Calculation of service tax
This query is : Resolved
26 August 2011
Service Tax Query :- pls send How to calculate service tax interest calculation apr 10 to sep 10 and oct 10 to mar 11. send mi interest calculation which day and how many percentage pay. plz send detailed answer.
plz calculation of these sexvice tax
2010-11.
APR 5270.625
MAY 23389.7075
JUNE 28789.51885
JULY 22937.045
AUG 36297.99425
SEPT 53937.2525
OCT 64984.3025
NOV 67199.79375
DEC 67199.79375
JAN 14038.8725
FEB 31776.44725
MAR -19280.6375
How to pay int on these amount 2010-2011 interest not include.
plz send calculation sir thanks
plz calculation of these sexvice tax
2010-11.
APR 5270.625
MAY 23389.7075
JUNE 28789.51885
JULY 22937.045
AUG 36297.99425
SEPT 53937.2525
OCT 64984.3025
NOV 67199.79375
DEC 67199.79375
JAN 14038.8725
FEB 31776.44725
MAR -19280.6375
How to pay int on these amount 2010-2011 interest not include.
plz send calculation sir thanks
27 August 2011
Interest Rates
Interest Levied on Assessee
Landmark Service Tax Judgment - Interest Rates
Interest is levied on the assessee when he delays the payment of service tax which is due and payable.
If payment of service tax is delayed in accordance with the provisions of Section 68, Interest is charged at the rate not below ten per cent and not exceeding thirty-six per cent per annum. (Please Refer : Section 75 of Finance Act, 1994)
If payment of service tax is withheld in accordance with the provisions of Section 73A, Interest is charged at the rate not below ten per cent and not exceeding twenty-four per cent per annum. (Please Refer : Section 73B of Finance Act, 1994)
Till 31.03.2011 simple interest @ 13% p.a. is charged for the delayed period in respect of Section 75 as well as Section 73B. However, by budget 2011-12 vide Notification no. 14/2011- ST, dated 01/03/2011 the effective rate of interest is increased from 13% to 18%. Benefit 3% is provided where turnover of any assessee is up to Rs.60 lakhs, therefore such assessee is liable to pay interest at 15% per annum. Such change of rates would be come in force from 01.04.2011.
If the assessee deposits the Service Tax by cheque, the date of presentation of cheque to the bank shall be considered as date on which Service Tax has been paid subject to realization of that cheque. [ Please Refer : Service Tax Rules, 1994. Rule 6(2A) ]
How to calculate Interest?
ILLUSTRATION :
Service Tax to be paid is Rs. 10000 for the month of July
Cheque Deposited in Bank 17th October
Cheque Realised on 20th October
CALCULATION :
Rate of Interest is 18% p.a.
Amount of service tax to be paid is Rs.10,000/-
Due date for the month of July would be 5th August. Thus upto 5th August no interest is to be charged
Days for which Tax Payment is Delayed = August 26 Days (31-5)
September 30 Days
October 17 Days (not 20)
----------------------------------------------------
Total 73 Days
Interest is to calculated as under
Service Tax to be paid X Int. Rate / 100 X No. of Days / total no. of days in a year
= Rs.10,000 X 18% X 73/365
= Rs. 360/- (Amount of Interest)
Thus Total Payment to be made is Rs. 10,000/- (Tax Liability)
Add : Interest for Delayed Payment Rs. 360/-
--------------------
Total Payment to be made is Rs. 10,360/-
Other Issues related with Interest on Delayed Payment of Service Tax
No Interest of Service Tax is to be charged for the period if any competent authority has levied Stay on the proceedings.
Show Cause Notice must be issued u/s 73 of the Finance Act 1994 for demand of Service Tax and Interest.
