CA Sandeep Kanoi
Penalty of Late Filing of Service Tax Return Filing is been increased with effect from 08.04.2011 to a Maximum of Rs. 20000/- and same is not been changed thereafter. In this Article we have discussed Provisions Related to Late Filing of Service Tax Return.
File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000
Under the existing scheme of law, Rule 7 of the Service tax Rules, 1994 read with its sub-rules deals with the provisions relating to the filing of service service tax return.
Rule 7C Prescribe the Penalty which Assessee has to Pay if there is delay in filing of service Tax Return.
We are producing herebelow the extract of Rule 7C
Where the return prescribed under rule 7 is furnished after the date prescribed for submission of such return, the person liable to furnish the said return shall pay to the credit of the Central Government, for the period of delay of-
(i) fifteen days from the date prescribed for submission of such return, an amount of five hundred rupees;
(ii) beyond fifteen days but not later than thirty days from the date prescribed for submission of such return, an amount of one thousand rupees; and
(iii) beyond thirty days from the date prescribed for submission of such return an amount of one thousand rupees plus one hundred rupees for every day from the thirty first day till the date of furnishing the said return:
Provided the total amount payable in terms of this rule shall not exceed the amount specified in Sec.70 of the Act.
It is clear from the above that above penalty is subject to maximum specified in section 70. Section 70(1) Specify the maximum Penalty of Rs. 2,000/- in respect of return filed up to 31st March 2011. This amount of Maximum Penalty is been increased to Rs. 20,000/- (Twenty Thousand only) w.e.f. 01.04.2011.
As per Section 71 (C) of the Finance Act 2011 (8 of 2011) Applicable from 1st April Unless Otherwise specified there was an amendment in Sub Section (1) of section 70 which is as follows:-
‘in Section 70 (1) of the Finance Act, 1994, for the words “two thousand rupees”, the words “twenty thousand rupees” shall be substituted’.
After Considering the above amendment the Maximum Penalty for Late Filing of Service Tax Return is been increased to 20000/- (Twenty Thousand) w.e.f. 08.04.2011 from earlier 2000/- (Two Thousand).
After enactment of Finance Bill 2011, the following position will emerge out:
| Period of Delay | Penalty/late fee before finance bill 2011 | Penalty/late fee After Finance Act, 2011 (W.e.f. 08.04.2011) |
| for delay up to 15 days | INR 500 | INR 500 |
| for delay beyond 15 days but up to 30 days | INR 1,000 | INR 1,000 |
| for delay beyond 30 days | INR 1,000 + INR 100 per day (from 31st day subject to a maximum amount of Rs 2000. | INR 1,000 + INR 100 per day (from 31st day subject to a maximum amount of Rs 20000. |
‘Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty’.
So File you return on time to avoid penalties.
Also Read:-
(Article was first Published on 13.04.2011 & Republished with modifications on 20.05.2016)
Author Bio
GST registration obtained in July’17 no turnover and registration cancelled in 7th May’18 got the order also but returns were not filed the during the period of july’17 to may’18.
is it require now to file returns, if so what is the penality
pl. send the above quetions reqply
Dear Sir,
Whether penalty not paid at the time of filing the return, but thereafter, the return will be valid or Assessing officer has the powers to reduce the penalty amount or not? The Service Tax liability is not NIL. Please advise
I have filed my service tax return for the period april to June 2012 & july to sept 2012 by 540 & 384 days delayed
Pl advice on above, I am liable to pay late fee Rs.20000 each return
My business income is nil and i did not file return since registration date (2014). Please advise if still I am liable to pay the penalty of Rs. 20000.
Hi, I filed my service tax return for 15-16 I half yearly not for II half yearly. and also file return for 16-17 Ist half yearly. how much penalty shall i pay to pay to file 15-16 IInd haly yearly filing.
If one organisation is running under CSR activity and collection nominal rate of rent, is applicable for service tax or not.