New Interest rates on Service Tax

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Alex Fernandes (Querist)
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29 March 2011 As per new notification Interest rates on unpaid service tax amount has been increased from 13% to 18 % is it right and 1 thing i wanted to ask whether there is any amount of increase in penalty for not filing of return on time which was maximum of Rs 2000/- half yearlr please let me know

caferoz

caferoz (Expert)
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30 March 2011 Interest rate for delayed payment of service tax is being increased to 18% per annum, effective 1-4-2011 (Notification 15/2011-ST). A concession of 3% has been proposed in the Bill for tax payers whose turnover during any of the years covered in the notice or the preceding financial year is below60 lakh.

This answers your 1st part of query...

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caferoz

caferoz (Expert)
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30 March 2011 Dear Alex,

The maximum penalty for delay in filing of return under section 70 is proposed to be increased from Rs.2,000 to Rs.20,000.

this answers your second part.
thanks!

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