Seervice tax penalty provisions

962 views 5 replies

Hello Sir,

I have been handling the case of late filing of return of my client in the arena of service tax. My client has paid the service tax for all the years right from the time it was applicable(i.e 2006-07, 2007-08,2008-09,2009-10,2010-11,2011-12,2012-13) but has not filed any  return for the same. The issue is i am a bit confused about the peanlties and the late fee applicable for him. Please let me know the PENALTY or LATE FEE whichever is applicable and for how much amount.

Would be obliged to receive your helpful views.

Replies (5)

As per Rule 7C - Service Tax Rules, 1994 late fee applicable for non furnishing of returns is-

for the period of delay of—

(i)

 

fifteen days from the date prescribed for submission of such return, an amount of five hundred rupees;

(ii)

 

beyond fifteen days but not later than thirty days from the date prescribed for submission of such return, an amount of one thousand rupees; and

(iii)

 

beyond thirty days from the date prescribed for submission of such return an amount of one thousand rupees plus one hundred rupees for every day from the thirty first day till the date of furnishing the said return:

Provided that the total amount payable in terms of this rule, for delayed submission of return, shall not exceed the amount specified in section 70 of the Act which is Rs.20000/-.

Respected Sir,

I am extremely thankful to you for your reply but i have a doubt whether there were any other provisions in the previous years? This provision will be applicable from the time it came into the act, but is there any other provision of penalty for previous years?
I will require it from 2006-07 so it would be appreciable if you provide me the required data.

Eagerly waiting for your reply.

Rule 7C - Service Tax Rules, 1994 is inserted by the Service Tax (Third Amendment) Rules, 2007, w.e.f. 12-5-2007.

Thanx alot sir. Your reply means alot!

For the peiod since 2007 till 2011 the maximum penalty for not filing of the return only Rs.2000 as it was the maximum penalty as per section 70 of the Finance Act 1994.the penalty was enhanced from Rs.2000 to Rs.20000 only on 8. 4. 2011 before that it was only Rs.2000.So calculate your penalty accordingly.

 

 

 

 

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