New Interest rates for delay in payment of service tax

By | March 5, 2016

Amended provisions as per the Finance Bill, 2016 in respect of interest rates for delay in payment of service tax

New interest rates for delay in payment of service tax (Applicable after enactment of the Finance Bill, 2016): Presently, slab rates of interest (i.e. 18% for upto 6 months, 24% for the period from 6 months to 1 year and 30% for the period after 1 year) are provided for late payment of service tax. However, as per Finance Bill, 2016 read with Notification No. 13/2016-Service Tax dated 01.03.2016, the new rates of interest shall be applicable from the day of enactment of Finance Bill, 2016:

S. No.       Particulars                                                              Rate of Interest               Period of Delay

1.                    Service tax collected from customer / client                     24%                       For the period from                                                                                                                                                        due date to actual                                                                                                                                                                date of payment

2.                        Service tax is not collected or Reverse Charge               15%

Mechanism liability

Interest rates for delay in payment of service tax

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Related Post : Complete Analysis of interest rates for delay in payment of service tax

Service Tax Interest Rates w.e.f 14.05.2016

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