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%