Interest for late payment

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Pradip patel (Querist)
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22 April 2015 dear sir/madam
i have not deposited any service tax since march-2014 now i want to pay servicetax of all months of first half year
but as the new rates of service tax are applicable from 1-10-14 i m confused tht whether i have to pay at new rate or old rate?

and also tht, as new rates are dependent on delay period so from which date i shoud calculate delay period for new applicable rates?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 April 2015 Interest to be calculated as per new rates.

Vide Notification No 12/2014-ST dated 11.7.2014, rate of interest to be charged on delayed payment of service tax has been enhanced w.e.f. 1.10.2014, based on period of delay. Thus, longer the delay period , higher would be the rate of interest payable.
# Up to six months - 18% p.a.
# Beyond six months to one year - 18% p.a. for the first six months of delay; 24% p.a. for delay beyond six months.
# Beyond one year - 18% p.a. for the first six months of delay; 24% p.a. for period beyond six months up to one year; 30% p.a. for any delay beyond one year.

If turnover during preceding FY did no exceed Rs 60 Lacs then there will be a concession of 3% and interest rate will be reduced from 18% p.a. to 15% p.a.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 April 2015 Remember you need to calculate interest on days basis for delay period which is from the due date of payment till the date of actual payment. Please check out the "Service Tax Late Payment Interest Calculator wef 01/10/2014" from link given below:
https://www.caclubindia.com/share_files/service-tax-late-payment-interest-calculator-wef-01-10-2014-64447.asp#.VLPlniuUfUs

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