13 June 2016
Dear Seniors,
Can anyone help me with regard to changes in the rate of interest for delayed payment of service tax.
Also let me know if there is a change, will it be retrospective?
Kind regards
Mohd Nadeem
13 June 2016
at present rate as below Service Tax collected but not deposited to the exchequer (Government) 24% Other Cases 15% If in case the value of taxable services of preceding year does not exceeds Rs. 60 Lakhs, then the rate of interest on late payment will be 12%. The above changes will come into effect from 14th May 2016 i.e. the day the Finance Bill, 2016 receives the assent of the President.
and before that The following interest on delayed payment of service tax will be applicable from 1-10-2014-
Period of delay Rate of simple interest Upto 6 month 18% p.a. More than six month and up to 1 year 18% p.a. for the 1 st six month of delay and 24% p.a. for the delay beyond 6 months. More than a year 18% p.a. for the 1 st six month of delay + 24% p.a. for the period beyond 6 month upto 1 year + 30% p.a. for any delay beyond one year
13 June 2016
Thanks for the reply..
But i have one more question suppose i have pending payment of service tax for the month of march 2016 and i have to make a payment today or after may 14, 2016 when finance bill get assent.
Now wil i have to make late payment of service tax with interest @ 24% from march?
CAclubindia
