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SERVICE TAX

05 January 2010

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

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5 Replies

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 05 January 2010

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)

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prathamesh shelar (CA) (164 Points)
Replied 05 January 2010

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

Anand (Chartered Accountant) (166 Points)
Replied 06 January 2010

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.

Amir (Learner) (4016 Points)
Replied 06 January 2010

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..

Jag Bhushan Sharma (Faculty in a B-School) (633 Points)
Replied 06 January 2010

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.