TaxTMI 
TaxTMI 
Penalty for ST3 Return
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....enalty for ST3 Return<br> Query (Issue) Started By: - Raja krishnan Dated:- 15-7-2016 Last Reply Date:- 17-7-2016 Service Tax<br>Got 5 Replies<br>Service Tax<br>Sir, A export unit belatedly filed their ST3 during the period of 2013-2014 and after that they have paid applicable interest for the delay days...now department insist to applicable penalty. Whether it is correct...Please clarify Reply ....
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....By Ganeshan Kalyani: The Reply: Sir, Section 70(1) of Finance Act, 1994, as amended w.e.f. 08.04.2011 provides that in cases where returns are filed after due date, late fees not exceeding ₹ 20,000/- is payable for delayed filing of return, as may be prescribed. If return of Service Tax is not filed within prescribed period, penalty is leviable u/s 77(2) which can be up to ₹ 10000/-.....
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.... If late fee is paid, penalty will not be imposed. The above provision will clear your doubt, I hope. Thanks. Reply By KASTURI SETHI: The Reply: Late fee and penalty both are separate in Service Tax. Normally, the department closes the chapter after deposit of late fee for delay in filing ST-3 return. On the other hand at the same time, the doors of Section 77 (2) are open. Late fee and penalty....
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.... are totally different in the eyes of law. Reply By Ganeshan Kalyani: The Reply: Yes Sir I agree with you. Thanks. Reply By Rajagopalan Ranganathan: The Reply: Sir, According to proviso 2 of rule 7C of Service Tax Rules, 2004 " where the assessee has paid the amount as prescribed under this rule for delayed submission of return, the proceedings, if any, in respect of such delayed submiss....
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....ion of return shall be deemed to be concluded". Therefore if you have paid late fee leviable for delayed filing of return then you are liable to pay any penalty. Reply By KASTURI SETHI: The Reply: Sh.Raja Krishnan Ji, The term, "deemed to be" means supposed to be, considered to be, thought to be etc. but which is not in reality. In other words,"the element of discretion&quo....
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....t; is included. Late fee is not penalty and vice versa. Late fee is for late submission of any form, return etc. whereas penalty is imposed for contravention of the provision of Rule/Section of an Act.Both have different purposes. Moreover, Rule cannot override Section of an Act. In Central Excise both terms have been explained separately and separate provisions are for both.<br> Discussion Fo....
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