27 April 2015
Dear Madam\Sir, If service tax payable on 07/01/2013 is Rs. 2,00,000/-, service tax paid on 07/01/2015 like to know the following on interest computation
1) Scenario-1
Interest rate on service tax from 07/01/2013 to 30/09/2014 @ 18% per year and from 01/10/2014 to 07/01/2015 @ 30% per year
2) Scenario-2
Interest rate on service tax from 07/01/2013 to 06/07/2013 at 18% per year 07/07/2013 to 06/01/2014 at 24% per year 07/01/2014 to 07/01/2015 at 30% per year
Please can you clarify which method of interest computation is correct.
CAclubindia
