TaxTMI 
TaxTMI 
What is the rate of interest on delayed payment if we paid service tax for the month of March-2016 on 10.09.2016
CALCULATION OF INTEREST ON DELAYED PAYMENT
10 Sep 2016 
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Interest on delayed service tax payments varies by delay period and whether tax was collected, with reduced rate after notification.
Interest on delayed service tax is computed by applying the rate in force during each period of delay: the earlier higher rate for delays up to the notification's effective date, and thereafter a reduced rate for unpaid tax not collected from customers and a higher post notification rate where tax was collected but not remitted; the applicable rate follows the delay period irrespective of how the shortfall was discovered. (AI Summary)
Interest on delayed service tax is computed by applying the rate in force during each period of delay: the earlier higher rate for delays up to the notification's effective date, and thereafter a reduced rate for unpaid tax not collected from customers and a higher post notification rate where tax was collected but not remitted; the applicable rate follows the delay period irrespective of how the shortfall was discovered. (AI Summary)