Earlier Rates of Interest
Period prior to 16.07.2001 1.50% per month or part there of
16.07.2001 to 15.08.2002 24% per annum
16.08.2002 to 09.09.2004 15% per annum
10.09.2004 to 31.03.2011
13% per annum Notification No. 26/2004-ST dated 10.09.2004
With effect from 01.04. 2011 18% per annum : Notification No. 14/2011- ST, dated 01/03/2011-
If turnover of any assessee is up to Rs.60 lakh, such assessee is liable to pay interest at 15% per annum
Interest on Delayed Refunds of Service Tax
If delay in refund of service tax is for more than 3 months from the date of receipt of refund application, Interest is paid by the Government at the rate not below five per cent and not exceeding thirty per cent per annum. (Please Refer : Section 11BB of Central Excise Act, 1944)
At Present : Simple interest @ 6% p.a. is granted on delayed refunds
Interest Levied on Assessee
Landmark Service Tax Judgment - Interest Rates
Interest is levied on the assessee when he delays the payment of service tax which is due and payable.
If payment of service tax is delayed in accordance with the provisions of Section 68, Interest is charged at the rate not below ten per cent and not exceeding thirty-six per cent per annum. (Please Refer : Section 75 of Finance Act, 1994)
If payment of service tax is withheld in accordance with the provisions of Section 73A, Interest is charged at the rate not below ten per cent and not exceeding twenty-four per cent per annum. (Please Refer : Section 73B of Finance Act, 1994)
Till 31.03.2011 simple interest @ 13% p.a. is charged for the delayed period in respect of Section 75 as well as Section 73B. However, by budget 2011-12 vide Notification no. 14/2011- ST, dated 01/03/2011 the effective rate of interest is increased from 13% to 18%. Benefit 3% is provided where turnover of any assessee is up to Rs.60 lakhs, therefore such assessee is liable to pay interest at 15% per annum. Such change of rates would be come in force from 01.04.2011.
If the assessee deposits the Service Tax by cheque, the date of presentation of cheque to the bank shall be considered as date on which Service Tax has been paid subject to realization of that cheque. [ Please Refer : Service Tax Rules, 1994. Rule 6(2A) ]
How to calculate Interest?
ILLUSTRATION :
Service Tax to be paid is Rs. 10000 for the month of July
Cheque Deposited in Bank 17th October
Cheque Realised on 20th October
CALCULATION :
Rate of Interest is 18% p.a.
Amount of service tax to be paid is Rs.10,000/-
Due date for the month of July would be 5th August. Thus upto 5th August no interest is to be charged
Days for which Tax Payment is Delayed = August 26 Days (31-5)
September 30 Days
October 17 Days (not 20)
----------------------------------------------------
Total 73 Days
Interest is to calculated as under
Service Tax to be paid X Int. Rate / 100 X No. of Days / total no. of days in a year
= Rs.10,000 X 18% X 73/365
= Rs. 360/- (Amount of Interest)
Thus Total Payment to be made is Rs. 10,000/- (Tax Liability)
Add : Interest for Delayed Payment Rs. 360/-
--------------------
Total Payment to be made is Rs. 10,360/-
Other Issues related with Interest on Delayed Payment of Service Tax
No Interest of Service Tax is to be charged for the period if any competent authority has levied Stay on the proceedings.
Show Cause Notice must be issued u/s 73 of the Finance Act 1994 for demand of Service Tax and Interest.
Earlier Rates of Interest
Period prior to 16.07.2001 1.50% per month or part there of
16.07.2001 to 15.08.2002 24% per annum
16.08.2002 to 09.09.2004 15% per annum
10.09.2004 to 31.03.2011
13% per annum Notification No. 26/2004-ST dated 10.09.2004
With effect from 01.04. 2011 18% per annum : Notification No. 14/2011- ST, dated 01/03/2011-
If turnover of any assessee is up to Rs.60 lakh, such assessee is liable to pay interest at 15% per annum
Interest on Delayed Refunds of Service Tax
If delay in refund of service tax is for more than 3 months from the date of receipt of refund application, Interest is paid by the Government at the rate not below five per cent and not exceeding thirty per cent per annum. (Please Refer : Section 11BB of Central Excise Act, 1944)
At Present : Simple interest @ 6% p.a. is granted on delayed refunds
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