Delayed payment service tax

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Madhusudhanrao

Madhusudhanrao (Querist)
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01 December 2015 is there penalty for delayed payment of service tax

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 December 2015 Vide Notification No 12/2014-ST dated 11.7.2014, rate of interest to be charged on delayed payment of service tax has been enhanced w.e.f. 1.10.2014, based on period of delay. Thus, longer the delay period , higher would be the rate of interest payable.
# Up to six months - 18% p.a.
# Beyond six months to one year - 18% p.a. for the first six months of delay; 24% p.a. for delay beyond six months.
# Beyond one year - 18% p.a. for the first six months of delay; 24% p.a. for period beyond six months up to one year; 30% p.a. for any delay beyond one year.

If turnover during preceding FY did no exceed Rs 60 Lacs then there will be a concession of 3% and interest rate will be reduced from 18% p.a. to 15% p.a.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 December 2015 Remember you need to calculate interest on days basis for delay period which is from the due date of payment till the date of actual payment. Please check out the "Service Tax Late Payment Interest Calculator wef 01/10/2014" from link given below:

https://www.caclubindia.com/share_files/service-tax-late-payment-interest-calculator-wef-01-10-2014-64447.asp#.VLPlniuUfUs

Madhusudhanrao

Madhusudhanrao (Querist)
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01 December 2015 thanl you sir but I would like to know penalty is there or only higher rate of interest.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 December 2015 https://cavikashparakh.blogspot.in/2014/09/service-tax-interest-penalty-and.html

Check out above link.

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