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Interest on service tax late payment

C R Manjunath (Accounts Manager) (56 Points)

18 June 2012

Hi,

The interest on delayed payment is 18% p.a. wef 01.04.2011 & in forums I could see turnover upto 60 lacs p.a. will attract 15% p.a. only. Could any one provide Notification details where it states about 15% on 60 lacs turnover.

In Notification No.14/2011-ST dated 01.03.2011 it states "In the said notification, for the words “thirteen per cent.”, the words “eighteen per cent.” shall be substituted."

Thanks,

Manjunath.

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NEERAJ KUMAR (CA FINAL) (78 Points)
Replied 18 June 2012

Hello Manuunath,

Please read the following taken from web:-

Small scale sector

Budget 2011 - Service Tax - Small scale sector

February 28, 2011

13.1 Finance minister has announced in his budget speech that individual and sole proprietor assessees with a turnover upto Rs 60 lakhs shall not be subject to audit.

13.2 Interest rate for all assessees (including firms and corporates) upto a turnover of Rs 60 lakhs shall be 3% less than the prescribed rate.

13.3 The period for making the payment in order to avail the benefit of reduced penalty under the second proviso to Section 78 shall be 90 days for assessees mentioned at paragraph 13.2.