Interest on service tax

Save Share

This query is : Open

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?

Yajendra Adhikari

Yajendra Adhikari (Expert)

25 September 2012 Rate of 18% for all years

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

25 September 2012 Interest is to be Calculated on Basis of Years on Present rate Only.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

25 September 2012 agreed with expert...

if payment of service tax is delayed in accordance with provision section 68 interest will be charged not below 10% and not exceed 36% per Annum REFER TO SECTION 75 OF F.A. 1994.

FURTHER INFORMATION LINK IS:

https://www.servicetaxonline.com/content.php?id=31

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 So in your opinion we have to calculate interest @18% for all years (no.of days basis) ?
Please clarify.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

25 September 2012 Yes, If For 3 Day Then Interest to be Payable for 3 Days Only (Unlike Income Tax act )

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 We have to pay same due to service tax audit carried by department & cenvat credit not allowed. Does it make any difference for interest caclulation rate 18% or method of calculation?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now