Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

ENHANCED PENALTY IN SERVICE TAX BY AMENDMENTS IN FINANCE BILL, 2015

Service Tax - By: - Mr. M. GOVINDARAJAN - Dated:- 30-4-2015 - Section 76, 77, 78 and 78A of Finance Act, 1994 ( Act for short) provides for penalty. The Finance Bill, 2015 brings amendments to Section 76 Section 78 and omitted Section 80 of the Act. Penalty for failure to pay service tax The existing Section 76 of the Act provides the levy of penalty for failure to pay service tax. The section provides that any person, liable to pay service tax in accordance with the provisions of section 68 or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

unt of the penalty payable in terms of Section 76 shall not exceed 50% of the service tax payable. The proposed Section 76 substitutes the existing Section 76. Section 76 (1) provides that where 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 willful mis-statement or suppression of facts of any of the provisions of this Chapter or of the rules made there under with the intent t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing the amount of service tax under Section 73(2), the penalty payable shall be 25% of the penalty imposed in that order, only if such reduced penalty is also paid within such period. The proposed Section 76 (2) provides that where the Commissioner (Appeals), the Appellate Tribunal or the Court, as the case may be, modifies the service tax determined under Section 73(2), then, the amount of penalty payable thereon, shall also stand modified accordingly, and the benefit of reduced penalty under t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f facts; or contravention of any of the provisions of this Chapter or of the rules made there under with the intent to evade payment of service tax, the person, liable to pay such service tax or erroneous refund, as determined under sub-section (2) of section 73, shall also be liable to pay a penalty, in addition to such service tax and interest thereon, if any, payable by him, which shall be equal to the amount of service tax so not levied or paid or short-levied or short-paid or erroneously r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f penalty liable to be paid by such person under the first proviso shall be twenty-five per cent of such service tax: The third proviso provides that the benefit of reduced penalty under the second proviso shall be available only if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso: The fourth proviso provides that in case of a service provider whose value of taxable services does not exceed sixty lakh rupees during any of the yea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

case where the service tax to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the second proviso to sub-section (1), shall be available, if the amount of service tax so increased, the interest payable thereon and twenty-five per cent of the consequential increase of penalty have also been paid within thirty days or ninety days, as the case may be, of communication of the order by which suc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

st the total amount due from such person. The newly proposed Section 78 (1) provides that where any service tax has not been levied or paid, or has been short levied or short paid or erroneously refunded by reason of fraud or collusion or willful mis-statement or suppression of facts or contravention of any of the provisions of this Chapter or of the rules made there under with the intent to evade payment of service tax, the person who has been served notice under Section 73(1) shall, in additio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Excise Officer determining the amount of service tax under Section 73(2), the penalty payable shall be 25% of the service tax so determined. The second proviso to this section provides that further that the benefit of reduced penalty under the first proviso shall be available only if the amount of such reduced penalty is also paid within such period. The newly proposed Section 78(2) provides that where the Commissioner (Appeals), the Appellate Tribunal or the court, as the case may be, modifies .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

service tax. It does not require a guilty mind on the part of the tax payer. The existing provisions of Section 76 give a penalty of ₹ 100/- per day from the date of default to the date of payment subject to the maximum of 50% of tax payable. The proposed section is to penalize the assessee at the steep hike rate of 10% of service tax as penalty. This will make the assessees to suffer a lot. In respect of Section 78 the proposed section does not take note of the first proviso and the fourt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version