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

Penalty for late returns: exemption for rent-of-immovable-property tax payment doesn't prevent imposition of filing penalties.
The statutory late-filing penalty regime remains applicable to returns filed after prescribed deadlines; a payment-based exemption for service tax on renting of immovable property that waives penalty for the underlying tax when outstanding amounts are paid with interest within the cure period does not relieve taxpayers of the separate obligation to file returns on time. Taxpayers had to disclose the taxable rent amount in returns even if unpaid, and the authority may impose the mandatory late-filing penalty despite the payment-related exemption.