Interest and penalty for late payment for service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2015 For individual , service tax payment was not made after dec quarter, but made after march 2015.

DO i now required to pay interest @13% by myself and show this in ST return.

Also, is there any penalty due for this late payment of Service tax.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 April 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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23 April 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

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 April 2015 Also check out below link for details:

http://cavikashparakh.blogspot.in/2014/09/service-tax-interest-penalty-and.html

Querist : Anonymous

Querist : Anonymous (Querist)

24 April 2015 Is any penalty also payable?

In challan (already deposited, their is some excess amount)we have given break up as service tax , cess and she tax. is it necessary to mention INTEREST in challan.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 April 2015 Yes interest should be paid separately as interest has a separate code.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 April 2015 Yes penalty also applicable u/s 76.

Any person liable to pay service tax who fails to pay such tax, shall pay in addition to such tax and interest, a penalty being higher of Rs.100 per day or 1% of such tax per month, for the period of due date till the date of payment.

However, the total amount of penalty shall not exceed 50% of service tax payable.

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