INTEREST RATE , PENALTY & NOTIFCATION OF LATE PAYMENT OF CENTRAL EXCISE

[MAYA KARPE]

Respected Sir,

Please explain me ,Central Excise late payment interest rate , penalty & Current Notification no .

Also know the slab of interest rate form 1 month to 1year.

Thanks & Regards

MAYA KARPE

PUNE, MAHARASHTRA

[Rajagopalan Ranganathan]

Sir,

As per sub-rule 93) of rule 8 of Central Excise Rules, 2002-

If the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with an interest at the rate of specified by the Central Government vide notification under section 11AA of the Acton the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount.

(3A) If the assessee fails to pay the duty declared as payable by him in the return within a period of one month from the due date, then the assessee is liable to pay the penalty at the rate of one per cent. on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues .

Explanation.- For the purposes of this sub-rule, 'month' means the period between two consecutive due dates for payment of duty specified under sub-rule (1) or the first proviso to sub-rule (1) , as the case may be.

The rate of interest is 15% with effect from 1.4.2016 vide Notification No. 15/2016 - Central Excise (N.T) dated 1.3.2016.

[KASTURI SETHI]

Slabs of interest do not exist.

[Ganeshan Kalyani]

Sir, slab wise interest rate is not there in Excise. Thanks.

AI Summary

Interest on late central excise duty accrues from the day after due date at the notified rate; penalty applies after one month. Interest on unpaid central excise duty accrues from the first day after the due date until payment at the rate notified by the Central Government under the Act; the 2016 notification increased that notified rate. If duty declared in the return is unpaid within one month from the due date, a penalty of one per cent per month or part thereof applies on the unpaid duty from the due date, and for this purpose a 'month' means the period between two consecutive due dates. Slab-wise interest rates do not exist under central excise rules.