Amendment in Section 78

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Question - What are proposed amendment in Section 78 in Finance Bill 2015 ?

AI Summary

Finance Bill 2015: Amendments to Section 78 Adjust Penalties for Service Tax Evasion, Offering Reductions for Prompt Payment. Section 78 of the Finance Bill 2015 is being amended to adjust penalties related to service tax evasion cases involving fraud, collusion, or misrepresentation. The amendments propose a 100% penalty of the service tax amount in such cases. However, if the service tax, interest, and a 15% reduced penalty are paid within 30 days of notice, the penalty is reduced. A further reduction to 25% is available if payment is made within 30 days of the Central Excise Officer's order. If the service tax amount is reduced in appellate proceedings, the penalty will be adjusted, maintaining the 25% reduction benefit if paid within 30 days.