Service Tax Interest Rate Chart

By | October 9, 2016
(Last Updated On: October 9, 2016)

Service Tax Interest Rate

Service Tax Interest Rate: From 14.05.2016

Interest payable for delayed payment of Service Tax is 15%. However, if assessee has collected service tax but did not deposit it with Government, interest rate will be 24% – Notification No. 13/2016-ST dated 1-3-2016 effective from 14th May, 2016.

In case of small service providers whose value of taxable service did not exceed Rs. 60 lakhs during any of the financial years covered by the notice or during the last financial year, the rate of interest shall be reduced by 3% per annum [proviso to section 75 of Finance Act, 1994 inserted w.e.f. 8-4-2011].

Thus, in case of small service providers, interest rate will be 12% w.e.f. 14th May 2016.

Service Tax Interest Rate: During the period  1-10-2014 To 14.05.2016

Interest on Delayed Payment of Service Tax during the period  1-10-2014 to 14th May 2016  under section 75 of Finance Act, 1994 was as follows –

(a) if delay upto 6 months – 18% for first six months

(b) if delay upto one year – 18% for first six months and 24% for delay beyond six months

(c) if delay more than one year – 18% for first six months and 24% for next 6 months and 30% for any delay beyond one year – Notification No. 12/2014-ST dated 11-7-2014 existing upto 14th May, 2016.

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Service Tax Interest Rate: From 14.05.2016 (date of Receipt of President Assent) As per Notification NO.13/2016-ST, DATED 1-3-2016

SECTION 75 OF THE FINANCE ACT, 1994 – INTEREST ON DELAYED PAYMENT OF SERVICE TAX – NOTIFIED RATE OFINTEREST – SUPERSESSION OF NOTIFICATION NO.12/2014-ST, DATED 11-7-2014

NOTIFICATION NO.13/2016-ST, DATED 1-3-2016

In exercise of the powers conferred by section 75 of the Finance Act, 1994 (32 of 1994) and in supersession of the notification No. 12/2014-Service Tax, dated the 11th July, 2014, published in the Gazette of India, Extraordinary, vide number G.S.R. 482 (E), dated the 11th July, 2014, except as respects things done or omitted to be done before such supersession, the Central Government hereby, for delayed payment of any amount as service tax in the situation mentioned in column (2) of the Table below, fixes the rate of simple interest per annum mentioned in the corresponding entry in the column (3) of the said Table:—

Serial Number Situation Rate of simpleinterest
(1) (2) (3)
1. Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Government on or before the date on which such payment becomes due. 24 per cent.
2. Other than in situations covered under serial number 1 above. 15 per cent.

2. This notification shall come into force on the day the Finance Bill, 2016 receives the assent of the President.

Read Finance Bill 2016 assented to by President

Service Tax Interest Rate : From  1st day of October, 2014 to 13.05.2016 as per NOTIFICATION NO.12/2014-ST, DATED 11-7-2014

 

INTEREST PAYABLE – NOTIFIED RATE OF INTEREST UNDER SECTION 75 – AMENDMENT IN NOTIFICATION NO.26/2004-ST, DATED 10-9-2004

NOTIFICATION NO.12/2014-ST, DATED 11-7-2014
[SUPERSEDED BY NOTIFICATION NO.13/2016-ST, DATED 1-3-2016, W.E.F. DAY THE FINANCE BILL, 2016 RECEIVES ASSENT OF THE PRESIDENT]

In exercise of the powers conferred by section 75 of the Finance Act, 1994 (32 of 1994) and in supersession of the notification No.26/2004-Service Tax, dated 10th September, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.601 (E),dated the 10th September,2004, except as respects things done or omitted to be done before such supersession, the Central Government hereby, for the purpose of the said section, fixes the following rates of simple interest per annum for delayed payment of service tax , as given in table below :—

Table

Sl. No. Period of delay Rate of simple interest
(1) (2) (3)
1. Up to six months 18 per cent.
2. More than six months and up to one year 18 per cent. for the first six months of delay and 24 per cent. for the delay beyond six months.
3. More than one year 18 per cent. for the first six months of delay; 24 per cent. for the period beyond six months up to one year and 30 per cent. for any delay beyond one year.

2. This notification shall come into force on the 1st day of October, 2014.

 

 

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