St penalty & interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2016 Dear sir,
Plz let me know is there any change
In ST interest and in penalty if yes
plz update with latest provision..

Regard
Ankit jain

Rupesh Jain

Rupesh Jain (Expert)
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12 May 2016 Interest rates on delayed payment of duty/tax across all indirect taxes is
proposed to be made uniform at 15%, except in case of service tax collected
but not deposited with the Central Government, in which case the rate of
interest will be 24% from the date on which the service tax payment became
due. Notifications under section 73B and section 75 of the Finance Act,
1994 are being issued accordingly.
(Notification Nos. 13 and 14/2016-ST dated 1st March, 2016 refer)

In case of assessees, whose value of taxable services in the preceding
year/years covered by the notice is less than Rs. 60 Lakh, the rate of interest
on delayed payment of service tax will be 12%.
(Notification Nos. 13 and 14/2016-ST dated 1st March

RETURN
Service tax assessees above a certain threshold will also be required to file
an annual return. This change shall come into effect from 1st April, 2016

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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12 May 2016 Following Interest and penalty will be applicable for non payment of service tax:

Interest :
18 percent for the first six months of delay; 24 percent for period beyond six months up to one year; 30 percent for any delay beyond one year. 3 percent interest rate concession allowed u/s 75 shall be allowed to specified small service providers.

Penalty :
As per the new provisions. Late payment of service tax attracts a non discriminatory minimum penalty of 10% of service tax liability. In case of fraudulent attempt to evade or make late payment of service tax, a maximum penalty of 100% of service tax liability is applicable.

Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615

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