Default in service tax registration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2014 Experts,

If turnover of service sales exceeds Rs.10 lacs in particular year, say in 2013-14 but party fails to take service tax registration and takes the service tax registration in 2014-15, then what will be the consequences i.e. what will be interest, penalty etc. and what will be the remedies.

Thanks

Annu Agarwal

Annu Agarwal (Expert)
Follow

14 May 2014 As per Section 77 of Finance act there is a penalty of Rs 200 per day of defalut or Rs 10,000 whichever is higher for failure to take service tax registration.Therefore there is a minimum penalty of Rs10,000/-.

However as per section 80 the penalty can be waived off if the assessee proves that there was reasonable cause for the said failure.

Message likes : 1 times