Interest on late payment of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2013 Under which section it is prescribed that Interest on Late payment of Service tax is 15% p.a.,if turnover is below 1 crore?

RENGARAJ R.K

RENGARAJ R.K (Expert)
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23 August 2013 It is not 1 crore.

The new rate of interest of 18% will be applicable from 1st April, 2011.However interest rate is reduced by 3 % for turnover up to 60 Lacs

“Provided that in the case of a service provider, whose value of taxable services provided in a financial year does not exceed sixty lakh rupees during any of the financial years covered by the notice issued under sub-section (3) of section 73A or during the last preceding financial year, as the case may be, such rate of interest shall be reduced by three percent per annum.”

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Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2013 Thank you sir for solving my querry..

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