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Please Calculate interest on Service Tax

24 January 2010

Today is 24th Jan.2010 and my Service Tax (with Cess) is due from the month of April.2009 onwards. I want to know the interest amount payable by me against the due Service Tax. Details are :

April.09 – Service Tax (with Cess) due Rs.39,182/-

May. 09- Service Tax (with Cess) due Rs.14,693/-

June. 09- Service Tax (with Cess) due Rs.28,946/-

Please support, thanks.

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5 Replies

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 24 January 2010

Service tax is payable on quarterly basis and interest would be charged @ 13% p.a. along with penalty comprising to Rs. 2000 (maximum).........

Sushma Mevacha (Executive) (394 Points)
Replied 25 January 2010

Under section 76, the penalty will not be less then 200 Rs. per day.. And maximum penalty of Rs. 2000 is applicable for the late filling of return not for the late payment of Service Tax.

I.e. your Total service tax for the Qtr Apr'09 to Jun'09 is Rs. 82821

Your due date for Payment is 5/7/2009 but you pay the same on today 25/01/2010 so u r 204 days late. So the penalty will be 40800 (200*204) and the interest amount will be 6018 (29.50 interest per day so 204*29.50).

And final payble is 82821(Service Tax) + 40800 (penalty) + 6018 (Interest) = 129639

CA kanhaiya kumar (CA PASSED IN NOV.11 EXAM) (197 Points)
Replied 17 May 2010

sir there is private limited company then how we calculate interest

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 17 May 2010

Service Tax payment would be made on monthly basis in case of companies and quarterly in case of other assessees.......

Remaining provisions are same in this regard........... e.g. registration procedure, service tax return filing, provisional basis (Form ST-3A) etc..........