Method for calculating interest on late payment of service t

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NAYAN (Querist)
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02 October 2012 Dear Sir,

What Method for calculating interest on late payment of Service Tax 1) by Monthly or 2) by No. of Days

What is rate of interest for late payment of service tax

it is 18% P.A.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 October 2012 Interest on delay payment of service tax need to calculate day basis. interest rate will be 18% per annum

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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02 October 2012 nayan, interest is calculated on daily basis.., that is the days you postpone the payment from due date..

and yes, interest rate is 18% p.a. and 15% if turnover does not exceed 60lakhs during previous FY