Doubt about late payment of service tax (Section 75)

you are right

Yes, its 15%

thaks to gautham & Divya

i think its 18%  it has been increased from 1.4.2011 in the budget

@ arjun

some articles saying that Int rate is 15% for assesse whose  turn over below 60lakhs......!!!

but i didnt find any particular Notification about this issue....!!!

 Gross receipts-below  60 lakhs-15%

                        -above 60 lakhs-18%

@ Divya K S, Pradeep Poojari  & Brajesh gautam

The said "Notification No.14/2011 dt on 01.03.2011" is not discussiing about turnover, Its simply stating that 18% PA, Please provide me if any other circular came in this regard   

rate of  interest on late payment of service tax

Originally posted by : Anjani Kumar
	@ Divya K S, Pradeep Poojari  & Brajesh gautam The said "Notification No.14/2011 dt on 01.03.2011" is not discussiing about turnover, Its simply stating that 18% PA, Please provide me if any other circular came in this regard

The Finance Bill, 2011 inserted a proviso after The Finance Bill, 2011 inserted a proviso after Sec75.   Sec75 deals with the levy of interest on delayed payment at such rate not below 10% and not exceeding 36% per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette for the period by which such crediting of the tax or any part thereof is delayed.  The rate of interest for the current year is fixed at 18%.  The new proviso provides that in the case of a service provider, whose value of taxable services provided in a financial year does not exceeding sixty lakh rupees during any of the 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% per annum.

Agree with Mansha,

Please refer to Point No.13.2 of D.O.F.No.334/3/2011-TRU dated 28th February, 2011 attached below for more clarification.

Phani ji,

Agree with others, Please note that interest payable 18% p.a. on the service tax is to be calculated on no. of days for which tax payment is delayed.

late payment of service tax interest, i calculate month or day wise please any one clarify.

Interest has to be calculated on monthly basis. Monthly rate of interest will be Rate per annum divided by twelve,i.e., 18%/12 = 1.5% per month. For this simple interest @ 1.5% for every month or part of a month for which payment is delayed, will be payable. Hence, if payment is delayed by, say, 2 months 5 days, interest would be payable for three months.

Interest to be calculated on the basis of no. of days delay