interest for delay service tax payment

In case of delayed payments ( after due date) the assessee is required to pay simple interest at the rate prescribed. Notification No. 26/2004 dated 10.09.2004 has specified the rate of interest at 13% per annum. So, In ur case interest amount will be ...

25108*13%*6/365=53.65

INTEREST ON LATE PAYMENT OF SERVICE TAX (SEC.75)

If the Service Tax has been paid after the due date, simple interest @ 13% shall be charged for the period of delay. If delay in payment of service tax is for 10 days, interest will be paid for 10 days only. Period of delay is counted from the first day after the due date till the actual payment of service tax is made. Eg: if service tax of Rs. 10000 is payable on Sept 5, 2008 but is paid on Sept 15, 2008, the delay is for 10 days and thus, simple interest of Rs. 36 (i.e. Rs. 10000*13%*10/365) is also required to be paid.

thxxxxxxxxxxxxxxxx  a lot

    Deepak is absolutely right.......

Hi all. whether interest on delayed payment of service tax  is deductible expense while computing income tax. I would require the section no. where it speaks about the allowability / dis allowance of the same

HI Nandhini,

U can claim the deduction of interest paid on Service Tax u/s 37 of the income tax act 1961. Further, the said interest on delayed payment of service tax is deductable on the due basis provided u have paid the same to government before the due date of furnishing of return. this has been given u/s 43B of Income Tax Act.

Hope this solves u'r query............

Thanks a lot Manoj..

 Manoj is absolutely correct.......

I think Manoj Is right

.

SERVICE TAX IS PAYABLE WITHIN THE LAST DATE OF ENDING THE MONTH OR QUARTER

AS PER THE SATUS OF THE SERVICE PROVIDER.

5 DAYS ARE INTEREST HOLIDAY FOR SERVICE TAX PAYMENT

EXCEPT ON THE MONTH OF APRIL OF EACH YEAR

EACH DAY DELAY IS LIABLE OF PAY 13% INTEREST, DAILY BASIS

EVEN PAYING ON 6th DAY OF THE MONTH, CALCULATION OF INTEREST WILL BE FOR 6 DAYS

.