if our company has nor paid service tax for financial year 2013-14 till today, then should we calculate interest @ 18 % or 30% from due date till now.
the rate change in interest rate notification was w e f 1 oct 2014 ,it was not retrospective ,so we have charges interest from 2013 till today @ 18 % flat.
plz advise
Even i dont agree with ayesha. https://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=21169
Suppose service tax was payable on 06.04.2014
It is not paid till today
Then interest is calculated as follows :
Upto 30.09.2014 : Service tax x 18%p.a.
01.10.2014 to 06.10.2014 : Service tax x 18 p.a.
[On 06.10.2014 - 6 months are completed]
07.10.2014 to 06.04.2015 : Service Tax x 24%p.a.
18% or 15% (as the case may be) simple interest upto 30.09.2014.
.
Variable interest rates will apply on/after 01.10.2014 (in the given case, the rate of interest will be 30% since the period of delay is beyond one year).
.
Illustration:
.
Assume a case where service tax became due, say, on the 06.07.2012 and the assessee pays the dues on 06.12.2014.
.
In such a case, the interest to be charged would be as below:
.
(i) 18% simple interest upto 30.09.2014.
.
(ii) For the period from 01.10.2014 to 06.12.2014, the rate of interest will be 30% since the period of delay is beyond one year.
.
- Clarified in D.O. Letter from JS(TRU), dated 10.07.2014 (refer page no.6): Click Here
there are 2 sections-
one is section 75 about advance payment received from customers but not paid here interest rate is 18% for 6month and 24% for 6month to one year, and above one year 30%. the interest rate will be calculated from the suceeding begining of the month i.e mean from the 1st day of the succeding month.
and another section 78 takes about delay in payment which is payment is not paid by the assessee with in due date i.e mean 6th day of succeding month. the interest rate will be 18% all the days.
and all assesse haveing the turnover below 60lacks in the previous year can get 3% concession rate for all placess.
SErvice tax wef 1.6.15 is 14% weather it is flat or we have to charge ces? cenvat will be claimed as earlier or any change ?
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