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