Goods and Services Tax : All about Penalties under GSTArticle discusses Penalties under GST regime for failure to furnish returns i.e. details of Outward s...
Service Tax : File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000 - Under the existing scheme of law, Rule 7 of t...
Service Tax : Finance Act 2015 has drastically amended the penalty provisions under the Finance Act 1994 (Service Tax law) in order to ensure no...
Service Tax : he main provision of penalty is covered under Section 76 & 78 of the Finance Act, 1994. These sections have been amended by Financ...
Service Tax : Section 70 (1) late fee for delay in filing the return- If Half-yearly Service Tax Return (ST-3 / ST-3A) is filed after the due da...
Income Tax : A letter is doing round on Social Media which is written on behalf of All Professionals, Tax Payers and Stakeholders in which A ...
Income Tax : The Uttar Pradesh Tax Bar Association has made a Representation for Extension of time for filing Income Tax Return and for Income ...
Income Tax : Vyyapaar Mandal Association, Nagore & All India MSME and Tax Practitioners Association (AIMTPA) has made a representation to F...
Goods and Services Tax : Karnataka State Chartered Accountants Association requested For Relief from Late Fees for Delayed Filing of GST Statements / Retur...
Service Tax : He said, the second significant change is in respect of penalty provisions vide Sections 73, 76 and 78. These provisions have been...
Service Tax : CESTAT Chennai has quashed penalties in a tax dispute case. Details of the case and the impact of pending constitutional validity ...
He said, the second significant change is in respect of penalty provisions vide Sections 73, 76 and 78. These provisions have been rationalised and harmonized to encourage voluntary payments. In case of voluntary payments along with interest, the quantum of penalties have been rationalized by reducing the percentage of penalty depending upon the stage of litigation i.e. prior to issuance of show cause notice, after issuance of show cause notice but before adjudication or after adjudication.
Budget 2015 came with many of the amendment covering the exempt field under tax net. With the implementation of the same the penalty under the service tax is streamlined along with some harsh measure. Section 80 has been deleted from the book of Finance Act, now even in the case of reasonable cause of mistake service providers has to pay the penalty.
Summary of Recommendations by Comptroller and Auditor General of India on Administration of Prosecution and Penalties in Central Excise and Service Tax vide Report No. 29 of 2014 (Performance Audit) Ministry may ensure that all long‐pending prosecution cases are reviewed at periodic intervals by Chief Commissioners at field level to ensure adequacy of action taken to satisfy the Court about existence of sufficient grounds for permitting withdrawal of complaint where warranted. […]
Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return in terms of Circular No.97/8/07-ST dated August 23, 2007 and cited judgement. Even if service tax return is filed late/ failed to file return – No Penalty in terms of Rule 7C of the STR. For Nil return Assessee is not even required to opt for VCES.
ACES has started accepting Service Tax (ST-3) returns for the period April to June 2012 revising the earlier forms by removing few bugs. The extended time to file now is till 25th Nov for Apr to Jun 12 ST Returns. Returns for July to September 2012 is still undergoing some structural changes.
Budget 2011-12 has made many significant changes in Service Tax and also gave emphasize to penal provisions including prosecution. Section 70 of Finance Act, 1994 reading with Rule 7 of Service Tax Rules, 1994 mandates every service tax payer to file half yearly return within 25 days. If the return is not filed within the time specified then following amount of penalty is levied:
Where a person is liable to 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 then he shall be liable to pay taxes along with applicable interest under section 75 and face penal consequences under section 76, 77 and 78. Interest under section 75 is mandatory and automatic. The assessee is required to pay interest along-with the service tax or before filing of service tax return. He is not supposed to wait for a show cause notice from the department. The interest is liable to computed on day to day basis.
As on 1st May, 2011, 119 services are taxable services in India. These taxable services are specified in Section 65(105) of the Finance Act,1994. Section 64 of the Finance Act, 1994, extends the levy of service tax to the whole of India, except the State of Jammu & Kashmir. Generally, the liability to pay service tax has been placed on the ‘service provider’. However, in respect of the taxable services notified under Sec.68(2) of the Finance Act,1994, the service tax shall be paid by such person and in such manner as may be prescribed at the rate specified in Sec.66 of the Act and all the provisions of Chapter-V shall apply to such person as if he is the person liable for paying the service tax.
The maximum penalty for delay in filing of return under section 70 is proposed to be increased from Rs.2,000/- to Rs.20,000/-. However, the existing rate of penalty is being retained under rule 7C of the Service Tax Rules, 1994. The maximum penalty is presently reached after a delay of 40 days. The new limit will impact only those who delay filing of return for longer durations.
Non payment or delayed payment of service tax- A mandatory penalty, not less than Rs.200/- for every day during which such failure continues or @2% of such tax per month, whichever is higher, shall be imposed by the adjudicating authority. However, t
