Interest calculation of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2014 Suppose my liability for service tax is in the month of April 2014 but i have paid the same in may 2014 then whether interest will be charged only for one month of delay or will it be charged when i pay the delay payment interest suppose in the given case i pay the interest in the month of september 2014. Please help me out it is the case of a company.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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25 September 2014 Interest to be calculated on days basis from the due date of payment till the date of actual payment.

Interest Rate on Late Deposit of Service Tax-- Interest rate ( As per otification no. No. 6/2011) is 18% p.a on service tax if value of taxable service is more than Rs. 60 Lakhs and if less than Rs. 60 Lakh, you have to pay 15% p.a. interest on service tax if you do not pay service tax within the due date. The new rate of interest of 18% p.a. is applicable from 1st April, 2011.