CA. Rachna Parashar (partner) (196 Points)
09 February 2012An assessee has service tax liability in the month of feb in march he has not deposited any amount of service tax regarding liability of feb, now in march after setting off liability of march by cenvat credit the assessee is having excess cenvat credit available which can be adjusted with the unpaid liability of feb .
So how the no of days be calculated for calculation of interest on service tax liability for the monthe of feb.
Pinky Agarwal
(Chartered Accountant)
(426 Points)
Replied 09 February 2012
Dear Madam,
Service tax liability for the month of Feb cannot be adjusted with the excess amount of cenvat credit you have in the month of march after adjusting this month's liability.
Further, No of days for the calculation of Interest is "the No. of days from the due date till the date of actual payment".
Regards,
Pinky Agarwal..
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 09 February 2012
HI,
Cenvat Credit of Mar Month cannot be adjusted with that of Feb Month. The same has to be paid alongwith interest @ 18% w.e.f. 01.04.2011 (If turnover < 60L, then interest is 15%). Days to be calculated from due date till date of actual payment.
Thanks....
CA. Rachna Parashar
(partner)
(196 Points)
Replied 10 February 2012
Now if there is liability regarding feb 2011 and it will be paid now so which interest rate will be taken for calculation of interest 13% or 18%. as interest rate of 18% is effective from 01/04/2011.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 11 February 2012
Two rates. Up to 31-03-2011 13% and from 01-04-2011 18%.( 15% if preceding year gross value is less than Rs.60L)
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
