penality on late payment

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manish kumar

manish kumar (Querist)

21 April 2009 What is the rate of interest on late payment of service tax, pl. quote relevant section.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

21 April 2009 The assessee is liable to pay simple interest at the rate of one and one half percent for every month or the part of the month by which such payment is delayed.

Sec 75.

CMA KNVV Sri Vidya - Sri Kanth

CMA KNVV Sri Vidya - Sri Kanth (Expert)

21 April 2009 agree with expert

Taranjit Singh

Taranjit Singh (Expert)

21 April 2009 In case of Individuals or Proprietary Concerns and Partnership Firm, service tax is to be paid on quarterly basis. The due date for payment of service tax is the 5th of the month immediately following the respective quarter. For the purpose, quarters are : April to June, July to September, October to December and January to March. However, payment for the last quarter i.e. January to March is required to be made by 31st of March itself.

Taranjit Singh

Taranjit Singh (Expert)

21 April 2009 In case of delayed payments ( after due date) the assessee is required to pay simple interest at the rate prescribed. Notification No. 26/2004 dated 10.09.2004 has specified the rate of interest at 13% per annum.

Penalty for failure to pay service tax : Not less than Rs.200 for every day during which failure continues, or @2% of such tax per month, whichever is higher but shall not exceed the amount of service tax due.

Brij Bhushan Sangal

Brij Bhushan Sangal (Expert)

21 April 2009 Dear Manish,
Late interest is @13% (as per section 75)and calculation is no of days delay for payment after 5th of next month.in the month of march payment should made on or before 31 march itself. return is filed half yearly 25 days means 25 oct for april to sept and 25 april for oct to march.