Penalty Provisions Under Service Tax

S. No.

Section

Nature of default

Minimum Penalty

Maximum Penalty

1

76

Failure to pay service tax:

2% per month (on prorata basis) or Rs. 200/- per day which ever is higher

Amount of Service Tax

2

77

Failure to Get Registered

Rs. 5000/-

Rs. 5000/- or Rs. 200/- per day, whichever is higher

Fails to keep, maintain or retain books of account

Rs. 5000/-

Failure to furnish information or Produce Document or Appeal before officer against summon

Rs. 5000/-

Rs. 5000/- or Rs. 200/- per day, whichever is higher

Fails to make payment electronically

Rs. 5000/-

Failure related to Invoice

Rs. 5000/-

Residual Penalty

Rs. 5000/-

3

78

Failure to pay service tax with intend

100% of the amount of service tax sought to be evaded

200% of the amount of service tax sought to be evaded.

4

Rule 7C of Service Tax Rules, 1994 read with Section 70

Late submission of Return

Period delayed in furnishing Return

• 15 Days from the Due Date

• Beyond 15 Days but upto 30 Days from the Due Date

• Beyond 30 Days from the Due Date

• Rs. 500/-

• Rs. 1000/-

• Rs. 1000/-plus Rs. 100/-

per day beyond 30 Days

• Rs. 500/-

• Rs. 1000/-

• Rs. 2000/-