30 April 2011
Kindly clear our doubt on penalty as per the following:-
a) What would be the penalty payable for the retun not being filed for six month period ending 30.09.2010 ? If we pay the penalty on Monday (2.5.2011) will it be Rs. 2,000/- or Rs. 20,000/- ?
b) Also if we pay penalty today for rs. 2,000/- and file the return on 2.5.2011 (for six month period ending 30.09.2010) then can the department ask us to pay the revised penalty of Rs. 20,000/- as it is 2.5.2011? Again what would be the scenario if we file the return on 3.5.2011?
c) Is the revised penalty of Rs. 20,000/- per return applicable for the returns after 1.5.2011 or for previous returns as well. In other words is the revised penalty clause prospective or retrospective?
1.)Finance Act 2011 is applicable from 1.5.2011 i.e. service tax amendments are applicable from this date, if not specified any other date. Accordingly, if you file belated return, as u told, on 2.5.2011, in my views, penalty should be Rs.20K and not 2K
2)Department can ask u for differential amount of penalty afterwards also. There is no difference if u file return on 2.5.11 or 3.5.11 3) As per my understanding, penalty provisions are applicable on all the belated returns filed after 30/4/11.
Other experts views are also welcomed and kindly correct me if i m wrong.
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