12 June 2012
Interest on late payment of Service tax is payable on day basis or month basis For e.g Due date 05.04.12 Paid on 10.04.12 Interest will be paid for 1 month @1.5% or for 5 days@18% ????????
12 June 2012
Rate of Interest: From 01.04.2011 - 18% per annum.
Interest for late payment is worked out on day basis.
Failure to pay service tax attracts also penalty under section 76 of the Act which shall not be less than Rs.200/- for every day during which such failure continues or @ 2% of such tax per month whichever is higher.
13 June 2012
Yes interest is to be calculated on day basis @ 18% p.a. In your case due date is 5-4-12 nad it is paid on 10-4-12. so interest is to be paid for 5 days @ 18% per annum.
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