Interest on delayed payments

This query is : Resolved

CHEZHIYAN (Querist)
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22 April 2009 Dear Friends,
Somebody Please say what is the Interest on delayed payment of ST for Individual & Company
Note: Both r in chennai
Please Support your answer with a proof a Web Link / notification /circular/ rules/

Brij Bhushan Sangal

Brij Bhushan Sangal (Expert)
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22 April 2009 Dear

as per ST Act, ST late paymet interest is 13% Pa on no of days basis.

Dayal

Dayal (Expert)
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22 April 2009 Interest @ 13% from 10/09/2004

Presently, interest @ 13% per
annum is required to be paid in case service tax is not paid on due dates. Nonpayment
of service tax also entails payment of penalty at Rs. 100 to Rs. 200 per day
of default in addition to interest. In case of advance received, the service tax is not
payable at the time of receipt of advance.

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Taranjit Singh

Taranjit Singh (Expert)
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22 April 2009 In case of Individuals or Proprietary Concerns and Partnership Firm, service tax is to be paid on quarterly basis. The due date for payment of service tax is the 5th of the month immediately following the respective quarter. For the purpose, quarters are : April to June, July to September, October to December and January to March. However, payment for the last quarter i.e. January to March is required to be made by 31st of March itself.

Taranjit Singh

Taranjit Singh (Expert)
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22 April 2009 In case of delayed payments ( after due date) the assessee is required to pay simple interest at the rate prescribed. Notification No. 26/2004 dated 10.09.2004 has specified the rate of interest at 13% per annum.

Penalty for failure to pay service tax : Not less than Rs.200 for every day during which failure continues, or @2% of such tax per month, whichever is higher but shall not exceed the amount of service tax due.