Dear Madam\Sir, If service tax payable on 07/01/2013 is Rs. 2,00,000/-, service tax paid on 07/01/2015 like to know the following on interest computation 1) Scenario-1 Interest rate on service tax from 07/01/2013 to 30/09/2014 @ 18% per year and from 01/10/2014 to 07/01/2015 @ 30% per year 2) Scenario-2 Interest rate on service tax from 07/01/2013 to 06/07/2013 at 18% per year 07/07/2013 to 06/01/2014 at 24% per year 07/01/2014 to 07/01/2015 at 30% per year Please can you clarify which method of interest computation is correct.
Menu
Interest rate on service tax
Replies (2)
Scenario-2 seems to be correct.
Your observation in the first instance is correct.
.
Interest should be charged at 18% simple interest upto 30.09.2014.
.
Then, for the period from 01.10.2014 to 07.01.2015, the rate of interest will be 30% since the period of delay is beyond one year.
.
- Clarified by Tax Research Unit Letter D.O.F. No. 334/15/2014-TRU, dated 10.07.2014. Refer to Page No. 6 of this -> link
.
Further, if the preceding F.Y. turnover is <= 60lakh, then interest rate would be 15%, applicable for small service providers.
Recent Topics :
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
- FAST DS 2026 MAIL QUERY
- Does Anyone need CA Foundation books of May2026 at
- Last day for ITR-U for AY 2023-2024 (FY 2022-2023)
- Sale of shares in indian company by a non resident
Related Topics :
CAclubindia
