hi
If we paid the service tax after 6 days of due date, how much we have to pay the interest for the delay.
e.g. total Payable amount is Rs.25108 (service tax)
how much the int. for the delay of 287 days . plz explain with accounting code
jaya pandey (accountant) (97 Points)
17 July 2009hi
If we paid the service tax after 6 days of due date, how much we have to pay the interest for the delay.
e.g. total Payable amount is Rs.25108 (service tax)
how much the int. for the delay of 287 days . plz explain with accounting code
VARUN
(PCC STUDENT)
(523 Points)
Replied 17 July 2009
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.
Nandhini R
(Chartered Accountant)
(28 Points)
Replied 22 May 2010
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
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 24 May 2010
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............
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 26 May 2010
Manoj is absolutely correct.......
EKALABYA TALUKDAR
(SERVICE TAX CONSULTANT)
(666 Points)
Replied 15 October 2010
.
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
.
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)