VCES Interest for delay

[satbir singhwahi]

VCES-2013 for Rental Income was filed, tax due was deposited on 30.06.2014. Now Audit party has detected that tax for period 01.07.2007 to 28.02.2009 was wrongly deposited @10% instead of 12%. Kindly guide the rate of interest and period for which the interest to be deposited.

AI Summary

Service Tax Error in VCES: Incorrect 10% Rate Used Instead of 12% for 2007-2009 Period; Interest Rates Clarified A query was raised regarding the Voluntary Compliance Encouragement Scheme (VCES) for rental income, where the service tax for the period from July 1, 2007, to February 28, 2009, was incorrectly deposited at 10% instead of the required 12%. The response confirmed the audit department's findings and clarified the applicable service tax rates: 12% service tax, 2% education cess, and 1% secondary and higher education cess for that period. Additionally, the interest rate for late payment was 13% from September 10, 2004, and increased to 18% from April 1, 2011.