Interest on late deposit of service tax

Simple interest rate enhanced, where there is short payment or delay in payment of service tax, vide notification no. 12/2014-ST, dated 11th July, 2014

 As per section 75, interest on delayed payment of service tax would be as follows:

1) Turnover below Rs. 60lacs in F.Y/preceding F.Y.–15% p.a

 2) Turnover above Rs. 60lacs in F.Y/preceding F.Y.  18% p.a.

From 1st October, 2014, Simple interest rates per annum payable under section 75, to vary on the basis of extent of delay in payment of service tax:

Extent of delay Simple interest rate per annum:

Up to six months                                                18% 

From six months and up to one year             24%

More than one year                                           30%