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.
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.
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
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.
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)
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.
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).
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
| 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 | ||||
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:-
| 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 | |||
Regards
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