LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Interest Calculation

Start Company in India (Co-Founder) (32 Points)

20 June 2011

Hi,

"A" pvt.Ltd Company has not paid service tax for the month of April, May. Before july 5th they wish to remit the same.

How to calculate interest on this delayed remittance? Whether it is based on number of days of delayed payment or monthwise.

Thanks in advance.

Regards

Vighnesh Bhat

KVK Corporate Advisors LLP

www.Startcompanyinindia.com

Reply
Follow
Share

4 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 21 June 2011

interest is payable per month or part thereof basis

so he is eligible to pay 3 months interest

better to pay within 30th june, and save one month

PRAKASH C B (STUDENT) (89 Points)
Replied 21 June 2011

You can make interest payment based on No of days delay or No of month delay. Better to pay based on No of Months. Provision says for delayed payment of Service Tax interest rate is 18% Per Annum, 15% Where value of taxable services provided during financial year not exceed 60 lakh rupees.

jaganathan (accounts executive) (272 Points)
Replied 21 June 2011

Service tax Interest could be calculated daywise.

Nageswara (account) (35 Points)
Replied 21 November 2013

Hi Sir,

One Of Client is taken Registration on 11/6/2011 still date is not paid any service tax hot till date turnover is rs.654756/- what,s the solution how to calculate the interest. pleage give me reply.