Non- payment of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2012 An individual entrepreneur, without proper knowledge on Service Tax, has not collected service tax and hence not remitted. Presaently, he is under great loss in his business. He does not have any asset, as he has already liquidated them in his efforts to improve his business. what is the punishment for non-payment of Service Tax?

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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01 October 2012 Non payment of service tax apart from interest attracts penalty u/s 76 of the Finance act if the non-payment is proved to be under a bona-fide belief or penalty u/s 78 of the Finance Act if it is proved that non-payment was due to reasons of mala-fide intentions. There are other penalties too for non-filing of returns, not taking registration etc.