Dear All,
What will happen if i do not pay interest on service tax.
Please suggest.
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Non payment of interest on service tax
Replies (7)
Notice will be issued subject to condition
Hi Soumya
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.
It will come to the notice of department then you need to pay.
INTEREST RATE IS 18%, PAYABLE DAYWISE,
BUT FOR KIND INFORMATION PAYMENT OF INTEREST IS VERY TAUGHT TO INSERT IN THE ST-3 RETURN
BETTER FOR SMALL AMOUNT AVIOD IT.
If you dont pay it now,
You will have to pay at the time of audit. Its better to pay at the time of payment of service tax
SECTION 73
No penalty shall be imposed in respect of any service tax payment made by the assessee with applicable interest before issue of Show Cause Notice u/s 73(1) in cases not covered by extended period of limitation, i.e. cases where service tax is not payable by reason of fraud, collusion, willful misstatement, suppression, etc.
In cases of service tax determined during the course of audit, investigation or verification, even if those cases are covered by extended period of limitation, if the service tax along with interest and penalty equal to 1% of such tax, for each month, for the period during which the default continues, up to a maximum penalty of 25% of the tax amount, is paid before the issue of show cause notice u/s 73(1), then proceedings in respect of such tax paid shall be deemed to be concluded.
· SECTION 80
No penalties u/s 76 and 77 can be imposed if the assessee proves that there was reasonable cause for any such failure or contravention;
`INTEREST ON DELAYED PAYMENT OF SERVICE TAX IS 18% FOR FIRST 6 MONTHS, 24% FOR NEXT 6 MONTHS AND 30% AFTER THE END OF 1 YEAR FROM THE RELEVANT DATE
IF TOTAL RECEIPT WERE LESS THAN 60 LACS IN P.Y. THAN ALL INTEREST WILL BE REDUCED BY 3%. AND PAYMENT OF INTEREST IS NECESSARY FOR FILLING RETURN.
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