CA Vanamala Phani Kumar (Proprietor of M/s Vanamala and Co) (972 Points)
23 November 2011plz finds can any one clarify my doubt.....!
what is the rate of int on late payment from 01.04.2011 ????
i know the latest notification regarding about it i.e
Notification No.14/2011 dt on 01.03.2011 (Rate 18%)
but i heard the news that rate of interest is 15% for service providers who has the turnover below 60lakhs....
the above provision is correct or not?????
plz provide information frnds.....
!!!!!!! plz
CA Vanamala Phani Kumar
(Proprietor of M/s Vanamala and Co)
(972 Points)
Replied 23 November 2011
thaks to gautham & Divya
arjun s
(CA Final)
(299 Points)
Replied 23 November 2011
i think its 18% it has been increased from 1.4.2011 in the budget
CA Vanamala Phani Kumar
(Proprietor of M/s Vanamala and Co)
(972 Points)
Replied 23 November 2011
@ arjun
some articles saying that Int rate is 15% for assesse whose turn over below 60lakhs......!!!
but i didnt find any particular Notification about this issue....!!!
Pradeep Poojari
(CA FINAL)
(34 Points)
Replied 24 November 2011
Gross receipts-below 60 lakhs-15%
-above 60 lakhs-18%
Anjani Kumar
(Manager)
(128 Points)
Replied 24 November 2011
@ Divya K S, Pradeep Poojari & Brajesh gautam
The said "Notification No.14/2011 dt on 01.03.2011" is not discussiing about turnover, Its simply stating that 18% PA, Please provide me if any other circular came in this regard
deepak sharma
(Ca final student)
(27 Points)
Replied 08 December 2011
rate of interest on late payment of service tax
| Originally posted by : Anjani Kumar | ||
 |
@ Divya K S, Pradeep Poojari & Brajesh gautam The said "Notification No.14/2011 dt on 01.03.2011" is not discussiing about turnover, Its simply stating that 18% PA, Please provide me if any other circular came in this regard |
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The Finance Bill, 2011 inserted a proviso after The Finance Bill, 2011 inserted a proviso after Sec75. Sec75 deals with the levy of interest on delayed payment at such rate not below 10% and not exceeding 36% per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette for the period by which such crediting of the tax or any part thereof is delayed. The rate of interest for the current year is fixed at 18%. The new proviso provides that in the case of a service provider, whose value of taxable services provided in a financial year does not exceeding sixty lakh rupees during any of the financial years covered by the notice or during the last preceding financial year, as the case may be, such rate of interest, shall be reduced by 3% per annum.
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 09 December 2011
Agree with Mansha,
Please refer to Point No.13.2 of D.O.F.No.334/3/2011-TRU dated 28th February, 2011 attached below for more clarification.
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 13 December 2011
Phani ji,
Agree with others, Please note that interest payable 18% p.a. on the service tax is to be calculated on no. of days for which tax payment is delayed.
rajkumar
(accounts executive)
(25 Points)
Replied 04 January 2012
late payment of service tax interest, i calculate month or day wise please any one clarify.
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 04 January 2012
Interest has to be calculated on monthly basis. Monthly rate of interest will be Rate per annum divided by twelve,i.e., 18%/12 = 1.5% per month. For this simple interest @ 1.5% for every month or part of a month for which payment is delayed, will be payable. Hence, if payment is delayed by, say, 2 months 5 days, interest would be payable for three months.
Prerna
(STudent)
(63 Points)
Replied 04 January 2012
Interest to be calculated on the basis of no. of days delay
CAclubindia
