Late deposit of service tax attracts penal interest @ 18% per annum u/s 75 of the Finance Act, 1994 and penalty u/s 76 of the Finance Act, 1994.
Penalty u/s 76 – Rs. 100 per day or 1% of the tax per month, whichever is higher subject to maximum of 50% of tax amount.
2. Late filing of service tax return will attract Late Fees/Penalty u/s 70 read with Rule 7C as under:
Delay in Days Late Fees/Penalty
Up to 15 days Rs. 500/- 16 to 30 days Rs. 1,000/- More than 30 days Rs. 1,000/- + Rs. 100/- for each day of delay beyond 30 days subject to a maximum of Rs. 20,000/-
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