Penatly on Late filling of Service Tax

[Asked by Guest]

Dear Sir,

I have not filled service tax return I have made payment of Service tax with Interest.

and My question is

Do I need to pay Penalty a part from Interest as well for late payment of Service tax.

Also I have to pay ₹ 20,000/- for late filling of Service Tax but while making online payment I don't see column for Penalty towards filling of Late return can you please advice the right code to make the penalty also confirm do I need to pay penalty for late filling 12%+2%+1% =12.36 or can I pay directly ₹ 20,000/-

[KASTURI SETHI]

Yes. Penalty for late filing ST-3 return is in addition to interest. Both have separate accounting codes depending upon the category of service.Column G 10 is for late fee and G 9 for penalty. What is your service ? That is required for intimating exact accounting code for interest and penalty.

[YAGAY and SUN]

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 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 may, on being
satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty.
Explanation - It is hereby declared that any pending proceedings under section 77 for delayed submission or nonsubmission
of return that has been initiated before the date on which the Finance Bill, 2007 receives the assent of
the President, shall also be deemed to be concluded if the amount specified for delay in furnishing the return is paid
by the assessee within sixty days from the date of assent to the said Finance Bill.

Dear Sir,

I pay service tax for Clearing under code 045 and Interest under code 045

and I pay service tax for Transportation under code 262 and Interest under code 263.

Please confirm what would be penalty code for filling of late return.

[KASTURI SETHI]

Accounting Code for penalty in respect of Clearing & Forwarding Agent Services: 00441306

Accounting Code for penalty Transportation of Goods By Road : 00441392

Dear Sir,

Thanks for your reply, for both division we file a single return in such case can we pay ₹ 10,000/- in each head or ₹ 20,000/- in any single head.

Also Please advice Do I need to pay 12.36% 12+2+1 % or single payment of ₹ 20,000/-

Please confirm the same.

[KASTURI SETHI]

Since ST-3 return is single, fill ₹ 20.000/- against Col. No.G-10 meant for late fee. Pl. note that ₹ 20,000/- is the maximum late fee.

Regarding second query, your question is not clear to me ? U r mixing Service Tax and late fee.

Dear Sir,

I am still confused, I have made payment along with Interest.

Should I pay now Penalty of ₹ 20,000/- in column 00441306 for filling of late retrun

Or Also Should I pay Late fee as well.

And please clarify should it be in one single col ₹ 20000/- or edu cess and sec eud cess also needed.

[SURESH ASTEKAR]

No need to pay any education cess on penalty amount.

[Ganeshan Kalyani]

Prepare and upload your service tax return before 25th Oct 2015.

AI Summary

Late filing penalty separate from interest; slabbed late fee payable up to statutory ceiling and entered under the late-fee code.
Late filing of the ST-3 return incurs a penalty separate from interest; tiered fixed and daily late-fee amounts apply subject to an overall statutory ceiling. Payment of the prescribed delayed-filing amount concludes proceedings for late submission, and where gross service tax is nil the officer may reduce or waive the late-filing amount. Practically, the late fee is to be entered in the late-fee column (G-10) of the single ST-3 return, separate accounting codes apply by service category, and education cess is not payable on penalty amounts.