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Rate of penalty in service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2011 i have raised the rent bill but the tanent has paid the amount of service tax together after 3 month (both rent and service tax) so weather i need to pay the interest on service tax out of my own pocket if i have not paid the service tax in time.

PUNEET GOYAL

PUNEET GOYAL (Expert)
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02 December 2011 As per section 75 of finance Act, 1994, liability to pay interest is on the person who is liable to pay service tax.

As per point of taxation rules, now service tax is payable on accrual basis (not on receipt basis). So it is your responsibility that u sud deposit tax in time whether u have received rent or not.

Rate of interes is 18% and it will be reduced by 3% in case, inter alia, ur value of services provided in preceding FY is not exceeding 60lakh.

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