How to apply new Service Tax Interest Rate ??

[abbas mukhi]

Sir,

As the finance bill, 2016 is enacted on 14.05.2016, new rate of interest is also get effected.

how new rate of interest will be apply in for earlier transaction ??

Is there any provision in this regard...?

AI Summary

Debate on 15% Service Tax Interest Rate: Applies to Past Transactions or Only Post-May 14, 2016 Payments? A discussion on a forum addresses the application of the new service tax interest rate following the enactment of the Finance Bill, 2016. Participants debate whether the new 15% interest rate applies to past transactions or only to payments made after May 14, 2016. Opinions vary, with some arguing that the date of payment determines the applicable rate, while others emphasize the rate at the time of the original tax due. The discussion references legal interpretations, notifications, and Supreme Court judgments to clarify the prospective application of the new rate. The consensus leans towards applying the rate effective at the time of payment.