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
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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