I am not having any recent Notification/clarification to support my post but a Notification was issued by Commissioner of Central Excise, Mumbai wherein Trade Notice No.7/97 dated 04.07.1997 was produced. Please refer to Para No. 4 (III) of the Trade Notice, which is as follows:
"III) Interest on Delayed Payment of Service Tax
If any assessee fails to pay or credit the Service Tax or any part thereof in time, he shall pay simple interest @ 1.5% for every month or part of a month by which such payment/crediting of the tax or any part thereof is delayed."
https://www.servicetax.gov.in/trade7-97.htm
This being an old notice may be outdated, but as per my knowledge, so far no clarification has been issued by the Board on claculation of interest on delayed payment of Service Tax.
As most of the post support calculation on number of days basis, I doubt that my concepts are not up to date as far as calculation of interest is concerned. So I request that if anyone is having information about clarification issued by the Board for claculation of interest, especially those who support calculation on number of days basis, please share the clarification here to support your view and help me update my knowledge on this subject.
Thanks in advance.
CAclubindia
