Penalty for Late Registration

[Anand Sajjan]

I have voluntarily registered with the service tax department and paid all the relevant taxes. And i have not received any kind of notice from the department so as to register. And now now upon manual scrutiny the officials are asking me to pay a penalty. Is it right as per the law or is there any concession for voluntary registering.

Also i have filed my ST3 returns lately, but i have paid all the tax with interest. so should I pay late filing penalty or is there any chance to avoid it????

please help me in this regard.........

[KASTURI SETHI]

No concession for such voluntary registration. You will have to pay penalty for late filing ST-3 returns. Maxi. Penalty ₹ 20000/-If ST-3 return is NIL, there is relaxation. Otherwise no relaxation.

[Mahir S]

Sir,

For late filing of returns, you have to now pay penalty as explained above.

For late payment of service tax , you ought to pay the interest under section 75 of Finance Act, 1994. However, for Penalty, you may take recourse to section 76(1)(i) and no need to pay penalty when duty and interest paid before issuance of notice.

[KASTURI SETHI]

I endorse the views of Sh. Mahir S. sir

[Suryanarayana Sathineni]

Dear Sajjan Ji,

I fully agree with the views expressed by our learned friends. Further, there is no relaxation from penal provisions for voluntary compliance if it is a late compliance. Also it is the general expectation that every person who is required to get himself registered and to file periodical returns under any Act, must comply with such requirements as per the provisions and if any subsequent compliance ( delayed) will not get any immunity from penal action.

Best Regards

Suryanarayana

[KASTURI SETHI]

Sh.Surya Narayana Ji,

Thanks, Sir. Rightly explained and advised. Dispelled the doubts from the questioner's mind.

[Ganeshan Kalyani]

Nicely explained by the experts above.

AI Summary

Late registration penalty applies; interest required for late payment, and penalty may be avoided if duty and interest paid pre-notice. Voluntary late registration does not exempt the taxpayer from penalties for delayed filing of ST-3 returns; relaxation applies only to bona fide NIL returns. Late payment of service tax requires interest under section 75. Penalty may be avoided under section 76(1)(i) if duty and interest are discharged before issuance of notice, but delayed voluntary compliance generally does not secure immunity from penal provisions.