Penalty or Late Fee for Furnishing of Service Tax Returns

Penalty or Late Fee for Furnishing of Service Tax  Returns

Every Person who is liable to pay service tax is required to submit the service tax return on time or due date as prescribed by the service tax authority. In case person is not able to file Service Tax return he has to pay penalty/late fee for same. But as per section 70 of Finance Act,1994 maximum penalty for late filing of Service Tax return is Rs 20000/-(Twenty Thousand Rupees Only).

As per Rule 7C of Service Tax Rules 1994 7C): Schedule for Late Fee For Service Tax Return (Read Penalty Chart for Service Tax)

(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 also that where the gross amount of service tax payable is nil, the Central Excise officer  officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.

SectionNature of defaultAmount for Penalty
70Fees for late filling of Return.

Delay upto 15 days from the due date

Delay of more than 15 days and upto 30 days from the due date

Delay of more than 30 days from the due date

 

Rs. 500

 

Rs. 1000

 

Rs. 1000 + Rs. 100 per day from 31st day maximum Rs.20000 w.e.f. 01.04.2011 prior to that Rs. 2000/-

Reference Rule 7C of Service Tax Rules 1994

(7C). Amount to be paid for delay in furnishing the prescribed return.— Where the return
prescribed under rule 7 is furnished after the date prescribed for submission of such return, the person liable to 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 that the total amount payable in terms of this rule, for delayed submission of return, shall not  exceed the amount specified in section 70 of the Act:
Provided further that where the assessee has paid the amount as prescribed under this rule for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall be deemed to be concluded.

Provided also that where the gross amount of service tax payable is nil, the Central Excise officer  officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.

Reference Chapter V Section 70 of Finance Act 1994

70. Furnishing of Returns

Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency and with such late fee not exceeding twenty thousand rupees, for delayed furnishing of return, as may be prescribed.

(2) The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.

Section 69 of Finance Act 1994, Service Tax Registration

69. Registration – (1) Every person liable to pay the service tax under this chapter or the rules made there under shall, within such time and in such manner and in such form as may be prescribed, make an application for registration to the 6[Superintendent of Central Excise.
(2) The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.

How to Verify Service Tax Registration Online

Service Provider can verify Service tax registration details online using 15 digit service tax registration number allotted to him at the time of service tax registration. Service tax registration is PAN based number. To get the Service Tax Registration person must have pan number. Online Verification of Service Tax Registration is possible using the Assessee  Code. Format of Service Tax Registration number is based on PAN Number of the Assessee. Service Tax Registration Number First 10 digits are PAN number of  registered service provider and next 2 number denotes ST/SD and next 3 digit are serial number generated by service tax department.

Details of Service Tax Registration Number

1-10 digits – PAN of the Assessee

11-12– (ST/SD – Service Tax)

13-15–Systems generated alphanumeric serial number

Read When No Penalty is payable for Late Filing of Service Tax Return

Assessee Verification_20130315-180633