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Service tax interest calculation

14 September 2011

Respected Sir,

How to calculate interest on following Service Tax Payment.

Month	Due date	Paid date	ST paid	ST Payable	Difference		Delay days
April	05/05/2011	05/05/2011	31469	105423	-73954

		04/06/2011	25000	-73954	-48954

		14/06/2011	41200	-48954	-7754

		07/07/2011	23280	-7754	15526	6/5/11 to 7/7/11	62 Days

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3 Replies

CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 14 September 2011

Dear Kishan,

Interest has to be paid on amount of service tax paid after due date for the period of delay. Even if a part of tax is not paid in time interest is to be paid on that part. In my opinion interest has to be calculatedas follows:

MONTH	DUE DATE	PAYMENT DATE	ST PAYABLE	ST PAID	DIFFERENCE	PERIOD FOR INTEREST	INTEREST
APRIL	05-05-2011	05-05-2011	Rs. 1,05,423.00	Rs. 31,469.00	Rs. 73,954.00	0	Rs. -
	05-05-2011	04-06-2011	Rs. 73,954.00	Rs. 25,000.00	Rs. 48,954.00	30	Rs. 1,094.00
	05-05-2011	14-06-2011	Rs. 48,954.00	Rs. 41,200.00	Rs. 7,754.00	10	Rs. 241.00
	05-05-2011	07-07-2011	Rs. 7,754.00	Rs. 23,280.00	Rs. -15,526.00	23	Rs. 88.00
							Rs. 1,423.00

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abhishek misra (Faculty) (25 Points)
Replied 06 January 2012

Dear Sir,

I want to know that if a company did not pay his service tax from 1-April-2011 to till date than how can we calculate the interest on service tax. Which we use in excel i am not getting please help me.