Accounts Knowledge Hub

Finance, Taxation and All Statutory Information For Everyone

Accounts Knowledge Hub

Finance, Taxation and All Statutory Information For Everyone

Servicetax

Interest on late deposit of service tax

Simple interest rate enhanced, where there is short payment or delay in payment of service tax, vide notification no. 12/2014-ST, dated 11th July, 2014

 As per section 75, interest on delayed payment of service tax would be as follows:

  1) Turnover below Rs. 60lacs in F.Y/preceding F.Y.–15% p.a
 2) Turnover above Rs. 60lacs in F.Y/preceding F.Y.  18% p.a.

From 1st October, 2014, Simple interest rates per annum payable under section 75, to vary on the basis of extent of delay in payment of service tax:

Extent of delay Simple interest rate per annum:
Up to six months                                                18% 
From six months and up to one year             24%
More than one year                                           30%