penalty on service tax

[Suprakas Chaudhuri]

Service tax on rent from immovable property

Rule 7C of service tax rule 1994 provides penalty for late submission of return.

Section 80 on the other hand, inserted by Finance Act,2012 provides for non- imposition of penalty  in case of service tax on rent from immovable property provided the taxes due as on 6.3.2012 along with interest are paid within 6 months from the passing of the Finance Bill, 2012 (passed on 28.5.2012).

Since service tax returns could not be filed without payment of taxes, can the penalty for late submission of returns be imposed ? What would be the due dates for filing these returns due from 2007 where service tax is paid within the timeframe of Section 80(2)?

AI Summary

Service Tax Penalties Enforced Despite Waiver Provision; Compliance with Rule 7C and Section 80 Required A discussion on service tax penalties for late submission of returns focuses on Rule 7C of the Service Tax Rules, 1994, which imposes penalties for late filing, and Section 80 of the Finance Act, 2012, which allows for penalty waivers if overdue service tax on rent from immovable property is paid by a specific deadline. Despite the waiver provision, penalties for late filing are still enforced under Rule 7C. The Delhi High Court has ruled that assessees must report taxable amounts, even if disputed, to determine tax liability. Compliance with service tax laws is mandatory, regardless of payment status.