What are the consequences for not paying service tax to Govt of India?



My friend is running Computer Service business. He collects 12.36% service tax from every customer.

He is asking me what if he does not return the collected service tax to Govt? Can that be tracked? If so what is the probability? Can he make only partial payment of service tax to Govt? What are the consequences?

What are the consequences for not paying service tax to Govt of India?
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One Reply to “What are the consequences for not paying service tax to Govt of India?”

  1. Penal provision for non payment or delayed payment of service tax – A mandatory penalty, not less than Rs.200/- for every day during which such failure continues or @2% of such tax per month, whichever is higher.





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