1 Replies
CA ABHAY GUPTA
(Practice)
(3230 Points)
Replied 25 July 2019
Interest on delayed payment of tax: Section 50 of CGST Act, 2017
ABC ltd needs to pay the GST of Rs.10 lakh on or before 20th May, 2018. However, it only manages to pay the tax on 20thJune, 2018. Please calculate the Interest on tax which is to be paid.
To calculate the correct interest we need the following:
Interest rate (18% as per section 50)
No. of days default (31 days, we shall not count 20th may)
Outstanding tax (Which is Rs.10 lakh)
Hence, interest on late payment of tax will be Rs.15,287/- (10 lakh*18%*31/365).
ABC ltd needs to pay the GST of Rs.10 lakh on or before 20th May, 2018. However, it only manages to pay the tax on 20thJune, 2018. Please calculate the Interest on tax which is to be paid.
To calculate the correct interest we need the following:
Interest rate (18% as per section 50)
No. of days default (31 days, we shall not count 20th may)
Outstanding tax (Which is Rs.10 lakh)
Hence, interest on late payment of tax will be Rs.15,287/- (10 lakh*18%*31/365).
Recent Topics
- ITR filing for non resident in one FY
- 2 buyer form 26qb
- CFS INCLUDING MAURITIUS SDS
- Tds on rent paid to two persons
- GST R-9 Turnover
- ITC wrongly Taken in GST 3B
- Tax liability in the case of Joint Ownership of Pr
- RCM-Director
- Levy of GST on the invoice that crosses Rs.20 lakh
- Clarification for ITR AY 2024-25
Related Threads
Trending Online Classes
-
6 days Certification Course on GST Practical Return Filing Process
CA Pratibha Goyal16 December 2024
CAclubindia
