Rate of interest on late payment of excise duty

[MEHUL ASHAR]

Respected Sir,

As regarding above subject, my query is that is there any change in the rate of interest on late payment of duty according to the budget 2016-17 because at present the rate is 18% on late payment of duty so from 01-04-2016 it will be 18% or else.Please reply.

THANKING U

[Rajagopalan Ranganathan]

Sir,

With effect from 01.04.2016 the rate of interest to be levied under Section 11 AA of Central Excise Act, 1944 will be 15% vide Notification No. 15/2016-CE (NT) dated 01.03.2016. Prior to that date the rate of interest will be 18%.

[Ganeshan Kalyani]

The rate of interest for delayed payment of excise duty has been minimized from 18% to 15% w.e.f. 01.04.2016.

[CSSANJAY MALHOTRA]

Endorsed the facts placed by Sh. Rajagopalan & Sh. Ganeshan ji...

[Mahir S]

Sir,

It has been proposed in the recent Budget to rationalize the Interest rates on delayed payment of duty/tax across all indirect taxes uniformly at 15% per annum.

However, in case of Service Tax collected but not deposited to the exchequer, the rate of interest will be 24% per annum from the date on which the Service Tax payment became due.

Further, in case of Assessee, whose value of taxable services in the preceding year/years covered by the notice is less than ₹ 60 Lakh, the rate of interest on delayed payment of Service Tax will be 12%.

The above changes will come into effect on the day the Finance Bill receives the assent of the President.

AI Summary

Interest on delayed indirect tax payments lowered; higher charge where tax collected but not deposited, reduced rate for small providers. Interest on delayed payment of excise duty is reduced to a uniform lower rate for indirect taxes with effect from 01.04.2016 by Notification No. 15/2016-CE (NT) dated 01.03.2016; the prior higher rate applies before that date. The Budget further provides a higher interest charge where service tax is collected but not deposited and a reduced interest rate for small assessees, both to take effect upon Finance Bill assent.