ONE PARTY HAS TO PAY THE SERVICE TAX FOR THE MONTH OF MARCH ON OR BEFORE 31-MARCH ....
BUT THE PARTY HAS PAID THE SERVICE TAX FOR THE MONTH OF MARCH IN THR MONTH OF APRIL SAY 25 OF THE APRIL...& PARTY HAS NOT PAID INTEREST ON THE LATE PAYMENT OF TAX...ON LATER SAY AFTER 5 YEARS WHILE PARTY RECEIVED THE ASSESSMENT NOTICE OF PREVIOUS 5 YEARS HE FOUND OUT THE ABOVE MISTAKE....PLS QUOTE THE SEC NO UNDER SERVICE TAX ACT
IN SUCH CASE WHETHER INTEREST ON INTEREST CAN BE LEVIED UNDER THE SERVIC TAX ACT...IF YES AT WHAT THE PERCENTAGE OF INTEREST.? OR PENALTY RATE/AMOUNT ?
29 July 2010
Interest is payable on delay in payment of service tax under Section 75. Currently the rate is 13% pa. For past period you need to check the section at the relevant period.
Further, penalty can be levied under section 76 for delay in payment of Service Tax. Currently, the penalty is Rs. 200/- per day or 2% per month, which ever is higher. For past period you need to check the section at the relevant period.
29 July 2010
INTEREST ON LATE PAYMENT OF SERVICE TAX IS YOUR LIABLITY WHICH YOU HAVE TO PAY WITH SERVICE TAX ON 25TH APRIL ITSELF. IF YOU HAVE NOT DEPOIST IT , IT MEANS IT IS DEFAULT. YES, INTERST CAN BE LEVIED ON DELAY PAYMENT OF INTEREST. RATE AS PER MR. NAIK.
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