Interest calculation on late payment of service tax.

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Dimple.Patel (Querist)
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15 October 2013 Hello There,my query is regarding the No. of Months to be counted for service tax interest payment,Suppose have raised the Invoice on Nov 2012,then accordig to me the service tax will be calculated for 12 months if paid before 5th nov 2013.plz correct me if m wrong.

Thanx in Advance.

Ankit

Ankit (Expert)
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15 October 2013 Dimple,

In ST, the interest is to be calculated on day to day basis and not on monthly basis..

You need to thus, calculate the interest from 30 Nov. 2012 till 5 Nov. 2013

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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15 October 2013 Interest has to be calculated not from November 2012.
To be calculated form the day following the due date to the date of payment.
Thus, if the status of service provided is non-corporate, the due date falls on January 5,2013.
Therefore interest @15% has to be calculated from January 6,2013 to October 15,2013 (if paid today).

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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15 October 2013 The expert, Mr Warrier is correct. If the service provider is corporate, the interest will be calculated from 5th Or 6th Dec 12 (based on the method of payment) to till today @ 18%. For those whose turnover is less than 60 lacs in a financial year, the interest rate is 15% only.