how is the calculation of service tax interest of late payment of partnership firm service tax paid on quarterly basis. so what is the system of calculation of service tax interest on late payment of a partnership firm ?
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Service tax interest calculation
Replies (4)
18%, 24% or 30% depends upon period of delay. In case of p'ship firm ST is to be paid on quarterly basis. If you did not pa ST by due date, interest will be charged from the due date till the date when we actually pay ST.
18% or 15% (as the case may be) simple interest upto 30.09.2014.
.
Variable interest rates will apply on/after 01.10.2014.
- Notification No. 12/2014-ST, dated 11.07.2014 (link)
.
|
Sl. No. |
Period of delay |
Rate of simple interest |
|
1. |
Up to 6 months |
18% |
|
2. |
More than 6 months and up to 1 year
|
18% for the first 6 months of delay, and 24% for the delay beyond 6 months |
|
3. |
More than 1 year |
18% for the first 6 months of delay 24% for the period beyond 6 months up to 1 year, and 30% for any delay beyond 1 year |
.
As specified in the proviso to section 75, 3% concession on the applicable rate of interest will continue to be available to the small service providers, i.e. assessee having turnover not exceeding Rs. 60 lakhs during the preceding financial year or during any of the financial years covered by the notice.
.
Time limits have been prescribed on monthly basis whereas interest is required to be computed on per day basis.
.
If service tax became due after 01.10.2014, you may download this calculator (link).
.
Where service tax became due before 01.10.2014 and was paid after 01.10.2014, then see this example for clarity (link).
in case of ptship the payment of service tax is on qtrly basis but when i am calculating the interest did i calculate it also qtrly basis
yes you have to pay interest on qurterly basis.and interest will be charged from the due date till the date when you actually pay service tax..
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