Penalty U/s 76 & 77

[Saurabh Singh]

Dear Team

 

One of my  client had made default in submission of his service tax return .. I mean he submitted the return late by approx 6 to 8 months .. and his service tax liability was rs. 5.5. lacs which he has paid with interest now i want to know what was the penalty which he should pay ..

AI Summary

Late Service Tax Return Filed, Penalties Under Sections 76 & 77 Discussed; Tax & Interest Paid, Avoiding Further Penalties Possible. A client defaulted on submitting a service tax return, filing it 6 to 8 months late, with a liability of Rs. 5.5 lakhs, which has been paid with interest. Under Section 76, the penalty is Rs. 100 per day or 1% of the tax per month, up to 50% of the unpaid tax. Under Section 77, the penalty can reach Rs. 10,000. Given the late filing, the maximum penalty is Rs. 20,000. As the tax and interest are paid, a request can be made to the Department to avoid a show cause notice or penalty.