Non payment of interest on delayed/penalty for late filing
This query is : Resolved
17 January 2017
We have filed our Service Tax Returns for Apr-Sep 2015 on 18/01/2016 and Oct-Mar 2015 on 24/05/2016. Both the returns were late but no late filing fee has been paid by us.
The payment of Service Tax in both the period was always late but no payment of Interest has been made.
Expert advise is required :-
a) Can we make payment of Interest now
b) Can we make payment of Penalty for late filing now.
As far as we are aware, we can revise return only within 90 days of the filing of return which is already exceeded.
Please advise what do we do now.
Thanks & Regards,
Mohan Saxena
The payment of Service Tax in both the period was always late but no payment of Interest has been made.
Expert advise is required :-
a) Can we make payment of Interest now
b) Can we make payment of Penalty for late filing now.
As far as we are aware, we can revise return only within 90 days of the filing of return which is already exceeded.
Please advise what do we do now.
Thanks & Regards,
Mohan Saxena
17 January 2017
Pay the interest and Penalty now. Send copy of challans to your jurisdictional officer with a forwarding letter and calculations.
17 January 2017
............................................................
17 January 2017
We are require to make the following payments a) Interest on delayed payment of Service Tax Rs.1,26,377.00 and b) Delayed filing fee of Rs.7,500.00.
Please advise are we also require to make additional payment of penal interest on above payment if we make the payments today. Also advise penal interest is to be paid at what rate.
Please advise are we also require to make additional payment of penal interest on above payment if we make the payments today. Also advise penal interest is to be paid at what rate.
17 January 2017
We are require to make the following payments a) Interest on delayed payment of Service Tax Rs.1,26,377.00 and b) Delayed filing fee of Rs.7,500.00.
Please advise are we also require to make additional payment of penal interest on above payment if we make the payments today. Also advise penal interest is to be paid at what rate.
Please advise are we also require to make additional payment of penal interest on above payment if we make the payments today. Also advise penal interest is to be paid at what rate.
03 August 2024
Addressing issues related to the non-payment of interest and penalty for late filing of service tax returns involves several steps and considerations. Here’s a detailed guide to help you manage the situation:
### **1. **Payment of Interest and Penalty for Late Filing**
#### **a) Payment of Interest on Delayed Payment of Service Tax**
- **Interest Payment**: You can make the payment of interest on delayed service tax at any time, even if the original payment was delayed. The interest is calculated based on the period of delay and should be paid to avoid further complications.
- **Interest Rate**: For service tax, the interest rate for delayed payment was generally 18% per annum. However, the specific rate applicable to your case may depend on the date of delay and changes in regulations. Ensure to check the applicable interest rates for the relevant period.
- **Payment Process**: Make the interest payment through the appropriate channel (e.g., online payment on the CBEC-GST portal) and ensure to record the payment for your records.
#### **b) Payment of Penalty for Late Filing**
- **Penalty for Late Filing**: If the service tax returns were filed late, there is a penalty for late filing which is generally ₹500 per day, up to a maximum of ₹20,000.
- **Payment**: You can make the payment of the late filing fee (₹7,500 in your case) through the online payment portal.
- **Additional Penalty**: Since you mentioned that no late fee was paid at the time of filing, you need to make the penalty payment as assessed. There is typically no additional penal interest on the late fee itself.
### **2. **Revised Return and Additional Payments**
#### **Revised Return**
- **Revised Returns**: As per the rules applicable, revised returns for service tax could generally be filed within 90 days of the original filing. Since this period has lapsed, you cannot revise the returns.
- **Rectification**: If there are errors or additional payments required, you need to make corrections through additional payments or through the regular compliance process.
#### **Additional Penal Interest**
- **Penal Interest**: If you make the payment of interest and penalty after a long delay, there might not be an additional penal interest over and above the regular interest and late fee. However, it is crucial to check with the service tax authorities or a tax advisor for any additional implications.
### **3. **Steps to Follow**
1. **Calculate and Pay Interest**:
- Determine the exact amount of interest due based on the delay period and applicable interest rates. Make the payment and keep the receipt.
2. **Calculate and Pay Late Filing Fee**:
- Ensure the late filing fee of ₹7,500 is paid. Make sure this amount is accurately assessed according to the number of days of delay.
