Delay in payment of service tax thru cenvat

Queries 1903 views 4 replies

K.SARAVANAN

Accounts

106 Points Joined February 2008

Dear Sirs,

if service tax paid after the due date of 5th of next month...interest will be charged @ 13% p.a on service tax amount for the delayed period.. my question is this provision will be applicable for payment of service tax thru cenvat credit account...i.e.. adjustment of service tax in cenvat a/c after due date... example service tax payble for the month of apr'09 - rs.1,00,000/- but we adjust only 90,000 in cenvat a/c for the month of april balance rs.10,000 adjusted in later date...i.e..30.06.09. what is the provision....whether we paid interest for the delay or not.?? kindly clarify the doubts...

Replies (4)

A. Kiran Kumar

Manager - Indirext Taxation

156 Points Joined November 2008

Dear Saravanan,

Intrest has to be paid @ 13% pa on delayed payment which was paid through cenvat credit on later date. Interest has to be calculated from the actual due date to the date of payment made. (i.e, from 06.05.2009 to 30.06.2009)

K.SARAVANAN

Accounts

106 Points Joined February 2008

thanks for reply...

EKALABYA TALUKDAR

SERVICE TAX CONSULTANT

666 Points Joined August 2009

Originally posted by :A. Kiran Kumar

Dear Saravanan,
Intrest has to be paid @ 13% pa on delayed payment which was paid through cenvat credit on later date. Interest has to be calculated from the actual due date to the date of payment made. (i.e, from 06.05.2009 to 30.06.2009)

Dear Mr Sravanan,

Interest should be calculated from 01.05.09 to 30.05.09 (insted of 06.05.2009 to 30.06.2009). Govt has allowed 5 days as interest free if paid within 5 th of the next month. But for the month ending March of any year this interest holiday is not allowed, if you pay even on 01.04.09 you have to calculate the interest for one day.

BeyondConsultants

CA/CS/LLB(DU)

184 Points Joined December 2008

Dear Friend

No interest is payable as interest is compensatory in nature and appropriation of Cenvat at latter date will not result in any loss to the government.

In case you require any clarification do write to us at beyondconsultants @ ymail.com or sms at 9891950868

Regards

Nikhil Gupta