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Non payment of service tax

Atika (article association) (47 Points)

16 February 2012

Greeting,

What are the consequences if service tax payment is delaid or there is non payment ?

Do only intrest of 18% is attracted in the case or we have to pay the penality as well.

If penalty are also attracted, then what will be the rate ?

Kindly help.

Regards

ATIKA

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9 Replies

ramesh (Sr.Executive Accounts) (92 Points)
Replied 16 February 2012

From 08.04.2011, penalty Rs.100 per day or 1 % of the tax amount per month, whichever is higher subject to maximum of 50% of tax amount can be imposed.

Thanks

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Atika (article association) (47 Points)
Replied 16 February 2012

Thanks a lot.

But you dint replied will the penalty be paid voluntary or i have to pay intrest only

Regards.

Atika

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 16 February 2012

No penalty will be leviable on late payt. only int @ 18% or 15% of in case of small serv providers.

ramesh (Sr.Executive Accounts) (92 Points)
Replied 16 February 2012

You have to pay only interest. If Show Cause Notice is issued and after hearing the case , the Adjucating authority may or may not impose penalty but according to the limits defined.

Thanks,

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Atika (article association) (47 Points)
Replied 16 February 2012

Thanks Saurabh,

Small service providers are those who have less than 10 lakh income from the services and they are exepted from service tax. So how they have to pay 15%?

When will be the penalty of 18% and 15% is attracted in our case??

I have a confusion that whether the penalty is imposed by Service tax authority or we have to pay it voluntary?

Regards,

ATIKA

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Atika (article association) (47 Points)
Replied 16 February 2012

Originally posted by : ramesh
	You have to pay only interest. If Show Cause Notice is issued and after hearing the case , the Adjucating authority may or may not impose penalty but according to the limits defined. Thanks,

Thanks for clearing my doubt.

ramesh (Sr.Executive Accounts) (92 Points)
Replied 16 February 2012

Let me also clear that small scale providers are those whose value of taxable services does not exceed Rs.60 Lakh during any of the last financial year. The rate of interest is 13% p.a. for those service providers instead of 15%.

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