If you fall in the ambit where you have to pay service tax correctly and you fail to do so than you can be levied with a penalty as stated below:
The rule states that any person, liable to pay service tax in accordance with the provisions of section 68 or the rules made under this Chapter, who fails to pay such tax, shall pay, in addition to such tax and the interest on that tax in accordance with the provisions of section 75, a penalty which shall not be less than [one hundred rupees] for every day during which such failure continues or at the rate of [one per cent.] of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax :
Max Penalty Limit
Provided that the total amount of the penalty payable in terms of this section shall not exceed [fifty per cent of] the service tax payable.
It is in the interest of every one that we pay taxes correctly to avoid having any anxiety due to non payment of taxes and we must remember that the interest of nation comes first always and every time and same can be achieved by correct payment of taxes.