Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Interest on late payment of service tax

Durga Sharma (Manager) (34 Points)

17 April 2017

What should be the rate of intererst and date from which we calculate the interest for late payment of service tax.

Bill date - 14.04.2016

Due date of payment- 06.05.2016

actual collection - 04.07.2016

deposit with govt - 02.03.2017

amount is - 65000 /-

Reply
Follow
Share

4 Replies

Peter (Article Assistant) (118 Points)
Replied 18 April 2017

Q
1. Type of person?
2. Turnover in preceeding year?

Durga Sharma (Manager) (34 Points)
Replied 22 April 2017

1. Private limited company.

2. Turnover - Rs 85 lacs

Peter (Article Assistant) (118 Points)
Replied 22 April 2017

1. According to Rule 3 of POT RULES . POT = DATE OF INVOICE OR DATE OF PAYMENT WHICHEVER IS EARLIER . SO POT IS 14.O4.2016.
2. Date of Payment of ST to gov is on 05.05.2016
3. Interest for non payment l will be @ 24% where amt is collected from buyer but not remmited to govt .
Interest will be chatged at 15 % for reason other than above.
4. Hence interest @ 24% will be computed from 04.07.2016 to 02.03.2017
and Interest @ 15% from 05.05.2016(POT DATE) to 04.07.2016.
5. This is in respect to new ammendment made in FA act.