Rate of interest on late deposit of service tax

[S.C. WADHWA]

Dear Expert,
One of our director has given his building on rent and getting rent inclusive of service tax as per
agreement on monthly basis. Total turnover for the year exceeds Rs. one crore. We are providing bill
to the service recipient after biofercating rent amount plus service tax payable by us after getting
rebate on house tax paid. And paying service tax on quarterly basis. We have not paid service tax
by this time. We shall also have to pay penalty of ₹ 100/- per day upto ₹ 20000/- maximum on
late filing of return.
Now my query is at what rate of interest to be paid on late payment of service tax. Please give your
expert opinion.
REGARDS,
WADHWA

AI Summary

Director Faces Penalty for Delayed Service Tax Payment; Interest Rates Range from 18% to 30% Annually A director rented out a building and collected rent inclusive of service tax, with the annual turnover exceeding Rs. one crore. Service tax is paid quarterly, but there has been a delay in payment, incurring a penalty of 100 per day, up to 20,000. The query seeks the interest rate on late service tax payments. Responses indicate the interest rates are 24% per annum, with a breakdown: up to six months at 18%, six months to one year at 24%, and beyond one year at 30%.