New rates of interest

[vasudevan unnikrishnan]

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

AI Summary

Interest rate change applies prospectively from the tax due date until payment, not retrospectively for past defaults.
The discussion concludes that revised interest rates on service tax under the Finance Act operate prospectively from the date of enactment/assent and apply from each tax due date until payment is made; reduced rates affect outstanding dues going forward and future delays but do not retroactively reduce interest already accrued for delays that occurred before supersession, although administrative practice sometimes treats rate increases retrospectively.