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RATE OF INTEREST ON DELAYED PAYMENT OF SERVICE TAX

CA Sudhir Halakhandi (PRACTICING CHARTERED ACCOUNTANT) (13401 Points)

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?

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12 Replies

raghuraj (CA-Final-Asst.Manager Accounts) (30 Points)
Replied 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) (13401 Points)
Replied 06 January 2009

THANKS BUT MY SECOND QUESTION IS STILL PENDING- PENALTY?

OFFICESELVA (Service) (515 Points)
Replied 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) (326 Points)
Replied 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) (21 Points)
Replied 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) (1259 Points)
Replied 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) (21 Points)
Replied 05 March 2011

What is the current interest rate?

Shikha Agarwal (Practicing Chartered Accountant) (36 Points)
Replied 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) (872 Points)
Replied 18 April 2012

I agree with Shikha agarwal rate is 18 % okay

rz's (TRAINEEE) (243 Points)
Replied 18 April 2012

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).??

Sukanta Sengupta (Asst Manager) (21 Points)
Replied 14 June 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.

Sachin Taparia (Audit Article) (21 Points)
Replied 16 October 2012

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?