Interest on service tax

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Respected ............................

                                A person is liable to pay service tax quarterly (<July 5/6, Oct 5/6, Jan 5/6, Apr 5/6), A person say "X" paid his service tax amount for 2nd quarter (i.e., Jul-Sep) on October 26th. We all know that if service tax is paid after the due date then 18% of interest is applied on it. Now my query is, if he pays service tax after due date without paying interest, then how he will be liable and what amount he is liable?

Replies (6)

Interest wil be naturally charged only upto the date of due of actual amount of tax.......so it would be calculated only upto the date of payment of tax........and the excess interest being the liability further........

here quarter ending on march payment day is 31/3 is there isn't it?

Yes the amount of interest will be only upto the actual date of payment i.e oct 26 as there isnt any provision regarding same but if in case of audit department comes across without the truth in the reason is not januine then they can leavy penalties on the same upto 200%.

 

 

Interest wil be naturally charged only upto the date of due of actual amount of tax.......so it would be calculated only upto the date of payment of tax........and the excess interest being the liability further........

 

 

                         A person is liable to pay service tax quarterly (<July 5/6, Oct 5/6, Jan 5/6, Apr 5/6), A person say "X" paid his service tax amount for 2nd quarter (i.e., Jul-Sep) on October 26th. We all know that if service tax is paid after the due date then 18% of interest is applied on it. Now my query is, if he pays service tax after due date without paying interest, then how he will be liable and what amount he is liable?

Intereste is leviable from 6th october to the date of payment, if paid thro challan.  In case of e-payment, 6th is the date of payment and hence interest is calculated from 7th to the date of payment.  There is no interest on interest and hence before receiving notice from the department, the interest has to be paid.

 

rengaraj .r.k


CCI Pro

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