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 penalty includes higher of daily or monthly charge with capped penalty; pay interest and seek waiver request.
Late payment of service tax falls under Section 76 (w.e.f. 08.04.2011) allowing penalty calculated as either a fixed daily amount or a monthly percentage of unpaid tax, subject to an overall cap, while Section 77 prescribes a separate maximum penalty; where tax plus interest has been deposited the department can be requested not to issue a show cause notice or to refrain from imposing penalty.