Interest in delayed payment

Interest rate @ 21%

Rate : 15%

well 15% or 21
further information -i have collected service tax but not yet deposited it

Interest rate 18% multiple of number of day

You have to pay 21%

interest rate is 12%

18 less 3% i. e. 15% for first 180 days

Service Tax collected but not deposited to the credit of central government  and value of taxable service in preceding year is less than Rs.60 lakh :Service Tax Interest Rates   @ 21%.

more confused now 😥
plz explain

bro its confirm 15 % if turnover less than 60 lakhs else its 18 %

Hi Rajat,

The Finance Act 2016 has changed the rate of interest. But the new rate is applicable from 14.05.2016.

There was a slab in old rates i.e. If delay is upto 6 months then rate would be 18% (15% If <60Lac t/o condition fulfil) then 24 and 30.

New rate is 15% ( 12% in case <60 lac t/o fulfil)

In your case, suppose the liability pertains for april month. Therefore you could had deposit on 6th may, but fails to do so.

Now from 07th may till 14th May you need to interest at old rate which in any case is 15% and after that rate will be 12% till the date of payment.

The bifurcation is necessary because there are certain verdict of honable courts

Cont,
and also the circular of department.

Please counter if I am wrong.

Regards