As per Section 75, Interest is payable at 13% on all the short or non payment of Service Tax.
ABC Company had to pay ₹ 800 towards service tax interest.
To record arrears payment
Go to Gateway of Tally > Accounting Vouchers > F5: Payment
Click on S: Stat Payment.
Select Service Tax as the Tax Type.
Enter 1-4-2015 in the Period from field and 30-4-2015 in the To field.
Select Interest in the Type of Payment.
Press Enter.
Select bank ledger in the Account field.
Select the expense ledger for arrears under Particulars.
Enter the Amount as 800.
Press Enter.
Enter the Bank Allocation details, as applicable.
Press Enter.
Enter Narration. if required.
The Payment invoice appears as shown below:
Press Ctrl + A to save the invoice.
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