RATE OF INTEREST ON DELAYED PAYMENT OF SERVICE TAX

Aditi Kaur (Practising CA)    06 January 2009

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raghuraj (CA-Final-Asst.Manager Accounts)     06 January 2009

Rate of Interest on delayed payment of servicetax is 13%p.a.and interest to be calculated based on the number of days of delay.

Raghuraj

CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT)     06 January 2009

THANKS BUT MY SECOND QUESTION IS STILL PENDING- PENALTY?

OFFICESELVA (Service)     06 January 2009

If you pay service tax along with interest mostly department will take lenient view and not impose penalty.  Moreover, penalty can be imposed only after issuing show cause notice and giving an opportunity to present the reasons for delayed payment of service tax.

Ritesh (CA Final)     06 January 2009

Mr. Sudhir Halakhandi,

 Interest as already said by Mr. Raghuraj will be charged @ 13%....As far as penalty is concerned, it would be levied equal to higher of following:

Rs. 200 every day during which failure continues

or 2% of Tax per month

for the no. of days for which delay occurs

But such Penalty can't exceed the Tax payable

srikanth (trainee)     07 April 2010

Dear sir

i am in default of paying service tax amount of Rs. 5667/- and education cess Rs.137/- Total 5994 for the quarter of September 2009. till date how much interest and penalty if any i have to pay.

please give me a solution

Thanks & regards

Srikanth

Pragnesh (AM - Taxation)     09 April 2010

Interest will be 13% p.a. on Rs.5994/-. calculate on daily basis from 5th Oct. 09 to till last date of payment.

Regards

Pragnesh

Anukool (Accounts Manager)     05 March 2011

What is the current interest rate?

Shikha Agarwal (Practicing Chartered Accountant)     18 April 2012

The current rate of interets is 18% wef 1.4.2011. and  in case where the value of taxable services provided in a financial year is not more that Rs. 60 lakh the applicable tax rate will be 15% for the number of days of delay.

CA Rakesh Goenka (CA & CS)     18 April 2012

 I agree with  Shikha agarwal  rate  is 18 % okay