web analytics

As per Section 70(1), maximum late fees is  20,000 as shown below

Time Period Expired from due date of ST3

Late fees/Penalty

Upto 15 Days

500

16-30 Days

1000

>30 days

1000+100/day from 31th day onwards

(Max 20000*)

 

*Late fee may be reduced/waived where service tax payable is nil: 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 filling the return, reduce or waive the penalty (late fee) [Proviso to rule 7C]

Further, where the assessee has paid the prescribed late fee for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall be deemed to be concluded.

  

Example: BCC Ltd. is engaged in providing taxable services. For the half year ended on 30th September, it filed its return on:-

Case I: 9th November

Case II: 23rd November

 Case III: 25th January

Case IV 30 June

Determine the amount of late fee payable by BCC Ltd. in each of the independent cases

 

Ans

Due date for filing return for April to September is 25th October

Late fees is as follows

 

CASE 1

Return filed on 9th November

View Answer

 

CASE 2

Return filed on 23rd November

View Answer

 

CASE 3

Return filed on 25th January

View Answer

 

CASE 4

Return filed on 30th June

View Answer

Note:-

If the gross amount of service tax payable by BCC Ltd. is nil, the Central Excise Officer may, on being satisfied that there is sufficient reason for not filling the return, reduce or waive the penalty (late fee).

 

Exam Questions

Question 21
A service provider has not been able to file the half yearly service tax return by the prescribed
due date. He is worried and does not know what recourse is available to him in this situation.
He seeks your help on the issue. What advice will you offer him?

View Answer
  1. Service Tax
  2. Service Tax Procedures
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
Jail