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Service tax penalty information

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Hari Prasad

Others

20 Points Posted on 01 January 2014

Hi,

I need help regarding the Service Tax payment and penalty details.We have a Service tax payment pending for Jan/Feb/March 2013.The Amount is 13,585.Now when checked with few they have given a calculation of Interest of 1535 @ 18% and Penalty for Delay Filing is 20,000.So total amount is 13585+1535+20000=35120.I Went to Service tax office and enquired the same, they told me to make the payment making penalty as 10,000, and pay 25120.They are not giving any acknowledgement for the penalty waving off.Who ever i am consulting is saying that without any written confirmation from ST office, penalty cannot be changed.

1. Is the penalty of 20,000 Correct?

2.Is it required to get any written confirmation to reduce the penaltly and make the payment?

3.what is is actual amount i need to pay all together with interest and penalty?

Please help me regarding this.

Thanks & regards,

Hari Prasad M K

Replies (1)

Neljo Davis ACA

Consultant

20 Points Posted on 02 January 2014

As per rule 7C of Service Tax Rules, 1994 late filing fee is as follows:-

S. No	Delay in Days from Due Date	Late Fee in Rs.
1	Up to15 Days	500/-
2	16 to 30 Days	1000/-
3	Beyond 30 Days	1000/- plus100/-per day from 31st Day

Maximum leviable late fee as per section 70 of the Finance Act 1994 is Rs.20000/-

Date for filing the ST-3 return, for the period from Oct'12 to March'13 has been extended from 25th Apr, 2013 to 10th September, 2013 (Order No. 04/2013-ST dt. 30-08-2013)

Suppose the assesse is filing return today i.e. 02/01/2014 delay will be of 114 days (11th Sep to 2nd Jan) and late fee will be Rs.9400/- only.

Also note that as per section 75 of the Finance Act 1994 in the case of a service provider, whose value of taxable services provided does not exceed sixty lakh rupees during the preceding financial year, such rate of interest, shall be reduced by three per cent per annum. (So effective rate of interest will be 15%)