Penal action on non payment & or filling of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2013 one of the company i know, though incorporated in 2007-08, has neither paid any amount of service tax nor filed any return. could someone please tell me what are and or will be proceedings against the company. and how much time it will take in to finish the proceedings.

further what are the ways to come out of the situation. thanks in advance.

@VaibhavJ

@VaibhavJ (Expert)
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25 February 2013 Hi

Every assessee under service tax should file their returns timely so as to avoid the penalty provisions.

Under service tax penalty can be imposed on various matters. Non-registration, non-maintenance of books of accounts, not furnishing proper information, etc. attract penalty to be levied under service tax.

In order to avoid these penal provisions assessee should compile with all the provisions under service tax properly and avoid mistakes.

The penalties under this are not mandatory and can be waived off or reduced for sufficient reasons.

If service tax and interest is paid before Show Cause Notice, then penalty cannot be imposed under this section.

Penalty provisions for not obtaining Registration – A person who is liable to pay service tax, or required to take registration, and who fails to get registration under service tax, shall be liable to pay a penalty which may extend to Rs. 10,000 or Rs. 200 for every day during which the default continues (whichever is higher), starting from the first day after the due date, till the date of actual compliance.

Penalty provisions for non – maintenance of Books – Failure to maintain books or retain the books of accounts or other documents as required shall be liable to a penalty of Rs. 10,000.

Penalty provisions for not furnishing information required – If a person fails to furnish information called by an officer or fails to produce documents called for by a Central Excise Officer, then he shall be liable to a penalty which may extend to Rs. 10,000 or Rs. 200 for every day during which the default continues (whichever is higher), starting from the first day after the due date, till the date of actual compliance.

Penalty provisions for issuing incorrect invoice or not accounting invoices in his books of accounts – If a person issues invoice in accordance with the provisions of the act or rules made there under with incorrect or incomplete details or fails to account for an invoice in his books of account, he shall be liable to a penalty which may extend to Rs. 10,000.

Penalty provisions for failure to pay tax electronically when required – If a person, who is required to pay tax electronically, through internet banking, fails to pay tax electronically, then he shall be liable liable to a penalty which may extend to Rs. 10,000.

Penalty provisions for non- appearance before officers on issue of summons – If a person fails to appear before the Central Excise Officer, when issued with a summon for appearance to give evidence or to produce a document in an inquiry, he shall be liable to a penalty which may extend to Rs. 10,000 or Rs. 200 for every day during which the default continues (whichever is higher), starting from the first day after the due date, till the date of actual compliance.

So keeping the above matters in mind, taxpayers should take the relevant measures to get rid off penalty provisions.

Thanks!!