neeraj (CA) (930 Points)
12 June 2012
Interest on late payment of Service tax is payable on day basis or month basis
For e.g
Due date 05.04.12
Paid on 10.04.12
Interest will be paid for 1 month @ 1.5% or for 5 days @ 18% ????????
Sonu Kumar
(Account Manager)
(665 Points)
Replied 13 June 2012
Dear Mr Niraj
In Both Cases Interest will be Same 18% Yearly
Then 18/12= 1.5% Monthly
Example---- in Case of 18% (Yearly Basis) = Service tax Amount X 18/100 X 5/365.
In Case of 1.5% (Monthly Basis) = Service tax amount X 1.5/100 X 5/30
Thanx....Sonu Kumar
Sonu Kumar
(Account Manager)
(665 Points)
Replied 13 June 2012
Dear Mr Niraj
In Both Cases Interest will be Same.
18% Yearly
Then 18/12= 1.5% Monthly
Example---- in Case of 18% (Yearly Basis) = Service tax Amount X 18/100 X 5/365.
In Case of 1.5% (Monthly Basis) = Service tax amount X 1.5/100 X 5/30
Thanx....Sonu Kumar
Sonu Kumar
(Account Manager)
(665 Points)
Replied 13 June 2012
Dear Mr Niraj
In Both Cases Interest will be Same.
18% Yearly
Then 18/12= 1.5% Monthly
Example---- in Case of 18% (Yearly Basis) = Service tax Amount X 18/100 X 5/365.
In Case of 1.5% (Monthly Basis) = Service tax amount X 1.5/100 X 5/30
Thanx....Sonu Kumar
CAclubindia
