Service tax interest
This query is : Resolved
28 February 2015
Our company has not paid service tax from 01.04.14 till date due to certain cash crunch. We want to pay it as on 6th march 15. How should we calculate?
CA M Indani
(Expert)
28 February 2015
add interest and stax return late filing penalty to your service tax liability and pay!!
interest for late payment : from the due date of payent to till date of payment ( day wise
rate of interest : 15 % ( if turnover in last fy was below 6 lacs) else 18 % p.a.
interest for late payment : from the due date of payent to till date of payment ( day wise
rate of interest : 15 % ( if turnover in last fy was below 6 lacs) else 18 % p.a.
CA M Indani
(Expert)
28 February 2015
its 60 lacs ..by mistake wrote as 6
28 February 2015
Vide Notification No 12/2014-ST dated 11.7.2014, rate of interest to be charged on delayed payment of service tax has been enhanced w.e.f. 1.10.2014, based on period of delay. Thus, longer the delay period , higher would be the rate of interest payable.
# Up to six months - 18% p.a.
# Beyond six months to one year - 18% p.a. for the first six months of delay; 24% p.a. for delay beyond six months.
# Beyond one year - 18% p.a. for the first six months of delay; 24% p.a. for period beyond six months up to one year; 30% p.a. for any delay beyond one year.
If turnover during preceding FY did no exceed Rs 60 Lacs then there will be a concession of 3% and interest rate will be reduced from 18% p.a. to 15% p.a.
# Up to six months - 18% p.a.
# Beyond six months to one year - 18% p.a. for the first six months of delay; 24% p.a. for delay beyond six months.
# Beyond one year - 18% p.a. for the first six months of delay; 24% p.a. for period beyond six months up to one year; 30% p.a. for any delay beyond one year.
If turnover during preceding FY did no exceed Rs 60 Lacs then there will be a concession of 3% and interest rate will be reduced from 18% p.a. to 15% p.a.
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28 February 2015
Remember you need to calculate interest on days basis for delay period which is from the due date of payment till the date of actual payment. Please check out the "Service Tax Late Payment Interest Calculator wef 01/10/2014" from link given below:
https://www.caclubindia.com/share_files/service-tax-late-payment-interest-calculator-wef-01-10-2014-64447.asp#.VLPlniuUfUs
https://www.caclubindia.com/share_files/service-tax-late-payment-interest-calculator-wef-01-10-2014-64447.asp#.VLPlniuUfUs
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