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

[Ganeshan Kalyani]

24% p.a

[DR.MARIAPPAN GOVINDARAJAN]

Upto six months = 18%;

Six months to one year = Upto six months 18% + beyond six months to one year = 24%'

More than one year = Up to six months - 18% + beyond six months to one year = 24% + beyond one year = 30%

AI Summary

Interest on late service tax accrues at escalating statutory rates depending on delay, alongside a daily late filing penalty. Director failed to deposit service tax on time for rent receipt billed inclusive of tax; late filing attracts a daily penalty. Expert responses indicate applicable interest on late payment either as a flat 24% per annum or a tiered schedule: 18% per annum up to six months, 24% per annum for six months to one year, and 30% per annum for delays beyond one year.