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Interest on service tax

Abhay (Student) (90 Points)

05 July 2016

Hello Experts, My query is regarding interest on late payment of service tax collected but not deposited to government. Query : One of my clients is in business of money changing(Forex) Turnover of last year is less than 60 lakhs. Applicable interest rate on service tax would be 12% or 24%???

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5 Replies

Ajeet Singh (Service ) (190 Points)
Replied 05 July 2016

Rebate 3% available.

Interest is 15%.

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 06 July 2016

Hii Mr.Abhay, w.e.f. 24.05.2016 section 75 of Finance Act,1994 has been amended. New provision is as under (for assessee having value of taxable turnover less than Rs.60 Lakh);
i) if there is a wilful default- 21%
ii) other cases - 12%
thanks

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jogendra (DGM-Commercial) (331 Points)
Replied 06 July 2016

IN YOUR CASE IT WOULD BE 24% (SL.NO.1 OF TABLE)

Notification No. 13/2016-Service Tax Dated 01/03/2016 -Seeks to prescribe interest rate under section 75 of the Finance Act, 1994

Notification No. 13/2016-Service Tax Dated 01/03/2016

Seeks to prescribe interest rate under section 75 of the Finance Act, 1994-

G.S.R.___ (E).- In exercise of the powers conferred by section 75 of the Finance Act, 1994 (32 of 1994) and in supersession of the notification No. 12/2014-Service Tax, dated the 11th July, 2014, published in the Gazette of India, Extraordinary, vide number G.S.R. 482 (E), dated the 11th July, 2014, except as respects things done or omitted to be done before such supersession, the Central Government hereby, for delayed payment of any amount as service tax in the situation mentioned in column (2) of the Table below, fixes the rate of simple interest per annum mentioned in the corresponding entry in the column (3) of the said Table:-

Serial Number	Situation	Rate of simple interest
(1)	(2)	(3)
1.	Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Government on or before the date on which such payment becomes due.	24 per cent.
2.	Other than in situations covered under serial number 1 above.	15 per cent.

2. This notification shall come into force on the day the Finance Bill, 2016 receives the assent of the President.

[F. No. 334/8/2016-TRU]

(K. Kalimuthu)

Under Secretary to the Government of India

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jogendra (DGM-Commercial) (331 Points)
Replied 06 July 2016

IN YOUR CASE IT WOULD BE 24% (SL.NO.1 OF TABLE)

Serial Number	Situation	Rate of simple interest
(1)	(2)	(3)
1.	Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Government on or before the date on which such payment becomes due.	24 per cent.
2.	Other than in situations covered under serial number 1 above.	15 per cent.