FAILURE FOR SERVICE TAX REGISTRATION

[Pushkar Gupta]

Dear Sir

We are registered under Central Excise, during the audit of Excise it was revealed that freight was charged on invoice which was total of ₹ 4000 on some invoice, we forgot to take registration and not paid the service tax on GTA. Excise Audit officer is asking for deposit the penalty of ₹ 10,000 for not taking registration timely, now we have applied and got registration.

Please suggest how to waive penalty or reduce.

Thanks

AI Summary

Business Seeks Penalty Waiver for Late Service Tax Registration; Section 77 Allows Reduction for Bona Fide Mistakes. A business registered under Central Excise discovered during an audit that it failed to register for service tax on Goods Transport Agency (GTA) services, leading to a penalty of 10,000. The business has since registered and seeks advice on reducing or waiving the penalty. One response highlights that under Section 77, the penalty can be reduced or waived by the Assistant Commissioner or Deputy Commissioner if deemed a bona fide mistake. Another response reiterates that the penalty under Section 77 can extend up to 10,000 for contraventions without a separately provided penalty.