Penalty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2010 Can an audit team collect penalty on delayed payment of Service Tax?

If an assessee pays penalty on delayed payment or short payment of service tax, will he get a show cause for it's appropriation from the department?

Rahul Vora

Rahul Vora (Expert)
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16 April 2010 The audit team can collect penalty only after giving SCN. Actually, they have to report their findings to your Range office and they will raise the SCN.
Also, if an assessee pays the short payment alongwith interest before the issuance of SCN, then they cannot demand penalty.

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