Entrepreneurs regularly file their service tax and start-ups businessmen generally register for service tax. This sight is common but the knowledge of blunders that are committed frequently is not prevalent. Incorrect or late filing of service tax compliance can possibly lead to fines and penalties. In this article, we look at common service tax errors that can be avoid.
Delay in Service Tax Payment.
It is the responsibility of the business or the entrepreneur to submit the service tax collection of every month or every quarter to the concerned governmental authority. Failure to do so within the stipulated time may possibly result in building up of interest and penalties. In addition to it under the Finance Act which was launched lately, certain modifications have been made to the penalties on late payment of service tax payments to make the process an unbiased one. Therefore, it is essential that one makes service tax payments on time, following the proper channel to avoid penalties.
Late Filing of Service Tax Return or not filing the return at all.
Disobedience of the norms of service tax return filing is most commonly committed mistakes. Individuals and firms already with possession of the service tax registration have to file the service tax return on 25th April and 25th October of every year. Rs.500 is charged as fine for the delay of upto 15 days. Further rs.1000 penalty is charged if there is a delay of upto 30 days and Rs.100 is added everyday to Rs. 1000 for delay of more than 30 days.
In case one does not file the service tax return at all, fine can reach up to a whooping Rs.20, 000.
Claiming the rewards/ advantages of Service Tax Exemptions erroneously
Service providers who provide taxable services that do not exceed Rs.10 lakhs in a year do not need to pay service tax. However, if the service provider starts paying the tax prior to crossing the Rs.10 lakhs service tax exemption boundary, he/she becomes predisposed to pay the tax starting from that very point. Thus it becomes important for all the startups and small scale service providers to have information about the regulations and claim for the correct service tax exemption.
Filing the service tax return under wrong category
Under the Service tax rules, the entrepreneurs/ business responsible has to file service tax return for all the categories service is provided in. Along with this, it is also important that all the activities performed are mentioned in the service tax registration by the assessee. In case an incorrect service tax registration is done or return is filed wrongly, some of the benefits available as abatement or exemption may be denied. This penalty makes it extremely important for the assessee to obtain service tax registration and file service tax return correctly.
Contact Us
eFiling Portal
509, Sector – 27, Gurgaon, Haryana, 122009 India
Contact Number : 9-555-247-000 , 888-2-247-000
Email : info@efilingportal.in
This article is about service tax registartion and online service tax registration Bangalore for more information please visit our website: https://www.efilingportal.in
Delay in Service Tax Payment.
It is the responsibility of the business or the entrepreneur to submit the service tax collection of every month or every quarter to the concerned governmental authority. Failure to do so within the stipulated time may possibly result in building up of interest and penalties. In addition to it under the Finance Act which was launched lately, certain modifications have been made to the penalties on late payment of service tax payments to make the process an unbiased one. Therefore, it is essential that one makes service tax payments on time, following the proper channel to avoid penalties.
Late Filing of Service Tax Return or not filing the return at all.
Disobedience of the norms of service tax return filing is most commonly committed mistakes. Individuals and firms already with possession of the service tax registration have to file the service tax return on 25th April and 25th October of every year. Rs.500 is charged as fine for the delay of upto 15 days. Further rs.1000 penalty is charged if there is a delay of upto 30 days and Rs.100 is added everyday to Rs. 1000 for delay of more than 30 days.
In case one does not file the service tax return at all, fine can reach up to a whooping Rs.20, 000.
Claiming the rewards/ advantages of Service Tax Exemptions erroneously
Service providers who provide taxable services that do not exceed Rs.10 lakhs in a year do not need to pay service tax. However, if the service provider starts paying the tax prior to crossing the Rs.10 lakhs service tax exemption boundary, he/she becomes predisposed to pay the tax starting from that very point. Thus it becomes important for all the startups and small scale service providers to have information about the regulations and claim for the correct service tax exemption.
Filing the service tax return under wrong category
Under the Service tax rules, the entrepreneurs/ business responsible has to file service tax return for all the categories service is provided in. Along with this, it is also important that all the activities performed are mentioned in the service tax registration by the assessee. In case an incorrect service tax registration is done or return is filed wrongly, some of the benefits available as abatement or exemption may be denied. This penalty makes it extremely important for the assessee to obtain service tax registration and file service tax return correctly.
Contact Us
eFiling Portal
509, Sector – 27, Gurgaon, Haryana, 122009 India
Contact Number : 9-555-247-000 , 888-2-247-000
Email : info@efilingportal.in
This article is about service tax registartion and online service tax registration Bangalore for more information please visit our website: https://www.efilingportal.in
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