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Interest in delayed payment

Rajat Jain (student) (81 Points)

09 September 2016

what is interest on delayed payment of service tax if aggregate value of taxable service is less than 60 lacs in previous F.Y.?

this query is for the f.y. 2016-17

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12 Replies

Rajasekhar (Student CA Final ) (58 Points)
Replied 09 September 2016

Interest rate @ 21%

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 09 September 2016

Rate : 15%

Rajat Jain (student) (81 Points)
Replied 09 September 2016

well 15% or 21
further information -i have collected service tax but not yet deposited it

HARSHALA (MBA) (22 Points)
Replied 09 September 2016

Interest rate 18% multiple of number of day

Rajasekhar (Student CA Final ) (58 Points)
Replied 09 September 2016

You have to pay 21%

Manish kumar (Accountant) (21 Points)
Replied 09 September 2016

interest rate is 12%

sahil (student) (127 Points)
Replied 09 September 2016

18 less 3% i. e. 15% for first 180 days

G.C.SUNIL (CHARTERED ACCOUNTANT) (86 Points)
Replied 10 September 2016

Service Tax collected but not deposited to the credit of central government and value of taxable service in preceding year is less than Rs.60 lakh :Service Tax Interest Rates @ 21%.

Rajat Jain (student) (81 Points)
Replied 10 September 2016

more confused now 😥
plz explain

pratik mundra ( ipcc student) (33 Points)
Replied 10 September 2016

bro its confirm 15 % if turnover less than 60 lakhs else its 18 %

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 12 September 2016

Hi Rajat,

The Finance Act 2016 has changed the rate of interest. But the new rate is applicable from 14.05.2016.

There was a slab in old rates i.e. If delay is upto 6 months then rate would be 18% (15% If <60Lac t/o condition fulfil) then 24 and 30.

New rate is 15% ( 12% in case <60 lac t/o fulfil)

In your case, suppose the liability pertains for april month. Therefore you could had deposit on 6th may, but fails to do so.

Now from 07th may till 14th May you need to interest at old rate which in any case is 15% and after that rate will be 12% till the date of payment.

The bifurcation is necessary because there are certain verdict of honable courts