Interest calculation for service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2015 ON 15/04/2014 SERVICE TAX LIABILITY CREATED RS.100000/-. ON 15/06/2014 I PAID RS.50000/- & ON 15/09/2014 I PAID BALANCE RS.50000/-. MY QUESTION IS WHAT IS THE INTEREST AMOUNT FOR LATE PAYMENT OF SERVICE TAX?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 January 2015 Vide Notification No 12/2014-ST dated 11.7.2014, rate of interest to be charged on delayed payment of service tax has been enhanced w.e.f. 1.10.2014, based on period of delay. Thus, longer the delay period , higher would be the rate of interest payable. # Up to six months - 18% p.a. # Beyond six months to one year - 18% p.a. for the first six months of delay; 24% p.a. for delay beyond six months. # Beyond one year - 18% p.a. for the first six months of delay; 24% p.a. for period beyond six months up to one year; 30% p.a. for any delay beyond one year.

If turnover during preceding FY did no exceed Rs 60 Lacs then there will be a concession of 3% and interest rate will be reduced from 18% p.a. to 15% p.a. Further you need to calculate interest on days basis for delay period which is from the due date of payment till the date of actual payment.

Please check out the "Service Tax Late Payment Interest Calculator wef 01/10/2014" from link given below:
https://www.caclubindia.com/share_files/service-tax-late-payment-interest-calculator-wef-01-10-2014-64447.asp#.VLPlniuUfUs

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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23 January 2015 Notification No. 12/2014 - Service Tax 11/07/2014.

1.Up to 6 months - 18%.

2.More than 6 months and up to one 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 ^ months up to 1 year and 30% for any delay beyond one year.

This notification shall come into force on the 1st day of October, 2014

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