19 June 2013
18% per annum w.e.f 1/4/2011 to be calculated for the number of days delay. Please refer notification 14/2011 dated 1/3/2011. But as per proviso to section 73B, 3% reduction is allowed if value of taxable service in the previous financial year is up to Rs.60lakhs meaning thereby effective rate of interest will be 15%
Penalty for late filing ranges from Rs.500/- to Rs.20000/- depending on the number of days delay. For details please see Rule 7C of Service tax Rules,1994.
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