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Jitendra (Querist)
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24 November 2016 one bill is raised in April16 and amount received against that bill in the same month, according to that service tax should be deposited on or before 6 July but deposited on 3 Nov and return has not been filed yet so how much amount of penalty and interest should be deposited before filling return??? �

Shyam Lal Naik

Shyam Lal Naik (Expert)
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24 November 2016 In this case the rate of interest is 24% p.a.

Jitendra

Jitendra (Querist)
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25 November 2016 having turnover less than 60 lake rs

Aashok Kumar Sharma online

Aashok Kumar Sharma

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02 August 2025 Urgent reply:

Since the service tax due date was **6 July 2016**, but payment was made on **3 Nov 2016**, the delay is almost **4 months after the 6-month grace period**, so interest calculation is as follows:

* **First 6 months delay (till 6 July 2016)** — interest @ **18% p.a.** on the due amount.
* **From 7 July 2016 to 3 Nov 2016 (approx 4 months delay beyond 6 months)** — interest @ **24% p.a.** on the due amount.

**Penalty:**

* Penalty can be imposed, but if you voluntarily pay the tax and file return before any notice, many times penalty is waived or reduced.
* Practically, a **minimum penalty of Rs. 500 to Rs. 1000** can be expected, but consult local department or circulars.

**Summary:**

* Calculate interest as per above rates for respective periods on the service tax amount.
* Deposit interest + service tax + voluntary penalty (if any, or at least Rs. 500).
* File the return immediately after payment.

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