05 December 2017
Sir, One of our clients have a ST liability of Rs.947881/- for the Q1 of FY 2017-18 for which due date for payment is 06/07/2017. They have paid the total amount in three installments dated 20/07/2017,05/08/2017 & 24/11/2017. Now my doubt is in the calculation of interest on late payment a)Whether we have to take the total payment amount as principle payment and interest to be calculated accordingly ? or b)Shall we have to first calculate the interest amount set off that amount from the total payment and to consider the same amount as balance ST payable and calculate the interest on that till date of payment ?
Will the department set off the interest amount first even though we paid the amount for the clearing liability of ST alone but not for interest and calculate the interest on remaining payment as considering it as principal ST amount payable? Please help me out of this Regards, Kiran.
05 December 2017
Is it means whenever the payment of interest is made the interest amount remains the same ? Or Will there be any interest on the late payment of interest calculated till date?
CAclubindia
