Interest on service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 We have to pay service tax for FY2008-09.
How we have to calculate interest?
It is to be calculated @18% i.e. present rate from 2008-09 till date or rate of interest applicable for respective years?

please guide whether to apply present interest rate 18% or different interest rates for different years?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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25 September 2012 Interest rate will be 18% per annum. Interest will be applicable upto the date of duty payment.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 September 2012 For the service tax payment pertaining to FY 2008-09 ,interest may be calculated as follows:-

i) from due date @ 13% per annum for the number of day's delay up to 31/3/2011.

ii) from 1/4/2011 @ 18% per anuum for the number of day's delay counted from 1/4/2011 to the date of payment.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 Please guide me what to do? To calculate @18% or in two parts @13% & 18%.
Is there any clarification issued by dept.in this regard?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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25 September 2012 upto 31.3.2011 interest will be 13% and after 31.3.2011 18%.

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 is there any clarification in this regard?
We have to pay interest under audit conducted by service tax department. Is it makes any difference?

CA. Vikash Chandra Jaiswal

CA. Vikash Chandra Jaiswal (Expert)
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27 September 2012 It is irrelevant for making payment of interest, that you are paying interest by your own assessment or after pointing out by department. you have to pay interest as per applicable rate for the relevant period, here
up to 31.03.2011 @ 13%
from 01.04.2011 to date of payment @18%.