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Query on Late Payment of Service Tax and Filling of Return

Ashish Malkar (CA Final) (86 Points)

14 July 2011

Dear Frnds,

What will be the rate of interest for late payment of service tax of FY 2010-11, and what will be the amount of penalty for late filling of returns for the same period.

Is the Amendment in Rule 7C applicable for all returns filed from 01st april 2011 (i.e. returns of earlier period and also for returns of FY 2011-12). Tax is yet to be paid. Kindly guide me.

Thanks,

Ashish Malkar

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4 Replies

hitesh (Telecom Industry) (169 Points)
Replied 14 July 2011

interest shall 13% p.a.... adnd penalty Rs. 100/- per day subject to maximum of Rs. 2,000/- However, for the current year (F.Y. 2011-12), please note that the maximum penalty amount has been increased to 20,000/-

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Nirav Worah (CHARTERED ACCOUNTANT) (396 Points)
Replied 14 July 2011

Originally posted by : Ashish Malkar
	Dear Frnds, What will be the rate of interest for late payment of service tax of FY 2010-11, and what will be the amount of penalty for late filling of returns for the same period. Is the Amendment in Rule 7C applicable for all returns filed from 01st april 2011 (i.e. returns of earlier period and also for returns of FY 2011-12). Tax is yet to be paid. Kindly guide me. Thanks, Ashish Malkar

Rate of interst upto 31 st March will be 13% and there after interest shall be 15%(if turnover in previous F.Y is less than 60 lacs) or 18%. for the period of such delay.

The maximum penalty shall be Rs 20000 even if return of F.Y 2010-11 are being filed.

Regards,

Nirav Worah

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Ashish Malkar (CA Final) (86 Points)
Replied 14 July 2011

HI Nirav & Hitesh,

Thanks for your clarification,

hey nirav i hav a doubt regarding return of first half i.e frm april to sep 10, as it's due date was 25 th oct 2010 and on that date maximum penalty was rs.2000. so i want to know whether penalty would be rs.2000 for 1 st half or it will be rs.20000. its clear that it will be rs.20000 for 2nd half.

Please Revert.

Thanks & Regards,

Ashish Malkar.

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 16 July 2011

Originally posted by : Ashish Malkar
	HI Nirav & Hitesh, Thanks for your clarification, hey nirav i hav a doubt regarding return of first half i.e frm april to sep 10, as it's due date was 25 th oct 2010 and on that date maximum penalty was 2000. so i want to know whether penalty would be 2000 for 1 st half or it will be 20000. its clear that it will be 20000 for 2nd half. Please Revert. Thanks & Regards, Ashish Malkar.