Hope all of you must have seen the notification no.13/2016 ST as per which the rates have been fixed as 15 and 24% from the date of enactment of FA,2016. Has anybody examined the exact scope of words--
' except as respects things done or omitted to be done before such supersession'
Does it have any implication that new rates will apply from the due date of payment of taxes in all cases?
unnikrishnan v,cochin
New Service Tax Interest Rates of 15% and 24% Apply Prospectively, Not Retroactively, Per Finance Act 2016. A discussion on a forum addressed the applicability of new service tax interest rates set at 15% and 24% following the enactment of the Finance Act, 2016. Participants debated whether these rates apply retroactively or only to future payments. It was concluded that the new rates apply prospectively, affecting payments made after the Finance Bill receives presidential assent. The discussion also highlighted a common practice of applying increased interest rates retrospectively, although the current wording suggests no benefit for past offenses. The original query was resolved with consensus and appreciation among participants. (AI Summary)
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