22 November 2012
Sec 75 of the Act attracts simple interest in terms of delay in payment of service tax.
Rate of Interest is 18% wef 01.04.2011
In case f small service providers having t/o of less than 60.00 Lacs per annum, the rate of interest shall be reduced by 3%, effective rate will be 15%.
Sec 75 stipulates that interst is payable for the period by which such crediting of the tax or any part thereof is delayed. Hence actual period of default must be computed in terms of days in respect of defaults occuring. eg If due date is 05.11.2012 and payment is made on 20.11.2012 then interest of the period of 15 days is to paid.
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