Interest rate

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Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 what is interest rate on service tax refund.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 August 2014 Refer section 244A.

Rate of Interest is 1/2% per month or part of a month from the first day of the AY (if refund is of advance tax) in all the other cases 1/2 % from the date of payment of such tax till the grant of refund.

For details refer section 244A from below link--

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=ed342b16-e4a2-4e3f-af94-7ea20b5ff598&rdb=sec&yr=303d6389-2d18-4432-bdbf-b74822b1a6df&sec=244A&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 Dear sir, in hurry my question not read properly,so please reply this question after reading again

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 August 2014 please refer Notification No. 8/2006-Service Tax Dated: April 19, 2006 along with section 73B of Finance Act 1994. The effective rate is 18%.

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 dear Nikhil ji you have mention service tax rate on delay payment of service tax ,which is 18% per annnum.
my question is interest rate on service tax refund,which is excess paid bt the assessee to the Government.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 August 2014 My bad. You got to refer section 83 of finance act 1994 read with Central Excise Act section 11BB read with notification NOTIFICATION NO. 67/2003-CE(N.T.)
DATED 12/09/2003. Rate as I last checked is 6%.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 August 2014 Sorry for Not noticing service tax.

Check point No 6.4 from link given below--

http://www.servicetax.gov.in/faq-29sept11.pdf

Also refer section 11BB of the Central Excise Act, 1944. Not quite sure about the rate I think its 8%. Link given below may kindly be seen--

http://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=139

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 August 2014 Sanjay I believe the 8% is typo error because the same article states 6% rate.