Interest on late Deposit of Service Tax

Interest on late deposit of service tax

Posted @ July 20, 2014, 9:45 pm under (Service Tax Updates)
Simple interest rate enhanced, where there is short payment or delay in payment of service tax, vide notification no. 12/2014-ST, dated 11th July, 2014

As per section 75, interest on delayed payment of service tax would be as follows:
Turnover below Rs. 60lacs in F.Y/preceding F.Y.–15% p.a
Turnover above Rs. 60lacs in F.Y/preceding F.Y. – 18% p.a.

From 1st October, 2014, Simple interest rates per annum payable under section 75, to vary on the basis of extent of delay in payment of service tax:

Extent of delay Simple interest rate per annum:
Up to six months                                               18% 
From six months and up to one year                 24%
More than one year                                            30%

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