Liablity to interest)(GTA)

[Asked by Guest]

Sir,

I received goods & Invoice  on 1.2.12, 21.3.12(invoice date) (S.tax applicable  @10%)  and 4/2012 (S.tax applicable @12%) but  I paid service tax on goods received in February and March @10% and during April @ 12% ( by clubbing value  for 10% & 12% ) on 5.5.2012, would I be liable for interest  for delayed payment of service tax for  Feb/March . Urgent.Thanks

[YAGAY and SUN]

Yes, you have to pay the statutory interest either @ 18% or @ 15% as applicable on you.

AI Summary

Interest liability arises for delayed service tax payment when rate changes span receipt and invoicing, requiring statutory interest.
Goods received and invoiced across a change in service tax rate were paid in a single consolidated payment in May by clubbing values. The taxpayer asked whether delayed payment for the earlier receipt/invoice periods attracts interest. The advisory response confirmed that statutory interest is payable on delayed service tax, and that the taxpayer is liable to pay statutory interest at the applicable rate(s) for the period of delay.