Penalty for late registration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2013 Our client provided service Rs.9.5lakhs in march 2013. No business before that.
No business in this FY till date.
Client is not registered with deppt. yet.
Today we are applying for registration.
Is is compulsory to pay late regn. penalty Rs.10,000/- ? or any circular / case law supports to not pay it as service tax liability is nil till date.

AJITHKUMAR M

AJITHKUMAR M (Expert)
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19 December 2013 Dear friend,

An assessee whose clearance value exceeds Rs.9 Lakhs in a financial year is required to take registration. As your taxable value has exceeded Rs.9 Lakhs, you were required to take registration.

As per Section 77(1) of Finance Act, 1994, penalty can be imposed for not obtaining registration, which may extend upto Rs.10,000/-.

However, the authority can waive the penalty on reasonable cause for such failure on your part.

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Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2013 Dear Ajith ji ,
Does any relevant case law exists describing what all is acceptable as reasonable cause ?
What is your experience with deptt. on such submissions ? & suggestions accordingly.

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AJITHKUMAR M

AJITHKUMAR M (Expert)
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19 December 2013 Dear friend,

The acceptance of your plea by the authority may vary from person to person. Therefore, case laws may not be of much favour to you as the maximum amount involved in the case will be Rs.10000/- only. Therefore, the success on your part will depend on your ability to convince the authority about the reasonableness in the cause shown by you.