Dear All,
Shall I calculate Interest on service tax on day basis or on month basis ?
e.g. December Quarter service tax - due date is 6th Jan Payment date is 2nd April ? How shall I calcualte interest?
CA Jenish Vira (Bureau Veritas) (75 Points)
02 April 2016Dear All,
Shall I calculate Interest on service tax on day basis or on month basis ?
e.g. December Quarter service tax - due date is 6th Jan Payment date is 2nd April ? How shall I calcualte interest?
the rate of interest for delayed payment of service tax if the delay is upto 6months 18% per annum if delay is more than 6 months but upto1 year 18% for first 6 months and 24% for period delay beyond 6 months.if more than 1 year 18% for first 6mnts 24% for second 6 mnts and 30% for the period of delay beyond 1 year.penalty is also applicable if show cause notice is served.in case of service provider whose value of services does not exceed 60 lakh during any FY or preceding FY as the case maybe, the interest rate shall be reduced by 3% i.e15% now.calculation from 6th february to 2 april is 56 days interest is payable on 56 days.
CAclubindia
