SERVICE TAX

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Can Someone plz tell me what are the interest and penalty if we pay service tax after due date for eg in this month jan 10 we were supposed to pay service trax on 5th jan what if we pay on 6 or 7th jan

Replies (5)

 

CALCULATION OF INTEREST

 

YEARLY 13%

CALCULATION WILL BE DONE FOR EACH DAY

STARTING DATE AND PAYMENT DATE BOTH DAYS ARE INCLUSIVE

( Rs 5000 X 13% / 365 Days * 13 Days =  Rs 27.78  Rounded To Rs 28.00 For  13 Days)

.

Interest is to calculated after 5th jan or frm 1st jan

Prathamesh

As per Section 75

Every person, liable to pay the tax in accordance with he provision of section 68 or rules made thereunder, who fails to credit the tax or any part thereof to the account of the central government within the period prescribed, shall pay simple interest at the rate of 13% p.a. for the period such crediting of the tax or any part thereof is delayed.

So inerest will be charged from 6th day of the month.

 

Originally posted by : EKALABYA TALUKDAR
 
CALCULATION OF INTEREST
 
YEARLY 13%
CALCULATION WILL BE DONE FOR EACH DAY
STARTING DATE AND PAYMENT DATE BOTH DAYS ARE INCLUSIVE
( Rs 5000 X 13% / 365 Days * 13 Days =  Rs 27.78  Rounded To Rs 28.00 For  13 Days)
.


 

AGREE WITH THIS..

The date of payment in case of cash payment is the date on which cash is deposited and in case of cheque payment, the date of payment is when the cheque is presented.


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