Credit for Penalty

[Harsh Jindal]

Can an assessee take the credit of the penalty deposited alongwith the tax?

AI Summary

No Service Tax Credit Allowed on Penalties Due to Non-Compliance; Penalties Are Punitive, Not Creditable. An individual inquired whether an assessee can claim credit for penalties paid along with service tax. The response clarified that penalties are imposed for non-compliance with laws or rules and are punitive in nature. Therefore, service tax credit cannot be claimed on penalties.