Urgent
This query is : Resolved
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???
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24 November 2016
In this case the rate of interest is 24% p.a.
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.
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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