30 May 2015
Situation 1 service tax paybable for the month of march 2015, say Rs.1 lakh due date for march is 31st march service tax is paid on 1st april 15 what is the interest payable for the above? Whether interest is payable for 32 days namely 31days of march & 1day of april? or interest is payable for 1 day only further regarding rate of interest 18% for the first 6 months of delay, whether interest is payable flat 18 % for 6 months namely 3% per month or is it 18 % P.A. since the word PA. is not specified in the Act.Please clarify
Situation 2 Service tax for the month of april is due on 5th may15.If service tax is paid on 6th may2015 whether interest is payable for 1 day or 6 days at 18% P.A.?Please clarify.
30 May 2015
In both the cases Interest to be paid for only 1 day.
Vide Notification No 12/2014-ST dated 11.7.2014, rate of interest to be charged on delayed payment of service tax has been enhanced w.e.f. 1.10.2014, based on period of delay. Thus, longer the delay period , higher would be the rate of interest payable. # Up to six months - 18% p.a. # Beyond six months to one year - 18% p.a. for the first six months of delay; 24% p.a. for delay beyond six months. # Beyond one year - 18% p.a. for the first six months of delay; 24% p.a. for period beyond six months up to one year; 30% p.a. for any delay beyond one year.
If turnover during preceding FY did no exceed Rs 60 Lacs then there will be a concession of 3% and interest rate will be reduced from 18% p.a. to 15% p.a.
30 May 2015
Remember you need to calculate interest on days basis for delay period which is from the due date of payment till the date of actual payment. Please check out the "Service Tax Late Payment Interest Calculator wef 01/10/2014" from link given below:
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