08 September 2010
if an assessee provide some taxable services in the month of August 2009 for rs. 92,947.60 (incl. of Ser-tax@10.30%) against this he received advance in August & final settlement in October 2009
but the assessee obtained registration of service tax certificate in the month of January 2010,
he has not paid serive tax till now & now he has to pay the service tax
what is the interest and penanlty & whether ii is applicable from date of registration or date of service tax collected/due date of the same
08 September 2010
simple interest @13% per annum. Interest is payable for the period from the first day after the due date till the date of payment of any defaulted service Tax amount. [Refer to Section 75 of the Finance Act, 1994]
If a person who is liable to pay Service Tax fails to pay service tax, he shall pay in addition to such tax and interest in accordance with the provisions of Section 75 of the Act, a penalty 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. However, the penalty amount payable shall not exceed the amount of Service Tax payable. (Refer to Section 76 of the Finance Act, 1994).
08 September 2010
Yes.Good & complete reply by Expert, Interest need to calculate from the date of due date, also in your case late registration is your default, so calculate the actual due date instead of Registration date
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