PENATLY FOR LATE FILING OF SERVICE TAX RETURN

[PANKAJ GROVER]

Dear All

As the maximum limit of penalty for late filing of service tax return has been increased from Rs. 2,000 to Rs. 20,000 w.e.f. 1st April 2011, will this penalty will be applicable for the return pertaining to FY 2011-12 or return filed after 1st April 2011 irrespective of the period to which it pertains (i.e FY 0910 or FY 1011).

 

Regards

 

RAPG & Co.

AI Summary

Late filing penalty raised; enhanced statutory cap applies and alters penalty calculation for returns spanning the change.
Increase in the statutory cap on penalty for late filing of service tax returns takes effect from 1 April 2011; the scheme sets a tiered schedule of fixed amounts for short and intermediate delays and a fixed amount plus a daily incremental charge for longer delays, subject to the statutory maximum. For returns whose default spans the effective date, the penalty is computed by aggregating the amount chargeable under the pre-change regime up to the effective date and applying the post-change incremental calculation and new maximum for the subsequent period.