Interest on late payment of service tax

[Guest]

Hi

Service Tax was supposed to be paid by May 2009

However we went to Supreme Court against Service Tax Dept.

In Supreme it was decided the amount shall be paid 01/03/2012.
Ruling Says - However in the event of default on the part of the Applicants in deposit by the due date, it will be open to the service tax department to recover the entire amount in arrears forthwith.

The amount was deposited on 15 march 2012 ( 15 days later)

Now the interest will calculated on 15 days or from May 2009 (984 Days) by the Service tax department ?

[Mahir S]

Sir,

The ruling of the Court has nothing to do with the payment of interest..

In your case, the Interest is required to be paid from May 2009 onwards.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri S. Mahir.

[Ganeshan Kalyani]

Service tax if paid after it become due, the interest provison becomes applicable. The interest in your case need to be paid from the date when it became due I.e. May 2009.

AI Summary

Interest on Late Tax Payment Calculated from Original Due Date, Not Court-Extended Period A query was raised regarding the calculation of interest on a late service tax payment initially due in May 2009. The taxpayer contested the payment in the Supreme Court, which ruled the payment should be made by March 1, 2012. The payment was eventually made on March 15, 2012. The question was whether interest should be calculated from May 2009 or just for the 15-day delay. Respondents agreed that interest should be calculated from the original due date in May 2009, as the court ruling did not alter the interest obligation.