Rate of interest to be paid on late payment of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2016 After passing of Finance Bill 2016, the rate of interest on late payment of service tax has been changed. Now, please guide at what rate of interest should i pay service tax to government. The service tax to be paid for the month of March 16 is Rs. 413070 and it has yet not been paid. From 31.3.16 to 13.5.16, the rate of interest to be taken is 18% but from 14.5.16 to 27.5.16 which rate of interest i should consider - 15% or 24%. I am bit confused with the interpretation. Please guide in this matter.

Thanks in advance.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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27 May 2016 With effect from 14th May, 2016, the interest rates under Section 75 are as given below:

Service tax collected but not paid to Govt.

Rate of Interest 24%
Concessional Rate 21%

Other cases
Rate of Interest 15%
Concessional Rate 12%

Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615

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Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2016 Sir, please clarify how do u interpret service tax collected but not paid to Government. I am unable to get the intention behind this phrase so asking this query.

Also, what does other cases signify. Under which circumstances do we need to calculate rate of interest at 15%.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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28 May 2016 Other cases where service tax not collected.

Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615

Note : If you find our reply useful. Please Score us by clicking on "THANK USER"

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