Naman maheshwari (Student CA Final ) (32 Points)
06 February 2014Dear sir,
We have deposited service tax for May in December. But we have not paid any interest on it.
Now my query is-
1. Is there any interest on such late-payment of interest.
2. Futher any penalty can be levied by Depatment.
Regards,
Naman maheshwari
Manoj Chaitanya Varma
(1)
(61 Points)
Replied 06 February 2014
u have to pay interest @ 18% p.a,. interest should be calculated Proportionately to no of days of delay payment to till the date of payment.
ex. your st liability is 100 as on 1st march but u have paid on 1st may then interest will be calculated for 61 days.i.e., interest =100*18%*61/365=3.01
Mir Irshad Ali
(Partner)
(192 Points)
Replied 07 February 2014
1. Yes, interest @ 18% p.a, is required to be paid for the period of delay in payment of S.Tax.
2. Yes, Penalty under Section 76 of Finance Act, 1994 can be imposed for delay in payment of S.Tax. However, Section 80 of Finance Act, 1994 provides that no penalty shall be imposed Section 76, if the assessee proves that there was reasonable cause for the delay in payment.
Rahul Mishra
(Accounts Head)
(37 Points)
Replied 26 January 2016
Dear Sir, I have the same query and I think no one has replied to the question asked.
CA Aravind Penugonda
(Chartered Accountant)
(311 Points)
Replied 26 January 2016
Dear Mr. Rahul Mishra,
CAclubindia
