Interest rate

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 what is interest rate on service tax refund.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

21 August 2014 Refer section 244A.

Rate of Interest is 1/2% per month or part of a month from the first day of the AY (if refund is of advance tax) in all the other cases 1/2 % from the date of payment of such tax till the grant of refund.

For details refer section 244A from below link--

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=ed342b16-e4a2-4e3f-af94-7ea20b5ff598&rdb=sec&yr=303d6389-2d18-4432-bdbf-b74822b1a6df&sec=244A&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 Dear sir, in hurry my question not read properly,so please reply this question after reading again

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

21 August 2014 please refer Notification No. 8/2006-Service Tax Dated: April 19, 2006 along with section 73B of Finance Act 1994. The effective rate is 18%.

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 dear Nikhil ji you have mention service tax rate on delay payment of service tax ,which is 18% per annnum.
my question is interest rate on service tax refund,which is excess paid bt the assessee to the Government.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

21 August 2014 My bad. You got to refer section 83 of finance act 1994 read with Central Excise Act section 11BB read with notification NOTIFICATION NO. 67/2003-CE(N.T.)
DATED 12/09/2003. Rate as I last checked is 6%.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

21 August 2014 Sorry for Not noticing service tax.

Check point No 6.4 from link given below--

https://www.servicetax.gov.in/faq-29sept11.pdf

Also refer section 11BB of the Central Excise Act, 1944. Not quite sure about the rate I think its 8%. Link given below may kindly be seen--

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=139

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

21 August 2014 Sanjay I believe the 8% is typo error because the same article states 6% rate.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

21 August 2014 May be Nikhil Ji I am not sure. But section 11BB does not specify any rate. So from where to find the Actual rate?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

21 August 2014 NOTIFICATION NO. 67/2003-CE(N.T.)DATED 12/09/2003

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

22 August 2014 it used to be 8% before this notification