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Rate of interest for delayed payment of service tax wef 01.10.2014

18 per cent. for the first six months of delay; 24 per cent. for the period beyond six months up to one year and 30 per cent. for any delay beyond one year.

Budget 2014 Prescribes Variable Rates of Interest for Delayed Payment of Service Tax -Section 75-  Notification No. 12/2014-ST Dated 11-7-2014

Notification No. 12/2014-Service Tax (N.T.), Dated: July 11, 2014 provides for simple interest rates per annum payable on delayed payments under section 75. With effect from 1.10.2014, to encourage prompt payment of service tax, it is  being proposed to introduce interest rates which would vary on the extent of delay and are proposed to be as follows:
Extent of delay Simple interest rate per annum
(Revised)
Simple interest rate per annum (Existing)
Up to six months 18% 18%
More than six months & upto one year 18% for first six months, and 24% for the period of delay beyond six months 18%
More than one year 18% for first six months, 24% for second six months, and 30% for the period of delay beyond one year 18%

Notification No. 12/2014 – Service Tax

New Delhi, the 11th July, 2014

G.S.R.___ (E).- In exercise of the powers conferred by section 75 of the Finance Act, 1994 (32 of 1994) and in supersession of the notification No.26/2004-Service Tax, dated 10th September, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.601 (E),dated the 10th September,2004, except as respects things done or omitted to be done before such supersession, the Central Government hereby, for the purpose of the said section, fixes the following rates of simple interest per annum for delayed payment of service tax , as given in table below :-

Table

Sl.No.

Period of delay

Rate of simple interest

(1)

(2)

(3)

1. Up to six months 18 per cent.
2. More than six months and up to one year 18 per cent. for the first six months of delay and 24 per cent. for the delay beyond six months.
3. More than one year 18 per cent. for the first six months of delay; 24 per cent. for the period beyond six months up to one year and 30 per cent. for any delay beyond one year.

2. This notification shall come into force on the 1st day of October, 2014.

[F. No. 334 /15/2014 -TRU]

(Akshay Joshi)

Under Secretary to the Government of India

Categories: Service Tax

View Comments (2)

  • sir
    plz tall me bill amount 4070+Surcharge Rs. 400/- total bill amount Rs . 4470 And bill for month of June how will be calculate tax interest Amount plz rply me

  • Sir/Madam,
    Suppose, service is rendered in the month of September, 2004 and due date of payment of Service Tax was 6th of October, 2004. But, Service Tax was not paid on due date and which is to be paid now i.e. in January, 2016. Then, how will the interest been calculated for delayed payment of Service Tax.
    Please provide the procedure of working out the interest from 6th October, 2004 to 6th January, 2016.

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