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RATE OF INTEREST ON DELAYED PAYMENT OF SERVICE TAX

PRACTICING CHARTERED ACCOUNTANT

GOOD MORNING, SOMEBODY TELL ME WHAT IS THE PRESENT RATE OF INTEREST ON DELAYED PAYMENT OF SERVICE TAX?

IS THERE ANY PENALTY ALONGWITH THIS INTEREST ON DELAYED PAYMENT OF INTEREST?

 
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CA-Final-Asst.Manager Accounts

Rate of Interest on delayed payment of servicetax is 13%p.a.and interest to be calculated based on the number of days of delay.

Raghuraj

 

 
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PRACTICING CHARTERED ACCOUNTANT

THANKS BUT MY SECOND QUESTION IS STILL PENDING- PENALTY?

 
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If you pay service tax along with interest mostly department will take lenient view and not impose penalty.  Moreover, penalty can be imposed only after issuing show cause notice and giving an opportunity to present the reasons for delayed payment of service tax.

 
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Mr. Sudhir Halakhandi,

 Interest as already said by Mr. Raghuraj will be charged @ 13%....As far as penalty is concerned, it would be levied equal to higher of following:

Rs. 200 every day during which failure continues

or 2% of Tax per month

for the no. of days for which delay occurs

But such Penalty can't exceed the Tax payable

 
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Dear sir

i am in default of paying service tax amount of Rs. 5667/- and education cess Rs.137/- Total 5994 for the quarter of September 2009. till date how much interest and penalty if any i have to pay.

please give me a solution

Thanks & regards

Srikanth

 
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Interest will be 13% p.a. on Rs.5994/-. calculate on daily basis from 5th Oct. 09 to till last date of payment.

Regards

Pragnesh

 
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Accounts Manager


What is the current interest rate?

 
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Practicing Chartered Accountant

The current rate of interets is 18% wef 1.4.2011. and  in case where the value of taxable services provided in a financial year is not more that Rs. 60 lakh the applicable tax rate will be 15% for the number of days of delay.

 

 
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 I agree with  Shikha agarwal  rate  is 18 % okay

 
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