RATE OF INTEREST ON DELAYED PAYMENT OF SERVICE TAX

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

THANKS BUT MY SECOND QUESTION IS STILL PENDING- PENALTY?

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.

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

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

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

What is the current interest rate?

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.

 I agree with  Shikha agarwal  rate  is 18 % okay

Service Tax Liability of one my Clients is Rs. 186700.00(April - September)   F.Y. 2009-10.

Can you tell me how much interst he has to pay as of now.(i.e. 18/04/2012).??

Hi,

service tax challan due for the mont of May'12 is Rs. 63606/-. last due date is over on 05.06.12. now pls tell what is the rate of interest and how much amount we have to pay if we pay the amount on 15.06.12. Also pls show me the calculation.

i have made delay in payment of service tax of Rs. 1598- for the quarter ending March 2006. So i am confused as to how much and at what rates interest under section 75 has to be charged from 01/04/2006 to uptill date?