Actual date of crediting of Service Tax to the Book account of the Central Government to be taken for calculation of interest and penalty - Service Tax - Trade Notice No. 132/96 - Cochin

Under Sections 75 and 76 of the Act an interest has to be charged at the rate of 1.5% of every month or part of the month by which crediting of tax is delayed and penalty for failure to collect or pay Service Tax can also be imposed. In order to arrive at the calculation of interest and penalty under the Service Tax on telephones it has been decided that the first date on which book transfer is made in the cash section of Secondary Switching Area (SSA) as the date of crediting to the Central Government. Accordingly the proforma ST 3 and ST 3A prescribed under Rule 7 of Service Tax is revised which is enclosed alongwith this Trade Notice. Hereafter all Secondary Switching Areas who are paying the Service Tax on telephones by book transfer has to file the return prescribed under Rule 7 of Service Tax in the revised proforma.