Interest on service tax delay

[SARAVANAN RENGACHARY]

Sir,

As per budget 2016, interest for delayed payment of service tax is 15%, interest for tax collected but not paid is 24%.

Query:

Due date for service tax remittance is 06th of every month. if we make the payment on 10th, there is a delay for 4 days. what is the interest rate for this delay ?. is it 15% or 24%.

Saravanan.

AI Summary

Interest Rate for Delayed Service Tax Payment: 15% or 24%? Clarification Pending Finance Bill 2016 Enactment. A user inquired about the applicable interest rate for a four-day delay in service tax payment, questioning whether it should be 15% or 24%. The discussion revealed that, according to the 2016 budget, a 15% interest rate applies to delayed payments, while 24% applies to collected but unpaid taxes. However, the new rates would only take effect upon the enactment of the Finance Bill, 2016. Until then, the existing rates remain applicable. Participants agreed that the new rates would be effective once the President signs the bill.