Penalty on delay of Return Filing

[Suresh P]

If we file the service tax return in july 2011for the period 2009-2010 IInd, 2010-11 Ist & 2010-11 IInd How Much fine are liable to pay ? Is it is Rs. 60000/- or Rs. 6000/- ?

[Reshma kochar]

Hi Suresh,

With respect to Finance act 2011, penalty provision (late fee for delay in return filing)  for section 70  has been subsituted to twenty thousand rupees, w.e.f.8-4-2011. Hence in your case it would be 60,000...

Please update me with correction, if i am wrong..

Thanks & regards,

Reshma

[VIRENDER PANDEY]

Hi Suresh & Reshma,

I want to correct reshma here a bit.As per Rule 7C of Service Tax Rules,1994 amended penalty provisions are as follows:

          Period of Default                                                                   Penalty

       Upto 15 days                                                                             500/-

       15 days onwards & upto 30 days                                          1000/-

       thereafter                                                                                    100/- per day till the day of filing 

                                                                                                             of  return subject to maximum 

                                                                                                             of rs 20000/- as per sec 70. 

 

 Hence, in view of above penalty for the periods in question may be worked out.

 

Warm Regards,

CA Virender Kr. Pandey

B.Com, FCA, DISA

[d.v. gupta]

The penalty for lat return of 2010-11 iin half will be Rs 5500. and penalty for other earlier period will be rs 2000? maximum

cadvgupta

[YAGAY and SUN]

Regarding payment of late fees in respect of ST-3 Return for the year 2008-09, it may be pointed out that payment of late fees is relatable ot period of the period between the due date and the actual date of filing return is relevant for calculating the amount of late fees and such amount is required to be calculated as per rates prescribed in Rule 7C of the Service Tax Rules, 1994 existing on date of filing the return.  Under the circumstances, in our opinion, the maximum amount of late fees as revised by Finance Act, 2011 will be applicable to all the delayed returns filed after 08-04-2011 irrespective of the period to which such return relates.

[RAJESH MANGAL AGRAWAL]

In my opinion, Mr. Virendra Pandey is  rightly mentioned about Rule 7C of Service Tax Rules 1994  for calculation of late filing fees for late submission of ST-3 Return.

I only differ on the late filing fees to be paid for the ST-3 Return for the half year ended Sept-2010 & earlier period,

In my opinion the maximum late filing applicable as per Sec 70 of the Finance Act 1994, for the relevant period will be leviable.

In the captioned case Rs 2000/- per return for the ST-3 Return upto the half year ended Sept-2010. For the half year ended Mar-2011 ST-3 Return the late filing fees will be as per Rule 7C subject to maximum of Rs.20000/-

 

Regards

 

CA RAJESH MANGAL AGRAWAL

AI Summary

Late filing fee for service tax returns governed by Rule 7C, imposing tiered penalties and a statutory cap.
Calculation of late filing fees for ST-3 returns follows Rule 7C's tiered structure-initial short-delay slab, a second slab, and a per-day charge thereafter-subject to the statutory maximum introduced by the Finance Act, 2011; the fee is computed by reference to the period between the due date and the actual filing date and using the rates in force on the date of filing, though practitioners differ on the amendment's retrospective application to earlier return periods.