10 June 2015
Renting of Immovable property has been taxed After 1.7.2012 whereby all services will be taxed unless they are covered by any of the entries in the negative list or are otherwise exempted. Accordingly as per clause (44) of section 65B of the Act it has also been stated that service includes a declared service. And Renting of Immovable property is the part of declared service. consequences Interest on Late payment Budget 2014: Increase in Interest on Late Payment of Service Tax Arun Jaitley while presenting Budget 2014 on 10th July has increased the rate of interest on late payment of service tax. The interest rate on late payment of service tax to be levied on a simple interest basis would now vary depending on the extent of delay in payment of service tax. These new interest rates for late payment of service tax introduced in Budget 2014 would come into effect from 1st October 2014 and are as follows:Extent of Delay Simple Interest p.a. on Late Payment of Service Tax Upto 6 months 18% From 6 months upto 1 year 24% More than 1 year 30%
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