries 941 views 3 replies

Krupa Shah

Article

33 Points Joined December 2011

Service tax is been payable on accrual basis right from July 2011 as per the notification.

My question is that in a service providing company, they were not aware about the above amendment taking place from July 2011. Hence they continued charging service tax on receipt basis. And Service tax return is also filed for the period till Sept 2011. So what treatment is to be done?

Now, how to revise the return as the period of 90 days for revising service tax return is also lapsed.

And how to calculate the service tax payable for the current year in such a case.

Thanking you.

Waiting for your early reply.

Replies (3)

gautham

student

49 Points Joined July 2010

SERVICE TAX RETURNS

TIME LIMIT:Service tax assesses should file their returns on half yearly basis within 25th of OCT for (apr to sep) and 25 apr for (oct to mar)

Form : Half yearly return should br field in Form ST-3.

penelty for delayed furnishing of retuns

period of delay from prescribed date	Amount of penalty
upto 15 days	rs. 500
beyond 15 days and within 30 days	rs. 1000

beyond 30 days

RS.1000+100 every day

from 31st day,

RS. 20000 whichever is LOWER.

gautham

student

49 Points Joined July 2010

INTERST & PENALTY IN CASE OF DELAY & IN CASE OF NON PAYMENT OF SERVICE TAX BY DUE DATE

INTEREST: (SECTION 75 )

a) Rate of Interest : Interest shall be payable at the rate of 18% p.a for the period of delay.

It 15% if the turnover in the preceeding financial year is not more than RS 60 lacs.

b) Period of Interest : The period of delay shall be the number of days between the date of the payment and the 6th of the month on which it fell due.

PENALTY : (SECTION 76) :

a) Circumstance : Service Tax is not paid or paid after the due date.

b) Minimum Penalty : penalty is liable to be imposed at the following rates-

Higher of

200 per day of failure to pay ST ;or

At the rate of 2% of the ST per month.

c) Maximum Penalty : Amount of Service Tax that the assessee failed to pay .

d) Nature : Penalty is in addition to the tax amount and the interest payable theron u/s 75.

e) No Penalty ; shall be impossed on the assessee , if he proves that there was a reasonable cause for such failure.