CALCULATION OF INTEREST ON DELAYED PAYMENT

[PARVEEN ARORA]

What is the rate of interest on delayed payment if we paid service tax for the month of March-2016 on 10.09.2016

AI Summary

Discussion on Interest Rate for Delayed Service Tax Payments: Apply Rate Effective During Delay Period, Not Current Rate. A forum discussion addresses the interest rate applicable on delayed service tax payments for March 2016, paid in September 2016. Participants reference Notifications No.12/14-ST and No.13/16-ST, noting the rate changes effective from May 14, 2016. Before this date, the rate was 18%. Afterward, it became 15% if the tax was not collected from customers, and 24% if collected but unpaid. Clarification is sought on whether the interest rate should be based on the period of delay or the current rate. The consensus is to apply the rate effective during the delayed period.