30 March 2015
Whether i have to pay Interest on ST deposited on 2nd Apr for Q4, and also whether interest should be paid for whole month or just 2 days.
Majority of ST has already been paid by 31st March and only balance is left to be paid on 2nd April.
31 March 2015
Beg to differ with Expert. Interest will have to be paid for 2 days only.
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:
31 March 2015
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.
31 March 2015
Please refer Section 75 of Finance Act 1994. Interest rate on late deposit of Service Tax is per annum basis and therefore calculated on days basis.
Refer Section 75 of Finance act 1994 from link given below:
01 April 2015
You can also check out the answer to the Question no 14 (Question from ICAI Practice Manual for IPCC) from link given below to confirm the point that interest is calculated on days basis:
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