CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) 06 January 2009
GOOD MORNING, SOMEBODY TELL ME WHAT IS THE PRESENT RATE OF INTEREST ON DELAYED PAYMENT OF SERVICE TAX?
IS THERE ANY PENALTY ALONGWITH THIS INTEREST ON DELAYED PAYMENT OF INTEREST?
Aditi Kaur (Practising CA) 06 January 2009
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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
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
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.