Hi
If a person has not paid the service tax from the date of registration by not knowing the provision of the law. (1.1.2004)
If he payees the amount with interest as on date and file the return with the department with penalty
What will be his penalty from 01.01.2004 to till date filling the return? & How will be interest rate? What method should he adopt to pay the interest?
If he pays all this will he clear from all liability to the department?
Regards
Deepak
Please any one help regarding this
01. Whether it is a propritary/parnership OR LTD., /PVT. LTD ?
02. What Service ?
03. Interest rate is 13%
Pay service tax along with interest and file ST3 return for past period. And hope for the best.
Thanks for the replay
It is a Propratership firm and they are into building contract
By building contract you mean commercial construction? If so, it is effect from 10/09/2004 onwards. Being propritary concern they should have paid tax every quarter. One has to arrive at the tax payable every quarter for e.g. Oct. 04 to Dec. 04 - due date 05/01/2005 . Let us assume the tax payable is Rs.10,000/- Date of payment: 21/08/2008. Interest @ 13% works out to be Rs.4716/- If paid on 21/08/2008.
What will be the penalty for the late payment?
Interest Payable
Notified rate of interest under section 75
Notification No. 26/2004-ST, dated
In exercise of the powers conferred by section 75 of the Finance Act, 1994 (32 of 1994) the Central Government hereby fixes the rate of interest at thirteen per cent per annum for the purpose of the said section.
|
S. No. |
Period |
Rate |
|
(i) |
|
|
|
(ii) |
|
24 per cent p.a. |
|
(iii) |
|
15 per cent p.a. |
|
(iv) |
W.e.f |
13 per cent p.a. |
** Note : In BPL Mobile Cellular Ltd. v. CCE [2005] 2 STJ 421 Cestat - Chennai, it was held that if there is delay of part of a month only, interest can be charged for the period of delay alone and not for full month.
Interest under section 75 can be charged for the actual period of delay only. So, where the delay in payment of service tax is for part of month only, then the interest under section 75 can be charged for period of actual days alone and not for the full month. The liability to pay interest at rates prescribed under section 75 is mandatory, as provision of law did not confer any discretion in matter of levying interest.
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Circular No. 97/8/2007-ST, dated
Delay in payment of service tax, including a part thereof, attracts simple interest in terms of section 75 of the Act. The rate of interest is as prescribed from time to time, in accordance with this section. At present, the rate of interest is 13% per annum (Notification No. 26/2004-ST, dated
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As per section 80, it has been provided that notwithstanding anything contained in the provisions of section 76, section 77 or section 78, no penalty shall be imposable on the assessee for any failure referred to in the said provisions, if the assessee proves that there was reasonable cause for the said failure.
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No penalty if tax is paid before issue of show cause notice
In a number of cases a view is taken by the Tribunal and even the Supreme Court that No penalty shall be leviable if tax is paid before issue of show cause notice.
Dear Sir,
Can you please provide a copy of judgement for No penalty if tax is paid before issue of show cause notice
CAclubindia
