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Interest for late payment of service tax

Dilip Datta Choudhury (Tax Practioner/Consultant) (84 Points)

06 June 2016

Our firm is a private limited company. For the month of April, 2016 tax liability of Rs.436/- and for the month of May, 2016 tax liability of Rs.1,740/-this month i.e. June, 2016 our company pay total amount of Rs.2,176/- as service tax. How much interest to be added with total service tax and pay within which stipulated date.

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3 Replies

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 07 June 2016

Interest on delayed payment of service tax is governed by section 75 of finance act,1994. Please refer to that.

Chirag Parmar (Service) (65 Points)
Replied 07 June 2016

From 01.04.2016, interest rate is revised and reduced to 15% in case of late payment of service tax. So, in instant case, if you deposit service tax on or before 06.06.2016 then service tax would be payable on the amount of April month only that is too for the period of one month.

karan jit singh (Consultant) (1299 Points)
Replied 11 June 2016

Originally posted by : Dilip Datta Choudhury
	Our firm is a private limited company. For the month of April, 2016 tax liability of Rs.436/- and for the month of May, 2016 tax liability of Rs.1,740/-this month i.e. June, 2016 our company pay total amount of Rs.2,176/- as service tax. How much interest to be added with total service tax and pay within which stipulated date.