Provided that in the case of a service provider, whose value of taxable services provided in a financial year does not exceed sixty lakh rupess during any financial years covered by the notice or during the last preceding financial year, as the case may be, such rate of interest, shall be reduced by 3% p.a."
criteria 1: max rate of interest upto 36% for the service providers who are under "statuary audit" of sec 44AB, incometax
for service proder who are under compulsary audit , 36%, and for those who are not in audit die to their lower turnover ........36-3=33% applicable
Criteria2: Department has issued the notice for recovery of short payment or not .........
2a)... if department has issued notice then the rate may go higher of notificed rate i.e 18% p.a and can peak upto 36% or 33% as the case maybe.
2b) if department has not issued notice but the assesee has lapsed the oppertunity to pay and revise the return, then also the provisions apply
2c) if assessee has found himself and paid with 18% int and revised the return within the revision time, then..these provisions does not apply
disclaimer : this is my personal interpretation, views of other members are welcome.