Interest and Penalties

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....f to the account of the Central Government within the prescribed time limit shall pay simple interest as prescribed in notification issued by Central Government. Notification no. 13/2016 - Dated 1-3-2016 w.e.f. 14.5.2016 Serial Number Situation Rate of simple interest (1) (2) (3) 1. Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Government on or before the date on which such payment becomes due. 24 per cent. 2. Other than in situations covered under serial number 1 above. 15 per cent. W.e.f. 8.4.2011:- 3% relaxation in interest rate for small service provider, having turnover upto 60 lakhs is available. The variable interest rate as given in above table will ap....

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....) (4) 1. Up to six months 18 per cent. 15 per cent 2. More than six months and up to one year 18 per cent. for the first six months of delay and 24 per cent. for the delay beyond six months. 15 per cent. for the first six months of delay and 21 per cent. for the delay beyond six months. 3. More than one year 18 per cent. for the first six months of delay; 24 per cent. for the period beyond six months up to one year and 30 per cent. for any delay beyond one year. 15 per cent. for the first six months of delay; 21 per cent. for the period beyond six months up to one year and 27 per cent. for any delay beyond one year. Rate of Interest for recovery of excess amount - Section 73B From 19-4-2006 to 13-5-2016 Interest on late depo....

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....available if service tax along with interest and reduced penalty has been paid within 30 days of such appellate order. ================== C. Penalty for failure to pay Service tax for reason of fraud, etc. - Section 78 (Substituted vide THE FINANCE ACT, 2015 w.e.f. 14th May 2015) When the penalty under section 78 is imposed Penalty under section is imposed, where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of (a) fraud; or (b) collusion; or (c) wilful mis-statement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax. Before imposing pena....

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....s of communication of the order. In case of small service provider, where turnover of taxable services does not exceed ₹ 60 lakh, period of 30 days extended to 90 days. ================== D. Residual Penalty - Section 77 Penalties provision for non-filing of return or late filing of return Refer Chapter-"Returns" Penalty for failure to take registration: Upto ₹ 10,000/- Penalty forfailure to keep, maintain or retain books of accounts or other documents Upto ₹ 10,000/- Penalty for failure to furnish information, produce documents or appear before central excise officer Penalty = ₹ 200/- per day or Rs.. 10,000 whichever is higher Penalty commence from the due date till the date of actual complianc....