Interest on service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2016 Dear sir,

We are not paid service tax for the month of july-2012 & August-2012 til now we are going to pay on 25-04-2016 so how to calculate interest on that period amount.? and what rate should i take?

Amounts: July=12422, August=18540

Please help me sir/madam.

CA Vivek Goyal

CA Vivek Goyal (Expert)
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21 April 2016 Please find below solution of your problem.

Month Amount of Service Tax Due Date Payment Date Delay in Days Interest@18% Interest@24% Interest@30% Total Interest
Jul-12 12422 05/08/2012 25/04/2016 1359 1118 1491 10149 12757
Aug-12 18540 05/09/2012 25/04/2016 1328 1669 2225 14675 18568

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2016 Dear sir,
The interest rate till the 30th sep 2014 is only 18%, from 01-010-2014 the rates are 18%, 24%,30%. Even if payment due on or before 30th sep 2014 these rates (18%, 24%,30%) are aplicable ?

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 April 2016 No. Charge @ 18% till 30-9-2014, thereafter at the graded rates.

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2016 Sir,
From 01-10-2014, can i take first 6 months 18% and 6 month to 1 year 24%, 1 year to till day 30% ? or Can i pay directly 30% from 1st 10-2014 ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 April 2016 NOT at graded rates but @ 30 percentile from 1.10.14

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2016 Sir,
30% is till 29-02-2016 right ? , because new Interest rate will applicable from 01-03-2016 ie 24% right sir. ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 April 2016 No , it is effective from the day the Finance Bill receives the assent of the President.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2016 ok sir, Thank you very much your support

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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24 April 2016 3% lower rate is applicable if turnover is below 60 Lakhs.
Interest rate will be 15% till 30.09.2014 and 27% after that.

Abhishek Ranjan Singh
www.arssolutions.co.in
+919022838615

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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24 April 2016 Service Tax interest will be @ 18% till 30th September 2014 and thereafter at 30% since more than 360 days have elapsed. 24% is applicable for day 181 to day 360.

Further if the taxable turnover is below Rs.60 lakhs as advised by Mr. Abhishek Ranjan, the rate of interest will be lower by 3%.

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