Dear Team,
Please let me know as to what is the rate of interest on delayed remittance of service tax.
I feel that it is presently 10% as against earlier rate of 13% p.a. (simple interest).
With Regards,
Mukunda
9900924000
mukundasy (manager) (97 Points)
08 November 2010Dear Team,
Please let me know as to what is the rate of interest on delayed remittance of service tax.
I feel that it is presently 10% as against earlier rate of 13% p.a. (simple interest).
With Regards,
Mukunda
9900924000
sankalp
(Tax Consultant ( Income Service Sale Tax ))
(107 Points)
Replied 08 November 2010
Dear Mukunda
Delay in payment of ST including a part thereof attract simple interest in terms of section 75 of the Act. The rate of interest is as prescribed form time to time in accordance with this section. At present the rate of interest is 13% per annum ( notification No.26/2004/ST dt. 10.9.2004) Further failure to pay st 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 of at the rate of 2% 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 ST However such penalty would not exceed the st payable.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 08 November 2010
It is 13% p. a. only from the due date till the date of payment of service tax.
Ashish Sharma
(Service)
(1028 Points)
Replied 09 November 2010
Mushak shareef
(eFiling Consultant)
(144 Points)
Replied 09 November 2010
I agree with Mr Ashish and the calculation is -- Amount to be payable *13%* defaulted days / 365
CA. R.Sankar Bharadwaj
(Working)
(59 Points)
Replied 25 November 2010
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