Please provide the service tax payable interest calcualtion for a month
sathiyadeepan (Executive) (147 Points)
08 January 2013Please provide the service tax payable interest calcualtion for a month
C.A. Harshit Shah
(Chartered Accountant)
(30 Points)
Replied 08 January 2013
interest will be calculated on daily basis from the due date of payment upt the actual date of payment @ 18% p.a.
If assessee's t/o is below 60 lakhs in preceeding year than rate of interest will get reduced to 15% & will be calculated on daily basis only.
kavitha
(studying final)
(830 Points)
Replied 08 January 2013
interest caluculation on service tax
service tax to be paid * 18% or 15%* no of days delayed ( the day after due date to date of deposit of service tax) / 365
15% rate is applicable to small scale providers
Provided that in the case of a service provider, whose value of taxable services provided in a financial year does not exceed sixty lakh rupees during any of the financial years covered by the notice issued under sub-section (3) of section 73A or during the last preceding financial year, as the case may be, such rate of interest shall be reduced by three percent per annum.”
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 11 January 2013
Correctly explained by Harshit & Kavitha.
Further, if the period of default is before 01-04-2011, the rate of interest is 13% or for small service provider as explained above, 10%
From 10-09-2004 till 31-03-2011 Rate is 13%/10%
Thereafter till date Rate is 18%/15%
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