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...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 October 2015 No you have to pay 18% interest.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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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.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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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

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%

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.