Payment of excise duty for march

[ASHOK AMIN]

Dear Experts,

I would like to know what will be the after effects if due to acute financial problem we are not able to pay excise duty by the end of last day of march ?

[Ganeshan Kalyani]

Sir, you will have to pay with interest the service tax liability if paid after 31st March. Thanks.

[KASTURI SETHI]

Sh.Ashok Amin Ji,

Concurred with Sh.Ganeshan Kalyani, Sir. Pl. also go through Rule 8 (3A) of CE Rules, 2002 which is extracted below:-

[(3A) If the assessee fails to pay the duty declared as payable by him in the return within a period of one month from the due date, then the assessee is liable to pay the penalty at the rate of one per cent. on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues.

[DEEPAK SHARMA]

The view of the Sh. Kasturi Sethi is fully correct

[KASTURI SETHI]

Thanks Sh.Deepak Sharma, Ji.

[ASHOK AMIN]

Thanks to all the experts for the reply.

AI Summary

Late excise duty payment triggers interest and a monthly penalty on the unpaid declared duty. Failure to pay declared excise duty by the due date results in interest on the unpaid liability and a penalty of one per cent on the unpaid amount for each month or part thereof, calculated from the due date where payment is not made within one month of that date; the penalty and interest apply concurrently to the period of default.