Fail to pay service tax

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shailesh

shailesh (Querist)

12 January 2015 fail to pay service tax for the month of dec 2014 how much intrest i have to pay

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

12 January 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.

shailesh

shailesh (Querist)

12 January 2015 the i have to pay 1.5% intrest payment for the month of dec 2014

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

12 January 2015 No. You need to calculate interest on days basis for delay period which is from the due date of payment till 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