amarchand & mangaldas & suresh a. shroff & company
DESCRIPTION
Agenda Advance Rulings (‘AAR’) Appellate Remedies in Service Tax Interest Penalties ProsecutionTRANSCRIPT
Service Tax: Advance Rulings, Appeals, Interest, Penalties Service Tax: Advance Rulings, Appeals, Interest, Penalties and Prosecutionsand Prosecutions
Mekhla AnandAmarchand & Mangaldas & Suresh A. Shroff & Company
July 2, 2011
Agenda
Advance RulingsAdvance Rulings
Advance Rulings : Scope
Advance Rulings : Scope
Advance Rulings : Who Can Apply?
Advance Rulings: Procedure
Advance Rulings: Procedure
Advance Rulings: Key Considerations
Appellate Remedies in Service TaxAppellate Remedies in Service Tax
Appeal to Commissioner (Appeals)
Appeal to Commissioner (Appeals)
Appeal to Tribunal
Appeal to Tribunal
Appeal to High Court/Supreme Court
InterestInterest
Interest
Interest
Calculation of interest
Interest: Key Considerations
PenaltiesPenalties
Penalties
Penalty Provisions
Provision Particulars Penalty
70 Delay in filing returns INR 20,000/-
76 Failure to pay service tax
INR 100 per day during which failure continues or 1% tax per month whichever is higher
Capped at 50% of the value of service tax
Penalty order required to be a speaking order
Penalty Provisions
Provision Particulars Penalty
77 Penalty for specified contraventions:
Failure to get registered INR 10,000/- or INR 200/per day whichever is higher
Failure to furnish information, produce documents or appear before Central Excise Officer
INR 10,000/- or INR 200/per day whichever is higher
Failure to keep, maintain and retain books of accounts
INR 10,000/-
Failure to pay tax electronically INR 10,000/-
Issuance of invoices with incorrect or insufficient details or non accounting thereof
INR 10,000/-
Penalty Provisions
Provision Particulars Penalty
78 Suppression of taxable value on account of a.Fraudb.Collusionc.Willful misstatementd.Suppression of factse.Intention to evade tax
Equal to the amount of service tax
Mitigation available where true and complete information captured to 50% of the tax amount
Where tax is paid within a period of one month along with interest and penalty: amount reduced to 25% of the tax amount
For small service providers time period for payment of tax amount and penalty increased to 90 days
• Penalty under Section 76 and Section 78 mutually exclusive
• Waiver of penalty under Section 80 only where records maintained
Prosecution
Provision Particulars
89 Provision or receipt of service without issuance of an invoiceAvailment and utilisation of CENVAT credit without actual receipt of inputs/input servicesMaintaining false books of accounts or failure to supply any information or false informationNon payment of service tax collected for a period more than 6 months
• Punishment• If amount > 50 Lakhs – Imprisonment upto 3 years• Others – Imprisonment upto 1 year
• No power of arrest
• Prosecution can be launched only with the approval of the Chief Commissioner
Thank YouThank You