Penalty for service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2015 Dear Experts.,
Kindly tell me now how much penalty for late payment service tax & late submit return.

Best Regards,
Ranjan Das

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

23 April 2015 Vide Notification No 12/2014-ST dated 11.7.2014, rate of interest to be charged on delayed payment of service tax has been enhanced w.e.f. 1.10.2014, based on period of delay. Thus, longer the delay period , higher would be the rate of interest payable.
# Up to six months - 18% p.a.
# Beyond six months to one year - 18% p.a. for the first six months of delay; 24% p.a. for delay beyond six months.
# Beyond one year - 18% p.a. for the first six months of delay; 24% p.a. for period beyond six months up to one year; 30% p.a. for any delay beyond one year.

If turnover during preceding FY did no exceed Rs 60 Lacs then there will be a concession of 3% and interest rate will be reduced from 18% p.a. to 15% p.a.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

23 April 2015 Remember you need to calculate interest on days basis for delay period which is from the due date of payment till the date of actual payment. Please check out the "Service Tax Late Payment Interest Calculator wef 01/10/2014" from link given below:

https://www.caclubindia.com/share_files/service-tax-late-payment-interest-calculator-wef-01-10-2014-64447.asp#.VLPlniuUfUs

Upgrade to CAclubindia Pro. Subscribe Now!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

23 April 2015 Penalty for Delay in filing Service Tax Return
# Delay of first 15 days then penalty will be Rs. 500
# Delay of 15 to 30 days then penalty will be Rs. 1000
# Delay is more than 30 days then penalty will be Rs 1000+100 Rs. per day beyond 30 days, Subject to maximum penalty can be Rs. 20000/-