Interest on service tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 We have to pay service tax for FY2008-09.
How we have to calculate interest?
It is to be calculated @18% i.e. present rate from 2008-09 till date or rate of interest applicable for respective years?

please guide whether to apply present interest rate 18% or different interest rates for different years?

Yajendra Adhikari

Yajendra Adhikari (Expert)
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25 September 2012 Rate of 18% for all years

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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25 September 2012 Interest is to be Calculated on Basis of Years on Present rate Only.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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25 September 2012 agreed with expert...

if payment of service tax is delayed in accordance with provision section 68 interest will be charged not below 10% and not exceed 36% per Annum REFER TO SECTION 75 OF F.A. 1994.

FURTHER INFORMATION LINK IS:

http://www.servicetaxonline.com/content.php?id=31

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 So in your opinion we have to calculate interest @18% for all years (no.of days basis) ?
Please clarify.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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25 September 2012 Yes, If For 3 Day Then Interest to be Payable for 3 Days Only (Unlike Income Tax act )

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2012 We have to pay same due to service tax audit carried by department & cenvat credit not allowed. Does it make any difference for interest caclulation rate 18% or method of calculation?