22 January 2015
ON 15/04/2014 SERVICE TAX LIABILITY CREATED RS.100000/-. ON 15/06/2014 I PAID RS.50000/- & ON 15/09/2014 I PAID BALANCE RS.50000/-. MY QUESTION IS WHAT IS THE INTEREST AMOUNT FOR LATE PAYMENT OF SERVICE TAX?
23 January 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. Further 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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