Payment of Service Tax on Rent on Immoveable Property with Interest

[PAWAN KUMAR SHARMA]

As per the recent instructions from CBEC, we have to deposit service tax on Rent on Immovable component from last year (earlier we have not paid any service tax as per the stay of Superem Court)

My Question is

1. Whether any Interest for late deposit is applicable for the same (considering the stay by Supreme Court) ?

2. What is the rate of interest ?

3. Whether interest is to be calculated on per month basis or per day basis ?

4. Suppose, we have to pay Rent for the month of July 2010 for which Bill was raised on 07th of Aug'10 and payment was done on 20th of Aug'11, then how to calculate the amount of Service Tax payable along with interest payable if we have to deposit the same in this year i.e. Aug 2011 ?

AI Summary

Interest on Late Service Tax Payments: 13% Before April 2011, 18% After; No Interest if Paid on Time A forum discussion addresses the payment of service tax on rent for immovable property, focusing on whether interest applies due to a Supreme Court stay. Participants clarify that interest is mandatory for late payments, with rates of 13% before April 1, 2011, and 18% thereafter, or 15% for turnovers under 60 lakhs, calculated daily. A service receiver queries about calculating tax and interest for a payment made in August 2011 for services from July 2010. It is clarified that no interest is needed if the service tax was paid by the due date after receiving the payment.