service tax payment after due date with interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2011 Suppose my service tax liability for the month of April is Rs.50000/- but, can I pay only 20000/- on or before 5th May and balance 30,000/- at the time filing the ST return along with interest. Will there be any consequences if I pay like this. Please clarify

Ravikant

Ravikant (Expert)
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09 July 2011 There be no consequences if you pay with Interest later on

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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09 July 2011 Due dates under income tax is material. If you are accounting service tax as expenses then if you have not paid the entire amount then the provisions of section 43B shall be applied. In case you are treating the same as liability and taking the set off and paying the balance in installment the same cannot be added to your income.

It is not material if you pay Rs. 20,000 now and the balance with interest at a later stage but do not forget to file your return of service tax. I have failed to understand why you want to pay in installment when it is collected by you and you have to pay the money collected.

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