Deepanshu
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whether Service tax should be charged penalty for late payment ?
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Gaurav
answered
In case of service tax if you are not able to file return on time then penalty will be charged as per Section 70 Rull 7C panely for late filing of service tax return is
First 15 days. RS. 500
Upto 30 days RS. 500 + RS 1000
More then 30 days. Rs. 500 + RS.1000 + Rs. 100 for every day after 30 days
Maximum panely cannot exceed RS. 20000
Last date of filing of return is 25th of every succeeding month after 6 month that is 25 Oct. And 25 April
In case of payment of service tax interest is charged on late payment of service tax.
Due date of payment of service tax is 6th of every month succeeding the month of providing service. As per Section 75 of Service tax rule 1994
Rate of interest is different for Small scale service provider and for others
For Small Scale service provider.
Up to 6 months. 15%pa
More then 6 months but. 21%pa
Up to 1 year.
More then one year. 27% PA
For other
Up to 6 months 18%
More then 6 months but up to 1 year 24% PA
More then 1 year 30% pa
Deepanshu commented
over 2 years ago
Sir,i was not asking about penalty of service tax! I was asking whether service tax should be charged on penalty amount in invoice?
Bhavya Shah commented
over 2 years ago
Did you mean demurrage charges as a penalty in your question?
Gaurav commented
over 2 years ago
Yes service tax is charged on any penalty charged by service provider as service tax is charged on gross amount received by service provider from service receiver after deducting any amount which is not chargeable to tax such as amount received against service provided which are included in negative list. Therefore amount received against panely is taxable. Example: any amount charged as panely by banks and credit card company are chargeable to tax
