Interest on delayed payment of service tax

[Guest]

In the case of delayed payment of Service tax, whether Interest is required to be payable on the 1st of subsequent month or 6th of Subsequent month (in E payment) till the date of payment. Whether any notification/circular in this regard,Please provide.

RAJESH

 

[PAWAN KUMAR]

Yes interest is to be paid on delayed payment of service tax at the rate of 18 percent per annum from the due date of  payment till the date of actual payment of service tax. Notification No.15/2011-ST dated 01.03.2011 is the basic notification. 

AI Summary

Interest on delayed service tax accrues from the due date until payment under the applicable notification. Interest on delayed payment of service tax is payable from the due date until actual payment at the rate of 18 percent per annum, and Notification No.15/2011-ST dated 01.03.2011 is the basic notification governing that interest liability and its calculation.