Penalty U/s 76 & 77, Service Tax

[Saurabh Singh]

Dear Team

 

One of my  client had made default in submission of his service tax return .. I mean he submitted the return late by approx 6 to 8 months .. and his service tax liability was rs. 5.5. lacs which he has paid with interest now i want to know what was the penalty which he should pay ..

Posts / Replies

[Pradeep Khatri]

Penalty under Section 76 ( Failure to make payment of service tax within time - Section 68) W.e.f. 08.04.2011 Rs. 100/- per day or 1% of the tax per month, whichever is higher subject to maximum of 50% of tax amount that assessee has failed to pay.

Under Section 77 the maximum penalty amount can go upto Rs. 10000/- (w.e.f 08-04-2011)

Since your client has filed return late (more than of 30 days) - In this scenario you will be liable to pay the maximum penalty of Rs. 20000/-

 

[Pradeep Khatri]

Futher, Since your client has deposited the service tax alongwith interest therefore, you can make request to the Department that do not issue any show cause notice ( if already not been issued upon your client) and do not impose penalty upon your client.