Reverse charge mechanism

Queries 283 views 1 replies

I pay service tax on GTA services. Sometimes I pay local transporters in cash at factory. Now Iwant to know what is the treatment of service date with interest on late payment. Suppose I paid local transporter a sum of 20000 on 1.10.2015 and I passed the entry as

                                             carriage charges Dr.   20000

                                                 To cash at factory      20000

Now what is the service tax amount to b e paid and what will be the due date for interest calculation? Does interest on late payment calculate on monthly basis or day-to-day basis??

please answer me as per latest ammendments.

Replies (1)

Service Tax amount is Rs. 840/- (20000 X 30% X 14%)

Due date: Fifth of the next month in which entry has been made in your account.

Interest will be calculated day to day basis.


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