8.9. PENALTIES & PROSECUTIONS
>> Failure to apply for Service Tax Registration :
Maximum Penalty may extend upto Rs. 1000/-
>> Failure to pay Service Tax :
Penalty shall not be less than Rs. 100 per day for every day during which such failure continues but failure continues but not more than Rs.200 per day for every day during which such failure continues and in any case it shall not exceed service tax payable by the assessee.
With effect from 18-4-2006, the penalty shall not be less than Rs.200 per day during which the failure continues or amount calculated at the rate of 2% per month on the Tax due which ever is higher.
>> Failure to Furnish Tax :
Maximum penalty may extend upto Rs. 1000.
W.e.f. 11-5-2007. the maximum penalty is enhanced to Rs.2000
>> Willful suppression of the value of taxable service :
Penalty shall not be less than the service tax sought to be evaded but shall not exceed twice the amount of service tax sought to be evaded.
- If the assesses pays the service tax and interest as determined within 30 days of the communication of the order, penalty is restricted to 25% the service tax so determined.
>> Failure to comply with the notice issued by assessing authority.
Since the Section 78 was omitted by the Finance ( No. 2) Act, 2004, the failure attracts residuary provision. Under that provision, maximum penalty may extend upto Rs.1,000
>> Contravention of the provisions of Act/Rules there under, where no specific penalty is provided:
Punishable with penalty which may extend to an amount not exceeding Rs. 1,000/-.