Compounding amount - Under Service Tax Provision - Central Excise Practice Manual (OLD) - Central Excise

Compounding amount - Under Service Tax Provision Under the compounding rules framed by Central Government, the compounding amounts have been fixed considering the gravity of offence. The compounding amounts fixed are as under:- Table S.No. Offence under Finance Act, 1994 Compounding amount (1) (2) (3) 1. Offence specified under section 89 (1)(a) of the Act Up to fifty per cent. of the amount of service tax evasion, subject to minimum of ten per cent. of amount of tax evaded 2. Offence specified under section 89 (1)(b) of the Act Upto fifty per cent. of the amount of CENVAT Credit wrongly taken or utilised, subject to minimum of ten per cent. of said amount. 3. Offence specified under section 89 (1)(c) of the Act Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence 4. Offence specified under section 89 (1)(d) of the Act Upto twenty five per cent. of the amount of service tax not deposited subject to a minimum of two per cent. for each month for which the amount has not been so deposited.