Interest on Interest

This query is : Open

V.V.S.Narayana

V.V.S.Narayana (Querist)
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20 August 2009 Sir,

For the month of April'09 the due date of deposit is 5th May'09.

I have deposited the service tax of Rs. 10,000/- on 5th July'09.

Till date I have not deposited interest on service tax.

If I calculate interest upto 5th July'09 and deposit now,would it be in order or how should I calculate and deposit delayed interest.

What is the relevant provisions for this. Kindly help me.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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14 September 2009 Your calculation would be in order.

A plain reading of the provision is that, in case of delay, tax should be paid along with interest.

V.V.S.Narayana

V.V.S.Narayana (Querist)
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18 September 2009 Thank you sir.

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