Interest on late payment of service tax

Originally posted by : Neha sharma
	What is the Interest to be paid on Late Payment of Service Tax? Is it 18% or 15%?

Delay in payment of service tax liable for interest @ 18% p.a.

(Increased from 13% to 18% vide Notification No.15/2011-ST dated 1st March, 2011 w.e.f. 1st April, 2011)
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W.e.f. 8th April, 2011, where the service provider whose value of taxable services provided does not exceed Rs.60 Lacs during any of the financial years covered by the Notice u/s. 73A(3) or during the last preceding financial year, as the case may be, such rate of interest shall be reduced by 3% p.a. [Section 73B].

Its 18% ,as per notification No. 14/2011-Service Tax dt. 01.03.2011 and 15/2011-Service Tax dated 01.03.2011 but there is an exception for Small Service providers, So the reduced interest rate of 15% (18%-3%) will be applicable in case where the value of taxable services provided in a financial year is not more that Rs. 60 lakh.

thnx for the prompt reply...

Dear Neha,

Kindly follow the link for detailed analysis of interest on delayed payment of Service tax.

/forum/benefits-of-proviso-to-sec-75-service-tax-232357.asp#.UVSUEhdgcxA

Kindly do share your views.

Regards,

Manoj Agarwal

tax2001-it @ yahoo.com

thanks Mr. Ashif