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Intt on service tax

Priyanka (student) (132 Points)

23 April 2014

What is the rate of interest on late payment of service tax & what is the period of calculating interest on service tax??

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Deepak Gupta (CA Student) (15922 Points)
Replied 23 April 2014

Originally posted by : Priyanka
	What is the rate of interest on late payment of service tax & what is the period of calculating interest on service tax??

18% p.a. simple interest for all assessees (other than small scale sector assessee).
.
15% p.a. simple interest for small scale sector assesses.
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(Small scale sector means a service provider, whose value of taxable service provided in a financial year does not exceed 60 lakh rupees during any of the financial years covered by the notice or during the last preceding financial year, as the case may be.)
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Interest is payable for the period from the first day after the due date till the date of payment of any defaulted service tax amount (i.e. calculation should be made on day basis).

For example:
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Due date of Payment = 05.01.2012, Actual Date of Payment = 30.03.2012
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No of days of delay (26+29+30) = 85
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Amount of service tax = Rs. 10,000/-
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Calculation of interest = 10,000 X 85/366 X 18/100
.
Amount of interest payable = Rs. 418/-

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RAKESH MAHAJAN (Student CA Final ) (32 Points)
Replied 23 April 2014

18% p.a. simple interest for all assessees (other than small scale assessee).

15% p.a. simple interest for small scale assesses.

Interest will be applicable from the Ist day after due date of the month/quarter in which service Tax is required to be deposited .

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CMA Dhanumjay (ACMA) (50 Points)
Replied 23 April 2014

18% p.a. simple interest for all assessees (other than small scale sector assessee).

15% p.a. simple interest for small scale sector assesses.

(Small scale sector means a service provider, whose value of taxable service provided in a financial year does not exceed 60 lakh rupees during any of the financial years covered by the notice or during the last preceding financial year, as the case may be.)

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Nikunj Shiyani (Executive) (124 Points)
Replied 23 April 2014

Sir FY means?? For small scale,,, if I want to calculate interest on 25-03-2014, then which f.y I have to consider?? If small scale?

Jayakrishna kumar.M (Article Student doing CA Final) (23 Points)
Replied 23 April 2014

Hi. I have a doubt. In case a service provider registered under st and his gross services doesn't exceed 10lac need to pay service tax.will he get exemption for services up 10 lacs.

Ashok Katgi ( CA-Final) (62 Points)
Replied 23 April 2014

F.Y.2012-13 to be considered for preceeding the previous year means

Deepak Gupta (CA Student) (15922 Points)
Replied 24 April 2014

Originally posted by : Jayakrishna kumar.M
	Hi. I have a doubt. In case a service provider registered under st and his gross services doesn't exceed 10lac need to pay service tax.will he get exemption for services up 10 lacs.

Taxable services of upto Rs. 10 lakh can be claimed as exempted in the current year provided the preceding financial year receipts, does not exceed Rs. 10 lakh.
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To know more, refer Notification No. 33/2012-ST, dated 20.06.2012.