04 June 2011
I am Sanish from Cochin. I have a doubt regarding service tax interest. I cannot deposit service tax on due date (5th Day).If I deposit on 15th day, from which date I should pay interest? Is it 1st day of the month or after due date(5th day). And what is the interest rate of Service Tax. My service tax labour for May is Rs. 150000/- How much amount should I pay if I deposit on 15.06.2011.Please reply to my query... please very urgent. My mail id : Sanish.ks@sify.com
04 June 2011
interest to be calculated from 06th to 15th i.e. 10 days Interest Rate at present is 18% on due amount. so you need to pay Rs. 740 as Interest
04 June 2011
Till 31/3/2011 simple interest @13% has to be payed for the delayed period. But vide notification 14/2011 dated 1/3/2011 interest rate is enhanced to 18%. However, if turn over of the service provider is up to Rs. 60 lakhs such service providers are liable to pay only 15%. This change is effective from 1/4/2011.
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