Interest Rate of Service Tax in case of Turnover Below 60 Lakhs

[Mehul Pandya]

Sir,

From 01.10.2014 Interest Rate for has been revised as 18%,24% & 30% as per delayed period.

My query is if I have turnover below 60 Lakhs, can I pay Service Tax Interest @ 15%,21% & 27% respectively calculating 3% concession ??

[CSSANJAY MALHOTRA]

Concessional Rate of Interest @3% on Service Tax Liability is available to SSI unit if Turnover is below ₹ 60 Lacs. The said benefit is available in each slab or else the purpose of concessions stands defeated.

[YAGAY andSUN]

Dear Mehul,

It's gonna be 15% after taking in to the account of concession 3% otherwise it would be 18% for the service providers whose turnover is more than of ₹ 60 Lakhs.

Regards,

YAGAY & SUN

(Management, Business & Indirect Tax Consultants)

AI Summary

Concessional interest rate reduces delayed interest across slabs for eligible small service providers with turnover below threshold. A concessional reduction of three percentage points in interest on service tax arrears is available to an SSI unit whose turnover is below the threshold, and that concession must be applied to each slab of delayed interest, reducing the standard delayed payment interest rate in every applicable period for calculation of interest on service tax liability.