Penalty

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ARJUN SAINI (Querist)
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25 February 2014 what is penalty of late payment of service tax and penalty of late filling of service tax return ... help in this query.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 February 2014 1. Late deposit of service tax:

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/-