INTEREST CALCULATION FOR THE LATE PAYMENT OF EXCISE AND SERVICE TAX, Central Excise

[Mehul Pandya]

SIR,

THERE ARE 2 DATES FOR EXCISE AND SERVICE TAX PAYMENT. 5TH FOR MANNUAL CHALLAN AND 6TH FOR ONLINE PAYMENT. MY QUERY IS IN CASE WE ARE PAYING EXCISE OR SERVICE TAX ON 10TH OF THAT MONTH THEN WE HAVE TO CALCULATE INTEREST FOR 5 DAYS OR 4 DAYS ? IS THERE ANY NOTI./CIRCULAR IN SUPPORTING TO THIS ??

THANKING YOU

Posts / Replies

[Pradeep Khatri]

Dear  Mehul,

Since, it has been made mandatory to pay Duty and Taxes online and threshold limit has been reduced to Rs. 1.00 Lac, therefore, if Central Excise duty/ service tax is deposited late, then, interest would be calculated after the 6th day of the subsequent month.

You would have to pay the interest for four days only but in cash/GAR-7.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

[Arun Kumar Singh]

If you have pay the duty from manually after due date then interest will be applicable 5 days otherwise 4 days.