Service tax payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2015 How can i calculate interest on service tax
for march 2015 payment
service tax amt - 1,25,931.41/-
Bill Month - March
I am Calculate interest for four month i.e. march, april, may & june
int rate per month - 1.5%
for four month - 6%
Int is - 7556
Above Calculation right or wrong please tell me.

thanks in advance

Nischit Sanghavi

Nischit Sanghavi (Expert)
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20 June 2015 You are liable for Four months. Because due date for the month of March is 31st March. Total days upto 20th June is 82 days (from 31st March) so it will be Rs.5092/-

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 June 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.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 June 2015 Remember 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