Finance Ministry Fixes Late Fee On Service Tax Returns

New Delhi: The Finance Ministry has specified the late fee that will be applicable for delayed filing of service tax returns. This late fee has been linked to the period of delay for filing of returns after the due date. The move to quantify the late fees came a day after the President, Mr A.P.J. Abdul Kalam, gave his nod for the Finance Bill 2007. The late fee would be Rs 500 for the first fifteen days and Rs 1,000 for delay of more than 15 days but less than 30 days. For delay beyond 30 days, the Government has estimated the late fee at Rs 1,000 plus Rs 100 per day, but not more than Rs 2,000. For 2007-08, the Government has estimated the service tax collections target at Rs 50,200 crore.