Interest on service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2016 Dear Sir,
I have following queries
1. What is rate of interest applicable on delay of service tax.
2. This is the first financial year when turn over would cross the limit of 50 lacs, then interest would calculated on monthly basis or it would be calculated on quarterly basis.

Please advise me, its urgent.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 January 2016 1. Rate is 15%

2. To be calculated only for the number of days delay.

Purnima Parashar

Purnima Parashar (Expert)
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22 January 2016 Interest on Late payment of Service Tax notification No (12/2014-ST dt. 11-07-2014 )

Extent of Delay Simple Interest P.A. on late payment of service Tax

Upto 6 Months 18%
From 6 Months upto 1 year 24%
More than 1 year 30%

The Payment schedule has been summarized for your reference

Individual/ Partnership Firms Quarterly for offline 5th of the following quarter
for online 6th of the following quarter

Companies/others Monthly for offline 5th of the following quarter
for online 6th of the following quarter

Exception:- Service Tax collected for the Month/Quarter ending of March shall be payable by 31st March of the said calendar year

Tax payer has two options to pay his service tax, namely, physical payment and online service tax payment. However, with effect from January 1 2014, it has become mandatory for entities to pay Service Tax Online if their previous year’s service tax amounted to INR 1 lac or more

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