Rate of interest

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Querist : Anonymous

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02 May 2016 What is the rate of interest on service tax payment for proprietorship firm?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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02 May 2016 As per budget 2016 ,service tax collected and not paid interest will be 24% P.A.
Interest in case of assessee , whose value of taxable services preceding year covered by notice is less than Rs.60 lakhs rate of interest for delayed payment of SERVICE tax will be 12%

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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02 May 2016 Up to six months 18 percent
More than six months and up to one 24 percent
30 percent for any delay beyond one year.

in the case of a service provider , whose value of taxable services provided in a financial year does not exceed Rs 60 lakhs –
During any of the financial year covered by the notice ;
During the last preceding financial year ,as the case may be, Such rate of interest shall be reduced by 3% p.a. i.e. the aforesaid rate of interest, shall be reduced by 3% p.a and such rate of interest shall be 15% or 21% or 27% respectively.

Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615
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Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2016 Thakyou Mr. Abhishek Sir,

Sorry Mr. Addangadi Sir unable to understand what do you want to say.Kindly read your reply and clarify it. As per your reply there is only two rate. One is 24% and other is 12%.... or you miss the some part of answer....:P

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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03 May 2016 Interest on Delayed Payment of Service Tax u/s 75 (from date of enactment of Fin. Act 2016)

Interest rates on delayed payment of duty/tax across all indirect taxes are being rationalized and made uniform at 15%,except in case of Service Tax collected but not deposited to the CENTRAL GOVERNMENT, the rate of interest will be 24% from the date on which the Service Tax payment became due.
In case of assessees, whose value of taxable services in the preceding year/years covered by the notice is less than Rs. 60 Lakh, the rate of interest on delayed payment of Service Tax will be 12%.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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03 May 2016 According to me :
Notification No. 12/2014 dated 11.07.2014

1. Up to 6 months- 18%

2. >6 Month to 1 Year – 24%

3. > 1 Year – 30%

3% concession on the applicable rate of interest will be available to the small service provider.