4.
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.