Interest rate for service tax

According to notification No. 14/2011-Service Tax dt. 01.03.2011 and 15/2011-Service Tax dated 01.03.2011 in which also the rate of interest is increased to 18% p.a. from 13% p.a. The new rate of interest of 18% will be applicable from 1st April, 2011.

But in case if the company  has defaulted in making service tax payment relating to FY 2010-11, & is willing to pay now along with interest.

Then the interest rate applicable shall be 13% or 18%?

 

 

Thanks & Regards

 

 


 
Replies (3)

Interest rate would be 13% p.a.

yes interest rate would be 13%, and 18% relevant for financial year 2011-12.

Calculate interest at the rate of 13% upto 31-3-2011 and from 1-4-2011 till the date of payment, calculate the interest at 18%.

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