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Interest (%) for delayed payment of swachh bharat cess (sbc)

CPA Partha Sengupta (Govt.of India Service) (66 Points)

06 January 2016

Currently, the interest rate for delayed payment of Service Tax is 18% p.a. Can any one tell me what is the interest rate applicable for delayed payment of SBC (interest code is 00441494)? Please provide relevant circular/notification.

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9 Replies

Ajay Chandramouli (Article Assistant ) (334 Points)
Replied 06 January 2016

Dear Mr.Partha

The Chapter VI of Finance Act 2015 clearly laids down the following

"The provisions of Chapter V of the Finance Act, 1994 and the rules made thereunder, including those relating to refunds and exemptions from tax, interest and imposition of penalty shall, as far as may be, apply in relation to the levy and collection of the Swachh Bharat Cess on taxable services, as they apply in relation to the levy and collection of tax on such taxable services under Chapter V of the Finance Act, 1994 or the rules made thereunder, as the case may be.”

Since this chapter is notified from November 15th 2015 all the provisions as applicable to service tax are applicable to swach bharath cess.

Hence the interest need to be calculated as it is calculated to service tax

Please refer the fllowing link for more details

https://www.cbec.gov.in/resources//htdocs-cbec/press-release/faq-sbc.pdf

Hope it is clear

1 Like

Jyothis (Article) (1127 Points)
Replied 11 January 2016

Do we need to pay interest on swachh bhart cess for 6 days delay.

Swachh Bharath Cess : Rs.107

Due date : 06/01/2016

Delay : 6 days

Interest @ 15% ,being a P. Ltd company with foriegn Turn Over 2crore but domestic T.O is only Rs.12 lacs.

So using 3% concession SBC interest is only 22 paise.

But using a excel for service tax interest calcultor- interest payable on above is Nil.

Please comment.

Nagendra Hegde (Chartered Accountant) (1948 Points)
Replied 11 January 2016

Currently its not 18%. Following slab would apply w.e.f 01/10/2014:

Upto 6 months of delay - 18%

Delay b/w 6 months to 1 year - 18% for first 6 months and then 24% for the remaining

Delay for more than 1 year - 18% for first 6 months, 24% for next six months and 30% for the balance.
* Interest rates would be reduced by 3% if PY Taxable turnover does not exceed 60 Lakhs (Sec 75)

Same would be equally applicable for SBC (Notfn: 21/2015-ST)

1 Like

ganeshan k (asst mgr) (94 Points)
Replied 26 January 2016

Yes the interest is payable on number of days delayed in payment of swachh bharat cess calculated @ 18% p.a. for 6 months and 24% for second six months and thereafter @ 30% p.a.

1 Like

Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 02 February 2016

E- Payment of Service Tax and Swachh Bharat Cess for the month of January, 2016 is due for payment on 06/02/2016 for assessees other than Individual, Proprietary Firm, Partnership Firm or LLP.

Moreover, payment made after 8.00 pm will be treated as payment made on next day. Payment after due date will be liable for interest.(as given above).

1 Like

Sumit (accountant excetive) (26 Points)
Replied 22 November 2016

Hello Friends

Can you anybody inform to me,I have to receive in my company account 20,000 on dated 04/10/2016 advance payment from the client but I have not deposit tax on the due date06/11//2016, So anybody informs to me how much tax we will deposit tax with interest on 23/11/2016.

Please inform me full calculation for this amount :- 20,000.00

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 22 November 2016

Advance amount	6/11/2016	20000

Service tax	23/11/2016	2609

Net amount		17391


Service tax		2609

Interest
If turnover in the preceedig financial year is >= 60 Lac
Interest @ 15%
	17 Days	18

If turnover in the preceedig financial year is < 60 Lac
Interest @ 12%		15

Sumit (accountant excetive) (26 Points)
Replied 22 November 2016

Thanks for reply Mr. Sunil Kumar

Let me know, we have to deposit service tax and interest with different challan

I mean one for service tax and second for interest ,

Would be great if you explain proper interest calculation:-

how much

for service tax, swatch Bharat cess & Krishi cess all penalty details:-

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 23 November 2016

Advance	20000
No of days delay		17 Days
	Tax	Interest (12%)	Interest (15%)
ST	2434.783	14	17
KKC	86.95652	1	1
SBC	86.95652	1	1


Interest rate of 12% is appliable If turnover in the precedding financial year is less than 60 Lakh

No suo moto penalty require to be paid