Non-payment of interest on late payment of service tax

Queries 2398 views 4 replies

Dear sir,

We have deposited service tax for May in December. But we have not paid any interest on it.

Now my query is-

1. Is there any interest on such late-payment of interest.

2. Futher any penalty can be levied by Depatment.

Regards,

Naman maheshwari 

Replies (4)

u have to pay interest @ 18% p.a,. interest should be calculated Proportionately to no of days of delay payment to till the date of payment.

ex. your st liability is 100 as on 1st march but u have paid on 1st may then interest will be calculated for 61 days.i.e., interest =100*18%*61/365=3.01
 

1. Yes, interest @ 18% p.a, is required to be paid for the period of delay in payment of S.Tax.

2. Yes, Penalty under Section 76 of Finance Act, 1994 can be imposed for delay in payment of S.Tax. However, Section 80 of Finance Act, 1994 provides that no penalty shall be imposed Section 76, if the assessee proves that there was reasonable cause for the delay in payment.


 

Dear Sir, I have the same query and I think no one has replied to the question asked.

Dear Mr. Rahul Mishra,

  1. There will not be levied any interest on such late-payment of interest.
  2. Generally, Department will not levy any penalty for non-payment of interest. But, it can demand interest for such delayed payment of service tax.


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