TaxTMI 
TaxTMI 
Collection of Interest on delay payment from customer
X X X X Extracts X X X X
X X X X Extracts X X X X
....ollection of Interest on delay payment from customer<br> Query (Issue) Started By: - Vivek anandhan Dated:- 30-7-2014 Last Reply Date:- 1-8-2014 Service Tax<br>Got 3 Replies<br>Service Tax<br>Dear exp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erts, We are the manufacturer of Excisable goods and are collecting interest through debit note from our customer on account of delay payment for our Excise duty suffered goods. Whether we need to c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ollect service tax or excise duty for said interest amount. Vivekanandhan Sunbeam Reply By Rajagopalan Ranganathan: The Reply: Dear Shri. Vivekanandan, You are collecting interest for delayed pa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....yment of amount charged by you in your invoice under which the excisable goods are supplied to your customer. Such interest will not be treated as additional consideration under Section 4 of Central E....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xcise Act, 1944. therefore you need not include such interest in the assessable value and pay central excise duty on such interest. Collecting interest for delayed payment of invoice value by you cus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tomer cannot be treated as provision of service. If you collect any service charges for the same then you have to pay service tax. Reply By Naveed S: The Reply: There is no need to either collect ex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cise duty or service tax for collection of interest amount. The reply furnished above is proper and correct. Reply By Vivek anandhan: The Reply: Thanks for the reply and it is clear<br> Discussion ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Forum - Knowledge Sharing ....