15 October 2013
Hello There,my query is regarding the No. of Months to be counted for service tax interest payment,Suppose have raised the Invoice on Nov 2012,then accordig to me the service tax will be calculated for 12 months if paid before 5th nov 2013.plz correct me if m wrong.
15 October 2013
Interest has to be calculated not from November 2012. To be calculated form the day following the due date to the date of payment. Thus, if the status of service provided is non-corporate, the due date falls on January 5,2013. Therefore interest @15% has to be calculated from January 6,2013 to October 15,2013 (if paid today).
15 October 2013
The expert, Mr Warrier is correct. If the service provider is corporate, the interest will be calculated from 5th Or 6th Dec 12 (based on the method of payment) to till today @ 18%. For those whose turnover is less than 60 lacs in a financial year, the interest rate is 15% only.
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