Service tax not paid

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2012 I have not paid service tax since January 2011. Now total o/s. amount is Rs. 5 lakh ( Appx)on work contract business.

yesterday I have received a call from service tax superintendent to file return.

Due to some financial problem I am not able to pay it for some time.

How much time I can delay service tax payment so that I have not to pay any penalty.

One more query:
I have not filed my service tax return for period oct-mar2011 due to non payment of service tax.

Whether I can file return without payment of all dues.

Dilip Darji

Dilip Darji (Expert)
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12 April 2012 Dear Sir.
Interest:- for not making payment of Sertvice Tax on dur date you are required pay interest @ 13 % pm, from the due date (5 th of next month) till the date of payment of Service Tax.
Penalty:-
For not making payment of Service Tax on due date, you are required to pay penatty Rs.100/- everyday during which such failure continues or 1 % of such Service Tax, per month, whichever is higher, subject to 50 % of Service Tax payable.
For late filing of return, you are required to pay late fee Rs.500/- (delayed by 15 days), Rs.1000/- (delayed by further 15 days) Rs.1000/- plus Rs.100/- every day from 31 st day till the date of filing return, subject to maximum limit of Rs,20000/-.
Regards.
DILIP DARJI.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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12 April 2012 Agree with Mr. Dilip except interest for delayed payment is 18% p.a. if the taxable services provided during the previous FY is more than Rs. 60 lacs.

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CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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13 April 2012 Practically speaking since this matter is now in the knowldge of Departmental Authorities, it is advisable to pay service tax alongwith interest as early as possible to save penalty. Otherwise if Show Cause Notice is issued it may be difficult to waive penalty.

As regards rate of interest for period prior to 01.04.2011 it is 13% and after as advised by Experts

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2012 Dear sir,

Whether I can file return without payment of dues,

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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13 April 2012 You can file return there is no restriction on but what you will show in service tax payment column in service tax return since you have not paid service tax. So it is advisable to not file return until you have not paid service tax

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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14 April 2012 First of all you file the return without payment of service tax and arrange for the money and gradually pay the service tax. For interest wait till you receive notice from the department as they will calculate the same and in doing so they will take time sometimes 6 months.

The experts have properly explained you the consequences of non payment of service tax.