service tax

Before it was 15%, now come down to 13%.

Penalty for non-payment or delayed payment of service tax :

Section 76 of Finance Act, 1994 has provided for that If service tax is not paid or belatedly paid, penalty shall be imposed, which will be minimum Rs. 200 per day during which such failure continues or @ 2% per month, whichever is higher, starting with the first day after due date till date of actual payment of outstanding amount. Mercifully here is also a limit , as the penalty cannot exceed the service tax which was payable.

In addition to that there is mandatory payment of simple interest under section 75 for the period which the payment is delayed. The interest rate is 13% w.e.f. 10-9-2004, vide notification No. 26/2004-ST dated 10-9-2004 [Earlier interest @ 15% per annum from 11-5-2002. The interest rate was 24% upto 11-5-2002].



Rate of Interest upto 15/7/2001 - 18%.

Rate of Interest from 16/7/2001 to 15/8/2002 - 24%

Rate of Interest from 16/8/2002 to 9/9/2004 - 15%

Rate of Interest from 10/9/2004 to till date - 13%

Amit sirjee that rate was appplicable in between 16/8/2004 to 9/9/2004 .Again you need to update your self sirjee..waise bhi abhi aapke pass galtiya karne ka time hai baad mai nahi(jab ca ban jaoge)i ..sirjee all the best and keep it up and try to remove your mistake my good wishesh are also with you ..aur waise bhi aap mea naam sahre karte ho...hahahah