02 August 2010
In terms of Section 75 of the Finance Act, 1994, every person, liable to pay the tax in accordance with the provisions of Section 68 of the Finance Act, 1994, or rules made thereunder, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed shall pay simple interest at the rate of fifteen per cent per annum (proposed to be amended by the Finance act 2004 to read ''at such rate not below 10 percent and not exceeding 36% per annum'') for the period by which such crediting of the tax or any part thereof is delayed. This penalty is to be computed on the service tax due or unpaid.
Section 76 of the Finance Act, 1994 provides that any person, liable to pay Service Tax in accordance with the provisions of Section 68 of the Finance Act, 1994 or the rule made thereunder, who fails to pay such tax shall pay in addition to paying such tax, and interest on that tax in accordance with the provisions of Section 75 of the Finance Act, 1994, a penalty which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which such failure continues, so, however, that the penalty under this clause shall not exceed the amount of Service Tax that he failed to pay. Penalties under this Section shall be over and above the payments of actual amount of tax due under Section 68 of the Finance Act, 1994 and interest under Section 75 of the Finance Act, 1994.The penalty under Section 76 is of mandatory nature and can not exceed the amount of Service tax in question.
IN SECTION 76 NO WHERE IS MENTIONED WITH IN DUE DATE.
CAclubindia
