penality of late payment on service tax

[sanjay gupta]

Dear Sir,

I want to know that whiter penalty is available on late payment of service tax?

Kindly clarify in this regard

AI Summary

Clarification on Service Tax Penalties: 18% Interest for Late Payment, Rs. 20,000 Penalty for Late Returns Under Section 70. A user inquired about penalties for late payment of service tax. Respondents clarified that an interest rate of 18% per annum applies under Notification 14/2011-ST, with a potential penalty of up to Rs. 20,000. However, one respondent noted that the Rs. 20,000 penalty pertains to late submission of returns under Section 70, not late payment. They also mentioned a reduced interest rate of 15% for service providers with a taxable value below Rs. 60 lakhs annually. Discrepancies regarding the applicable sections and penalties were discussed among the participants.