TMI BlogInterest and PenaltiesX X X X Extracts X X X X X X X X Extracts X X X X ..... pay service tax u/s 68 and fails to credit the tax or any thereof to the account of the Central Government within the prescribed time limit shall pay simple interest as prescribed in notification issued by Central Government. Notification no. 13/2016 - Dated 1-3-2016 w.e.f. 14.5.2016 Serial Number Situation Rate of simple interest (1) (2) (3) 1. Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Government on or before the date on which such payment becomes due. 24 per cent. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xceed sixty lakh rupees during any of the financial years covered by the notice or during the last preceding financial year, as the case may be, rate of interest shall be reduced by 3%. i.e. 15% p.a. 6 18% p.a. to 30% p.a From 1-10-2014 Refer Table of Notification No. 12/2014-ST dated 11-7-2014, w.e.f.1-10-2014 to 13-5-2016 table below: 7. 24% p.a. or 15% p.a. From 14.5.2016 Refer table or Notification no. 13/2016 - Dated 1-3-2016 w.e.f. 14.5.2016 as above Notification No. 12/2014-ST dated 11-7-2014 , w.e.f.1-10-2014 to 13-5-2016 Sl.No. Period of delay ( w.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in interest rate for small service provider, having turnover upto 60 lakhs is available. ================== B. Penalty for failure to pay service tax - section 76 - ( Substituted vide THE FINANCE ACT, 2015 w.e.f. 14th May 2015) In case of service tax has not been levied or paid, or has been short-levied or short-paid, or erroneously refunded, for any reason, other than the reason of fraud or collusion or wilful mis-statement or suppression of facts or contravention of any of the provisions of this Chapter or of the rules made thereunder with the intent to evade payment of service tax shall, in addition to the service tax and interest , be also liable to pay a penalty not exceeding 10% of the amount of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances mentioned from (a) to (e) above. Secondly, such non-payment must be with the intention to evade payment of service tax. If the central excise officer fails to satisfy both the conditions there cannot be any penalty under section 78 . Amount of Penalty Prescribed Penalty is equal to the amount of such service tax not levied or paid or short-levied or short-paid or erroneously refunded. Reduction in amount of Penalty In case true complete details of transactions are available in the specified records, penalty is reduced to 50% of service tax. This provision is valid for the period starting from 08th April, 2011 upto the date on which Finance bill receive the assent of the President i.e. 14th May, 2015. Pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- Penalty for incorrect or incomplete details in Invoice or failure to account for an Invoice Upto Rs. 10,000/- Residual penalty For contravention of any other provision- Upto Rs. 10,000/- ================== E. Power of Adjudication of Penalty - Section 83A Section 83A provides that, penalty proceedings shall be executed by the Central Excise Officers conferred with such power as the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963, may, by notification in the Official Gazette, specify. Accordingly a notification no. 30/2005 ST dated 10-08-2005 as amended by notification no. 48/2010 ST dated 8-9-2010 issued u/s 83A . Refer table given in chap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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