Service tax penalty

Dear sir/Madam,

I have an doubt regarding Penalty leavied for late filing of Service tax. 

As per the Notification, the penalty for late filing has been increased to 20,000.

In one of my case, the client is in deafult for non filing of ST returns for the FY 2009-10 and 2010-11.

But, the levy of penalty was only Rs. 2000 in those FY. 

I am filing the returns of FY 2009-10 and 2010-11 now. 

My doubt is, whether the Notification has a retrospective effect??? Do the Client have to pay Huge amount of Penalty??

And which one is better?? To file Online or Manually???

 

Replies (1)

The law is not retrospective. The amount of late fee is decided based on the date on which you are filing the return.  Upto 31.3.2011 the maximum late fee was Rs.2000. From 1.4.2011 the  maximum late fee is 20,000/-. So if you are filing the return for the period prior to 31.3.2011, after 1.4.2011, the late fee will be charged at the maximum of 20,000/-

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