St interest
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 October 2015
Dear sir,
We are providing service in brand name and paying ST on receipt basis, plz let know can we pay interest 15% instead of 18% on the delay of ST payment..
Plzz confirm...
We are providing service in brand name and paying ST on receipt basis, plz let know can we pay interest 15% instead of 18% on the delay of ST payment..
Plzz confirm...
17 October 2015
No you have to pay 18% interest.
17 October 2015
No. You have to pay as per provision stated below:
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.
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.
17 October 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
https://www.caclubindia.com/share_files/service-tax-late-payment-interest-calculator-wef-01-10-2014-64447.asp#.VLPlniuUfUs
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 October 2015
Dear both experts,
We are paying ST on the receipt basis that means my turnover is below 50 lacs, hence i have to pay 15% interest instead of 18%
We are paying ST on the receipt basis that means my turnover is below 50 lacs, hence i have to pay 15% interest instead of 18%
17 October 2015
@ querist
If the value of taxable service PROVIDED by you in LAST FINANCIAL YEAR does not exceed Rs. 60 lakhs, you are eligible for 3% reduction.
Inference - proviso to section 73B.
If the value of taxable service PROVIDED by you in LAST FINANCIAL YEAR does not exceed Rs. 60 lakhs, you are eligible for 3% reduction.
Inference - proviso to section 73B.
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