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Interest and penalty on service tax delay

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Murali

software engineer

39 Points Posted on 20 January 2015

Hi,

I missed paying service tax for the period from October 1st to December 31st 2014. Last date was 5th Jan and I am planning to make payment now. However when I was trying to make payment and interest online mulitple questions are arising

1. My gross rental income is around 30 laks. What is the interest rate application for me. Some place it is mentiond as 15% (wtih 3% rebate due to less than 50 laks ST payment) and in some places it is mentioned as 18%. What is the interest I need to pay.

2. When I am making payment online, Do I need to pay interest separately for each of the components of ST (i.e., service tax, Education tax and Secondary & Higher Education Tax). Online tool showing different interest tax accounting codes for each of them.

3. Do I need to pay interest as well as penalty online at the same time now itself ?.

Thanks in advance.

Regards,

Murali

Replies (1)

Mir Irshad Ali

Partner

212 Points Posted on 20 January 2015

(i) If your value of taxable services during the preceeding financial year was did not exceed Rs. 60 Lakhs, the rate of interest applicable in your case will be 15% p.a.

(ii) There is no need for making separate payment of interest for each component of S.Tax.

(iii) It is not mandatory to make payment of interest and penalty at the same time, it can be paid at a later date.