Penalty provisions under service tax at a glance

1. Section 76:

Failure to pay service tax:

Minimum penalty = 2% per month (on prorate basis) or Rs. 200/- per day which ever is higher and Maximum penalty = Amount of Service Tax

2. Section 77:

(A) Failure to Get Registered Minimum Rs. 5000/- Or Rs. 200/- per day, whichever is higher

(B)  Fails to keep, maintain or retain books of account Maximum Rs. 5000/-

(C) Failure to furnish information or Produce Document or Appeal before officer against summon Minimum Rs. 5000/- Or Rs. 200/- per day, whichever is higher

(D) Fails to make payment electronically Maximum Rs. 5000/-

(E) Failure related to Invoice Maximum Rs. 5000/-

(F) Residual Penalty Maximum Rs. 5000/-

3. Section 78:

Failure to pay service tax with intend:

Minimum Penalty = 100% of the amount of service tax sought to be evaded and Maximum Penalty = 200% of the amount of service tax sought to be evaded.

4. Rule 7C of Service Tax Rules, 1994 read with Section 70:

Fine / penalty of late submission of Return: