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 on delayed service tax payments distinguishes collected-but-unpaid from other delays; new rates effective on enactment.
Two distinct simple interest rates apply to delayed service tax: a higher rate where tax has been collected but not remitted, and a lower rate for other delayed payments. The notification supersedes the earlier notification on interest rates and takes effect only from the date the Finance Bill, 2016 is enacted, leaving the prior rates operative until that enactment; it does not affect actions completed before its supersession.