As per the provisions made under Sections 76, 77 and 78 of Finance Act, 1994 , the central government may charge a penalty, if you fail to meet the following conditions:
If you fail to furnish the ST-3 Return within the due dates which are 25th October and 25th April of every year. In that case, you will be liable to pay penalty fee which may extend up to Rs. 2000 based on the period of delay.
If a person fails to furnish information or appear before the Central Excise Officer when called for, he/she shall have to pay penalty up to Rs. 5000 or Rs. 200 per day after the due date, whichever is higher.
If you are a service provider and fail to register your service, it will draw. Because, registration serves as an identity of an assessee and it is mandatory to register your services.penalty as per the regulations mentioned in section 77 of the Finance Act, 1994 and the penalty fee may go up to Rs. 5,000
If an assessee fails to keep or maintain records of account and other documents required by service tax law, he/she shall be liable to pay penalty fee which may go up to Rs. 5,000.
If a person fails to pay tax electronically, he/she shall pay penalty which may extend up to Rs. 5,000.
Penalty fee is also charged on non-payment or delayed payment of service tax.
Penalty shall be charged up to Rs. 5000, if a person issues an incorrect invoice or fails to support his invoice with valid details.
Penalty shall be charge if a person suppresses the value of taxable services or provides willful miss-statement about the service provided.
Not only there are provisions for imposing penalty if you fail to meet the above-mentioned criteria, there are also provisions for not imposing penalty in the service tax rules. As per section 80 of the Finance Act, 1994, if a person can provide sufficient cause to support his failure to pay service tax, he/she can be exempted from paying penalty fees. However, insufficient funds or lack time are not considered as adequate causes to waive penalty.