TaxTMI 
TaxTMI 
penalty for delay in filing returns of ST is huge and unlike income tax returns even in case
of nil returns also. at the mercy of the authorities only, the penalty can be waived.
why industry is not representing this matter?
why the ST penalties are so harsh
25 Oct 2012 
2 Replies 
1725 Views Asked by
Service tax penalties create disproportionate liability for late or nil returns, prompting calls for industry representation.
Service tax penalties for delayed filing are portrayed as disproportionate and punitive, applying even to nil returns and exposing taxpayers, including closed businesses, to substantial liability. The penalty regime grants broad discretion over waivers, placing taxpayers at the mercy of authorities and functioning as a revenue-generating mechanism. Commentators urge trade and industry bodies to pursue collective representation for statutory or administrative reform to mitigate these enforcement-driven compliance burdens. (AI Summary)
Service tax penalties for delayed filing are portrayed as disproportionate and punitive, applying even to nil returns and exposing taxpayers, including closed businesses, to substantial liability. The penalty regime grants broad discretion over waivers, placing taxpayers at the mercy of authorities and functioning as a revenue-generating mechanism. Commentators urge trade and industry bodies to pursue collective representation for statutory or administrative reform to mitigate these enforcement-driven compliance burdens. (AI Summary)