Interest rates and how to make reversal entries
This query is : Resolved
13 January 2012
Hiiiii,
My question is what are the interest rates for late payment reversal entries and wrong availment.
1/ Also please give me details how to make payment of interest duty and which heads.
2/ How to calculates interest payment.
Please advise.
Thanks
My question is what are the interest rates for late payment reversal entries and wrong availment.
1/ Also please give me details how to make payment of interest duty and which heads.
2/ How to calculates interest payment.
Please advise.
Thanks
Bindu Binu
(Expert)
18 January 2012
1] The rate of interest is 18% p.a. w.e.f. 01.03.2011, for prior period the rate was 13% p.a.
2] You need to make payment against excise accounting code No. - 00380087 Misc Receipts for Excise
3] The service tax interest payment differs for each service.
4] First calculate the no. of delay days i.e. if the payment was due on 06/12/2011 and you have paid duty on 10/12/2011 Then the delay days shall be 3 days [i.e. 07/12 to 9/12].
2] You need to make payment against excise accounting code No. - 00380087 Misc Receipts for Excise
3] The service tax interest payment differs for each service.
4] First calculate the no. of delay days i.e. if the payment was due on 06/12/2011 and you have paid duty on 10/12/2011 Then the delay days shall be 3 days [i.e. 07/12 to 9/12].
Bindu Binu
(Expert)
18 January 2012
This is in continuation to my reply regarding caluclation of interst.
After calculating the no. of days you need to calculate the interest as under:
Duty amount x 18/100x No. of delay days / 365
I hope this will clear your doubts
After calculating the no. of days you need to calculate the interest as under:
Duty amount x 18/100x No. of delay days / 365
I hope this will clear your doubts
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