Interest and Penal Provisions
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made thereunder is liable for a penalty for each day of default. From 10-9-2004 the rate of interest prescribed is 13% per annum. Where interest has been paid by cheque, the date of presentation of the cheque to the designated bank shall be deemed to be the date on which service tax has been paid subject to realization of that cheque.
Appeals
The assessee can make an appeal to the concerned authorities and tribunal in Form ST – 4 / 5 / 7 as the case may be.
Penalties
1. Penalty for failure to pay service tax Section 76, as amended with effect from 18-4-2006, prescribes a penalty of not less than Rs 200 per day during which the failure continues, or two per cent per month of the tax due, whichever is higher. The period of default starts with the first day after the due date and end with the date of payment. Maximum penalty that can be levied is the amount of service tax payable. No penalty is levied if the assessee proves a reasonable cause for failure. General penalty Section 77 prescribes a penalty that of an amount not exceeding Rs 1000 for any contravention under the Act or Rules made thereunder for which no penalty has been described elsewhere. No penalty is levied if the assessee proves a reasonable cause for failure. Penalty for suppressing value of taxable service Penalty for suppressing value of taxable service is not less than value not levied/not paid/short levied/short paid/ erroneously refunded and not more than twice such
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