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2009 (1) TMI 206 - AT - Service TaxInterest on delayed payment of Service Tax – Interest - A plain reading of the Rule 6(1), as it existed prior to 31-3-05, in the context of the objective of the law, clearly shows that the reference to the due date is the date of receipt of the value of the taxable services and not the receipt of the Service tax from the service-recipients, as no obligation to pay tax is on such recipients - There are cases where the recipients pay a consolidated amount and not taxable value and tax separately - In such a case, as rightly pointed out by the learned Counsel himself, the consolidated amount would be deemed to be inclusive of tax and the tax amount payable has to be calculated treating such amount as the cum-tax value - Since the appellants had received the value for taxable services earlier, they had an obligation to pay the tax by the due dates and not having done so, they are required to pay the interest towards the delayed payment of tax.
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