non payment of interest along with service tax for late remittance of service tax

[Rajeev Kalra]

i want know if i pay service tax only in one month and interest for late remittance of service tax after two month then how we calculate interest . whether interst will be calculated till the date of payment of service tax or any other interest will be due for not paying interest along with service tax.

[SANJEEV JADHAV]

Dear Rajeev, you have to calculate interest from the due date of service tax payment upto the date of actual service tax payment. If you are the proprietor then your due dates of service tax payment is quarerly and due dates of the same are 5th July, 5th Oct, 5th Jan and 31st March. You have to calculate interest amount till the date of actual payment @ 13% on Service Tax + Ed.Cess + H.S.Ed. Cess.

[Guest]

You have to pay simple interest from the due date to actual date of payment. There is no interest on interest on payment of interest subsequent to actual payment of service tax.

AI Summary

Interest calculation: simple interest accrues from the due date to actual payment on service tax, without compounding. Interest on delayed service tax is simple interest charged from the statutory due date up to the actual payment date, calculated on the service tax liability inclusive of applicable cesses; payment of interest after payment of tax does not attract additional interest on that interest.