Raja ruban (Director) 11 December 2009

What is the worst case action if the pvt ltd company

What is the worst case action if the pvt ltd company not paid the service tax or partially not paid that. Also if they not produce any documents such as returns or any other documents. If the action persist they will attack all the director of the company or the contactacble diractor only. Please advice.

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A V Vishal (Advocate) 11 December 2009

Penalty may be imposed by the department on the assessee if he;

1) fails to get registered within the prescribed time limit; or

2) fails to pay service tax to the Government in time; or

3) fails to file half-yearly return with the department in time; or

4) wilfully suppresses or conceals the value of taxable services or furnishes inaccurate value of such taxable services or

5) fails to comply with a notice requiring him to produce within the specified time limit, such accounts, documents or other evidence as considered necessary by the Central Excise Officer for assessment.

Penalty in the case of delay in paying the Service Tax to the Government within the prescribed time limit:

For failure to pay the service tax, the assessee would be required to pay a minimum penalty of Rs.100/- to Rs.200/- per day as decided by Central Excise Officer. This amount is subject to a ceiling of the amount equivalent to Service Tax not paid.

Interest is also payable at the rate of fifteen percent per annum for delayed payment of Service Tax.

Penalty for non filing or delayed filing of the half yearly returns:

An assessee failing to file the half yearly returns or failing to file them in time are liable to a penalty of a sum which may be extended to One Thousand Rupees.

Anil Agrawal (Retired) 11 December 2009

The person sought to be made liable should be in charge of and responsible for the conduct of the business of the company at the relevant time - no distinction between a director or any other employee of the company.