Rule 07C, Service Tax Rules

[Harsh Jindal]

Can anyone please explain Rule 07C of service tax rule 1994.?

AI Summary

Understanding Penalties Under Rule 07C for Late Service Tax Returns: Structured Fines and Maximum Cap Explained A query was raised about Rule 07C of the Service Tax Rules, 1994, specifically concerning penalties for late filing of service tax returns. The response clarified that, as per Section 70 and Rule 7C, penalties are structured based on the delay duration: Rs. 500 for up to 15 days, Rs. 1000 for 16 to 30 days, and Rs. 1000 plus Rs. 100 per additional day beyond 30 days. The maximum penalty is capped at Rs. 20,000, effective from April 8, 2011, and this cap is applicable only for delays exceeding 40 days.