02 September 2008
Service tax interest and penalty provision is as below:
a.If the payment is not paid by due date, interest @13% from the date following the due date for payment of service tax is to be paid mandatory along with service tax. b.In addition to paying service tax and interest, defaulters are liable to pay penalty at, not less than Rs.200 per day of default or 2% of tax due p.m, whichever is higher, starting with the first day after the due date till the date of payment of outstanding amount of service tax. However, penalty amount will be limited to total tax due. The actual levy of penalty is at the discretion of the authorities.
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