Rate of interest for late payment of service tax

Hi

We had filed last service tax return (April,17 to June,17) in the month of Dec, 2018 and paid interest @ 15% on late payment of service tax.

Now, the GST authorities pointed out that interest had to be calculated @ 24% for service tax collected but not deposited before due date as prescribed under Notification 13/2016-ST.

Please clarify whether the interest had to be calculated @ 24% instead of 15% on late payment of service tax


Regards
Replies (2)
Quick Summary
This discussion clarifies the correct interest rate for late service tax payments. While 15% was initially applied, it's highlighted that the applicable rate for service tax collected but not deposited by the due date, as per Notification 13/2016-ST, should be 24%. This aims to resolve queries regarding the appropriate penalty for delayed remittances.

Rate of Interest will be 24%.
Thanks sir

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