Interest under service tax

There is no concept of payment to be done on cash basis or mercantile basis, the assessee has to check Point of taxation under following 2 Situations

1. if the Invoice is raised within 30days, the Point of Taxation will be Date of Invoice or Date of Payment recived whichever is earlier.

2. if the invoice is not issued within 30 days, then the point of taxation will be Date of Completion of Service or Date of Payment Received whichever is earlier.

In the instant case the POT and date of payment of service tax will be the Important for applicability or non applicability of Interest on Service Tax.

You have the option to pay service tax on cash basis if you are an Individual or partnership firm.

No need to pay Interest or penalty.