|Originally posted by :Sunil
||Hi all of you,
Can anybody tell me, how much interest & Penalty (Seperate) will be counted on service tax from Oct-2007(Service tax received in Oct-07from our client) while deposit challan in Oct-09. please describe me in detail.
PAYING INTEREST IS SELF ASSESSMENT SYSTEM
INTEREST RATE IS 13% FOR A YEAR, CALCULATE FROM THE DATE OF DEFAULTER TO THE PERIOD YOU ARE DEPOSITING MONEY
PENALTY WILL BE CALCULATED BY THE AUTHORITY
BUT STILL KNOW THE ACT = 76
76. Penalty for failure to pay service tax
Any person, liable to pay service tax in accordance with the provisions of section 68 or the rules made under this Chapter, who fails to pay such tax, shall pay, in addition to such tax and the interest on that tax amount in accordance with the provisions of section 75, a penalty which shall not be less than two hundred rupees for every day during which such failure continues or at the rate of two per cent. of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax:
Provided that the total amount of the penalty payable in terms of this section shall not exceed the service tax payable.