3. **Consult a Tax Professional**:
- Given the complexity and potential changes in regulations, consult a tax professional or a chartered accountant for precise calculations, advice on additional payments, and to ensure compliance with any updated rules.
4. **File a Grievance or Application**:
- If there are disputes or concerns regarding the penalty or additional payments, you may need to file a grievance with the tax authorities or make a formal application explaining your situation.
### **4. **General Advice**
- **Record Keeping**: Maintain detailed records of all payments, correspondence, and filings related to service tax to avoid future issues.
- **Compliance**: Ensure timely compliance with future service tax obligations to avoid penalties and interest.
### **Summary**
You can make the payment of interest on delayed service tax and the late filing fee now. Ensure you calculate the interest at the applicable rate (typically 18% per annum) and pay the late fee of ₹7,500. There should be no additional penal interest beyond the regular interest and penalty for late filing, but confirm with a tax professional for any updates or additional requirements. Consulting a tax professional is highly recommended to ensure accurate compliance and to address any specific issues related to your case.
### **1. **Payment of Interest and Penalty for Late Filing**
#### **a) Payment of Interest on Delayed Payment of Service Tax**
- **Interest Payment**: You can make the payment of interest on delayed service tax at any time, even if the original payment was delayed. The interest is calculated based on the period of delay and should be paid to avoid further complications.
- **Interest Rate**: For service tax, the interest rate for delayed payment was generally 18% per annum. However, the specific rate applicable to your case may depend on the date of delay and changes in regulations. Ensure to check the applicable interest rates for the relevant period.
- **Payment Process**: Make the interest payment through the appropriate channel (e.g., online payment on the CBEC-GST portal) and ensure to record the payment for your records.
#### **b) Payment of Penalty for Late Filing**
- **Penalty for Late Filing**: If the service tax returns were filed late, there is a penalty for late filing which is generally ₹500 per day, up to a maximum of ₹20,000.
- **Payment**: You can make the payment of the late filing fee (₹7,500 in your case) through the online payment portal.
- **Additional Penalty**: Since you mentioned that no late fee was paid at the time of filing, you need to make the penalty payment as assessed. There is typically no additional penal interest on the late fee itself.
### **2. **Revised Return and Additional Payments**
#### **Revised Return**
- **Revised Returns**: As per the rules applicable, revised returns for service tax could generally be filed within 90 days of the original filing. Since this period has lapsed, you cannot revise the returns.
- **Rectification**: If there are errors or additional payments required, you need to make corrections through additional payments or through the regular compliance process.
#### **Additional Penal Interest**
- **Penal Interest**: If you make the payment of interest and penalty after a long delay, there might not be an additional penal interest over and above the regular interest and late fee. However, it is crucial to check with the service tax authorities or a tax advisor for any additional implications.
### **3. **Steps to Follow**
1. **Calculate and Pay Interest**:
- Determine the exact amount of interest due based on the delay period and applicable interest rates. Make the payment and keep the receipt.
2. **Calculate and Pay Late Filing Fee**:
- Ensure the late filing fee of ₹7,500 is paid. Make sure this amount is accurately assessed according to the number of days of delay.
3. **Consult a Tax Professional**:
- Given the complexity and potential changes in regulations, consult a tax professional or a chartered accountant for precise calculations, advice on additional payments, and to ensure compliance with any updated rules.
4. **File a Grievance or Application**:
- If there are disputes or concerns regarding the penalty or additional payments, you may need to file a grievance with the tax authorities or make a formal application explaining your situation.
### **4. **General Advice**
- **Record Keeping**: Maintain detailed records of all payments, correspondence, and filings related to service tax to avoid future issues.
- **Compliance**: Ensure timely compliance with future service tax obligations to avoid penalties and interest.
### **Summary**
You can make the payment of interest on delayed service tax and the late filing fee now. Ensure you calculate the interest at the applicable rate (typically 18% per annum) and pay the late fee of ₹7,500. There should be no additional penal interest beyond the regular interest and penalty for late filing, but confirm with a tax professional for any updates or additional requirements. Consulting a tax professional is highly recommended to ensure accurate compliance and to address any specific issues related to your case.
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