Delayed return :
A delayed return can also be furnished by paying the prescribed late fee. Section 70(1) inter alia provides for filing of periodical return after the due date with the prescribed late fee of not more than Rs 20,000.
(1) Late fee for delayed return [Rule 7C]: The prescribed late fee for furnishing a delayed return is given in the following table:
| S. No. | Period of delay | Late fee |
| (a) | 15 days from the date prescribed for submission of the return | Rs 500 |
| (b) | Beyond 15 days but not later than 30 days from the date prescribed for submission of the return | Rs 1,000 |
| (c) | Beyond 30 days from the date prescribed for submission of the return | An amount of Rs 1,000 plus Rs 100 for every day from the 31st day till the date of furnishing the said return |
(2) Maximum late fees: Total late fee for delayed submission of return shall not exceed Rs 20,000.
Further, where the assessee has paid the prescribed late fee for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall be deemed to be concluded.
(3) Late fee may be reduced/waived where service tax payable is nil: Where the gross amount of service tax payable is nil, the Central Excise Officer may, on being satisfied that there is sufficient reason for not filling the return, reduce or waive the penalty (late fee) [Proviso to rule 7C].
Example: BCC Ltd. is engaged in providing taxable services. For the half year ended on 30th September, it filed its return on:-
Case I: 9th November
Case II: 23rd November
Case III: 25th January
Determine the amount of late fee payable by BCC Ltd. in each of the independent cases.
Solution:
| Case | Particulars | Penalty as per rule 7C (Rs) |
| I | Return has been filed with a delay of 15 (i.e. 6+9) days from the date prescribed for submission of the return | Rs 500 |
| II | Return has been filed with a delay of 29 (i.e. 6+23) days from the date prescribed for submission of the return | Rs 1,000 |
| III | Return has been filed with a delay of 92 (i.e. 6+30+31+25) days from the date prescribed for submission of the return | Lower of the following two amounts:-
(i) Rs1,000+(Rs100×62 days) (ii) Rs 20,000 Late fees leviable is Rs7,200 |
Note: In case the gross amount of service tax payable by BCC Ltd. is nil, the Central Excise Officer may, on being satisfied that there is sufficient reason for not filling the return, reduce or waive the penalty (late fee).