Service Tax Interest

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Dear Friends,

I m working in a Interior Designing company.

I failed to make payment of Service TAx on 5th

Then i have to pay interest on Service Tax @ 1% for the month.

My que. is if i make payment on 8th then i have to calculate int. on 4 days only or for the whole month.

And what are the Interest codes for Interior Company incl. Service Tax, Edu. cess & Higher Edu Cess

Replies (2)

Dear Paresh

 

i would like to make you clear that as per Section 75 of the Finance Act 1994 the rate of interest chargeble for delay in payment of service tax is 13% p.a. and not 1% p.m.

since you are making payment on 8th then you have to pay the interest for 3 days which shall be computed as under [amount *13%/365*3].
And the Interest code for Interior decorator is  00440077. Service Tax 00440076, Edu. cess 00440298 & Higher Edu Cess 00440426

Perfect answer

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