Rule 07C, Service Tax Rules, Service Tax

[Harsh Jindal]

Can anyone please explain Rule 07C of service tax rule 1994.?

Posts / Replies

[Pradeep Khatri]

Payment of late fee/amount for delay in filing of Service Tax Returns- Section 70 read with Rule 7C,[ Inserted vide Notification No. 20/2007 dated 12.05.2007] of STR, 1994.

With effect from 08-04-2011

 

Delay inDays	Latefees/Amount Payable
Up to 15 days	Rs. 500/-
16 to 30 days	Rs. 1000/-
More than 30 days	Rs. 1000+ Rs. 100 for each day of subsequent delay.  However, total amount of Additional Fee under Rule 7C read with Section 70 shall not exceed Rs. 20000/-

Note: - The delay is to be calculated from the day immediately succeeding the last date of due date of filing of return.

It has been, inter alia, clarified in TRU letter bearing No. 334/3/2011-TRU dated 28-02-2011 that existing rate of penalty under Rule 7C read with Section 70 shall not exceed Rs. 20000/- is being retained. The maximum penalty is presently reached after a delay of 40 days.  The new limit [of Rs. 20000/-] that up to delay of 40 days in filing of Service Tax Return, the new limit becomes inconsequential. Looking from another perspective, the new limit will come into play only when there is a delay of more than 40 days in filing of Service Tax Return.  The revised higher monetary limit of Rs. 20000/- has come into force with effect from 08-04-2011.