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How much interest will be on that amount

Amit Prakash Singh (Accountant) (295 Points)

03 March 2011

Dear All Expert

We have deposit March '10 PLA TR-6 challan on dated 9 /4/2010 amount

10% 7,75,000

2% 15500

1% 7750

Total 798250/-

Now after one year in audit ( on 3 march 2011 ) it was found that we have deposited this amount late .Pls any one can calculate this interest amount on above value.plz its urgent

Thanx in Advance

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11 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 03 March 2011

I don’t think you late deposit this amount because you deposited before 30^th June. Well interest is 24 % per annum but wait for others reply.

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DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 03 March 2011

For March due date for duty payment is 31st of Mar.

Since you have paid on 9th of Apr 2010 for Mar'10 you need pay interest for the days from "due date to date of payment".

Interest needs to be calculated on amount of Rs.798250/-

Interest rate applicable is 13% (In the budged 2011 it has been chaged to 18% - so check which is applicable)

Regards

Dayananda

1 Like

Dilip Darji (392 Points)
Replied 03 March 2011

Reply given by Mr.Dayananda is perfectly correct.

Vikash Kharvar (Dy. Manager -F&A) (469 Points)
Replied 03 March 2011

Dear Mr. Amit Prakash Singh Ji.

There is interest to pay @ 13% p.a. (per day basis calculation) on late deposit of Service Tax.

Since you depsite Service Tax for the m/o March, 2010 on 09.04.2011 it is 9 days late from the due date (i.e. 31.03.2010).

So, you should deposite Interest on the Service Tax amount for 9 Days.

I woulld inform you that Challan for Payment of Service Tax is GAR - 7 in stead of TR-6 at the time and present.

Regards,

Vikash Kharvar

1 Like

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 03 March 2011

Payment of service tax:

3.1 In terms of rule 6 of the Rules read with section 68 of the Act, the service tax is required to be paid on monthly basis by all service taxpayers, other than individuals or proprietary/partnership concerns who are required to pay service tax on quarterly basis. Service tax liability for a particular month or quarter is to be discharged on the payments towards the value of taxable service received during that month or quarter, as the case may be. It is to be deposited by the 5^th day of the month following the month or quarter for which service tax is paid. However, for the month/quarter ending March, the payment is required to be made by the 31^st March itself by all taxpayers.

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 03 March 2011

Delay in payment of service tax

9.1 Delay in payment of service tax, including a part thereof, attracts simple interest in terms of section 75 of the Act. The rate of interest is as prescribed from time to time, in accordance with this section. At present, the rate of interest is 13% per annum (notification No. 26/2004-ST, dated 10.9.2004). Further, failure to pay service tax also attracts a penalty under Section 76 of the Act, which shall not be less than Rs 200 for every day during which such failure continues or at the rate of 2% of such tax per month, which ever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax. However, such penalty would not exceed the service tax payable.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 03 March 2011

11 Audit

11.1 The selective audit of service taxpayers and other assessees like input service distributors, may be done by the jurisdictional central excise officer (authorized for the purpose) or by an audit party deputed by the Comptroller and Auditor General of India. Rule 5 of the Rules makes it mandatory for every assessee to make available the records, on demand, for inspection and examination to such authorized person/audit party.

12. Adjudication of cases

12.1 Section 73 of the Act deals with adjudication of cases of short-levy or non-levy of service tax or service tax short paid or not paid or erroneously refunded. For quick settlement of disputes, this section prescribes that (i) in other cases involving fraud, collusions, wilful misstatement and suppression of facts etc., the dispute could be settled by making payment of the service tax amount specified in the notice along with interest and penalty equal to 25% of service tax amount, within thirty days of issue of show cause notice; (ii) and in any other case the person chargeable to service tax, or to whom service tax has been erroneously refunded, may make payment suo moto along with interest, as applicable, and, consequently no Show Cause Notice will be served in respect of the amount so paid.

12.2 Section 83A confers powers on the Central Excise Officer for adjudging a penalty under the provisions of the said Act or the rules made there under. Board has specified monetary limits for adjudication of cases under section 83A of the said Act vide notification No. 30/2005- Service Tax dated 10th August, 2005. The monetary limits are as follows:

S.No	Central Excise Officer	Amount of service tax or CENVAT credit specified in a notice for the purpose of adjudication under section 83A
(1)	(2)	(3)
(1).	Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise	Not exceeding Rs. 5 lakh
(2).	Joint Commissioner of Central Excise	Above Rs. 5 lakh but not exceeding Rs. 20 lakh
(3).	Additional Commissioner of Central Excise	Above Rs. 20 lakh but not exceeding Rs. 50 lakh
(4).	Commissioner of Central Excise	Without limit.

The monetary limits specified in the above tables for adjudication of service tax cases are irrespective of whether or not such cases involve fraud, collusion, wilful mis-statement, suppression of facts or contravention of any of the provisions of the Act or the rules made thereunder with an intent to evade payment of service tax and whether or not extended period has been invoked. Cases not involving non-payment of service tax or mis-utilization of CENVAT credit are to be adjudicated by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise.

12.3 Where different cases involving the same issue are due to be adjudicated in a Commissionerate, all such cases may be adjudicated by the Central Excise Officer competent to decide the case where the service tax or CENVAT credit involved is of the highest amount.

12.4 For cases where the appellate authority remands the case for de-novo adjudication, specifically mentioning the authority that has to adjudicate the case, then such authority specified in the said appellate order should adjudicate such cases. Where the appellate authority does not specifically mention any adjudicating authority, it should be decided by the authority competent in terms of the monetary limits mentioned in para 12.1.

12.5 Central Board of Excise & Customs (CBEC) has directed that in respect of demands for an amount upto one thousand rupees towards short payment/non-payment of service tax, if the service provider, on the default being pointed out, pays the service tax along with interest within a period of one month of the default in payment, the penalty should be waived, taking recourse to the provisions under section 80 of the Act. In other cases, i.e. where amount of service tax involved is over Rs one thousand, penal action prescribed under sections 76, 77 and 79 would be attracted.